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International
       Labour




                     © International Training Centre of the ILO
   Migration –
Overview and
   Challenges
www.itcilo.org   1
Content of the session

   Definitions
   Statistics
   Gender and Migration
   Factors behind Labour Migration
   Contribution to the Economies and
    Labour Markets of host and origin
    countries
   Labour Migration policies and




                                                                     © International Training Centre of the ILO
    Protection of Migrant Workers
   ILO Mandate and Approach to
    Development

    www.itcilo.org    International Training Centre of the ILO
                            International Training Centre        2
Definitions


   How do you understand these
             terms?
Migration ?
Immigration?




                                                        © International Training Centre of the ILO
Emigration?

 www.itcilo.org     International Training Centre   3
Definitions

   Migration: movement from a place to another could be
    individual/group – organized/spontaneous –
    intern/international – different reasons
   Emigration : The act of departing or exiting from one
    State with a view to settle in another. International
    human rights norms provide that all persons should be
    free to leave any country, including their own, and that
    only in very limited circumstances may States impose
    restrictions on the individual’s right to leave its territory.




                                                                         © International Training Centre of the ILO
   Immigration: A process by which non-nationals move
    into a country for the purpose of settlement



www.itcilo.org           International Training Centre               4
Some figures

      WHAT DOES THIS NUMBER
            STAND FOR?

     214 Million in 2010




                                                        © International Training Centre of the ILO
www.itcilo.org      International Training Centre   5
Migrants = 3 % of the global
              population




                                                 97%       3%




                                                            © International Training Centre of the ILO
www.itcilo.org   International Training Centre         6
Growth of world migrant population 1965
- 2010
                   Migrants (millions)       World pop            Migrants as per
                                             (billions)           cent of world
                                                                  pop
 1965 *            75                        3.3                  2.3

 1975 *            85                        4.1                  2.1

 1985 *            105                       4.8                  2.2

 1990 *            154                       5.3                  2.9

 1995 *            164                       5.7                  2.9

 2000*             175                       6.1                  2.9




                                                                                        © International Training Centre of the ILO
 2010              214                       6.8                  3.1

 *Source : United Nations : International migration report 2002




 www.itcilo.org                  International Training Centre                      7
TOP 5 of countries by population

    1 = China (19,61%)
    2 = India ( 17,31%)
    3 = USA ( 4,53%)
    4 = Indonesia ( 3,39%)

   MIGRANTS (3.01%)




                                                                                    © International Training Centre of the ILO
   5 = Brazil ( 2,83%)
    23 = Italia (0,88%)
                 http://en.wikipedia.org/wiki/List_of_countries_by_population

www.itcilo.org              International Training Centre of the ILO
                                 International Training Centre                  8
STATISTICS
    214 million migrants (half being migrant workers) - 2010

         49,0 percent (%) are female migrant workers (in Europe more than 50%)
         3,1 percent (%) world population (same as the beginning of the 20th Century)
         Percentage (%) is higher in some countries (i.e.Western Europe) due to
          demographic changes (Shrinking Population growth rates and Labour forces)

    227 million people in the labour force in West/Central Europe
       2005: 4% are Third Country Nationals in Total Employment (EU-15)
       Third Country Nationals are 10 % of the population of developed countries


 World Bank study: Gains produced by the liberalization of migration




                                                                                         © International Training Centre of the ILO
  surpass those of trade liberalization
    3% growth of migration by 2025 - $356 billion gains for the global economy
 Networks




    www.itcilo.org              International Training Centre                    9
Migration by Gender




                                                       50%
                                                       50%




                                                             © International Training Centre of the ILO
www.itcilo.org         International Training Centre    10
Women migrants
Major Area                          1960         1970         1980       1990       2000


World                               46.6         47.2         47.4       47.9       48.8


More developed regions              47.9         48.2         49.4       50.8       50.9
Less developed regions              45.7         46.3         45.5       44.7       45.7


Source : H. Zlotnik : « Data Insight The Global Dimensions of Female Migration » in United
Nations, International Migration Report : 2002 (NY, United Nations, 2002)




   Female migrants out number male migrant in




                                                                                                  © International Training Centre of the ILO
    developed countries


     www.itcilo.org                    International Training Centre                         11
Women migrants

   Feminization of migration since 1960
   Women’s labour migration is concentrated in a
    very limited number of occupations
   More vulnerable
   Double discrimination (women AND migrant)
   Risks of abuses, trafficking, forced labour
   Need adequate protection




                                                              © International Training Centre of the ILO
    www.itcilo.org       International Training Centre   12
International Migration Routes




                                                       © International Training Centre of the ILO
www.itcilo.org    International Training Centre   13
WHY PEOPLE EMIGRATE?




