1.b. International Migration and Socio-Economic Development

Question 1

What are Remittances?

Answer 1

Remittances are transfers of money from an individual in one country to an individual in another country. The majority of these transactions involve small amounts of money. However, for households in receiving countries these money flows may represent an important share of their budget

Question 2

Why are remittances important?

Answer 2

Individual and family level:
- Reduce poverty and inequality
- Improve access to food, healthcare, education and other essential goods and services
- Invest in small businesses and entrepreneurial activities
- Build assets and financial security
- Provide support in times of crisis, such as natural disasters or economic shocks

National level:
- Boost economic growth
- Increase foreign exchange reserves
- Support employment and job creation
- Improve the balance of payments
- Reduce the need for foreign aid

In addition to these economic benefits, remittances also play an important social role. They can help to maintain ties between migrant workers and their families and communities back home, and they can contribute to the cultural and social exchange between countries

Question 3

What is the relationship between remittances and HDI?

Answer 3

Generally as the HDI of a country increases the value of remittances as a % of its GDP decreases
(Europe is predominantly on the higher end of the scale whereas, Asia and Africa are on the lower to middle end)

Question 4

How does global migration promote stability?

Answer 4

• Remittances are crucial to the recipient countries. Receiving remittances can significantly contribute towards economic stability and growth (boosts demands)
• Returning migrants (to country of origin) often bringing back ideas that can help countries develop economically and politically
• For host countries, migrants contribute to a youthful population

Question 5

How does global migration promote Economic Growth?

Answer 5

• GDP and tax base of host nation boosted by working age migrants
• Migrants boost demand in their host countries (they are producers and consumers)
• Migrants fill skills/labour shortages
• Migrant remittances are crucial to their country of origin and can stimulate the multiplier effect in areas receiving remittances

Question 6

How does global migration promote Development?

Answer 6

• Knowledge and skills gained by migrants in host countries can benefit countries of origin (e.g. business skills)
• Networks develop which facilitate the movement of skills, resources, ideas and values
• UN migration and development projects (e.g. JMDI and UNDP) support bottom-up (grassroots) approaches to development

Question 7

How does global migration cause Inequalities?

Answer 7

• Inequalities in levels of development globally can be a major drive for migration
• Countries of origin lose a portion of their young labour force. Lower economic growth consequently
• “Brain drain” for countries of origin as better educated people tend to migrate
• Decline of BR (birth rate) in countries of origin and BR (birth rate) rise in host countries
• Families that receive remittances are better of than those that do not

Question 8

How does global migration cause Conflict?

Answer 8

• Social conflict due to immigration in host countries. Difficulties integrating due to culture and/or language.
• Pressure on services (health, education and housing) in areas with high concentration of migrants (usually urban areas).
• International borders are areas of conflict (e.g. Turkey-Bulgaria border).

Question 9

How does global migration cause Injustices?

Answer 9

• Migrants are vulnerable to violations and human rights abuses. E.g. Myanmar refugees at Thai-Malaysian border
• Asylum seekers can often be held in detention centres where conditions are harsh and they’re often not allowed to work.
• Refugees often lack adequate provisions (e.g. water, food and safety) and may seek a return to their country of origin where they are at high risk.