PAPER 3: IMPACT OF EXTERNAL MIGRATION ON DEVELOPMENT OF MOUNTAINOUS REGIONS: TAJIKISTAN, KYRGYZSTAN, AFGHANISTAN, AND PAKISTAN

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1 Strategies for Development and Food Security in Mountainous Areas of Central Asia PAPER 3: IMPACT OF EXTERNAL MIGRATION ON DEVELOPMENT OF MOUNTAINOUS REGIONS: TAJIKISTAN, KYRGYZSTAN, AFGHANISTAN, AND PAKISTAN By Saodat Olimova International Workshop Dushanbe, Tajikistan June 6-10, 2005

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3 Abstract This report highlights the range of issues pertaining to the economic and social impact of labour migration on the life of mountainous communities in Kyrgyzstan, Tajikistan, Afghanistan and Pakistan, focusing especially on food provision to mountain regions. In evaluating the context and impact of labour migration in mountain regions, the following should be considered: problems of data collection and assessment of the numbers of labour migration in stated countries; reasons for migration; profile of migrants; characteristics of migration flows depending on altitude of expatriation regions; impact of labour migration on the economy and social life of highland regions; remittances; impact of labour migration on households, using migrants savings; impact of migration and the quality of life for households; nutrition assessment; impact of migration on family agriculture; and the impact on small and medium business development

4 TABLE OF CONTENTS I. INTRODUCTION... 1 II. HISTORICAL CONTEXT OF LABOUR MIGRATION IN MOUNTAIN REGIONS... 2 A. Kyrgyzstan...2 B. Tajikistan...2 C. Afghanistan...3 D. Pakistan...5 III. DATA AND STATISTICS... 5 A. Assessment of numbers of labour migration in Tajikistan, Kyrgyzstan, Afghanistan, and Pakistan. Destination points....6 B. Reasons for migration...7 C. Profile of migrants (gender, age, qualification skills, sphere of employment, duration of work)...8 D. Duration of Stay Abroad...9 IV. CHARACTERISTICS OF MIGRATION FLOWS DEPENDING ON ALTITUDE OF EXPATRIATION REGIONS V. IMPACT OF LABOUR MIGRATION ON ECONOMY AND SOCIAL LIFE OF HIGHLAND REGIONS: REMITTANCES A. Impact of labour migration on households economy...12 B. Using migrants savings...13 C. Impact of migration on level and quality of households...14 D. Nutrition Assessment...14 E. Impact of migration on family agriculture...15 F. Impact on small and medium business development...16 G. Increase of qualification of migrant households...17 H. Migration Intentions...19 I. Improved living standards among labour migrants...19 VI. CONCLUSIONS: VII. REFERENCES TABLES Table 1: What kind of problems were you able to solve by working abroad? (To provide family with good nutrition) Table 2: What kind of problems were you able to solve by working abroad? (To buy good cloths) Table 3: What kind of problems were you able to solve by working abroad? (Provide paid medical services for themselves and family members) Table 4: Have you managed to improve housing conditions?... 21

5 IMPACT OF EXTERNAL MIGRATION ON DEVELOPMENT OF MOUNTAINOUS REGIONS Saodat Olimova 1 I. INTRODUCTION Since ancient times, labour migration or seasonal work has been a common phenomenon of life in mountain regions. However, modern lifestyles today reach even the most remote and isolated mountainous regions, changing traditional institutions, relations, and the tenor of life of highlanders. Nowadays labour migration has gained primary importance for mountainous regions of Central Asian countries, Afghanistan and Pakistan. The scale of this phenomenon can be observed by looking at the number of labour emigrants from these countries: 350 to 500 thousand from Kyrgyzstan; 650 thousand from Tajikistan; 1.5 to 1.7 million from Afghanistan; and 4 million from Pakistan. The quality and direction of migration, as well as the economic, social, and cultural impact on life of mountain communities have changed along with the increase in the numbers of migrants. There are controversial opinions as to whether temporary labour migration promotes or hinders the development of mountainous regions This paper highlights a number of issues related to the economic and social impact of labour migration on life of mountainous communities in Kyrgyzstan, Tajikistan, Afghanistan and Pakistan focusing, on the issue of food provision to mountain regions. Primary attention is paid to external migration, because internal migration from mountain regions to low-altitude areas requires a separate survey. Several sources of data were used in preparing this paper. These include: 1) data from Aga Khan Foundation research Migrants from Badakhshan ; 2) IOM Survey Labour migration from Tajikistan ( ); 3) External Labour Migration in Kyrgyz Republic (2003); 4) unpublished materials of 3 surveys on labour emigration conducted by Sharq Centre in 2004; and 5) a series of interview held by the author and Prof. Muzaffar Olimov from March to May 2004 in Tajikistan (Dushanbe, Khujand), Kyrgyzstan (Bishkek, Osh, Batken), Afghanistan (Kabul, Pul-i-Khumri, Kunduz, Sherkhan-Bandar), Pakistan (Islamabad) in the frameworks of the IOM Study on labour migration in Central Asian countries, Russia, Afghanistan, and Pakistan. 1 Scientific and Research Centre SHARQ, Dushanbe Paper 3, Olimova 1