                                                      © International Training Centre of the ILO
www.itcilo.org   International Training Centre   14
LABOUR MIGRATION THEORY:
              Factors behind labour migration
   Labour market pressures in countries of origin :
    unemployment and underemployment
   Poverty
   Labour demand in countries of destination (demographic
    factors, need to sustain economic activities and
    development)
   Income inequality between countries within countries
   Technological development in communication and
    transportation
   Geographical proximity
   Historical and cultural links




                                                                  © International Training Centre of the ILO
   Political reasons
   Ecological reasons
   Family unification

    www.itcilo.org       International Training Centre       15
LABOUR MARKETS
                 Destination Countries
Economic Theory: Increase in labour supply will reduce
  wages or increase unemployment.

   Migrant workers improve economic performance
     Through the labour market by:
         Spurring productivity growth
         Increasing the employment rate
         Expanding the working age population
     Through augmenting the level of consumption, i.e.




                                                                   © International Training Centre of the ILO
      demand for goods and services, thus also raising
      labour demand, which benefits nationals as well
     Through contributing their entrepreneurial capacities



    www.itcilo.org        International Training Centre       16
LABOUR MARKETS
                Destination Countries
   Migrant workers are complements rather than substitutes
    for domestic workers.

   Migrant workers may affect salaries of low-skilled national
    workers, but the share of low-skilled workers is low and
    declining in industrialized countries

   Occupational distribution of majority migrant workers is
    very different from national workers - proof that they do
    not compete




                                                                       © International Training Centre of the ILO
   Migrant workers specialize in labour market activities that
    would not exist at the same scale, or not at all, without
    their presence - therefore the economy gains


    www.itcilo.org        International Training Centre           17
LABOUR MARKETS
                      Origin Countries
   Labour migration can reduce pressures on labour markets
    in labour-surplus countries

   In some countries, migrants are replaced easily without
    loss in production or increase of wages

   But, migration is selective:
      Produces upward pressure on salaries in certain
       sectors




                                                                      © International Training Centre of the ILO
      In general, emigration of low-skilled workers generates
       gains for those who remain behind


    www.itcilo.org          International Training Centre        18
Labour Market
                      Origin Countries
Brain-drain: However, is a major challenge – conflict with development
  objectives.

          Can set in motion vicious circles that slow development by
           reducing human capital. It is particularly serious in certain sectors:
           health care and education

     Lowers returns to capital because:
        Governments may be reluctant to invest in higher education
        Local firms that invest in training people will find it difficult to
         recoup their investment if trained workers leave




                                                                                     © International Training Centre of the ILO
     Might affect capital movement
        Companies take into account skills and personnel locally available
         and might be discouraged to invest



    www.itcilo.org              International Training Centre                   19
Remittances : Some figures




    1995 – 2005 :
  UP TO $ 250 billion




                                                      © International Training Centre of the ILO
www.itcilo.org   International Training Centre   20
Definitions

                 REMITTANCES
                             =
     Monies earned or acquired by
         non-nationals that are
    transferred back to their country




                                                         © International Training Centre of the ILO
                of origin.


www.itcilo.org      International Training Centre   21
Remittances
Remittances: most immediate and tangible benefits.

   2nd Largest source of external funding for developing countries

   More reliable source of income

        The flows of remittances fluctuate with economic cycles
         (counter-cyclical)
        Better distributed than Foreign Direct Investment (FDI)

   World Bank: remittances transfers more than doubled




                                                                           © International Training Centre of the ILO
        1995-2005, up to $250 billion
        Developing countries received 72% in 2005 = $190 billion



     www.itcilo.org            International Training Centre          22
Remittances




                                                        © International Training Centre of the ILO
www.itcilo.org     International Training Centre   23
Top recipients of remittances




                                                                                     © International Training Centre of the ILO
               Source: IMF BoP Yearbook, 2004, and World Bank staff estimates
www.itcilo.org                   International Training Centre                  24
Remittances
              ODA and FDI flows : ALGERIA

                                                                            Financial flows of Algeria

                                           2,500




                                           2,000




                                           1,500
                         Millions (US $)




                                                                                                                Workers' remittances
                                                                                                                ODA
                                                                                                                FDI
                                           1,000




