Migration Can Act As A Force For Growth

Migration poses a formidable challenge to global development. Currently, approximately 184 million individuals, accounting for 2.3 percent of the world’s population, reside outside their home countries. Significantly, almost half of these migrants find themselves in low- and middle-income nations. However, what does the future hold in this regard?

In the coming decades, as the world grapples with economic imbalances, diverging demographic patterns, and the specter of climate change, migration will emerge as a necessity for countries across all income levels. When managed adeptly, migration can serve as a catalyst for prosperity and contribute to the achievement of the United Nations’ Sustainable Development Goals.

A force for growth

Each year the World Bank publishes its World Development Report, and the 2023 edition focuses on migration. Of the many migrants globally, some 184 million lack citizenship in the country they live in, with 37 million of these classified as refugees. While many of these reside in low- and middle-income countries, migration is an issue for countries of all kinds.

Rapid shifts in demographics are fueling an escalating demand for migration in nations across the economic spectrum. High-income countries, alongside their middle-income counterparts, are confronted with the rapid aging of their populations. Even before attaining affluence, middle-income nations find themselves grappling with the burden of an aging population.

Meanwhile, low-income countries are experiencing a population boom, yet their youthful workforce is entering the workforce ill-equipped with the requisite skills demanded by the global labor market. These prevailing patterns are poised to ignite a worldwide race for talent, creating a fervent competition among nations to secure skilled workers.

Matches and motives

The report examines how well the skills of migrants are matched with the needs of their respective destination countries alongside the motivations they have for moving. This match is crucial in determining the extent to which both the migrants and the destination country benefit from migration.

The underlying motivation holds the potential to impose legal obligations on host nations. Individuals who embark on migration journeys driven by a “well-founded fear” of suffering harm or persecution within their home countries, fitting the definition of refugees, inherently warrant international safeguards and protection.

The match and motive framework proposed by the authors provides policymakers with a valuable tool to effectively respond, while the report identifies a number of essential policies.

Different alignment

When the alignment between migrants and their destinations is strong, the benefits accrue significantly to both the migrants themselves and the countries of origin and destination. This holds true for the vast majority of migrants, regardless of their skill level or immigration status. The policy objective should thus prioritize maximizing gains for all parties involved.

In the case of refugees, where the match is weak, the burden and costs must be collectively shared and diminished through multilateral efforts. Refugee situations often endure for extended periods. Hence, the policy objective should aim to reduce hosting costs while upholding adequate standards of international protection.

Challenges arise when the match is weak and individuals do not qualify as refugees, particularly when migrants find themselves in distressed and irregular circumstances. While destination countries maintain the prerogative to regulate the entry of such migrants, the act of deportation or refusal of entry can result in inhumane treatment.

Moreover, the restrictive policies implemented by destination countries can impose costs on transit nations. The policy goal should thus revolve around diminishing the need for distressed migration, with development playing a pivotal role in this endeavor.

Boosting development

The report suggests that while in the pursuit of sustainable development, origin countries should take proactive measures to effectively manage migration. Labor migration ought to be explicitly incorporated into their development strategies.

To achieve this, it is crucial for these nations to reduce the costs associated with remittance transfers, foster knowledge exchange with their diaspora communities, enhance globally sought-after skills, mitigate the negative consequences of brain drain, safeguard their citizens overseas, and provide support upon their return.

Likewise, destination countries can adopt a more strategic approach to managing migration. By implementing a “strong match” migration system, they can address their labor requirements while ensuring the inclusion of migrants and managing social concerns expressed by their citizens.

Granting refugees the freedom to move, seek employment, and access national services wherever available is another important step. Furthermore, these nations should strive to reduce distressed and high-risk migration in a compassionate manner.

International cooperation

International cooperation is imperative to harness the potential of migration as a catalyst for development. Bilateral collaborations can enhance the alignment between migrants and the labor needs of destination countries.

Meanwhile, multilateral efforts are necessary to distribute the costs associated with hosting refugees and to address challenges posed by distressed migration.

It is essential to develop new financing mechanisms that enable countries to provide predictable and sustainable support to noncitizens. Additionally, it is crucial to ensure that all stakeholders have a voice in the migration discourse, including developing countries, the private sector, migrants, refugees, and other underrepresented groups.

By embracing a comprehensive and strategic approach to managing migration, countries can transform it into a formidable force that drives development. This requires a concerted effort to align policies, strengthen cooperation, and ensure the voices of all relevant actors are heard.

Through these means, migration can truly become a mutually beneficial endeavor for both origin and destination countries, as well as for migrants and refugees themselves.

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