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LEVERAGING ECONOMIC MIGRATION for DEVELOPMENT a Brie Ng for the World Bank Board

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LEVERAGING ECONOMIC MIGRATION for DEVELOPMENT a Brie Ng for the World Bank Board LEVERAGING ECONOMIC MIGRATION FOR DEVELOPMENT A Brieng for the World Bank Board SEPTEMBER 2019 LEVERAGING ECONOMIC MIGRATION FOR DEVELOPMENT A briefing for the World Bank Board Migration and Remittances Team Social Protection and Jobs KNOMAD, the Global Knowledge Partnership on Migration and Development, is an open, inclusive, multidisciplinary brain trust for the global migration community. It aims to create and synthesize multidisciplinary knowledge and evidence; generate a menu of policy options for migration policy makers; and provide technical assistance and capacity building for pilot projects, evaluation of policies, and data collection. KNOMAD is supported by a multi-donor trust fund established by the World Bank. The European Commission and the Swiss Agency for Development and Cooperation (SDC) are the current contributors to the trust fund. KNOMAD working papers, policy briefs, and a host of other resources on migration are available at www.KNOMAD.org. © 2019 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the govern- ments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. Attribution—Please cite the work as follows: World Bank. 2019. Leveraging Economic Migration for Development: A Briefing for the World Bank Board. Washington, DC: World Bank. vii Acknowledgements This paper was prepared by Dilip Ratha (lead author), Supriyo De, Eung Ju Kim, Sonia Plaza, Ganesh Seshan, William Shaw, and Nadege Desiree Yameogo of the Migration and Remittances Team, Social Protection and Jobs (SPJ) Global Practice. Thanks to Michal Rutkowski, Margaret Ellen Grosh and Ian David Walker for helpful comments and overall supervision. Peer reviewers were Kathleen Newland and Hans Timmer. Kebba Jammeh, Immaculate Nafula Machasio, Laura Elizabeth McElroy and Maja Vezmar provided research assistance. Inputs on World Bank activities were received from Harsh Anuj and Karthikeyan Karuppaiya Rathinasamy, and on SPJ activities from Syud Amer Ahmed, Maddalena Honorati, Dhushyanth Raju, Milena Petrova Stefanova, Mauro Testaverde and Julieta M. Trias. Issa Faye provided inputs on IFC activities. Constructive comments were received from the offices of several Senior Vice- Presidents and Vice-Presidents, in particular, from Anna Bjerde, Franck Bousquet, Paige Marie Casaly, Anton Dobronogov, Matthew Dornan, Alison Margaret Evans, Qimiao Fan, Diarietou Gaye, David Gould, Lobna Hadji, Georgia Harley, Victoria Kwakwa, J. Humberto Lopez, Morrison Muleri, Sarah Nedolast, Francesca de Nicola, Akihiko Nishio, Caglar Ozden, Reynaldo Pastor, Vikram Raghavan, David Rosenblatt, Hartwig Schafer, Marco Scuriatti, Ethel Sennhauser, Adam Shayne, Darius Stangu, Theo David Thomas, and Liang Wang. Thanks are due to the participants in several rounds of consultations within the World Bank. Thanks to copy editors Steven Kennedy and Fayre Makeig. This work was supported by the KNOMAD Trust Fund. viii Contents ACKNOWLEDGEMENTS........................................................................................... vii CONTENTS ................................................................................................................ viii ACRONYMS AND ABBREVIATIONS ......................................................................... xi KEY DEFINITIONS ..................................................................................................... xiii EXECUTIVE SUMMARY ............................................................................................. xv Rising migration flows, economic gains, and hardening attitudes toward migration ................................................................................................xvi The Global Compact on Migration and the UN Migration Network ...............xviii World Bank Group activities on migration .........................................................xix The way forward .................................................................................................. xx Issues for discussion by the Board ......................................................................xxi SECTION 1. INTRODUCTION ...................................................................................1 SECTION 2. RECENT TRENDS IN MIGRATION AND REMITTANCES ..................3 Data ........................................................................................................................ 3 Fundamental drivers of migration ........................................................................ 8 Benefits and costs of migration—for migrants, origin countries, and destination countries .............................................................................................................. 12 Public attitudes toward immigration .................................................................. 24 SECTION 3. THE GLOBAL COMPACT ON MIGRATION AND THE UN NETWORK ON MIGRATION ....................................................................................27 SECTION 4. WORLD BANK GROUP ACTIVITIES ................................................... 31 Global partnerships ............................................................................................. 31 Global knowledge .............................................................................................. 32 Advisory services and analytics ........................................................................... 34 Lending ................................................................................................................ 36 ix SECTION 5. THE WAY FORWARD ...........................................................................43 Supporting safe and regular (legal) labor mobility............................................. 43 Supporting migration-related SDGs and mobilizing diaspora resources .......... 47 Generating knowledge for policy making: more and better data, forward- looking migration profiles, and impact evaluations .......................................... 51 Supporting global partnerships .......................................................................... 51 In conclusion ........................................................................................................ 52 ANNEX 1. PROPOSED TEMPLATE FOR MIGRATION DIAGNOSTICS ...............53 Origin countries .................................................................................................. 53 Destination and transit countries ....................................................................... 54 An illustrative list of “migration countries” ........................................................ 55 ANNEX 2. SELECTED WORLD BANK GROUP ACTIVITIES DURING FY2017-19 ....................................................................................................57 REFERENCES ..............................................................................................................63 ENDNOTES .................................................................................................................79 List of figures Figure 2.1. Composition of international migrants and refugees, 2018 .......................... 4 Figure 2.2. International migrants and refugees within and across regions and income groups, 2018 ...................................................................................................... 5 Figure 2.3. Top 20 destination economies by number of international migrants and refugees, 2018 .................................................................................................. 5 Figure 2.4. Top 20 destination economies by share of population, 2018 ....................... 5 Figure 2.5. Changes in number of international migrants and refugees between 2000 and 2018 .......................................................................................................... 6 Figure 2.6. Remittance flows to low- and middle-income countries, official development assistance, and private capital flows, 1990–2018 ......................... 15 Figure 2.7. Remittance costs: lower than a decade ago, but still high ......................... 17 Figure 2.8. Average costs of remittances by type of provider, 2018 ............................ 17 Figure 2.9. Recruitment costs: highly variable and disproportionately higher for lower-income workers ......................................................................................... 20 x Figure 2.10. Perceptions vs reality:
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