migration

Migration is the Mother of Progress and Invention

1. Introduction

My thanks for asking me to speak at this conference.

It was hardly lost on me, when Kofi Annan asked me to be his Special Representative for Migration, how appropriate it was for the Secretary General to choose an Irishman for this post.

Ireland—it is clear—has now benefited greatly in three very different ways from the ebb and flow of migration over the centuries:

As a country of emigration during more dire times, Ireland sent her courageous sons and daughters to the four corners, in search of work, and they sent sustenance back home; It is hard to forget that, in the second half of the 19th century, fully half of our population fled abroad; 8 million went to America alone between 1800 and 1921. Even today, there are around 3 million Irish citizens who live abroad, of which over 1 million were born here.

Then, two decades ago at the dawn of an age of economic hope and revival, Ireland’s emigrants—and their sons and daughters, even their grandchildren—began coming home. About two hundred thousand Irish who once lived abroad are estimated to have returned in the last quarter-century. They have been an indispensable part of the Celtic Tiger, bringing with them the education, skills, networks, and capital fostered while away.

And today, Ireland—surely to the surprise of many—has become a beacon for immigrants the world over; our booming economy has created jobs that are filled by hundreds of thousands of newcomers from Eastern Europe, Asia, Africa, and elsewhere.

It is a beautiful thing—after centuries of a destitute Ireland being scattered across the world—to see the world now coming to an Ireland that is in full bloom. This new era of immigration has not dawned without difficulties, both for us and for immigrants; but on balance, immigration to Ireland today is a positive force in our lives.

And Ireland’s transformation from a country of emigration to one of immigration puts it in the perfect position to be a leader in the emerging international debate about migration and development. We have experienced migration from every perspective—it is in our bones and our soul—and we should generously share what we’ve learned with the world. So I am delighted that our government is in the final stages of creating a development policy that, I’m told, is deeply informed by an understanding of migration.

2. A New Appreciation of How Migration Benefits Development

I’d like to share with you, to start, why I agreed to take on the post of Kofi Annan’s Special Representative.

Quite simply, I believe migration is one of the great issues of the century—and that it is likely to become of even greater importance.

This is, in part, because we are beginning to realize—in government, in business, and in the not-for-profit sector—that migration can be better managed for the benefit of all. We now understand, more than ever before, that migration is not a zero-sum game.

In the best cases, it benefits the receiving country, the country of origin, and migrants themselves. It should be no surprise that countries once associated exclusively with emigration—from Ireland, to the Republic of Korea, Spain, and many others—now boast thriving economies which themselves attract large numbers of migrants. Emigration has played a decisive role in reinvigorating their economies, as has the eventual return of many of their citizens.

The scale of migration’s potential for good can hardly be underestimated.

To take just the most tangible example, the funds migrants send back to their home countries in 2005 reached approximately US$232 billion—of which US$167 billion flowed to developing countries. By contrast, international development aid totaled $106.5 billion in 2005. And just this year, based on the latest data, the World Bank has argued that the gains from international migration surpass the expected gains from liberalizing merchandise trade, particularly for developing countries.

Yet, at both the national and international levels, there hasn’t been the degree of coherence in policymaking that one would have wished. Migration is normally debated in national terms on the basis of how many immigrants we are keeping out.

This is terribly shortsighted. And I wanted to do whatever I could to change the perspectives of governments on such a crucial matter—especially at such an important moment in the international community’s engagement with both migration and development issues.

3. The Role of the United Nations in This Debate

Migration and development is a test of United Nation’s relevance in today’s world

In September, for the first time in its history, the UN General Assembly will hold a high-level meeting that has migration as its focus; this so-called High-Level Dialogue on Migration and Development has three goals:

To raise awareness of the development dimension in debates about migration worldwide;

To examine the relationship between migration and development, especially poverty reduction; and

To identify examples of best practices, where migration has been made to work for development.

Just last month, in early June, the Secretary-General issued a landmark report on migration and development. This study—rich in detail about how migration is helping countries to grow economically, socially, and culturally—will form the basis of the Dialogue.

The task with which Kofi Annan entrusted me was to highlight to governments, at the highest levels, the links between migration and development. So, over the past six months, I’ve met with ministers or ambassadors of well over 60 countries. I have been truly heartened by how nearly every one of them showed a keen interest in learning what other governments are doing.