6 II. HISTORICAL CONTEXT OF LABOUR MIGRATION IN MOUNTAIN REGIONS Seasonal migration is a common trend of mountainous regions. Mostly it relates to seasonal work for essential income: drive of cattle to seasonal ranges, etc. Production in mountains is less developed than in flatlands. Due to food and land insufficiencies, highland inhabitants are forced to leave for other countries to make a living. A. KYRGYZSTAN Prior to the Soviet invasion, the main type of seasonal work for Kyrgyz people was the transport of commodity goods, using loads on camels. The poorest people who lost all their cattle and did not have opportunity to migrate were hired to cultivate lands for the small portion of the harvest. (4). During the Soviet period, seasonal work disappeared. After the collapse of USSR, the former employment system vanished, unemployment increased and income dropped dramatically. Thus from 1993 to 1994 labour migration increased in Kyrgyzstan. Better wages in other CIS countries and a demand for labour in China encouraged mountainous Kyrgyz to leave home as seasonal workers. The principal trends in migrant labour have been shuttletrading and construction. Departure of peasants from mountainous regions of Southern Kyrgyzstan to seasonal agricultural work is less significant. A small but notable trend of migration is also an outflow of mine workers from Sulyukta to Russia. B. TAJIKISTAN The main sources of migration in Bukhara and the Kokand Khanates are Baljuvon, Kulob, Hissar, particularly Karoteghin and the upper reaches of Zarafshon. In an article published in 1871, A. P. Fedchenko cited seasonal labour migrants from Karoteghin in Fergana and Tashkent (5). Similarly V. P. Nalivkin observed seasonal migrants from Kyrgyzstan Karotegin of Fergana valley after the annexation of Kokand to Russia (6). There is also information available on Karotegin seasonal workers at the end of 19 th Century, written by A.A. Semenov (7). N. A. Kislyakov in his article explained the reasons for the increase in seasonal work in Karotegin Valley as: agrarian over-population of Karotegin at existing development levels of productive forces, landlessness, and general poverty, as well as labour surplus (8). During the 19 th and 20 th centuries, 25 % to 75 % of adult male population left the remote villages of the upper Zarafshon as seasonal workers (9). Seasonal workers descended to the valleys, mainly to the Fergana Valley. Paper 3, Olimova 2

7 The major fields of occupation for Tajik seasonal workers were construction, porterage, and work at ginneries (10). Seasonal work vanished during the Soviet period and reappeared after the collapse of the Soviet Union. During the 1980s the outflow of the mountain population to urban areas and flatlands significantly decreased. On the contrary people who left their homelands at this time returned home. During the civil war, the mountainous regions of Tajikistan hosted hundreds of thousands of refugees. This rapid increase of population in mountainous areas led to unemployment, aggravation of economic and social problems, and the constant threat of famine. It subsequently also led to a massive rise in external labour migration. From labour migration grew rapidly in the upper Zarafshon and other mountain regions of Tajikistan, except for GBAO. The level of migration started to increase again in In GBAO the situation was different. Here the level of labour migration was as high as other mountainous areas of the country. Due to improvement in socio-economic conditions and massive assistance from Aga Khan Foundation (AKF) to GBAO and humanitarian help from other international organizations, migration stabilised in However, cessation of largescale humanitarian assistance since 2000, withdrawal of the Russian frontier troops in once again boosted out migration in GBAO. Significant increase of labour migration in GBAO has been observed in 2001, 2002, 2003, and 2004 (1. P.30) C. AFGHANISTAN In Afghanistan during the first half of 20 th Century, a large influx of migrants came from Badakhshan, Hazarajat, Panjsher and Nuristan. In that time the following types of seasonal labour migration took place which are still present today: Long annual shopping trips to marketplaces in Western Badakhshan, Tokhar, and Kattagan. These trips have been characterized by the hiring of temporary and casual paid employees. Single or family migration for seasonal works. According to information gathered, in the 1940s and 50s, landless and poor peasants households left their homes for other countries, beyond Badakhshan, e.g. in Kattagan and other Afghan provinces. Paper 3, Olimova 3

8 Single or family migration from autumn till spring, upon the completion of regional agricultural season. These migrants were often involved in hard work such as porterage, and pasturing (11). At the end of the 50s, the wage of a shepherd in large animal husbandry farms was different in each province. In Herat, the salary of a shepherd ranged from 180 to 200 afghani 150 to 200 afghani in Kattagan, and 70 to 150 afghani per month in Badakhshan (12). Migration of men for earnings to urban areas, particularly to Kabul, Mazar-e-Sharif. Studies maintain that the reason for the high level of migration from the mountainous region of Badakhshan was the lack of land resources, due to the traditional division of land. Consequently, the size of arable land and production of cereals per capita have significantly decreased, which in turn accelerated the growth of migration. According to some assessments, prior to the war (until 1979), local farming in Badakhshan provided only 50% of the food consumed in the province. In the 1920s, for example in Koran and Munjan the provision of bread was sufficient only for 9 months. Similar circumstances could be found in Shighnon and Vakhan villages (13). Additionally, military actions negatively affected food production and indirectly contributed to labour migration, as when the Mujaheddin came to power in Another burst of labour migration took place in 1996 when the military actions between Taliban and Northern Alliance caused decrease in agricultural production up to 40 % (14). A peculiar type of migration has been the migration of Afghan nomadic tribes. Let us assess it in the context of Afghan Badakhshan. The regular exchange of goods between Badakhshani peasants (wall-nuts, fruits, wheat, rice, imported fabrics, wool, etc.) and Afghan nomadic tribes coming from Kattagan in the summer to Northern Badakhshan, Shiva Lake, was the reason of trade migration for mountainous Pushtuns. The plurality of trade in mountainous areas as well as in Hazarajat, was due to newly arrived merchants and peddlers from Western Badakhshan, Takhor, Kattagan, Kabul, and in Southern mountainous areas. Because of the formation of a smuggling market in Afghanistan, there was a huge increase in trade and entrepreneurial migration and a conversion of the traditional caravan trade into contemporary commercial migration. Transportation and sale of smuggled goods from/to Pakistan and Iran has become the main activity of many rural Pushtuns, who were pushed out from their country by war, famine, and collapse of the former system of employment. Basically they are taking part in cargo transportation through the main highway of Peshawar - Karachi. The majority of Pushtuns work in Gulf States, including UAE (Dubai, Abu-Dhabi), Oman, Qatar, and Saudi Arabia. (15). Paper 3, Olimova 4