                                                                                                                                   © International Training Centre of the ILO
                                            500




                                             -
                                                   2000              2005                      2007      2008

                                                                                Years

Source: World Bank, April 2009


   www.itcilo.org                                         International Training Centre                               25
Remittances
                           ODA and FDI flows : BANGLADESH
                                                          Financial Flows of Bangladesh

                  10,000


                   9,000


                   8,000


                   7,000


                   6,000
                                                                                                  Workers' remittances
Millions (US $)




                   5,000                                                                          ODA
                                                                                                  FDI
                   4,000


                   3,000




                                                                                                                              © International Training Centre of the ILO
                   2,000


                   1,000


                     -
                                  2000             2005                       2007         2008
                  Source: World Bank, April 2009
                                                                 Years




                         www.itcilo.org                           International Training Centre                          26
Remittances
                                ODA and FDI flows : PHILIPPIES
                                                              Financial Flows of Philippines

                  20,000


                  18,000


                  16,000


                  14,000


                  12,000
                                                                                                       Workers' remittances
Millions (US $)




                  10,000                                                                               ODA
                                                                                                       FDI
                   8,000


                   6,000




                                                                                                                                   © International Training Centre of the ILO
                   4,000


                   2,000


                      0
                                   2000                2005                        2007         2008
                                                                     Years

                      Source: World Bank, April 2009


                           www.itcilo.org                              International Training Centre                          27
Remittances
            ODA and FDI flows : SENEGAL

                                                                          Financial Flows of Senegal

                                         1,400



                                         1,200



                                         1,000



                                          800
                       Millions (US $)




                                                                                                              Workers' remittances
                                                                                                              ODA

                                          600                                                                 FDI



                                          400




                                                                                                                                 © International Training Centre of the ILO
                                          200



                                           -
                                                 2000              2005                      2007      2008
                                                                               Years

Source: World Bank, April 2009


  www.itcilo.org                                        International Training Centre                               28
Remittances
                             ODA and FDI flows : MOROCCO
                                                           Financial Flows of Morocco

                  8,000



                  7,000



                  6,000



                  5,000
Millions (US $)




                                                                                                  Workers' remittances
                  4,000                                                                           ODA
                                                                                                  FDI

                  3,000




                                                                                                                              © International Training Centre of the ILO
                  2,000



                  1,000



                    -
                                 2000               2005                     2007          2008

                                                                Years
                   Source: World Bank, April 2009



                        www.itcilo.org                            International Training Centre                          29
Remittances
                                          ODA and FDI flows : INDIA
                                                            Financial Flows of India

                  60,000




                  50,000




                  40,000


                                                                                                 Workers' remittances
Millions (US $)




                  30,000                                                                         ODA
                                                                                                 FDI


                  20,000




                                                                                                                             © International Training Centre of the ILO
                  10,000




                      0
                                   2000              2005                     2007        2008
                    Source: World Bank, April 2009             Years




                           www.itcilo.org                        International Training Centre                          30
Remittances
                                       ODA and FDI flows : MALI

                                                   Fianancial Flows of Mali

                  1,200




                  1,000




                   800
Millions (US $)




                                                                                        Workers' remittances
                   600                                                                  ODA
                                                                                        FDI


                   400




                                                                                                                    © International Training Centre of the ILO
                   200




                    -
                                2000        2005                    2007         2008

                                                       Years
           Source: World Bank, April 2009




                        www.itcilo.org                  International Training Centre                          31
Remittances
                                      ODA and FDI flows : MEXICO
                                                                   Financial Flows of Mexico

                  30,000




                  25,000




                  20,000




                  15,000
                                                                                                         Workers' remittances
Millions (US $)




                                                                                                         ODA
                                                                                                         FDI
                  10,000




                                                                                                                                     © International Training Centre of the ILO
                   5,000




                      0
                                     2000                   2005                     2007         2008


                  -5,000
                                                                       Years
                           Source: World Bank, April 2009



                           www.itcilo.org                                International Training Centre                          32
ECONOMIC CONTRIBUTION
                 Origin Countries
Remittances:

     Positive Effects:
        The first waves of migrants, coming from middle class, their
         remittances may increase inequality. As low-skilled workers, from
         poor families, start to migrate,their remittances reduce poverty
         and inequality.
        Families receiving remittances spend more than average on
         human capital formation (education and health care)
        Long-term: increase local production (income and investment)




