Linking Migration and Microfinance

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Linking Migration and Microfinance Global Forum on Migration and Development Contact : yeamaizo@yahoo.com
Vienna Migration Group Conference
Linking Migration and Microfinance

5 October 2007
The Global Forum on Migration and Development: Progressing from Brussels 2007 to Manila 2008 Addressing a Millennium Challenge Vienna International Center, Vienna, Austria,
Dr. Yves Ekou Amazo

(speaking in my personal capacity)
Director of Afrology Think Tank - Economist with UNIDO Email: yeamaizo@yahoo.com - Internet: www.afrology.com
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Content
1. Global Migration: From poor to rich regions 2. Linking Migration, Development and Diaspora 3. Promoting Migration, Microfinance and Productive activities 4. Cosmopolite States: Towards Global, Regional and National Migration Charters
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1. Global Migration: From poor to rich regions
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Net Migration: People moving from LIC & MIC to HIC, 1990-95 and 2000-05 (in millions)
Source: WB, WDI 2007, p. 362.
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Workers remittances transferred home LIC & MIC versus HIC, 1990-95 and 2000-05 (in millions)
Reduce poverty
Increase savings and improve well-being
Source: WB, WDI 2007, p. 362.
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Migrants per regions, 1990 and 2005 (in millions)
Source: ONU, Trends in Total Migrant Stock: the 2005 Revision.
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Increase of the number of Migrants per regions, 1990 et 2005 (in millions)
Asia 0.3
3.5
Oceania
Europe
14.7
North America -0.3 Latin America and Car. 0.7
16.9
Africa
-2 0
10
12
14
16
18
Source: UN, Trends in Total Migrant Stock: the 2005 Revision.
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2. Linking Migration, Development and Diaspora
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Behaviour
Migration and Globalization: Panic or Increased control
Diffusion of threats
Convergence in Migration Policy

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Legal and Illegal Migration: No hope at home

Lack of jobs, wealth creation, security and peace
Dr. Kessile Tchala, Minister of Health Benin, Member of the 10th best Physicians/Surgeons on Prostata in France who decided to return home to improve the health situation
Illegal migrants searching desperately for better opportunities
HOPE
NO
HOPE
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Increasing interdependent economies and societies

From national to regional sovereignty on migration matters
Stimulation of Migration o Transnational flows capital o Downwards trends of transportation o Information, media & communication produce new desires and renewed hopes o Interest for foreign workers (Two main
areas: knowledge-intensive and low-cost for short term activities)
Structuring the Migration Flows Repressive migration policies Unilateral controls of borders Selection of immigrants Structuring migration around fixterm contracts Bilateral agreements with Governments (countries of origin of Migrants) Ensuring cultural and language training paid by a tax (partly while delivering
resident documents to migrants)
o Offering jobs and resident documents in selected professional sectors in rich countries
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Regional expatriation to OECD Countries in 2006*, (in %)

Educated people: moving faster out from Poverty, searching for Security
* Sanjeev Gupta, Catherine Pattillo, and Smita Wagh, Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa, IMF Working paper WP/07/38, February 2007
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FREE MIGRATION DOES NOT EXIST
Globalization of job markets favor qualified people

Migration charters
Developing countries need qualified people
Brain Drain towards rich countries contribute to delay wealth creation in Poor Countries
Linking migration and development not questionable!

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Brain Drain and Terms of Trade:
1. New role of the Diaspora 2. New role for Social Responsibility Actors
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New Economic Migration Challenges: BRAIN GAIN: Mobility of competences and work forces
Wealth distribution with Diaspora Integration of the Diaspora in the preparation and implementation of Migration solutions 23% of Doctors (Physicians) in New York are from Ghana, same average for Doctors from Benin in Paris New framework needed: Towards Interdependent Charter on Migration
Structuring access to Finance Migration Saving account Special conditions/facilities for equipment/technologies transfer A real effort to stop discrimination linked to the origin of the migrant
Why does Migration takes place ? Development deficits Looking for better working conditions Poor governance Corruption and failed legal system (inequalities) Lack of sanitary and education security Violation of human rights Information deficits on role of intermediates
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3. Promoting Migration, Microfinance and Productive activities
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Adjusted Savings* per regions, 2005 (in % of GDP) Inequality in wealth distribution
Source: World Bank, WDI 2007, p. 182; * Including following costs: education, losses in terms of energy, minerals, forests, various polluting substances, etc.
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Microfinance: a leverage system for Migrants

Poor people stay poor mainly not because they are lazy but because they do not have access to capital Development supposed economy of scale, productivity for all and at all levels Poor people and Migrants usually left out of a serious system of financial leverage Building social and financial value added through microfinance and financial intermediation
New priority on entrepreneurship Stopping working in isolation (building productive networks) Ensuring technology content Productivity Accessing credit with affordable interest rates Ensuring conducive business environment Organizing productive agglomeration Reducing cost of official transfer of remittances
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Credit to local private sector, per world regions