9 By 1980, there were no more than 5,000 Afghans outside of the country, most of whom were basically traders and businessmen. Since the 1980s, the waves of forced migration in Afghanistan pushed millions of refugees out from their country. By the mid 90s, some of the refugees in different countries adapted to new conditions by pursuing jobs. This period marked the formation of external labour migration from Afghanistan. During the past few years, the level of external labour has noticeably exceeded the level of internal migration in Afghanistan. There is a clear trend of growth of migration and its transformation to a major activity. Accordingly, the attitude toward labour migration has changed gradually in Afghan society. If before, travelling to another country for work was not desirable by Afghans, now peasants themselves sell their lands in order to send their son to work abroad. The highest level of labour migration originates from urban centres (Kabul, Heart), highland regions (Afghan Badakhshan, Panjsher, Parvon, Nuristan, etc.), border provinces (Heart, Kunar, Jalalabad, Paktica, Kandaghar, etc.), and poorer regions (Hazarajat, etc). D. PAKISTAN Seasonal work in Pakistani highland regions is similar to that in Afghanistan. The military factor played a pivotal role in transition from mountain seasonal work to the modern type of labour migration. Political shocks during the establishment of Pakistan (in 1947) also caused the influx refugees. These refugees headed to wherever they could work and establish migration networks. Demographic explosion and scarcity of land stimulated an outflow of extra labour. In Pakistan, during the 1920s soon after the country became an independent state, the size of land per family decreased by 2.1 times (17). The rapid growth of population pushed the highlanders first to urban areas and then abroad to other countries. In 1950s a British policy of attracting foreign labour helped to establish a governmental system of exporting labours (Bureau of Emigration and Overseas employment, Overseas Pakistanis Foundation), a significant factor of outflow migration in Pakistan (18). The most rapid growth of emigration from Pakistan began during the oil boom in Gulf States. From 1971 to 1984, the volume of emigration from Pakistan to Gulf States increased threefold (19). III. DATA AND STATISTICS The lack of information impedes comparative studies on the impact of migration on development in mountainous communities. A number of surveys on labour migration were undertaken in Tajikistan; however, all faced difficulties in gathering sufficient data. The only Paper 3, Olimova 5

10 reliable study, which measured the impact of labour migration on highland regions, is a survey entitled Migrants from Badakhshan, conducted in the framework of the Mountain Societies Development Support Programme (MSDSP), a project of Aga Khan Foundation (AKF) in In Kyrgyzstan, the IOM conducted the survey, Internal Migration in Kyrgyz Republic (IOM, 2001) and External Labour Migration in Kyrgyz Republic (МОМ, 2003). However, none of these studies focussed specifically on the impact of migration in the region. There are a number of studies dedicated to the migration of ethnic groups and tribes living in highlands Pakistan. However, they focus primarily on anthropological issues (1). In 2004 the IOM Office in Pakistan conducted a labour migration survey but it has yet to be published. The modern migration situation in Afghanistan has not been properly explored. Except for the IOM survey on women and children trafficking, UNHCR reports, IOM, and other NGOs, there is no other source of information on migration. Statistics on migration in all surveyed countries is insufficient.. There are no official figures on migration in the majority of former Soviet countries such as Kyrgyzstan and Tajikistan, where people do travel to neighbouring countries such as Russia and Kazakhstan. Therefore, the main sources of data on migration are surveys of households and sociological questioning. In Pakistan, since 1978, external labour migration has been well-monitored; however, there is no information available on illegal migration, the level of which is significantly high in mountainous areas. The most difficult place for monitoring migration has been Afghanistan. A. ASSESSMENT OF NUMBERS OF LABOUR MIGRATION IN TAJIKISTAN, KYRGYZSTAN, AFGHANISTAN, AND PAKISTAN, AND DESTINATION POINTS. Due to the aforementioned reasons, it is difficult to assess the volume of labour emigration from mountainous areas. The level of migration could roughly be estimated by using data from local authorities (if they collect such information), indirect indicators, and data from local NGOs. The level of labour emigration from the highland regions of Tajikistan is higher than the plain areas in the country According to different surveys, the level of migration ranges between 17 % to 30% of the labour force (in Asht district of Sughd Region, Tajikistan). In GBAO the percentage of migration hovers around 20%. More than 34% of GBAO households include one or more labour migrants (1. с.21). Paper 3, Olimova 6

