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Linking Migration and Microfinance: Vienna Migration Group Conference

Join the Vienna Migration Group Conference to explore the link between migration and microfinance, and how it can promote migration, development, and productive activities. Learn from experts and discuss the challenges and opportunities of global migration.

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Linking Migration and Microfinance: Vienna Migration Group Conference

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  1. 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 Ekoué Amaïzo (speaking in my personal capacity) Director of “Afrology” Think Tank - Economist with UNIDO Email: yeamaizo@yahoo.com - Internet: www.afrology.com

  2. Global Migration: From poor to rich regions Linking Migration, Development and Diaspora Promoting Migration, Microfinance and Productive activities Cosmopolite States: Towards Global, Regional and National Migration Charters Content

  3. 1. Global Migration: From poor to rich regions

  4. Net Migration: People moving from LIC & MIC to HIC, 1990-95 and 2000-05 (in millions) Source: WB, WDI 2007, p. 362.

  5. Reduce poverty Increase savings and improve well-being Workers’ remittances transferred home LIC & MIC versus HIC, 1990-95 and 2000-05 (in millions) Source: WB, WDI 2007, p. 362.

  6. Migrants per regions, 1990 and 2005 (in millions) Source: ONU, Trends in Total Migrant Stock: the 2005 Revision.

  7. Increase of the number of Migrants per regions, 1990 et 2005 (in millions) Source: UN, Trends in Total Migrant Stock: the 2005 Revision.

  8. 2. Linking Migration, Development and Diaspora

  9. Behaviour Diffusion of threats Migration and Globalization: Panic or Increased control Convergence in Migration Policy

  10. 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 H O P E N O H O P E Legal and Illegal Migration:No hope at homeLack of jobs, wealth creation, security and peace

  11. Increasing interdependent economies and societiesFrom national to regional sovereignty on migration matters • Stimulation of Migration • Transnational flows capital • Downwards trends of transportation • Information, media & communication produce new desires and renewed hopes • Interest for foreign workers (Two main areas: knowledge-intensive and low-cost for short term activities) • Offering jobs and resident documents in selected professional sectors in rich countries • Structuring the Migration Flows • Repressive migration policies • Unilateral controls of borders • Selection of immigrants • Structuring migration around fix-term 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)

  12. 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

  13. Migration charters FREE MIGRATION DOES NOT EXIST Developing countries need qualified people Globalization of job markets favor qualified people Linking migration and development not questionable! Brain Drain towards rich countries contribute to delay wealth creation in Poor Countries

  14. Brain Drain and Terms of Trade: • New role of the Diaspora2. New role for Social Responsibility Actors

  15. 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 New Economic Migration Challenges:BRAIN GAIN: Mobility of competences and work forces

  16. 3. Promoting Migration, Microfinance and Productive activities

  17. 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.

  18. 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

  19. Credit to local private sector, per world regions 1990 and 2005 in % of GDP Source: World Bank, WDI, 2007, p. 266.

  20. Inflows to Subsaharan Africa countries, 1975 – 2004 (in millions of US $)* Remittances are less volatile * 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

  21. Regional Shares of Remittances to Developing Countries, 2000-05* in Millions of US $ SubSaharan Africa East & Central Asia South Asia Middle East & North Africa Latin America & Caribbean East Asia and Pacific * 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

  22. 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* • Building domestic markets and new local financial intermediates based on “group solidarity” loans • Moving savings and remittances towards productive activities • Providing financial services to poor and marginalized communities (including migrants) • Attracting investors dedicated to social corporate responsibility • Securing access to credit at local level to reverse the poverty trap • Innovative micro-savings and micro-insurance products • Leveraging on less volatile migrants remittances • Promoting microfinance and rating institutions • Building local capital markets * The State of the Microcredit Summit Campaign Report, 2006

  23. Top Ten Recipients of Remittances in Subsaharan Africa, Total flows (in millions of US $)* Pilot Projects (microfinance and migration) should start in those countries * 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

  24. 4. Cosmopolite States: Towards new global, regional and national Migration Charters

  25. 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

  26. Negotiation of Migration Policy CO-DEVELOPMENT Liabilities Increased control costs Convergence Considering Africa as a development partner Planning of Migration Policy NATIONALIST STATES COSMOPOLITE NATIONS Interdependency and cosmopolitism Integration Policy required Selective Migration Policy Failed, Failing and Fragile Productive capacities and capabilities Divergence Considering Africa as a variable of adjustment MIGRATION: Economic Growth without Job Creation ASSETS Promotion of Diversity TRANSPARENCY Borders Control Migration Policy Migration as a Wealth Creation system: Towards Global, Regional and National Charters 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) .

  27. Profiling is politically incorrect. Besides, they pose no real threat to us… We need better Immigration laws OLD DEBATE MIGRATION Source: Ramirez

  28. Thank You

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