                                                                              © International Training Centre of the ILO
     Negative Effects:
        Spent on non-tradables – additional demand drive up the prices of
         such goods and services
        Short-term: may reduce local production (rely heavily on labour)



    www.itcilo.org           International Training Centre               33
Remittances and Impact of the crisis
  A smaller-than-expected decline in 2009 overall, but differences across
   regions
 - Larger-than-expected decline in remittances to Latin America and the
   Caribbean, but emerging signs of a bottoming out
 - Better outcome in South Asia and East Asia, but emerging signs of a
   peaking
 - Flows declining in Europe & Central Asia, and Middle East & North Africa
 - Sub-Saharan Africa doing better
 Currency effects
 - Effects on consumption/investment motivation




                                                                              © International Training Centre of the ILO
 - Valuation effects → for instance: Depreciation of the ruble has reduced
   remittances flows to Central Asian countries in US dollar terms (Tajikistan)




    www.itcilo.org           International Training Centre               34
POLICY: Labour Migration

International Cooperation
Examples of fora, policies and measures:

   Bilateral Agreements
   Regional and inter-regional conferences
   Evaluation of labour market needs in the countries of destination
   Increasing opportunities and means of regular migration
   Reducing the cost of remittances by promoting competition and
    development of intermediate financial services
   Ethical Recruitment Practices:
      Destination countries should refrain from actively recruiting skilled
        workers in low-income countries with skills shortage




                                                                               © International Training Centre of the ILO
   Promoting investment in critical skill areas
   Mutual recognition of academic degrees and qualifications
   Accumulation and portability of social security pension benefits
   Exchange of statistical data

www.itcilo.org              International Training Centre                 35
POLICY: Labour Migration

Protection of Migrant Workers:
   Protection of migrant workers and respect for their labour
    and human rights are important values per se
       Most effective instrument for ensuring their equality of
        treatment with native workers
   Non-discrimination and equality of treatment
       Among the four (4) categories of fundamental
        principles and rights at work recognized by ILO




                                                                     © International Training Centre of the ILO
        members
       Best means to protect the interests of native workers
       Guarantee labour market efficiency

www.itcilo.org           International Training Centre          36
International Legal Framework

Protection of Human Rights under the UN:

   Universal Declaration on Human Rights, 1948

   Seven (7) Human Rights Instruments adopted in the
    context of the United Nations




                                                              © International Training Centre of the ILO
   Special Focus: Convention on the Protection of the
    Rights of All Migrant Workers and Members of Their
    Families, 1990

 www.itcilo.org       International Training Centre      37
Rights of Migrant Workers
                     ILO MANDATE
   The protection of human rights of men and women
    migrant workers and

   the promotion of their equal treatment and opportunity
     are enshrined in the
      ILO Constitution (1919)
      Declaration of Philadelphia (1944)
      Declaration of Fundamental Principles and Rights at
       Work (1998)




                                                                       © International Training Centre of the ILO
   The Social Justice Declaration (2008) reaffirms the role
    of ILS and states that gender and non-discrimination
    should be cross-cutting


    www.itcilo.org     International Training Centre of the ILO
                             International Training Centre        38
International Legal Framework
International Labour Conventions:
All International Labour Conventions, including the eight fundamental ones,
under the 1998 ILO Declaration on Fundamental Principles and Rights at
Work and its Follow-up, apply to migrant workers
Especially :
Eight Fundamental Labour Conventions
     Forced Labour Convention, 1930 (No. 29)
     Freedom of Association and Protection of the Right to Organize Convention,
      1948 (No. 87)
     Right to Organize and Collective Bargaining Convention, 1949 (No. 98)




                                                                                   © International Training Centre of the ILO
     Equal Remuneration Convention, 1951 (No. 100)
     Discrimination (Employment and Occupation) Convention, 1958 (No. 111)
     Minimum Age Convention, 1973 (No. 138)
     Worst Forms of Child Labour Convention, 1999 (No. 182)


    www.itcilo.org             International Training Centre                  39
International Legal Framework
Specific ILO standards in reference to migrant workers

 Migration for Employment Convention (Revised), 1949 (No. 97)
 Migrant Workers (Supplementary Provisions) Convention, 1975
(No. 143)

     Basic components of a comprehensive labour migration policy
     Measures to facilitate migration movements




                                                                       © International Training Centre of the ILO
     Promote equality of treatment and opportunity for migrants and
    nationals



www.itcilo.org           International Training Centre          40
Multilateral Framework on Labour
                    Migration (2006):
A set of non-binding principles, guidelines and best-practices for Governments,
organizations of employers and workers to pursue a rights-based approach to
labour migration. The Framework aims to foster cooperation in order to assist in
the implementation of effective policies on labour migration.