11 The principal destination for emigrants is the Russian Federation (97.6% of all migrants). An insignificant number of migrants also work in other countries: 0.8% in Kazakhstan and Emirates and 0.4 % in Afghanistan and Kyrgyzstan (21). According to the Department of Migration Services, the total volume of labour migration under the MFA of Kyrgyz Republic is more than 350,000. The highest level of labour migration in Kyrgyzstan takes place in Osh. The expatriates from Kara Kulji and Uzgen districts make up the largest volume of migration. The main destination countries are the Russian Federation and Kazakhstan. According to the Embassies of the Kyrgyz Republic in Russia and Kazakhstan, there are more than 200,000 Kyrgyz labour migrants in Russia, 50,000 to 100,000 migrants in Kazakhstan, and 20,000 in Emirates. (22) According to Professor A.Elebaeva, two thirds of labour migrants from the Osh Region left for Russia and one third for Kazakhstan. It is very difficult to estimate the volume of labour migration in Afghanistan, because it is not possible to properly separate forced labour migration from traditional seasonal migration. It is also difficult to tell the difference between a refugee and a labour migrant. It can also be difficult to identify who is a citizen of Afghanistan and who is a stateless person or a citizen of other states. Lack of or insufficient laws, regulatory acts, and instructions have impeded the control over migration in Afghanistan. However, it is possible to assess the total number of Afghan citizens who are working abroad as refugees, numbering 1,500,000 to 1,700,000. According to the Ministry of Labour of Afghanistan, during about 25,000 to 27,000 people left the country voluntarily for work abroad (23). The main destination for emigrants was Iran and Pakistan. The most attractive cities in Iran are Tehran and Mashad. Legal labour migration from Pakistan is well-monitored. According to the Bureau of Emigration and Overseas employment, the total number of labour migrants from Pakistan in all countries over the world reaches up to 4-5 million. The principal destination countries include 45% in Middle East countries, 29% in Western Europe and 23% in the USA. [Pervez Tahir. Diaspora s Implication for Human Resources in Pakistan. Paper for National Seminar Labour Migration and Socio-Economic Development. Islamabad, September, 2003] B. REASONS FOR MIGRATION Currently the main reasons for labour migration from highland regions in surveyed countries are demographic pressures in the labour market, unemployment, poverty, and lack of food. Thus, according to 2000 data, food deficit in some districts of Afghan Badakhshan was present from 2 to 6 months (13). According to the Migrants from Badakhshan study, 40% of respondents from remote and highland regions of Badakhshan left for income because of food insufficiency in Paper 3, Olimova 7

12 their family, 41% left their homeland due to unemployment, 17% left to earn money for education, housing, wedding, etc., and 2% in order to accumulate money to launch their own business (1, p.23). C. PROFILE OF MIGRANTS (GENDER, AGE, QUALIFICATION SKILLS, SPHERE OF EMPLOYMENT, DURATION OF WORK) The gender structure of labour migration depends on the country and altitude of expatriation regions. Males constitute nearly the entire emigrant population from Afghanistan and Pakistan. Men make up only 85% of immigrants labour force in Tajikistan and 60% in Kyrgyzstan. Currently more and more women are joining the outflow labour force in Central Asian countries. We can assess the age structure of migrants from highland regions by relying on the Migrants from Badakhshan study: youth between the ages of 15 and 19 compose 56.5% of all migrants from GBAO while those aged 30 to 45 make up 36.7% (1.. 26). The age structure of migration from highland regions of Afghanistan and Pakistan is similar. There are more middle-aged people in the Kyrgyz flow of migration than in migrant flows from other regions. Education and Qualifications. There are significant differences in the level of education among migrants. Emigrants from the highland regions of Tajikistan and Kyrgyzstan are characterized by a high level of education. According to the Migrants from Badakhshan survey, 32% of the labour migrants from Badakhshan received higher education, 23% had incomplete higher and specialised secondary education, and 45% had secondary education. It should be noted, however, that it is very seldom that migrants can find jobs based on their qualification. Often migrants choose low-qualified work because they cannot obtain a qualification requirement in the host countries. About 85% of migrants from Badakhshan work in a field out-of-their speciality (p.46). During the past few years there has been a rapid improvement of working qualifications/experience, gained by the emigrants to meet the demands of destination countries. The level of education of migrants from Pakistan is significantly lower than from the former Soviet countries. Nevertheless, many still have high qualifications. Qualified labourers constitute more than half of all Pakistani migrants. (Interview with Director of Bureau of Emigration and Overseas employment). About 2 out of 5 Pakistani migrants are involved in odd jobs in Middle East according to available data (28). Paper 3, Olimova 8

13 Labour migration from Afghanistan is mostly characterized by low educational background and illiteracy. According to UNHCR, 83% of refugees are illiterate. (Source: OCM Kabul. Operational Information Summary Report 28 March 2004). Only one out of a thousand Afghan migrants has got a qualified job in Iran (24). The lack of education and low qualification levels are the main reasons why Afghan migrants are occupied in low-qualified and low-paid jobs. The types of employment undertaken by highland labour migrants from Tajikistan are varied: construction (48%), trade (20%), non-qualified labour (26%), and agriculture (6%), (1, p.27). The breakdown of employment for migrants from the Osh Region of Kyrgyzstan is as follows: 75% shuttle migrants, 16% constructors, the rest employed by other sectors (26). Afghans from all ethic groups from highland regions work in hard, dangerous, and lowqualified job categories such as transport, construction, services, lifting work (especially in Karachi), trade, at brick factories, and chemical industries, including plastic mass production. At the same time their salaries compare to only 20%-30% of that for local workers (27). The number of farm labourers is high in Afghan migration. During the summer and autumn seasons they are hired by rich landlords in Iran and Pakistan, where they do heavy duty agricultural labour for very low wages. Older migrants basically do trading (Interview with Chief of Sherkhan-Bandar Border Police Department). The structure of Pakistani labour migration substantially differs from that of Afghans. The level of industry workers such as drivers and unskilled labourers is huge among Pakistani labour migrants (75 % are industry workers, drivers, and constructors). D. DURATION OF STAY ABROAD As a whole, little more than a half of labour migrants from mountainous areas of Tajikistan (excluding shuttle-traders) work on a seasonal basis. The majority of migrants from highlands stay abroad for more than 2 years. A survey conducted by the Pakistani Institute of economics indicated that one third of all labourers had gone to the Middle East, staying there for less than a year; one third stayed for one to two years, while one fifth of all labourers work abroad for 3-4 years. The rest of immigrants stayed for an even longer period of time. (29) Paper 3, Olimova 9