Governments recognize that migration is the consummate multilateral issue, mixing together the interests of countries in every corner of the world.There is a maturity to their thinking that belied predictions from many quarters that governments were not yet ready to discuss migration at an international level.

But these leaders I spoke with understood that the nature of migration is changing. It is not a passing phenomenon, but a permanent part of the 21st century landscape; and that this is due in large part to the effects of globalization and to the extraordinary advances in technology and communications. That countries do not have to be antagonists in facing the challenges of migration; our fates are tied together—and so it makes sense to work together.

They understood, too, that this new era of mobility has profound consequences for how we coordinate migration and development policies—not only within governments, but between governments.The intense new focus on cooperation between the European Union and the African Union is just one sign of this, with the upcoming joint EU-AU ministerial in Rabat next week being further proof of a common approach.

The bottom line, then, is that today UN Member States share a core set of migration-related goals. These include:

  • Enhancing the development impact of international migration
  • Ensuring that migration occurs mainly through legal channels
  • Safeguarding the rights of migrants, while preventing their exploitation by smugglers and traffickers

In light of this convergence of interests, it was clear to the Secretary-General and to me that we had to seize this moment: We all hold a piece of the migration puzzle, but none of us has the whole picture; We have a unique opportunity to work together to create this bigger picture based on the countless experiments in managing migration flows taking place all over the world.

I have insisted that international action on migration and development should focus on practical ideas—not on nations hectoring each other about rights; most of the ministers and ambassadors I’ve met want to avoid this blame game.

We will either address this issue as a positive one, or it withers on the vine.

4. Migration: New Trends in the Oldest Phenomenon

Migration is as old as mankind. Despite the alarmism often heard when it comes to immigration, the percentage of migrants in the world today—about 3 percent of the global population—is not even a historical high. There may be a rise in absolute numbers, but migration flows today are much less than in the period from 1870 to 1914.

But while, migration is a constant in this world—and will remain one—there are certain aspects of it that are evolving:

Between 1990 and 2005, the world’s migrant stock rose by 36 million, from 155 million to 191 million including refugees.
The growth rate of the migrant stock has been accelerating, increasing from 1.4 per cent in 1990-1995 to 1.9 per cent in 2000-2004. Meanwhile, no longer do the vast majority of immigrants settle in just a small number of developed countries: About a third of the world’s nearly 200 million migrants have moved from one developing country to another, while an equal proportion have gone from the developing to the developed world. Put another way, those moving “South-to-South” are about as numerous as those going “South-to-North.” Migrants are not just engaged in menial activities. Highly skilled persons—nurses, doctors, engineers, scientist—represent an increasingly large percentage of migrants on the move: Today we estimate that the number of highly educated immigrants living in OECD countries surpasses 20 million, 56 per cent of whom originate in developing countries. Migration is also changing as labour markets and society become more global.

  • A foreman from a company in Indiana moves to China to train workers in new production methods;
  • A professor from Johannesburg chooses to live in Sydney, from where he commutes to a teaching post in Hong Kong;
  • A nurse trained in Manila works in Dubai.

As the demand for highly skilled workers rises, so has the number of persons migrating to study abroad. In 2003 there were at least 2.3 million foreign students enrolled in tertiary education abroad.

Furthermore, since the 1980s, higher education has been one of the fastest growing sectors of the international trade in services. Meanwhile, research continues to undermine old assumptions about migration—it shows, for example, that women are somewhat more likely than men to migrate to the developed world. And finally, no longer can we divide ourselves so easily into “countries of origin” and “countries of destination”—to one degree or another, many countries are now both. These distinctions, together with the perceived demarcation between global “North” and “South,” are being blurred—or in some cases have disappeared completely. Countries like Ireland, Italy, and Spain, which not long ago sent millions of their citizens abroad, are now countries of destination, receiving thousands of newcomers each year. Malaysia, the Republic of Korea, and Thailand are experiencing a similar transition. In short, countries that are very different in other respects now face surprisingly similar migration challenges, which need no longer divide them into adversarial camps. This new era has created challenges and opportunities for societies throughout the world. It also has served to underscore the clear linkage between migration and development.