     Based on significant international instruments, an analysis of policy, and the
      mandate of the ILO

      Nine (9) sections, 15 principles and about 120 guidelines:

          Decent Work for All
          Governance
          Protection of Migrant Workers




                                                                                            © International Training Centre of the ILO
          Migration and Development
          International Development
          Annex: Examples of best practices, corresponding to the principles, drawn
           from all regions.



    www.itcilo.org               International Training Centre                         41
ILO Approach to Development

   Promoting development and combating poverty,
    through the creation of employment and decent work,
    in countries of origin.
   By promoting development and employment,
    conditions would be created for countries of origin and
    destination to cooperate fully in formulating and
    implementing labour migration policies that realize their
    interests, as well as those of migrant workers.




                                                                     © International Training Centre of the ILO
   Best means to reduce migration pressures so that
    people migrate by choice and not by necessity.


www.itcilo.org         International Training Centre            42

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Course introduction - Labour Migration Academy

  • 1. International Labour © International Training Centre of the ILO Migration – Overview and Challenges www.itcilo.org 1
  • 2. Content of the session  Definitions  Statistics  Gender and Migration  Factors behind Labour Migration  Contribution to the Economies and Labour Markets of host and origin countries  Labour Migration policies and © International Training Centre of the ILO Protection of Migrant Workers  ILO Mandate and Approach to Development www.itcilo.org International Training Centre of the ILO International Training Centre 2
  • 3. Definitions How do you understand these terms? Migration ? Immigration? © International Training Centre of the ILO Emigration? www.itcilo.org International Training Centre 3
  • 4. Definitions  Migration: movement from a place to another could be individual/group – organized/spontaneous – intern/international – different reasons  Emigration : The act of departing or exiting from one State with a view to settle in another. International human rights norms provide that all persons should be free to leave any country, including their own, and that only in very limited circumstances may States impose restrictions on the individual’s right to leave its territory. © International Training Centre of the ILO  Immigration: A process by which non-nationals move into a country for the purpose of settlement www.itcilo.org International Training Centre 4
  • 5. Some figures WHAT DOES THIS NUMBER STAND FOR? 214 Million in 2010 © International Training Centre of the ILO www.itcilo.org International Training Centre 5
  • 6. Migrants = 3 % of the global population 97% 3% © International Training Centre of the ILO www.itcilo.org International Training Centre 6
  • 7. Growth of world migrant population 1965 - 2010 Migrants (millions) World pop Migrants as per (billions) cent of world pop 1965 * 75 3.3 2.3 1975 * 85 4.1 2.1 1985 * 105 4.8 2.2 1990 * 154 5.3 2.9 1995 * 164 5.7 2.9 2000* 175 6.1 2.9 © International Training Centre of the ILO 2010 214 6.8 3.1 *Source : United Nations : International migration report 2002 www.itcilo.org International Training Centre 7
  • 8. TOP 5 of countries by population  1 = China (19,61%)  2 = India ( 17,31%)  3 = USA ( 4,53%)  4 = Indonesia ( 3,39%) MIGRANTS (3.01%) © International Training Centre of the ILO 5 = Brazil ( 2,83%)  23 = Italia (0,88%) http://en.wikipedia.org/wiki/List_of_countries_by_population www.itcilo.org International Training Centre of the ILO International Training Centre 8
  • 9. STATISTICS  214 million migrants (half being migrant workers) - 2010  49,0 percent (%) are female migrant workers (in Europe more than 50%)  3,1 percent (%) world population (same as the beginning of the 20th Century)  Percentage (%) is higher in some countries (i.e.Western Europe) due to demographic changes (Shrinking Population growth rates and Labour forces)  227 million people in the labour force in West/Central Europe  2005: 4% are Third Country Nationals in Total Employment (EU-15)  Third Country Nationals are 10 % of the population of developed countries  World Bank study: Gains produced by the liberalization of migration © International Training Centre of the ILO surpass those of trade liberalization  3% growth of migration by 2025 - $356 billion gains for the global economy  Networks www.itcilo.org International Training Centre 9
  • 10. Migration by Gender 50% 50% © International Training Centre of the ILO www.itcilo.org International Training Centre 10