14 IV. CHARACTERISTICS OF MIGRATION FLOWS DEPENDING ON ALTITUDE OF EXPATRIATION REGIONS Collected data and observation carried out by researchers (Imomnazar Haqnazar, 2003) indicate that there is a direct correlation between migration from highland regions and its altitude profile. There is significant migration from medium-altitude regions such as highland regions of Sughd Region, Rasht Valley (Tajikistan), Osh, Batken Regions (Kyrgyzstan), Parvon Region, Afghanistan, and Northern Panjab (Pakistan). It is characterised mainly by seasonal workers, relatively highly-qualified migrants, significant share of shuttle-traders, and a high volume of remittances. Migration takes a different character in high-altitude regions such as GBAO in Tajikistan, Afghan Badakhshan, and Nuristan. It includes younger people, with lower qualifications. Accordingly, there are more single people, and women, but an insignificant number of commercial migrants and people involved in remittances activities. However, a significant difference can be observed in the duration of their stay in the host countries as well in the economic return. Migration from mid-altitude highlands has a dominantly seasonal character. These are men who leave for income during the migrant season (from March to November). The majority of them are married and leave their households, appointing their wives or male relatives to take care of their family. During their four winter months at home, seasonal workers do the heaviest household works. The economic efficiency of mid-altitude people is higher than that for the highlanders. This is due to less travelling expenses and a shorter winter season that is dead season for migrants. The most important priority for migrants is to maintain close ties with their families and send them maximum amount of their earnings. Migration from the highlands is characterised by a long duration of stay in host countries, a significantly higher level of net-emigration and hence a lower level of remittances sent back home. According to preliminary estimates of Basic Survey in GBAO conducted by the Policy and Evaluation Unit of MSDSP, GBAO, more than 22% of adult males left their homelands and only 2% of them returned home for short period of time during last five years ( ). V. IMPACT OF LABOUR MIGRATION ON ECONOMY AND SOCIAL LIFE OF HIGHLAND REGIONS: REMITTANCES Economists and politicians when discussing labour migration, comment on the remittances that flow home, which contribute heavily to the economy, and improve the standard of living of the migrants households. Surveys indicate that income from migration is the basic source of Paper 3, Olimova 10

15 income for 81.7 % of migrant households of Tajikistan and for 50-60% of all households in GBAO. (1, P. 45) The amount of savings abroad depends on the migrants incomes and their ability to save, as well as their commitment to their families. As a rule, labour migrants from Tajikistan, Afghanistan, and Pakistan try to send as much as possible to their families. According to data from the survey conducted by the Sharq Centre in October 2004, about 97.2 % of respondents maintained that labour migrants and those who immigrated from their country should support others who remain at home. They consider all types of emigration as a measure that helps to get income in order to support the well-being of their family and relatives. Only 2.3% of respondents believed that migrants do not have to support their relatives at home. About 21% of migrants from highland areas send remittances via banks or other methods on a regular basis. According to the data collected, during 2003 migrants sent more than $3,600,000 to GBAO (1, P.44) During 2003, $256 million came from abroad to Tajikistan via banks alone. (30) Besides this, there are a few Western Union, and MoneyGram offices in the country which are involved in transferring money. Money can also be sent via relatives and friends during their vacation. The most popular methods of remittance include bank transfers (54.8%), friends (33.2%), crossover ( havala ) (5.2%), and in person (24.8%); 2.8%. did not respond to the question (Polling 2004.) Besides, the remittances, migrants also import valuable goods. About 79% of respondents said that they send goods to their home or for gifts to relatives. In 2004 incomes from labour migration formed 22% of Tajikistan GDP (Interview with employee of the World Bank Dushanbe Office). There is no banking system of remittances without opening accounts, which is very convenient for migrants in Kyrgyzstan. People often transfer remittances via Western Union, or bring money themselves, via relatives and friends. According to the information annually there is more than $120 million that comes to Kyrgyzstan from migrants abroad. (31) Afghan migrants rarely use bank transfers. Western Union and MoneyGram started their operations in Afghanistan only in February The main way of transferring migrants savings is havala, or through a person, via relatives and friends. Due to the lack of official data it is difficult to assess the volume of migrants remittances into Afghanistan. Nevertheless, referring to the data provided by the Afghan Exchange Companies Sarai Shahzada there is a Paper 3, Olimova 11

