Migration and Development: ECA (continued)

Migration has become an important phenomenon in many countries. Its importance has become more pronounced in the last decade with its significant contribution to foreign exchange earnings, economic growth and poverty reduction. This pattern is very distinct in many ECA countries, with a special attention to CIS (Commonwealth of Independent States. Increasingly, a large share of the labor force in many CIS countries is residing abroad; this could be as little as 5 percent or as large as one-third. More >

As this comes as no surprise, the downward migration trend spoils development in numerous ways. The labor surplus in sending countries is reduced, thus driving up real wages, and in reverse, consumer demand on local markets increases in receiving countries.

Many countries in the ECA region have experienced increasing inflows from migrant worker remittances over the past several years. Economic growth and poverty reduction achievements in most countries have been intertwined with migration and remittance trends.

At a time of an unfolding global crisis and reduction in export earnings from traditional exports, research shows migration is bringing strong economic gains. In developing countries, remittances frequently lead to more investment in education and in greater entrepreneurship. In Latin America & the Caribbean, data from across 11 countries shows that remittances have a positive effect on education, health, savings, and macroeconomic stability.

The economic contractions in Russia and Kazakhstan have become the major source of concern to CIS countries. These Ggovernments are seeking ways to cushion their economies from potential adverse effects. Among the issues that could negatively affect the current account position is a large-scale return of migrants and a decrease in remittance flows.

Understanding international agreements on migration, examining the signals that predict trends plus developing innovative approaches to migration management are among the topics that will be guiding ECA work on the issue. The migration program in ECA region is trying to help countries respond to policy, institutional and program challenges of migration and remittances in the quest for sustained economic growth and poverty reduction.
For more information, please contact: Mr. Sudharshan Canagarajah and Mr. Matin Kholmatov