  • 11. Women migrants Major Area 1960 1970 1980 1990 2000 World 46.6 47.2 47.4 47.9 48.8 More developed regions 47.9 48.2 49.4 50.8 50.9 Less developed regions 45.7 46.3 45.5 44.7 45.7 Source : H. Zlotnik : « Data Insight The Global Dimensions of Female Migration » in United Nations, International Migration Report : 2002 (NY, United Nations, 2002)  Female migrants out number male migrant in © International Training Centre of the ILO developed countries www.itcilo.org International Training Centre 11
  • 12. Women migrants  Feminization of migration since 1960  Women’s labour migration is concentrated in a very limited number of occupations  More vulnerable  Double discrimination (women AND migrant)  Risks of abuses, trafficking, forced labour  Need adequate protection © International Training Centre of the ILO www.itcilo.org International Training Centre 12
  • 13. International Migration Routes © International Training Centre of the ILO www.itcilo.org International Training Centre 13
  • 14. WHY PEOPLE EMIGRATE? © International Training Centre of the ILO www.itcilo.org International Training Centre 14
  • 15. LABOUR MIGRATION THEORY: Factors behind labour migration  Labour market pressures in countries of origin : unemployment and underemployment  Poverty  Labour demand in countries of destination (demographic factors, need to sustain economic activities and development)  Income inequality between countries within countries  Technological development in communication and transportation  Geographical proximity  Historical and cultural links © International Training Centre of the ILO  Political reasons  Ecological reasons  Family unification www.itcilo.org International Training Centre 15
  • 16. LABOUR MARKETS Destination Countries Economic Theory: Increase in labour supply will reduce wages or increase unemployment.  Migrant workers improve economic performance  Through the labour market by:  Spurring productivity growth  Increasing the employment rate  Expanding the working age population  Through augmenting the level of consumption, i.e. © International Training Centre of the ILO demand for goods and services, thus also raising labour demand, which benefits nationals as well  Through contributing their entrepreneurial capacities www.itcilo.org International Training Centre 16
  • 17. LABOUR MARKETS Destination Countries  Migrant workers are complements rather than substitutes for domestic workers.  Migrant workers may affect salaries of low-skilled national workers, but the share of low-skilled workers is low and declining in industrialized countries  Occupational distribution of majority migrant workers is very different from national workers - proof that they do not compete © International Training Centre of the ILO  Migrant workers specialize in labour market activities that would not exist at the same scale, or not at all, without their presence - therefore the economy gains www.itcilo.org International Training Centre 17
  • 18. LABOUR MARKETS Origin Countries  Labour migration can reduce pressures on labour markets in labour-surplus countries  In some countries, migrants are replaced easily without loss in production or increase of wages  But, migration is selective:  Produces upward pressure on salaries in certain sectors © International Training Centre of the ILO  In general, emigration of low-skilled workers generates gains for those who remain behind www.itcilo.org International Training Centre 18
  • 19. Labour Market Origin Countries Brain-drain: However, is a major challenge – conflict with development objectives.  Can set in motion vicious circles that slow development by reducing human capital. It is particularly serious in certain sectors: health care and education  Lowers returns to capital because:  Governments may be reluctant to invest in higher education  Local firms that invest in training people will find it difficult to recoup their investment if trained workers leave © International Training Centre of the ILO  Might affect capital movement  Companies take into account skills and personnel locally available and might be discouraged to invest www.itcilo.org International Training Centre 19
  • 20. Remittances : Some figures 1995 – 2005 : UP TO $ 250 billion © International Training Centre of the ILO www.itcilo.org International Training Centre 20
  • 21. Definitions REMITTANCES = Monies earned or acquired by non-nationals that are transferred back to their country © International Training Centre of the ILO of origin. www.itcilo.org International Training Centre 21
  • 22. Remittances Remittances: most immediate and tangible benefits.  2nd Largest source of external funding for developing countries  More reliable source of income  The flows of remittances fluctuate with economic cycles (counter-cyclical)  Better distributed than Foreign Direct Investment (FDI)  World Bank: remittances transfers more than doubled © International Training Centre of the ILO  1995-2005, up to $250 billion  Developing countries received 72% in 2005 = $190 billion www.itcilo.org International Training Centre 22