16 yearly inflow of $197,300,000 into Afghanistan (Source: Migration and Development. AISA Afghan Investment Support Agency Remittances are the second most important source of currency inflow into Pakistan. In of the fiscal year, there was a $2.84 billion flow of money into Pakistan from migrants (33). A. IMPACT OF LABOUR MIGRATION ON HOUSEHOLDS ECONOMY Survey results in Tajikistan are similar to the outcome of surveys conducted in Pakistan. Materials of interviews conducted in Afghanistan indicated that summaries made for Tajikistan can be used for Afghanistan as well. Therefore we will rely on the materials of surveys in Tajikistan while analyzing the impact of migration on household. As a result of the seasonal character of migration from Tajikistan, the money remittances curve peaks during September-October. In December the volume of remittances decreases. Along with large city centres and cities, where there is no industry ( dead cities) the largest amount of money remittances flows into mountain regions with the lowest GDP per capita. The largest flow of remittances goes to Asht district. The situation in this region has significantly improved because of additional remittances to population incomes. As a result, remittances provide a good justification for regional economic disproportion. Because of working abroad, migrants families can solve their problems, and generally have sufficient supply of food, primary needs in clothes, and other necessities. The conditions of migrants households are much better than those who do not have anyone abroad. The migrants families are also often provided with durables, expensive radio and TV equipment, and with means of transportation. Almost three quarters of migrant households in Tajikistan directly or indirectly help and support their relatives abroad. About 25.8% of the respondents have always helped their relatives, 46.3% from time to time, and 27.9% never helped their relatives. In this regards it can be considered that the mountainous labour migration of Tajikistan, Afghanistan and Pakistan as a whole is a survival strategy. This is the reason that migrant households in Tajikistan are forced to distribute their income among the households of their relatives. In this sense labour migration is not a source of rapid economic growth for the majority of families. It does act, however, as a means of poverty Paper 3, Olimova 12

17 reduction. Even those who significantly sent help to their families have not made a significant difference as such. They do not have other properties rather than their houses. They have not increased productivity and accumulated significant capital. Labour migration has not become a source of accumulation. Therefore, it has failed to develop small and medium businesses. In terms of economic return, labour migration in Tajikistan, foremost results in an increase in family well-being, and contributes to the economic survival of Tajikistan as a whole. As a survival strategy, labour migration is stabilising the social and economic situation in the country. At the same time it establishes a certain stratum of people who aim for more success. This small group includes the most dynamic people who not only improved their families and the whole allied trade group, but also invested in house constructions, education of children, and establishing enterprises, as well as purchasing agricultural tools, machinery, new seeds variety, cattle, etc. At the same time, the following reasons encourage young people to leave their families: a) More and more female involvement in economic activity resulting in the change of gender balance in society and consequently in gender conflict; b) Reduction of labour efficiency in home agriculture, increase of hand low-efficient labour, and dissemination of primitive economy in the agrarian sector. B. USING MIGRANTS SAVINGS As a whole, incomes from migrants provide for economic growth back home, as well as increasing general investment. Yet, it is necessary to note that there is a difference in using remittances that migrants transfer or send via friends and those that the migrant brings in person. In the first case, the money is used mainly for primary consumption: food, and basic necessities. In the latter case, the savings are used for larger purchases, such as an apartment or house, or family events (i.e. weddings, etc.) Let us examine how households spend incomes from migration. Most successful migrants prefer investing in real estate: procurement of apartments, houses, rights for using land parcels, and house construction. In Pakistan, emigrants also invest a significant part of their earnings in land, and constructional material for house building. (38) Pakistani migrants spend 62% of their savings for procurement of consumable goods (especially household furniture), 25% for procurement of houses, shop or land parcel and 13% for procurement of agricultural machinery. (39) Paper 3, Olimova 13

18 Among mid-altitude mountain migrants from Tajikistan it is most popular to invest money in valuable household electrical and radio equipment (60% of respondents). 9.9 % purchased light vehicles, 1.9% purchased trucks or a minibus, 6.8% procured new furniture, 24.7% spent on family events, 14% saved, and 25.2% spent on day-to-day items: provide their families with food, cloths and most essential goods. Migration from highlands is less efficient. About 87% of migrants from Badakhshan spend their money on food, clothes and essential household needs; 13% provide assistance to their relatives; 25% move their families to the capital city or Northern Tajikistan (bought housing in Dushanbe or Sughd Region of Tajikistan) or purchase vehicles (1, p.17). Migrants invest a certain amount into assisting the migration of relatives and friends: 90% of Badakhshani migrants received money for a trip and settlement (from $60 to $160) in the host country from migrant earnings of relatives, neighbours or friends. (1, P. 45) C. IMPACT OF MIGRATION ON LEVEL AND QUALITY OF HOUSEHOLDS All surveys indicate that the standard of living of migrant households is higher than those of non-migrants. About 67.4% of respondents in Tajikistan noted that the improvement of their material situation has been due to income from abroad, while 14.8 % mentioned a significant improvement in their life accordingly. At the same time 16.3 % reported that their material situation had not improved. Only 0.8 % responded that expatriation for earnings worsened their material situation. In 28.2 % of migrant households, external earnings have allowed only to make ends meet. For this group, labour migration is a way of avoiding poverty and the threat of famine. There is also a small group of migrant households (1.9 %), which still suffer from famine. In GBAO, 70% of migrants noted improvement in the family level of life because of migration, 20% informed that migrant earnings mitigated poverty in their households, and 10% responded that nothing had changed in their lives. (1, P.46) D. NUTRITION ASSESSMENT An overall assessment of migrants shows that labour migration, addresses most food shortages in families. Only 5.2 % of migrants reported that they did not have enough to eat. For the rest there was no direct threat of famine. The majority of migrants (60.3 %) do not starve, but their nutrition level is low; they consume inexpensive food. Some 26.3% reported that they ate well but could not afford luxury foods, while 8.2 % of migrants responded that could buy any kind of food they wanted. Paper 3, Olimova 14

