Global Compact on Migration: Roadmap from A Development Viewpoint. Dilip Ratha November 14, 2016

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Global Compact on Migration: Roadmap from A Development Viewpoint Dilip Ratha November 14, 2016

Outline Data and drivers of migration Benefits and challenges of migration Roadmap to a global compact on migration

Data: International Refugees and Migrants Millions 222 250 153 161 173 191 17 15 12 9 11 16 1990 1995 2000 2005 2010 2015 Total international migrant stock Refugees and asylum seekers Refugee data excludes 5.2 mn Palestinian refugees reported by UNRWA Source: World Bank, Migration and Remittances Factbook 2016

South-South vs. South-North Migration North-South 6% North-North 23% South-South 38% South-North 34%

Intra-regional migration is substantial in Africa, Europe and Central Asia, and MENA 0 10 20 30 40 50 EAP ECA [CELLRANG E] [CELLRANG LAC E] MENA SAR SSA [CELLRANG E] [CELLRANG E] [CELLRANG E] [CELLRANG E] Intra-regional High income: OECD Other developing countries High income: non OECD

Migration pressures will increase in future Change in working age population, 2015-2050 (million) Change in employment needed to keep employment rates at 2015 level (million) "Migration pressure" created by the unemployed (million) (A) (B) (A B) Developing countries 2,119 1,243 875 East Asia & Pacific 200 135 65 Europe & Central Asia 8 4 4 Latin America & Carib, 179 109 70 Middle East & N. Africa 204 84 120 South Asia 600 317 283 Sub-Saharan Africa 928 595 333 High income OECD 78 44 35 Source: International Labour Organization calculations based on ILO Trends Econometric Models and UN World Population Prospects (2015 Revision).

Drivers of migration Income gaps Demographic changes Environmental Change [Fragility, Conflict, Violence]

Income Gap 70:1 Per capita income, 2015 High-Income $43,000 Low-income $600

Ratio of # of 20-year olds to # of 65-year old Nigeria 7:1 India 4:1 W. Europe 1:1

Benefits and Costs to Migrants Benefits after migration Migrants income increased by 15-fold School enrollment doubled Child mortality reduced by 16-fold Women are empowered Better access to health, education, services Costs Risks: health, trafficking, abusive employers and recruiters Exclusion, discrimination, xenophobic attacks Family left behind (children and old parents)

Benefits: Sending Countries Reduced unemployment, reduced poverty Remittances and diaspora investments Trade and FDI Skill and technology transfer

Remittance flows to developing countries to reach $442 billion in 2016 700 600 $ billion FDI 500 400 300 200 100 Remittances Pvt debt & port. equity ODA 0

Challenges: Sending Countries Family left behind Loss of skills Dutch disease

Benefits: Receiving Countries Increased incomes Increases in labor supply Increases in skills, entrepreneurship and innovation Alleviates aging problem Fiscal contributions often positive Diversity

Challenges: Receiving Countries Job competition for native workers Congestion and fiscal costs of social services Crime [National security] [National identity] Negative public perceptions

Public Perceptions: Myth vs Reality Perception of share of migrants in population Perception Reality United States 32% 13% France 28% 10% Spain 24% 12% United Kingdom 24% 13% Source: German Marshall Fund 2015

Ten challenges elements for the Global Compact Migrants 1. Risks: health, trafficking, abusive employers and recruiters 2. Exclusion, discrimination, xenophobic attacks 3. Family left behind (children and old parents) Origin countries 1. Family left behind 2. Loss of skills Receiving countries 1. Job competition for native workers 2. Congestion and fiscal costs of social services 3. [National security] 4. Integration of migrants [National identity] 5. Negative public perceptions

A Role for IFIs 1. Financing development projects 2. Addressing fundamental drivers 3. Maximizing benefits in line with the SDGS Reducing recruitment costs Reducing remittance costs Improve data by migratory status 4. Knowledge for policy making and countering negative public perceptions

Roadmap for the Global Compact on Migration for IFIs Migration diagnostic tool Knowledge and data Financing pilots Convening facilitate dialogue among states Need for innovative, game-changing solutions World Development Report?

Roadmap for States Leverage Global Forum on Migration and Development, and Regional Communities and Processes Different, Coordinated, and Accelerated approach Game-changing ideas needed

Core Elements for the Global Compact Migrants safety, trafficking, abusive employers and recruiters Exclusion, discrimination, xenophobic attacks on migrants; Integration in host community; National identity Family left behind (especially children and old parents)

Core Elements for the Global Compact Loss of skills in origin countries Job competition for native workers in receiving countries Congestion and fiscal costs of social services

Time is short!