  • 23. Remittances © International Training Centre of the ILO www.itcilo.org International Training Centre 23
  • 24. Top recipients of remittances © International Training Centre of the ILO Source: IMF BoP Yearbook, 2004, and World Bank staff estimates www.itcilo.org International Training Centre 24
  • 25. Remittances ODA and FDI flows : ALGERIA Financial flows of Algeria 2,500 2,000 1,500 Millions (US $) Workers' remittances ODA FDI 1,000 © International Training Centre of the ILO 500 - 2000 2005 2007 2008 Years Source: World Bank, April 2009 www.itcilo.org International Training Centre 25
  • 26. Remittances ODA and FDI flows : BANGLADESH Financial Flows of Bangladesh 10,000 9,000 8,000 7,000 6,000 Workers' remittances Millions (US $) 5,000 ODA FDI 4,000 3,000 © International Training Centre of the ILO 2,000 1,000 - 2000 2005 2007 2008 Source: World Bank, April 2009 Years www.itcilo.org International Training Centre 26
  • 27. Remittances ODA and FDI flows : PHILIPPIES Financial Flows of Philippines 20,000 18,000 16,000 14,000 12,000 Workers' remittances Millions (US $) 10,000 ODA FDI 8,000 6,000 © International Training Centre of the ILO 4,000 2,000 0 2000 2005 2007 2008 Years Source: World Bank, April 2009 www.itcilo.org International Training Centre 27
  • 28. Remittances ODA and FDI flows : SENEGAL Financial Flows of Senegal 1,400 1,200 1,000 800 Millions (US $) Workers' remittances ODA 600 FDI 400 © International Training Centre of the ILO 200 - 2000 2005 2007 2008 Years Source: World Bank, April 2009 www.itcilo.org International Training Centre 28
  • 29. Remittances ODA and FDI flows : MOROCCO Financial Flows of Morocco 8,000 7,000 6,000 5,000 Millions (US $) Workers' remittances 4,000 ODA FDI 3,000 © International Training Centre of the ILO 2,000 1,000 - 2000 2005 2007 2008 Years Source: World Bank, April 2009 www.itcilo.org International Training Centre 29
  • 30. Remittances ODA and FDI flows : INDIA Financial Flows of India 60,000 50,000 40,000 Workers' remittances Millions (US $) 30,000 ODA FDI 20,000 © International Training Centre of the ILO 10,000 0 2000 2005 2007 2008 Source: World Bank, April 2009 Years www.itcilo.org International Training Centre 30
  • 31. Remittances ODA and FDI flows : MALI Fianancial Flows of Mali 1,200 1,000 800 Millions (US $) Workers' remittances 600 ODA FDI 400 © International Training Centre of the ILO 200 - 2000 2005 2007 2008 Years Source: World Bank, April 2009 www.itcilo.org International Training Centre 31
  • 32. Remittances ODA and FDI flows : MEXICO Financial Flows of Mexico 30,000 25,000 20,000 15,000 Workers' remittances Millions (US $) ODA FDI 10,000 © International Training Centre of the ILO 5,000 0 2000 2005 2007 2008 -5,000 Years Source: World Bank, April 2009 www.itcilo.org International Training Centre 32
  • 33. ECONOMIC CONTRIBUTION Origin Countries Remittances:  Positive Effects:  The first waves of migrants, coming from middle class, their remittances may increase inequality. As low-skilled workers, from poor families, start to migrate,their remittances reduce poverty and inequality.  Families receiving remittances spend more than average on human capital formation (education and health care)  Long-term: increase local production (income and investment) © International Training Centre of the ILO  Negative Effects:  Spent on non-tradables – additional demand drive up the prices of such goods and services  Short-term: may reduce local production (rely heavily on labour) www.itcilo.org International Training Centre 33
  • 34. Remittances and Impact of the crisis  A smaller-than-expected decline in 2009 overall, but differences across regions - Larger-than-expected decline in remittances to Latin America and the Caribbean, but emerging signs of a bottoming out - Better outcome in South Asia and East Asia, but emerging signs of a peaking - Flows declining in Europe & Central Asia, and Middle East & North Africa - Sub-Saharan Africa doing better  Currency effects - Effects on consumption/investment motivation © International Training Centre of the ILO - Valuation effects → for instance: Depreciation of the ruble has reduced remittances flows to Central Asian countries in US dollar terms (Tajikistan) www.itcilo.org International Training Centre 34
  • 35. POLICY: Labour Migration International Cooperation Examples of fora, policies and measures:  Bilateral Agreements  Regional and inter-regional conferences  Evaluation of labour market needs in the countries of destination  Increasing opportunities and means of regular migration  Reducing the cost of remittances by promoting competition and development of intermediate financial services  Ethical Recruitment Practices:  Destination countries should refrain from actively recruiting skilled workers in low-income countries with skills shortage © International Training Centre of the ILO  Promoting investment in critical skill areas  Mutual recognition of academic degrees and qualifications  Accumulation and portability of social security pension benefits  Exchange of statistical data www.itcilo.org International Training Centre 35