19 External earnings also address the issue of clothing: the largest group of migrants (58.7%) highlighted that with external income they were able to buy even expensive clothes. However, the provision of other household equipment is significantly low. Half of all migrants could not save enough money for household equipment such as furniture. Thus, labour migration from mountainous areas is primarily a tool for poverty reduction. E. IMPACT OF MIGRATION ON FAMILY AGRICULTURE Surveys in Tajikistan and Pakistan indicated that the increasing incomes of migrant households do not promote migrant families to reduce their labour efforts. In contrary, as a rule, an increase in family labour efforts is observed in migrant households. Family members must work more, and more intensively. Sometimes they hire paid workers in order to compensate for the absence of one of the most capable family members. This means that migrants can be replaced by paid workers, and that migrants families do not refrain from land cultivation as a result of receiving migrants savings. As it has been mentioned above, it is very rare when rural migrant households hire workers for agricultural jobs such as tillage. Usually, the paid workers are distant relatives. However even neighbours could be hired as a paid workers, depending on conditions in each particular location. But, often, such work is performed by relatives to help. Strengthening of a community s economic role is also observed in the regions with a high level of labour migration. The negative effect of migration is the early engagement of children into labour activity. This in turn negatively impacts the children s quality education. (40) Surveys in Pakistan indicated that labour migration has led to deterioration of the quality of the labour force and eventually to the depopulation of villages. Similar processes have taken place in Kyrgyz highlands/mountainous areas. According to our observation, something similar has taken place in some highland regions of Tajikistan. Agriculture in surveyed regions has remained at a semi-traditional level, where a huge hand labour is required. It is necessary to modernize agricultural production where there is a deficiency in workers. However our survey indicated that migrants spend their incomes first of all on food, insurance fund, family events, and investment in prestigious commodity goods. Only 4.5 % of migrants from Tajikistan bought agricultural machinery and tools, as well as highbred cattle. Thus, replacement of expatriated labour force does not lead to the introduction of modern technology, but instead translates to the hiring and intensification of women and children labour, which in turn impedes the development of the agricultural sector, and aggravates opportunities for increasing food production in highland regions. Paper 3, Olimova 15

20 However, it is difficult to assess the reasons for a decrease in the yield. According to the GBAO Hukumat, about 40 to 100 ha was not cultivated in 2003 ( Badakhshan newspaper of 12 February2004 No63) (cite on: 1, P.50). It is not clear whether this is the consequence of young migration workers or due to the bad condition of electric pumps, bank protection, inefficient agricultural machinery, lack of fertilizers, quality seeds, plant security, and machinery, etc. F. IMPACT ON SMALL AND MEDIUM BUSINESS DEVELOPMENT According to respondents, the migrants themselves would like to use their savings for establishing their own business. However, investments into the financial sector, industry, and small and medium enterprises, have not been significant. In mid-altitude areas, only 16.1% migrants collected significant capital for establishing their own business. Only 3.8% established their own business, 1.4% hired additional employees for their enterprises, and 5.2% of respondents gave financial assistance to their children and relatives for establishing businesses. Establishing business requires savings, but it also requires experience for running SME (small and medium business) enterprises. About 11.2% of migrants gave organizational and consultation assistance to their children and relatives for opening their businesses. The level of investment in highland regions is significantly lower. About 80 % of migrants from Badakhshan think that it is not effective to invest money into any businesses in the region (1, P.17). This is due to an unfavourable business-climate and a lack of conditions for SME development (problems and collisions in legislation, tax pressure, corruption, endless checks, etc.). Low competitive ability on the part of small Badakhshani businessman against large wholesale traders and business-persons from city centres such as Osh, Dushanbe, etc., is an important factor in the view of the private sector in GBAO. Some 50 wholesalers from Osh (Kyrgyzstan) work in the Khorog market (1, p.24). A lack of knowledge and experience hinders investment of migrant savings into SMEs as well. There are limitations for agricultural production development in GBAO due to scarcity of land. At the same time it is very difficult and expensive to develop mines. Agricultural sector development requires starting capital, affordable machinery, infrastructure that serves the sector, and agricultural crediting system, as well as access to sustainable markets. As a whole it is necessary to note that migrant savings slightly affect agricultural production and particularly the development of SMEs. However there is an indirect link between migrant remittances and business development. In Afghanistan it is implemented via the havala system that works as a sort of wholesale and Paper 3, Olimova 16