1990 and 2005 in % of GDP
Source: World Bank, WDI, 2007, p. 266.
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Inflows to Subsaharan Africa countries, 1975 2004 (in millions of US $)*
Remittances are less volatile
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Regional Shares of Remittances to Developing Countries, 200005* in Millions of US $

East & Central Asia SubSaharan Africa
South Asia
Latin America & Caribbean East Asia and Pacific
Middle East & North Africa
* Source: IMF Balance of Payment Yearbook, 2006 and in Sanjeev Gupta, Catherine Pattillo, and Smita Wagh, Impact of Remittances on Poverty and Financial Development in Sub-Saharan Africa, IMF Working paper WP/07/38, February 2007
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Linking Microfinance and Migrants remittances From Philanthropy to new profit-making businesses Between 2000-2006 - From 78 to 420 microbanks Equivalent to 9.2 to 64 millions poor clients*
1. Building domestic markets and new local financial intermediates based on group solidarity loans 2. Moving savings and remittances towards productive activities 3. Providing financial services to poor and marginalized communities (including migrants) 4. Attracting investors dedicated to social corporate responsibility 5. Securing access to credit at local level to reverse the poverty trap 6. Innovative micro-savings and micro-insurance products 7. Leveraging on less volatile migrants remittances 8. Promoting microfinance and rating institutions 9. Building local capital markets
* The State of the Microcredit Summit Campaign Report, 2006
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Top Ten Recipients of Remittances in Subsaharan Africa, Total flows (in millions of US $)*
Pilot Projects
(microfinance and migration)
should start in those countries
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4. Cosmopolite States: Towards new global, regional and national Migration Charters
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Strategic Migration: Structuring Cosmopolites States

Understanding of People s and not simply Governments Concerns Do not overlook the Visible and not-Visible Migrants issue (the case of Africa) Win-win strategy: Promotion of Diversity
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Migration as a Wealth Creation system:

CO-DEVELOPMENT
Negotiation of Migration Policy
Towards Global, Regional and National Charters
Liabilities
Increased control costs
Convergence Considering Africa as a development partner

Planning of Migration Policy
NATIONALIST STATES
Interdependency and Failed, Failing and Fragile MIGRATION: cosmopolitism Productive capacities and Economic Growth capabilities Integration Policy required
without Job Creation
Selective Migration Policy
COSMOPOLITE NATIONS
Divergence Considering Africa as a variable of adjustment

Borders Control Migration Policy
TRANSPARENCY
ASSETS
Promotion of Diversity
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Source: Adjusted from E. Reinert, Y.E. Amaizo, R. Kattel, The Economics of Failed, Failing and Fragile States: Productive as the Missing Link, Working Paper, UN DESA, June 2007 (under consideration) .
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We need better Immigration laws
Profiling is politically incorrect. Besides, they pose no real threat to us
M I G R A T I O N
O L D D E B A T E
Source: Ramirez
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Thank You
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www.afrology.

Vienna Migration Group Conference

Linking Migration and Microfinance

Dr. Yves Ekou Amazo

1. Global Migration: From poor to rich regions

Source: WB, WDI 2007, p. 362.

Increase savings and improve well-being

Source: WB, WDI 2007, p. 362.

Migrants per regions, 1990 and 2005 (in millions)

Source: ONU, Trends in Total Migrant Stock: the 2005 Revision.

North America -0.3 Latin America and Car. 0.7

Source: UN, Trends in Total Migrant Stock: the 2005 Revision.

2. Linking Migration, Development and Diaspora

Migration and Globalization: Panic or Increased control

Convergence in Migration Policy

Legal and Illegal Migration: No hope at home

Illegal migrants searching desperately for better opportunities

Increasing interdependent economies and societies

Regional expatriation to OECD Countries in 2006*, (in %)

FREE MIGRATION DOES NOT EXIST

Globalization of job markets favor qualified people

Developing countries need qualified people

Linking migration and development not questionable!

Brain Drain and Terms of Trade:

3. Promoting Migration, Microfinance and Productive activities

Microfinance: a leverage system for Migrants

Credit to local private sector, per world regions

Source: World Bank, WDI, 2007, p. 266.

Inflows to Subsaharan Africa countries, 1975 2004 (in millions of US $)*

Remittances are less volatile

Regional Shares of Remittances to Developing Countries, 200005* in Millions of US $

Latin America & Caribbean East Asia and Pacific

Middle East & North Africa

should start in those countries

Strategic Migration: Structuring Cosmopolites States

Migration as a Wealth Creation system:

Towards Global, Regional and National Charters

Convergence Considering Africa as a development partner

Divergence Considering Africa as a variable of adjustment

We need better Immigration laws

Profiling is politically incorrect. Besides, they pose no real threat to us

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