Labour Migration in South Asia: An Overview

Transcription

1 Labour Migration in South Asia: An Overview S.K. Sasikumar, Senior Fellow V.V. Giri National Labour Institute Presentation to the SARNET Training Programme on Labour Economics: Theories, Methodologies and Research Issues Institute for Human Development November 05, 2015

2 Contextulaising Contemporary Labour Migration Accelerated movement of people in search of employment emerging as a key feature of the contemporary world of work However, there is a structural disarticulation between economic growth and labour migration Migration Paradox arising mainly due to: Measurement Issues Most migration indicators measure stocks of migrant population and severely underenumerate migration flows While life time migrants is adequately represented, that of short term, seasonal, circular and commuting migration is inadequately measured 2

3 Contextulaising Contemporary Labour Migration Growing informalisation of employment relations and absorption of overwhelming proportion of migrants into informal economy Blurring of sharp distinction between labour supplying and receiving regions Conventional way of conceptualising labour migration being inadequate to represent all forms of mobility of labour 3

4 Theories of Migration Two broad theoretical streams : Models examining the initiation of migratory movements Models analysing the perpetuation of such movements across space and time 4

5 Theories Examining Initiation of Migration Neo Classical Macro Theory Key Proponents: Lewis, 1954; Ranis & Fei, 1961; Harris & Todaro, 1970; Todaro, 1976 Key Propositions Migration of workers is caused by differences in wage rates between regions Labour markets are the primary mechanisms by which migration of labour are induced other markets do not have important effects on migration The way for governments to control migration flows is to regulate or influence labour markets in sending and/or receiving countries 5

6 Theories Examining Initiation of Migration New Economics of Migration Theory Key Proponents: Stark & Levhari, 1982; Stark, 1984; Stark & Bloom, 1985; Katz & Stark, 1986; Taylor, 1986; Stark, 1991 Key Propositions Families, households or other culturally defined units of production and consumption are the appropriate unit of analysis for migration research, not the autonomous individual Wage differentials is not the necessary condition for any migration to occur; households may have strong incentives to diversify risks, through migration even in the absence of wage differentials Government can influence migration rates not only through policies that influence labour markets, but also through those that shape insurance markets, capital markets etc. 6

7 Theories Examining Initiation of Migration Dual Labour Market Theory Key Proponent: Piore, 1979 Key Propositions Migration stems from intrinsic labour demands of advanced regions Labour migration is largely demand based and is initiated by recruitment on the part of the employers in advanced regions or by governments acting on their behalf Wage differentials are neither a necessary nor an essential condition for labour markets to occur 7

8 Theories Examining Initiation of Migration World Systems Theory Key Proponents: Wallerstein (1974); Portes and Walton, 1981; Petras, 1981; Castells, 1989; Sassen, 1988, 1991; Morawska, 1990 Key Propositions Migration is a natural consequence of capitalist market formation in the developing/backward regions; the penetration of the global capital into peripheral regions is the catalyst for movement Flow of labour follows the flow of goods and capital, but in the opposite direction Migration ultimately has little to do with wage rates or employment differentials between regions; it flows from the dynamics of market creation and the structure of the global economy 8

9 Theories Examining Perpetuation of Migration Network Theory Key Proponents: Hugo, 1981; Taylor, 1986; Massey, 1990; Gurak and Caces, 1992 Key Propositions Once begun, migration tends to expand over time through network connections As migration becomes institutionalised through the formation and elaboration of networks, it becomes progressively independent of the factors that originally caused it, be they structural or individual Governments can expect to have great difficulty controlling flows once they have begun, because the process of network formation lies largely outside their control and occurs no matter what policy regime is pursued 9

10 Theories Examining Perpetuation of Migration Institutional Theory Key Proposition As organisations develop to support, sustain, and promote movement, the flow of migrants becomes more and more institutionalised and independent of the factors that originally caused it 10

11 Internal Migration : Key Features Migration plays a significant and increasing role in the repertoire of livelihood strategies of millions of people in South Asia Major Data Sources National Census Specialized Surveys like NSS Surveys in India NSS Survey (India) estimates that there were 326 million migrants in India in , constituting nearly 28.5 per cent of the population 11