  • 36. POLICY: Labour Migration Protection of Migrant Workers:  Protection of migrant workers and respect for their labour and human rights are important values per se  Most effective instrument for ensuring their equality of treatment with native workers  Non-discrimination and equality of treatment  Among the four (4) categories of fundamental principles and rights at work recognized by ILO © International Training Centre of the ILO members  Best means to protect the interests of native workers  Guarantee labour market efficiency www.itcilo.org International Training Centre 36
  • 37. International Legal Framework Protection of Human Rights under the UN:  Universal Declaration on Human Rights, 1948  Seven (7) Human Rights Instruments adopted in the context of the United Nations © International Training Centre of the ILO  Special Focus: Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families, 1990 www.itcilo.org International Training Centre 37
  • 38. Rights of Migrant Workers ILO MANDATE  The protection of human rights of men and women migrant workers and  the promotion of their equal treatment and opportunity are enshrined in the  ILO Constitution (1919)  Declaration of Philadelphia (1944)  Declaration of Fundamental Principles and Rights at Work (1998) © International Training Centre of the ILO  The Social Justice Declaration (2008) reaffirms the role of ILS and states that gender and non-discrimination should be cross-cutting www.itcilo.org International Training Centre of the ILO International Training Centre 38
  • 39. International Legal Framework International Labour Conventions: All International Labour Conventions, including the eight fundamental ones, under the 1998 ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, apply to migrant workers Especially : Eight Fundamental Labour Conventions  Forced Labour Convention, 1930 (No. 29)  Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87)  Right to Organize and Collective Bargaining Convention, 1949 (No. 98) © International Training Centre of the ILO  Equal Remuneration Convention, 1951 (No. 100)  Discrimination (Employment and Occupation) Convention, 1958 (No. 111)  Minimum Age Convention, 1973 (No. 138)  Worst Forms of Child Labour Convention, 1999 (No. 182) www.itcilo.org International Training Centre 39
  • 40. International Legal Framework Specific ILO standards in reference to migrant workers  Migration for Employment Convention (Revised), 1949 (No. 97)  Migrant Workers (Supplementary Provisions) Convention, 1975 (No. 143)  Basic components of a comprehensive labour migration policy  Measures to facilitate migration movements © International Training Centre of the ILO  Promote equality of treatment and opportunity for migrants and nationals www.itcilo.org International Training Centre 40
  • 41. Multilateral Framework on Labour Migration (2006): A set of non-binding principles, guidelines and best-practices for Governments, organizations of employers and workers to pursue a rights-based approach to labour migration. The Framework aims to foster cooperation in order to assist in the implementation of effective policies on labour migration.  Based on significant international instruments, an analysis of policy, and the mandate of the ILO Nine (9) sections, 15 principles and about 120 guidelines:  Decent Work for All  Governance  Protection of Migrant Workers © International Training Centre of the ILO  Migration and Development  International Development  Annex: Examples of best practices, corresponding to the principles, drawn from all regions. www.itcilo.org International Training Centre 41
  • 42. ILO Approach to Development  Promoting development and combating poverty, through the creation of employment and decent work, in countries of origin.  By promoting development and employment, conditions would be created for countries of origin and destination to cooperate fully in formulating and implementing labour migration policies that realize their interests, as well as those of migrant workers. © International Training Centre of the ILO  Best means to reduce migration pressures so that people migrate by choice and not by necessity. www.itcilo.org International Training Centre 42

Notes de l'éditeur

  1. A smaller-than-expected decline in 2009 overall, but differences across regions Remittances to Mexico started declining in early 2008, but there are emerging signs of a bottoming out Remittances to Latin America and Caribbean appear to be bottoming out US employment levels – signs of recovery for migrant workers Remittances to Bangladesh, Pakistan and the Philippines are still growing, mainly from the GCC “ Sale effect” -Exchange rate effects encouraged investment-related remittances to India Widening interest rate differentials sustained incentives to send remittances to India Currency effects Depreciation of the ruble has reduced remittance flows to Central Asian countries in US dollar terms (Tajikistan) Weakness of the British pound may be related to a larger decline in remittances in US dollar terms