21 retail way of crediting. The same trend is in place regarding Uzbek migrants in South Korea (41). The mechanism works as follows: a labour migrant in a host country such as Iran or Pakistan turns to an intermediary dallol or directly to a dealer havolador, who passes the money for transfer in cash. Havolador reaches out to a trader dukandor or banker/money jobber (sarrof). Sarrof passes the money to a trader who purchases goods for this money and ships them from Iran/Pakistan to another dukandor in Afghanistan. That trader sells the goods and passes the money to migrant s family. All stages are fixed in writing. In brief the chain of money transfers includes the following actors: a trade migrant (korgar) intermediary (dallol) dealer (havalador) money jobber (sarrof) wholesaler (tujdor) retailer (dukandor) labour migrant s family. This does not mean that a labour migrant waits for his money to turn around. Transfers are done like lightning, but at the same time the migrant s money helps Afghan traders, and supports the exchange rate of Afghani, among other benefits. Thus, migrant remittances via havala act just like bank transfers. They also remove pressure from the country s balance of payments, significantly supplement internal savings and reduce the deficit of foreign currency. Through the system, importers and large wholesale companies have the opportunity to receive foreign currency as well. Migrant remittances stimulate social demand and on the other hand meet the difference that could emerge due to a deficit of goods. Migrant remittances via havala support employment within the country by establishing or bolstering marketplaces that sometimes exist because of migrant remittances: infrastructure of trade, transport, services, and public catering. (42) Besides, migrant remittances via havala promote the import of food to highland regions through an increase in trade. In our opinion, the increase of the number of marketplaces noted by researchers in Afghan Badakhshan is related to formation of labour emigration utilizing havala as a main channel for money remittances. Simultaneously, migrant remittances have become a legal source for economic growth of highland regions. G. INCREASE OF QUALIFICATIONS IN MIGRANT HOUSEHOLDS Labour migration flows include people with different educational levels and qualifications. Nevertheless, almost all groups of migrants, high-qualified workers and the non-qualified labour force, gain additional knowledge and experience in the process of labour migration. Paper 3, Olimova 17

22 Initially only the most dynamic, mobile and active people went for income abroad, later the migrant network reached people of different types and social strata. All of them rapidly changed their cultural, language, social environment, and their way of life, while many also changed their professions and started completely new lives. People gained huge life experience, learned to develop a long-term life strategy, and formed tools achieving their goals. However, this new way of life was not just realized by migrants but also by their household members. Non-migrant households prefer relying on the support of relatives, friends, and co-workers, i.e. within their social environment. For providing such support they can spend a significant amount of money for organizing parties, during which the relationship of a household and its supporting group will be improved. Migrant households also rely on the support of relatives and friends. However, experience teaches them, first of all, to recognize and use their own abilities. Almost all migrant households allocate some amount of savings in the form of a so-called insurance fund, in case of disease, accident, and social disruption. In the family, some amount is also allocated in case a migrant could not go abroad for earnings this year due to some reasons. About 70% of migrants from mid-altitude mountain regions save between 20% and 50% of their earned money in reserve (43). However, only 20% of migrants from highlands/mountainous areas said that they allocated a certain amount of money in reserve. In general, a majority of Tajik and Kyrgyz immigrants are satisfied with their migration lifestyle and income. About 60.6% of migrants from Tajikistan reported that they were satisfied with their lives, 29% stressed that such a life was good to some extent, and only 8.5 % responded that they were not satisfied at all. About 81.4 % of respondents are going to continue living abroad in the future. About 85% of migrant families participating in the Badakhshan Survey said that they are satisfied (one way or another) with the migrant incomes of their household members, despite the fact that many of them did not send anything or sent only $100 to $150 during the last two or three years. (1.P.48) There are many reasons why migrants positively assess their work abroad. Aside from material benefits, preference is given to the fact that migration is good because of a change in the environment, an opportunity to travel, and the ability to meet new people. Thus, 55.6 % of respondents have highlighted that their families have started to live better than before as a result of migration in their lives. For 20.5%, working abroad has enabled them to make ends meet, and 14.5% of respondents stressed that the positive thing is that it was a chance for them to see the world. About 14.5% responded that they have gained good business experience and Paper 3, Olimova 18

23 professional knowledge, and that it was now easier to find job, while 2.2% said that they have managed to establish their own business. In general, the survey results indicated that the high level of education among labour migrants was the most important adaptive factor. Better education and knowledge of languages help them find better paid jobs, facilitate contacts with representatives of law enforcement bodies, and provide easier contacts with the host society. Studies also suggest a close link between the level of education and the migrants ability to find jobs, make better incomes and most significantly invest more wisely. Labour migration by increasing the business experience of the emigrants leads them to see the idea that investment in children s education is profitable. However, the problems of family survival, i.e. provision of priorities in food, clothes, and health pushes the significance of children education far away. The study indicated that only 30% of the respondents made some investments into their children s education. H. MIGRATION INTENTIONS A study conducted by the Sharq Centre in October 2004 indicated that the population of Tajikistan, despite the large number of migrants, does not intend to continue to migrate abroad in large numbers. Only 15.6% of respondents expressed an intention to leave the country for various purposes including work. The population of GBAO seems to be the most mobile one in Tajikistan (23.3 %). About 16% of respondents said they were dreaming to leave the country for educational purposes. However, an overwhelming majority of potential migrants in the region (85-86%) want to get income abroad. The majority of respondents viewed migration as a positive way of improving quality of their lives. While 59.6 % of the respondents turned out to be pro migration, 40% were not so sure about the success. The survey also revealed that a good majority of the Tajik population want to go abroad seeking temporary jobs, but they do not appear to have the intention of changing residency. According to the survey 83% of potential migrants would like to go abroad for short-term employment, 8.5% would like to emigrate forever and 8.5 % for educational purposes. Data from the Badakhshan Survey demonstrate a different picture. 70% of migrants would not like to return home, while 10% believed that their future depends on extenuating circumstances. 20% would like to live in GBAO if they could find well-paid jobs (at least $100). In comparison to the rest of the country, this indicates that the people of Badakhshan have a higher desire for emigration. Paper 3, Olimova 19