Mayoral Forum On Mobility, Migration & Development

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1 Financed by Joint Migration and Development Initiative Implemented by Mayoral Forum On Mobility, Migration & Development June 2014 Barcelona, Spain POLICY BRIEF A Virtuous Circle: Fostering Economic Prosperity and Development in Origin and Destination Communities Introduction The wider view of migration as a development tool is being supported more and more as there is increasing evidence that it can sustain local development activity and dynamisms of regions receiving and sending migrants. These positive linkages are also being considered within the on- going discussion over the post development agenda. While this debate is currently exclusively conducted and framed at national and intergovernmental levels, more attention must be given to the role of decentralized governments. Local authorities1, and more 1 The definition of local authorities used in this policy brief encompasses the large variety of sub- national levels and branches of government, namely municipalities, communes, districts, counties, provinces and regions. the e of the

2 particularly cities, are on the front line in dealing with the challenges and opportunities that migration brings about. Given the local dimension of both migration and development, local authorities are best placed to capitalize on this nexus, building on the growing importance of the local level for planning and implementing socio- economic development. The extensive phenomenon of globalization, the expansion of decentralization processes and the growing influential role of global cities recognized in the international arena are current trends that give cities more legitimacy and visibility in the field of migration and development. As a consequence, policy thinking must be readdressed in order to allow local authorities, and particularly cities, to take on and carry out this new role successfully. Migration management tools must be adjusted accordingly. Since 2008, the Joint Migration and Development Initiative (JMDI) 2 has put this approach into practice by supporting local authorities and civil society organizations concrete migration and development (M&D) projects. The JMDI experience has shown that the most successful and sustainable M&D interventions are those developed around a strong relationship with the local governments in countries of origin and destination of migration. Context As current trends show, the number of people living in cities will rise to some 6.4 billion in 2050, almost twice more than today, thus turning much world into a global city. currently an estimated number of 232 million international migrants and 740 million internal migrants, human mobility plays a defining role in this massive urbanization process. The management of migration should therefore be considered as a crucial factor for shaping sustainable and prosperous cities in the future. Given the toxicity debate over migration in regions like Europe, it increasingly appears that national arenas are burdened by contradictory political interests and policies to be safeguarded, especially when it comes to regulating the access to the labour market, border control, return and readmission. This limits the ability national level to harness the potential of migration for development. Cities are able to set migration in a new and positive light. For example, London and New York are building on their long history of destination cities of migration to promote their multiculturalism as reinforcing their economic success, thereby attracting foreign talents contributing to their dynamism. Moreover, the drivers and impacts of migration are mostly felt at the local level, be it in terms of effects on the labour market, the size and demographic local population or the need for public service provision. Thus, it is in the local development s interest of cities to firmly engage in a migration for development approach so as to maximize the positive impacts that migration can provide either in terms of social cohesion, cultural diversity or economic development 2 The Joint Migration and Development Initiative is funded by the European Union and the Swiss Development Cooperation Agency. It is implemented by UNDP in partnership with the IOM, ILO, UNHCR, UNFPA and UN Women. the

3 and prosperity. It makes much sense given the local- to- local dimension of migration whereby transnational spaces are reinforced by the fact that people from the same community of origin tend to migrate to the same areas in the country of destination. This territorial approach is even stronger when a common vision can be shared between cities at origin and destination, including the civil society: through peer to peer cooperation, both ends develop a sense of ownership over the initiatives, which increases the likelihood of them committing time, energy and resources, ensuring their success and sustainability. Migrants are objective allies of cities as actors ir development and they do contribute highly to the development ir territories of origin and destination. Cities have diverse policy options to build on migrants capacities so they can make the most out capitals they possess: these include migrants human capital (education, skills and knowledge), financial and entrepreneurial capital (investment, trade, remittances, purchase of real estate), social capital (networks, norms and values) and affective capital (commitment derived from their emotional engagement with their countries of origin). In Spain, the municipality of Vic has provided migrants with different training programmes and financial opportunities to develop their projects in their country of origin as well as it has given immigrants associations a very participative role in the city. Through this initiative, both Catalan and Senegalese people of Vic have seen concrete benefits on local economic development of a multi- stakeholders cooperation. The figure below illustrates the interactions between migration and local development and provides examples of policy options host and home localities can adopt. the