12 Internal Migration: Key Features Migration per 1000 Persons in India (NSS Rounds) 12

13 Internal Migration : Key Features Rural-Rural migration still the dominant form of mobility However, during to increase noted with respect to: rural to urban migration (18.8 per cent to 19.5 per cent of total migrants) urban to urban migration (12.9 per cent to 13.1 per cent of total migrants) 13

14 Internal Migration: Key Features Increase in long distance (Inter-State migration in recent years) Percentage of inter-state migration (rural to urban) increased from 19.6 per cent in to 25.2 per cent in Percentage of inter-state migration (urban to urban) increased from 19.9 per cent in to 22.9 per cent in

15 Internal Migration: Key Features Marriage related migration pre-dominates in both rural and urban migrants 84 per cent women cite marriage as reason for migration in Among male migration, economic reasons is one of the most important reasons for migration In per cent of rural male migrants and 55.7 per cent of urban male migrants reported economic reasons for migration 15

16 Internal Migration: Key Features Increase in short duration out migration during to An estimated 15.2 million are short duration out migrants of which 85.1 per cent were males and 71 per cent were rural out migrants 16

17 Internal Migration Key Features Principal Destination of Short-Duration Migrant (%), Source: NSSO, Migration in India,

18 Internal Migration: Key Features Percentage Distribution of Short-Duration Migrants by Industry in Principal Destination, Source: NSSO, Migration in India,

19 Internal Migration: Emerging Issues Labour Market Substantial proportion of migrants engaged in low end occupations in receiving regions In construction more than 90 per cent of the migrant workers are engaged as unskilled workers/helpers Prospects for upward occupational mobility more or less absent for migrant workers 19

20 Internal Migration: Emerging Issues Labour Market Several occupations in major receiving regions becoming migrant-centric (domestics, informal transport, hawkers) Certain institutional mechanisms and agency system ensure a steady flow of seasonal migrants to cater to the implicit demand for migrants in receiving regions Capitalist penetration in rural areas creating a pool of mobile population who are in search of some means of livelihoods 20

21 Internal Migration: Emerging Issues Labour Market Growing scarcity and irregularity of employment for migrants in the destination regions Wage-cost reduction, a key incentive to deploy migrant workers Prevailing wages in most migrant-centric occupations tend to be below the prescribed minimum wages Increasing intolerance towards migrant workers 21

22 Internal Migration: Emerging Issues Income and Savings Migrants earnings are generally reported to be much higher than their earnings in source areas Maximizing remittances is one of the key objectives of migrants Nearly one third of the total earnings are estimated to be remitted back to the households in native regions 22

23 Internal Migration: Emerging Issues Income and Savings Migrants remittances do not necessarily always add to the resource base of migrant households as they are used to adjust earlier debts Weak entitlement of migrant households to proper institutional credit in backward regions Income and consumption of migrant households generally higher than that of similarly place nonmigrants Migration reduces income inequality between labour and non-labour households in receiving regions 23

24 Internal Migration: Emerging Issues Living and Working Conditions It is widely reported that migrant workers encounter difficult living and working conditions Long hours of work, live in open spaces with inadequate water and bad drainage Work in unhygienic conditions and suffer from serious occupational health problems Many migrants report social isolation and humiliation Migrants are also often stigmatized and criminalized 24

25 Internal Migration: Emerging Issues Living and Working Conditions Women migrants more often than not are more vulnerable due to the harsh living and working conditions Several micro level studies report that migrant workers are often sexually exploited but are silenced about it for fear of loss of work or domestic violence 25

26 Internal Migration: Emerging Issues Weak Entitlements Migrants often encounter weak entitlements Most of them are deprived of benefits of social and economic security They are often denied entitlements under public distribution system in the destination regions 26

27 Internal Migration: Emerging Issues Weak Entitlements Many studies report denial of entitlements to migrant workers in public spaces like government hospitals Recent estimates indicate that migrant workers spent a significant percentage of their income for private health care 27

28 Internal Migration: Emerging Issues Organisation and Awareness Large segment of the migrant workers remain unorganized and hence have very weak bargaining power Awareness among the migrant workers on their rights and entitlements are relatively very low Weak implementation of various labour legislations targeted towards migrant workers 28

