Harnessing the Diaspora for Development in Public Disclosure Authorized Europe and Central Asia Migration and Remittances Peer Assisted Learning (MIRPAL) Discussion Series September 22, 2011 Public Disclosure Authorized Public Disclosure Authorized The World Bank Poverty Reduction and Economic Management Unit Europe and Central Asia Region Public Disclosure Authorized The views expressed in this paper are those of the authors, and do not reflect the view of the World Bank Group. EUROPE AND CENTRAL ASIA CURRENCY AND EQUIVALENTS UNITS (Exchange Rate as of February 28, 2011) Currency Unit Euro (EUR) US$1.00 Euro 0.7506 Fiscal Year January 1 to December 31 ABBREVIATION AND ACRONYMS ACS American Community Survey MFA Ministry of Foreign Affairs BERCO Belarusian Economic Research MIRPAL Migration and Remittance Peer- and Outreach Center assisted Learning Network BiH Bosnia and Herzegovina's MNM Macedonian National Minority CIS Commonwealth of Independent NGO Non-governmental Organizations States DIOC Database on Immigrants in OECD Organization for Economic OECD Countries Cooperation and Development DNMLLA Department of National POEA Philippine Overseas Employment Minorities and Lithuanians Administration Living Abroad DRA Department for Romanians TOKTEN Transfer of Knowledge Through Abroad Expatriate Nationals ECA Europe and Central Asia UK United Kingdom EU European Union UMD United Macedonian Diaspora FMS Federal Migration Service UN United Nations FSU Former Soviet Union UNDP UN Development Programme GDP Gross domestic product UNGMD United Nations Global Migration Database IDP Integrated Data Processing USSR Union of Soviet Socialist Republics ILO International Labour WAK World Association of Kazakhs Organization IME Institute of Mexicans Abroad WLC World Lithuanian Community IOM International Organization of Migration Vice President: Philippe H. Le Houerou, ECAVP Sector Director: Yvonne Tsikata, ECSPE Sector Manager: Satu Kahkonen, ECSP2 Task Manager: Sudharshan R. Caraganajah, ECSP2 CONTENTS ACKNOWLEDGEMENTS................................................................................................................................ 5 EXECUTIVE SUMMARY ................................................................................................................................. I I. INTRODUCTION .................................................................................................................................... 1 Importance of diaspora populations to development .............................................................. 1 Unique aspects of Europe and Central Asian diaspora populations ........................................ 1 Outline of the study ................................................................................................................. 3 II. REVIEW OF THE LITERATURE ON DIASPORAS AND DEVELOPMENT ................................................ 4 Triad among diaspora, homeland, and host country ............................................................... 4 Types of diaspora engagement ................................................................................................ 5 Best practices of diaspora engagement ................................................................................... 7 III. THE SIZE AND COMPOSITION OF THE DIASPORA POPULATIONS FROM THE EUROPE AND CENTRAL ASIAN COUNTRIES .................................................................................................................... 10 The Demographic Situation in the Countries of Europe and Central Asia ........................... 10 United Nations Global Migration Database .......................................................................... 12 World Bank Bilateral Migration Matrix ................................................................................ 19 Other international and regional migration databases ........................................................... 24 Foreign-Born Diasporas in the former Soviet Union ............................................................ 27 Ethnic Diasporas in the FSU ................................................................................................. 29 Russian census and migration data ........................................................................................ 32 The Russian Federal Migration Service ................................................................................ 34 American Community Survey ............................................................................................... 36 IV. REVIEW OF CURRENT DIASPORA ENGAGEMENT POLICIES OF THE COUNTRIES OF EUROPE AND CENTRAL ASIA ........................................................................................................................................... 41 Policies towards and engagement with diaspora populations of the countries of Europe and Central Asia ........................................................................................................................... 41 Summary of Europe and Central Asian country policies towards their diaspora populations and diaspora engagement with their home countries ............................................................ 61 Migration policies of main receiving countries of Europe and Central Asia ........................ 68 V. POLICY RECOMMENDATIONS TO INCREASE DIASPORA ENGAGEMENT IN THE COUNTRIES OF EUROPE AND CENTRAL ASIA .................................................................................................................... 71 Areas for further research ...................................................................................................... 71 Recommendations to the countries of Europe and Central Asia ........................................... 71 TABLES Table 1: Population Change in the FSU and CEE States, 1989-2008 ........................................................ 11 Table 2: Diaspora Populations from the ECA Countries , Late 2000s ....................................................... 13 Table 3: Main Destinations of the Diaspora Populations from the ECA Countries, Late 2000s ................ 14 Table 4: Changes in the Russian Diaspora Population in by Region .......................................................... 17 Table 5: Main Destination Countries of ECA Diaspora Populations, 2010 ................................................ 21 Table 6: Net Diaspora Flows in the ECA Countries, 2010 ......................................................................... 23 Table 7: Top Destination Countries of Diaspora Populations from the ECA region, 2010 ........................ 24 Table 8: Emigration Rates of Highly-Skilled from ECA, circa 2000 (population 15 and older) ............... 26 Table 9: Estimates of the Foreign-Born Population in the former Soviet Union, 1959 to 1989 ................. 28 Table 10: "Foreign-Born" Population of the USSR, 1989 (thousands) ...................................................... 29 Table 11: Concentration of Major Ethnic Groups in their Homelands in the FSU, .................................... 31 Table 12: Population by Place of Birth in Russia, 1989 and 2002 ............................................................. 32 Table 13: Top Remittance-Sending Source of Each ECA Country, 2010 .................................................. 66 FIGURES Figure 1: Actors and Relationships in Diaspora Migration .......................................................................... 4 Figure 2: A Roadmap for Diaspora Engagement .......................................................................................... 8 Figure 3: Countries of Destination of Diaspora Populations from Moldova and Tajikistan ...................... 16 Figure 4: Gender Composition of Migration by Destination from Selected Countries of Europe and Central Asia ................................................................................................................................................ 18 Figure 5: Percent of Population Residing Outside ECA Countries, 2010 .................................................. 20 Figure 6: FSU Nationalities Inside and Outside Homelands, 1989 ............................................................ 31 Figure 7: Migration to Russia between 1989 and 2002 by Place of Residence in 1989 ............................. 34 Figure 8: Number of Registered Foreign Workers in Russia from ECA and Selected Other Countries, 2007 ............................................................................................................................................................ 35 Figure 9: Educational Levels of the Largest ECA Diaspora Populations in the United States, 2007 to 2009 .................................................................................................................................................................... 37 Figure 10: ECA Diaspora Population in the U.S. by Decade of Entry ....................................................... 38 Figure 11: Per Capita Income of the ECA Diaspora Populations in the United States, 2007 to 2009 ........ 39 Figure 12: Remittances and Other Development Flows to the ECA Region, 1990 to 2008 ....................... 64 Figure 13: Remittances as a Share of GDP in the ECA Region, 2010 ....................................................... 65 ANNEXES Annex Table 1: Ethnic Composition of the USSR by Union Republic, 1989 (thousands)……………….73 Annex Table 2: Ethnic Composition of the Soviet Successor States, 1999-2002 (thousands)……………74