4 For the local development impact of migration to flourish, good local governance is required and should encourage a strong inclusive dialogue among local stakeholders, including migrants. A multi- stakeholder participative approach whereby migrants association, civil society organizations, the private sector and local public institutions needs to be put in place. This kind of cooperation ensures that the actions carried out respond to the real needs citizens, as well as to political interests and strategies, ranging from the idea of a project to a more complex and richer vision of a public policy. It is also to be stressed that migrants and their families are increasingly important political constituencies in cities receiving migrants. It is essential that migrants can participate in the local public and political life, both in localities of origin and destination. An articulated policy to harness the benefits of migration for local development needs to strongly look into upholding migrants rights be there political, economic, social or cultural at origin and destination. Recommendations The following policy recommendations are based on lessons learnt from on- going local practices in harnessing and promoting migrants contributions to development identified by the JMDI. The silver lining underlying the application below recommendations is the presence of a strong political will, sustained over time.! Linking migrants capital with local development Why? Migrants can and do contribute highly to the development of both communities of origin and destination in many ways through the capital (human, financial and entrepreneurial, social capital, affective and local capital) they possess. How? To make this capital flourish, cities can take initiatives that include language training, financial literacy training and training on migrants rights and responsibilities in the new society. Policies that harness the professional skills of migrants to achieve local economic impact that benefit 1) the host locality through a successful inclusion in the labour market and 2) the home locality through return migration or temporary return to train others in the skills acquired through migration. In order to enhance migrant communities capacities to ensure that they participate in public and political life in both host and home, localities can support migration platforms and networks and facilitate transfer of know- how between territories on all sectors. Finally, holistic and integrated service delivery aiming at supporting migrants and their families in the totality of legal, psycho- social, labor, economic and cultural aspects is most appropriate to safeguard the wellbeing and rights of migrants and their families and to guarantee migrants a trustful environment. the

5 ! Attracting and channeling migrants remittances Why? Migrants remittances and investments constitute very important source of funding for many communities of origin and they should not only be promoted and encouraged, but their development impact should also be multiplied and strengthened. How? Home and host Cities can provide financial and in- kind contributions for financial literacy education to increase the development impact of migrants remittances. The training can be combined with special investment packages. Financial literacy education can be the access point for cities to offer other integrated services (such as information on irregular migration, human trafficking, psychosocial services for migrants families, taking stock of migrants capacities etc.! Supporting migrants entrepreneurship Why? Migrants tend to have a higher level of entrepreneurship than the native population. Nevertheless, migrants often lack access to financial capital and knowledge on the legal environment to invest. Their investments generate limited multiplier effects as they do not necessarily meet the local economic demand. How? Cities may consider providing guarantees, bonds, insurance or other interventions to eliminate the financial risk for migrants and to facilitate their access to capital. Host and home cities need to ensure that migrants investments are relevant for the local economy and development objectives. To promote migrants entrepreneurship, cities can propose trainings on entrepreneurship and general local opportunities. This can be a supportive tool for direct sponsoring of migrants projects thus ensuring their efficiency and sustainability.! Linking migration and decentralized cooperation Why? Migrants are important parts of city- to- city co- development partnerships. By having them as the driving force behind such partnerships between home and residence communities, migration becomes a reservoir of skills with that local authorities can rely on for local development. Collaboration and dialogues of regions and provinces upon migration management are paramount in raising awareness to the links which unite them and have a more relevant territorial approach as for economic, social and cultural matters. How? Engaging migrants in decentralized cooperation programs is the best way to build bridges between communities. More local- to- local networks and exchanges of experience are needed as well as the creation of spaces in the international and domestic arena that encourage sharing of knowledge and practices between local authorities in the area of migration and development.! Enhancing capacity building Why? Cities need to build and strengthen their capacity to effectively link migration and development in local policy planning and to engage in meaningful partnerships with relevant society actors that should also benefit from capacity building interventions as they the

6 are critical for maximizing the benefits and minimizing the risks and negative impacts of migration at the local level. How? The diversity of actors requires specific trainings and capacity building targeting their particular needs and dedicated objectives. As for cities, locally elected government officials and local planning administrations have to be sensitized, and supervising national agencies should be trained on drafting relevant guidelines.! Building partnerships Why? An efficient migration for development approach requires the forming of multi- stakeholders partnerships in order to maximize every actors capitals (financial, human, social, affective) and competencies (political, legislative, entrepreneurial, intellectual). How? Local authorities and governments, migrant associations, NGOs, academic institutions and social partners should cooperate in a scheme that would benefit to all, define clear roles and responsibilities, provide extensive dialogue, consider existing capacities and answer local needs.! Increasing vertical domestic interaction Why? National authorities have a crucial role to play in facilitating the role of cities. They should be equipped with adequate fiscal resources and operate in environment with an effective state of decentralization. National, regional and local actors activities have to be wisely articulated to avoid duplication, better match needs and resources and improve implementation. How? This can be achieved through increased interactions and exchange of information between domestic actors and the establishment of formal partnerships between national agencies and cities. National governments should make sure that migration is included in local authorities development plans, through planning guidelines for example, and that local authorities have the necessary financial, material and human resources to follow them. The JMDI has produced specific knowledge tools to support the work of cities in efficiently connecting migration with their local development priorities. We invite your relevant services to become members JMDI M4D Net ( and to consult our publications. the

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