5. The Forces that Shape Migration and Development

The Pull Factors Behind Migration In thinking about these changes in 21st century migration—and in considering the links between migration and development—it’s vital to remember that the word “development” refers to the economic well-being of all countries that are part of the migration phenomenon. So when we speak about migration and development—we must take into account the contributions of migrants to the developed world, where they have become indispensable in many ways—nowhere more so than in Ireland. The importance of immigrants to the developed world is underscored by current demographic trends: As a result of the ageing of their populations, advanced economies will soon have a large deficit of workers relative both to the jobs that need to be filled, and to the taxes that need to be generated in order to cover the cost of pensions: Today, developed countries still have 142 potential entrants into the labour force for every 100 persons who are about to retire. But in just ten years, this ratio will drop to only 87 young persons per 100 pending retirees. And without migration, the expected deficit of young workers would be even higher. By contrast, developing countries have today 342 young persons for every 100 persons approaching retirement age: and this excess, though declining, will continue over the coming decades. So the developed world’s economic health and its rapidly aging work force combine to create a compelling “pull” factor in the migration equation that is unlikely to change much in the coming decades.

And the Most Important Push Factor Meanwhile, the most important “push factor”—the income inequalities between the developed and developing worlds—are also stark and unlikely to disappear in our lifetimes. In 2000, gross national income per capita in high-income countries was 65 times that of low-income ones, and 15 times greater than middle-income countries.

The lure of a well-paid job in a wealthy country is a powerful driver of international migration, and the attraction has intensified as income differentials among countries continue to grow.
This holds true not only regarding the large and growing differentials between high and low-income countries, but also between the more dynamic and the less dynamic developing countries.

6. Gaining from Migration: The Many Ways in Which Immigrants Contribute

Over time, we must address—forcefully—all the factors that underlie global inequality. Migration is not a panacea.

But it would be folly for us not to recognize the countless ways in which migration can benefit us all. By doing so, we can begin to reshape our policies and actions so that we leverage the forces of migration for the development of global economic development.

The changes in the nature of migration that I described earlier are combining with globalization and the technology revolution to redraw the landscape of migration and development. Owing to the communications and transportation revolution, today’s international migrants are—more than ever before—a dynamic human link between cultures, economies and societies. Just a few seconds are needed for the global financial system to transmit migrants’ hard-won earnings to remote corners of the developing world, where these remittances buy food, clothing, shelter, pay for education or health care, and may relieve debt. The internet and satellite technology allow a constant exchange of news and information between migrants and their home countries.
Penny-a-minute phone cards keep migrants in close touch with family and friends at home. Affordable airfares permit more frequent trips home, easing the way for a more fluid, back-and-forth pattern of mobility. As consumers, migrants contribute to the expansion of trade, tourism, and telecommunications in both home and destination countries:Countless businesses have been spawned to meet the demand for “ethnic goods.”

Migrants also promote foreign investment in countries of origin, as investors themselves, and also by reducing reputation barriers to trade and using their business connections. The impact of migrants is not only measured in money they send home.

The skills and know-how they accumulate are instrumental in transferring technology, capital, and institutional knowledge. Networks linking technical and scientific personnel at home with their migrant counterparts abroad abet the transfer of technology. To take one example: India’s software industry has emerged in large part from the intensive networking among expatriates, returning migrants, and Indian entrepreneurs at home and abroad. Or another: After working in Greece, Albanians bring home new agricultural skills that enable them to increase production. Every year, millions of migrants return home, either permanently or for a limited time before leaving again. They bring with them valuable experience and accumulated savings. Some use their savings to start small businesses, which contribute to job creation, even if on a modest scale. Others offer their expertise via training or teaching activities. Migrants also inspire new ways of thinking, both socially and politically.

7. …And What Governments Are Doing to Capture These benefits

The potential for migrants to help transform their native countries is capturing the imaginations of national and local authorities, international institutions, and the private sector. There is an emerging consensus that countries can cooperate to create triple wins—for migrants, for their countries of origin, and for the societies that receive them.