29 Internal Migration: Emerging Issues Organisation and Awareness Recent evidences point to increasing effort towards encouraging collectivity among migrants and improving their awareness Such instances though minimal have positive influences on improving the social and economic conditions of migrant workers (organising of construction workers, organising of street vendors, organising of domestic maids, organising of contract workers) 29

30 Key Areas for Policy Intervention Improve the synergy between development and internal migration Improve labour market outcomes Ensure basic entitlements to migrants and their families Improve the economic, social and political environment in favour of migration 30

31 International Labour Migration South Asia : Most significant source and host region of migration in the world South Asia Gulf, a major corridor of contemporary international labour migration flows, including migration of women workers Nearly 14 million South Asian migrants in GCC countries in 2013 Majority of migrants belong to unskilled/low skilled/semi skilled categories Almost the entire flows are temporary (fixed term contract) in nature 31

32 Proportion of South Asian Migrants in Total Migrants in GCC Countries (in per cent) GCC Countries Bahrain Kuwait Oman Qatar Saudi Arabia UAE Total Migrant Stock 8,856,887 10,549,781 20,758,167 22,357,811 Source: UN Population Division. 32

33 Proportion of South Asian Women Migrants in Total Migrants in GCC Countries (in per cent) GCC Countries Bahrain Kuwait Oman Qatar Saudi Arabia UAE Source: UN Population Division. 33

34 Proportion of South Asian Women Migrants in Total Female Migrants in GCC Countries (in per cent) GCC Countries Bahrain Kuwait Oman Qatar Saudi Arabia UAE Source: UN Population Division. 34

35 South Asian Migrants in GCC: (Percentage of Migrants to the Total Migrants) Source: UN Population Division. 35

36 Features of Remittance Flows and Remittance Costs Global Remittance Flows Source: World Bank Growth of remittance flows to South Asian region higher than overall growth rate of world remittances during the recent years In South Asia, India is the largest recipient (US$ 70 billion) followed by Pakistan($15 billion), Bangladesh($14 billion), Sri Lanka ($7 billion) and Nepal ($5 billion) Lack of reliable information on the contribution of women in remittance flows 36

37 Features of Remittance Flows and Remittance Costs Remittance to South Asian Countries from GCC, 2012 Source: World Bank Half of the recorded remittance flows to South Asia originate from the GCC region 37

38 Features of Remittance Flows and Remittance Costs Remittance as a Percentage of GDP of South Asian Countries Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka Source: World Bank 38

39 Features of Remittance Flows and Remittance Costs Remittance to South Asia as a Percentage of Reserves, 2013 Source: World Bank 39

40 Features of Remittance Flows and Remittance Costs Cost of Sending Remittances Note: SAR: South Asia Region, LAC: Latin America and the Caribbean, ECA: Europe and Central Asia, EAP: East Asia and Pacific, MENA: Middle East and North Africa, and SSA: Sub-Saharan Africa Source: World Bank Cost of sending remittances declining across the world Transfer costs are lowest in South Asian region Reduction in transfer costs could be attributed mainly to use of technology backed financial products, increased competition in remittance industry and commitments by international entities such as G8 and G20 to reduce cost of remittances 40

41 Remittance Utilisation Recent remittance utilisation surveys in different South Asian countries report: Remittances have had a major impact in poverty rates reducing In Pakistan, probability of households becoming poor decreases by 12.7 per cent if they receive remittances Remittance increases income and consumption expenditure In Bangladesh, average remittances to receiving households are worth twice the per capita income and equivalent to almost 80 per cent of the receiving household s income 41

42 Remittance Utilisation Remittances have contributed to higher educational enrolment, increased completion of schooling and development of education based social norms In Nepal, 25 per cent of the remittances is reported to have been utilised in children s education Remittances contributed to improved quality of housing of migrants/return migrants households In Kerala, India, proportion of households possessing quality houses shows a steady increase with the number of emigrants in the households - from 24.2 per cent for households without an emigrant to 65.2 per cent for households with more than two emigrants/return migrants 42

43 Remittance Utilisation Substantial proportion of remittances still being used for settling debts incurred in connection with recruitment costs In Nepal, 70 per cent of emigrants had borrowed money from neighbours/relatives/family members to finance their migration Propensity to save among remittance receiving households reported to have increased considerably in recent years 43