Many promising policies are already in place. Some receiving countries are experimenting with more fluid types of migration that afford greater freedom of movement through multiple-entry visas. Others are promoting the entrepreneurial spirit of migrants by easing access to loans and providing management training.Meanwhile, more and more governments understand that their citizens abroad can be assets and are strengthening ties with them. By allowing dual citizenship, expanding consular services, permitting overseas voting, and working with migrants for the development of their home communities, Governments are multiplying the benefits of migration. Collective remittances by migrant associations are already transforming some communities of origin by supporting small-scale development projects, often with the support of local and national authorities Governments are also seeking ways to attract their expatriates home: directly, through professional and financial incentives, and indirectly by creating legal and institutional frameworks conducive to return—including dual citizenship and portable pensions.

China and the Republic of Korea attract expatriate researchers back home with state-of-the-art science parks; Even short stays to teach, train, oversee investments, or supervise projects can be effective ways to transfer knowledge, good practices, and technology.

A number of return initiatives are supported by donors and international organizations, as well as by home-country governments and private-sector organizations. Local Governments are also in on the game, and are using innovative measures to attract expatriate talent and capital to their cities or regions. Governments collaborate with migrant associations abroad to improve livelihoods at home; and development programmes help migrant entrepreneurs start small businesses in their communities of origin.

The Case of Remittances: Remittances, and our ability to work together to enhance their impact, have garnered a great deal of attention—and deservedly so, as they stand as a signal example of what might be reaped by improving international cooperation:

Over the past five years alone, in the most importance remittance corridor—that between the US and Mexico—the cost of sending remittances has plunged from 15% of the amount transferred, to under 5%; this has liberated billions of dollars that are now being spent on development.

This was the product of concerted action by home- and host-country governments, donor agencies, and private-sector financial institutions to reduce fees. The effects of this boost in remittances are many: Households with international migrants invest more than comparable households. In particular, remittances help defray the costs of education and health, thereby improving human capital. Furthermore, remittances help households overcome market failures that are common in developing economies, such as lack of credit or insurance. And in many cases, the foreign exchange inflows associated with remittances also improve a country’s creditworthiness, lower its borrowing costs, and provide reliable financing in times of instability.

Also, in receiving remittances, many poor people are exposed for the first time to financial service institutions, such as banks, credit unions, and microfinance institutions. Expanding financial services for the senders and receivers of remittances can help them accumulate savings, gain access to credit, acquire productive assets, and invest beyond the limits of their immediate communities.

There are, of course, also costs for developing countries when their people—especially those who are well-trained—go abroad. Small economies are most vulnerable to the ill effects of “brain drain,” particularly in such crucial sectors such as health and education.

Among the ways of preventing the loss of human capital, perhaps the most important measure is to make education and training in developing countries responsive to local needs and conditions, while improving pay, working conditions, and career opportunities for skilled workers. In a spirit of solidarity, the international community—and particularly those countries that benefit most from immigration of skilled workers from developing countries—could find ways of supporting initiatives to make those improvements, especially in the health and education services that are crucial for development.

With Government support or encouragement, educational institutions in developed countries have entered into partnerships with local institutions or have set up branches of their own in countries where the demand for tertiary education is large and growing. By establishing centres of excellence to train both their own and foreign students, forward-looking developing countries are setting the foundation for a knowledge economy.

Some of them are working towards becoming the hub for tertiary-level training within their respective regions. As a result, the increase in the number of foreign students training in developing countries has been accelerating. Through international cooperation and public-private partnerships, a similar approach may be used to develop regional training centres for the personnel that is sorely needed by the least developed countries, particularly in the areas of health and education.

8. Closing Remarks

The passions migration stirs, and the perils it presents for politicians, has sent too many thoughtful people into defensive poses.

We need to change this.

The best way for us do so is by continuing the international dialogue on migration and development—and by basing this dialogue on the true facts about migration. For too long, and in too many places, migration policies have been based anecdotes and hunches rather than on hard evidence.

Migration is the mother of progress and invention. Our own country is proof of this: Ireland, which has benefited from emigration through the centuries, is now thriving in large part thanks to immigration.

Governments can proactively shape international migration and the distribution of its costs and benefits, thereby making it work better for everyone.

But they must create their migration and development policies in the full knowledge that they do not exist in isolation—all have global repercussions. Migration is a global phenomenon—which occurs not only between pairs of countries or within regions, but from almost every corner of the world to every other—it requires our collective attention.

By promoting the exchange of experience and helping build partnerships, the international community can do much to increase—and spread—the positive effects of migration on development.

This text is taken from a speech delivered by Peter Sutherland at The IIIS Conference.