44 Remittance Utilisation Most of the savings kept in the form of deposits in the banks Only a very limited proportion are invested in new business ventures or existing family business enterprises 44

45 Reintegration of Migrants and Developmental Payoffs Inadequate attention to the issue of reintegration of returnee migrants Lack of institutional mechanism for collecting data of returnee migrants and their characteristics Return migrant flows is as significant as labour outflows Considerable gender differentials in terms of aspirations of returnee migrants regarding reintegration 45

46 Reintegration of Migrants and Developmental Payoffs New models of reintegration being evolved in many South Asian countries Establishment of Probashi Kalyan Bank in Bangladesh Incorporation of reintegration of returnee migrant workers as an important component of National Labour Migration Policy in Sri Lanka 46

47 Reintegration of Migrants and Developmental Payoffs Investment plans under Overseas Pakistanis Foundation in Pakistan Entrepreneurship Programmes for returnee women in Nepal Collaboration between Ministry of Overseas Indian Affairs and Confederation of Indian Industry for investment facilitation 47

48 Emerging Good Practices and Way Forward Reducing Remittance Costs Need to ensure that remittance recipients does not bear any costs of conversion Given that transferring remittances using mobile technology is one of the least expensive options, urgent need to spread the use of this mode by all RSPs Remittance price comparison websites can increase market transparency and encourage greater competition 48

49 Emerging Good Practices and Way Forward Increasing Remittances through Formal Channels Even today, substantial amount of remittances are transferred through informal channels Critical to provide non-bank RSPs like cooperatives and micro finance institutions enhanced access to domestic payment system infrastructure Pakistan Remittances Initiative, an innovative model for facilitating and supporting cheaper and convenient flow of remittances 49

50 Emerging Good Practices and Way Forward Encouraging Savings and Investments Innovative banking practices is very critical for reaching to unserviced migrant workers ICICI, a private bank in India, reaching out to migrant workers by operationalising remittances kiosks/atms in major worksites and dormitories and providing multi-lingual support 50

51 Emerging Good Practices and Way Forward Encouraging Savings and Investments In Bangladesh, establishment of Probashi Kalyan Bank is linking processes involved in different stages of migration cycle In Bangladesh, many new financial and investment products have been created for migrants and their households 51

52 Emerging Good Practices and Return and Reintegration Way Forward Sustainable reintegration call for reliable information, particularly on financial resources, skills, entrepreneurial capabilities, investment plans and motivation Major social partners like trade unions, employers organisations, private sector and migrant associations should be actively involved in formulation of reintegration plans Counselling forms the backbone of any reintegration plan 52

53 Emerging Good Practices and Return and Reintegration Way Forward Skill assessment of the workers in the predeparture and post arrival can be an effective tool to ensure successful reintegration with optimum use of new and acquired skills Reintegration should be viewed as a dynamic entity and monitored through certain key indicators Host country governments and private sector can play important role in facilitating effective reintegration 53

54 Emerging Good Practices and Return and Reintegration Way Forward Happy Return Programme of Korea provides an effective framework for reintegration. The programme prepares the migrant workers for their return and successful reintegration Workers are provided vocational training and counseling services and certificates documenting their work experience prior to their return After return, workers can register with HRD Korea to find employment with Korean enterprises in their own countries 54

55 References Asia Foundation Labour Migration Trends and Patterns: Bangladesh, India and Nepal 2013, Asia Foundation. Bangladesh Bureau of Statistics Report on Survey on the Use of Remittance (SUR) 2013, Ministry of Planning, Government of Bangladesh, Dhaka. Castells, Manuel The Informational City: Information Technology, Economic Restructuring and the Urban-Regional Process. Oxford: Basil Blackwell. Gurak, Douglas T., and Fe Caces Migration Networks and the Shaping of Migration Systems, in Mary Kritz, Lin Lean Lim, and Hania Zlotnik (eds.), International Migration Systems: A Global Approach. Oxford: Clarendon Press, pp Harris, J.R., and Michael P. Todaro Migration, Unemployment, and Development: A Two-sector Analysis. American Economic Review 60: Hugo, Graeme J Village-community Ties, Village Norms, and Ethnic and Social Networks: A Review of Evidence from the Third World, in Gordon F. DeJong and Robert W. Gardner (eds.), Migration Decision Making Multidisciplinary Approaches to Micro level Studies in Developed and Developing Countries. New York: Pergamon Press, pp International Labour Organisation Reintegration with Home Community: Perspectives of Returnee Migrant Workers in Sri Lanka. Sri Lanka: ILO. Katz. E. and Oded Stark Labour Migration and Risk Aversion in Less Developed Countries, Journal of Labour Economics 4:

56 References Lewis, W. Aurthur Economic Development with Unlimited Supplies of Labour. The Manchester School of Economic and Social Studies 22: Manning, Patrick Migration in World History. New York: Routledge. Mary Kritz, Lin Lean Lim, and Hania Zlotnik (eds.) International Migration Systems: A Global Approach. Oxford: Clarendon Press. Massey The Social and Economic Origins of Immigration. Annals of the American Academy of Political and Social Science 510: Morawska, Ewa The Sociology and Historiography of Immigration, in Virginia Yans-McLaughlin (ed.), Immigration Reconsidered: History, Sociology and Politics. New York: Oxford University Press, pp Petras, Elizabeth M The Global Labour Market in the Modern World Economy, in Mary M. Kritz, Charles B. Keely, and Silvano M. Tomasi (eds.), Global Trends in Migration: Theory and Research on International Population Movements. Staten Island, N.Y.: Centre for Migration Studies, pp Piore, Michael J Birds of Passage: Migrant Labour in Industrial Societies. Cambridge: Cambridge University Press. Portes, Alejandro, and John Walton Labour, Class, and the International System. New York: Academic Press. 56

57 References Ranis, Gustav, and J.C.H. Fei A Theory of Economic Development. American Economic Review 51: Sasikumar, S.K Maximising Developmental Outcomes of International Labour Migration and Remittances: The South Asia-Gulf Experience. Labour & Development, 21(2): Sasikumar, S.K. and Thimothy, Rakkee From India to the Gulf Region: Exploring Links between Labour Markets, Skills and the Migration Cycle. GIZ and ILO. Sassen, Saskia The Mobility of Labour and Capital: A Study in International Investment and Labour Flow. Cambridge: Cambridge University Press. Sassen, Saskia The Global City: New York, London, Tokyo. Princeton: Princeton University Press. Siddiqui, Tasneem (ed.) Migration and Development: Pro-poor Policy Choices, Bangladesh: The University Press Limited. Srivastava, Ravi and Sasikumar, S.K Migration and the Poor in India: An Overview of Recent Trends, Issues and Policies, in Tasneem Siddiqui (ed.), Migration and Development: Pro-poor Policy Choices, Bangladesh: The University Press Limited, pp

58 References Stark and D. Levhari On Migration and Risk in LDCs Economic Development and Cultural Change 31: Stark and David E. Bloom The New Economics of Labour Migration. American Economic Review 75: Stark, Oded Migration Decision Making: A Review Article. Journal of Development Economics 14: Stark, Oded The Migration of Labour. Cambridge: Basil Blackwell. Taylor, J. Edward Differential Migration, Networks, Information and Risk, in Oded Stark (ed.), Research in Human Capital and Development, Vol.4, Migration, Human Capital and Development. Greenwich, Conn.: JAI Press, pp Thimothy, Rakkee and Sasikumar, S.K Migration of Women Workers from South Asia to the Gulf. NOIDA & New Delhi: V.V. Giri National Labour Institute and UN Women. Todaro, Michael P Internal Migration in Developing Countries. Geneva: International Labour Office. United Nations Development Programme Human Development Report New York: Palgrave Macmillan. 58

59 References Vaqar Ahmed, Sugiyarto, Guntur and Jha, Shikha Remittances and Household Welfare: A Case Study of Pakistan. ADB Economics Working Paper Series No Manila: Asian Development Bank. Wallerstein, Immanuel The Modern World System, Capitalist Agriculture and the Origins of the European World Economy in the Sixteenth Century. New York: Academic Press. World Bank Migration and Development Brief 23, October 2014, World Bank, Washington D.C. Zachariah, K.C. and Rajan, S. Irudaya Inflexion in Kerala s Gulf Connection: Report on Kerala Migration Survey Working Paper 450. Centre for Development Studies. Thiruvanathapuram, Kerala. 59

60 THANK YOU 60