WUNRN
Consider for Migrant Women
IOM - International Organization for
Migration
IOM Policy Guidance
Note 1
12 January 2009
The Impact of the Global Financial
Crisis on Migration
Summary: The current global financial crisis is expected to
lead to a downturn in the global economy (and perhaps a deeper recession). The depth and extent of the crisis is
difficult to predict and the impact of the crisis is likely to vary according
to country, geographic region and employment sector. During economic downturns, however, migrant
workers are often the first to lose their jobs and while some may well choose
to return home, policies aimed at sending migrant workers home are not the
solution and could have potentially disastrous consequences for development,
given the scale of remittances – expected to reach USD 283 billion to
developing countries in 2008 – and the already high levels of unemployment in
developing countries. Calls to reduce
migration in destination countries tend to be based on the false perception
that “migrants take jobs” or “compete for welfare benefits”, when in fact the
majority of migrants create economic activity and jobs. Human mobility, as underscored in IOM’s 2008
World Migration Report,[1][1] makes
economies more dynamic and more efficient.
Migration may also be a positive force in alleviating various aspects of
the financial crisis and potentially make an important contribution towards
overcoming the economic downturn. Trying
to combat the financial crisis by simply cutting immigration may make the
situation worse. Nevertheless, countries of origin are likely to experience
some influxes of returning migrants, which may result in economic and social
instability in poorer countries. Reduced
labour migration flows and increases in irregular migration and trafficking in
human beings are also possible outcomes.
Therefore, flexible, coherent and comprehensive migration management
policies are needed to maximize the benefits of migration, protect migrants and
take their needs into account in measures addressing the crisis.
Likely
impact of the financial crisis on migration
There
is no concrete evidence available yet on the impact of the global financial
crisis on migration, but the following largely negative effects have already
been observed or are likely to occur:
Conversely,
the following less negative effects have also been identified:
Elements for
policy responses
Previous
downturns in the economy at both global and regional levels (e.g. the oil
crisis in the early 1970s and the 1998 Asian financial crisis) indicate that
migration will continue regardless (and irregular migration may even increase)
because of the continuing structural demand for labour in certain sectors of
the economy and despite increases in unemployment. Such demand is partly attributable to broad
demographic considerations – aging and shrinking populations in much of the
industrialized world compared to growing populations in much of the developing
world -- as well as to the fact that in many countries local workers either
lack required skills or are reluctant to take up certain low or semi-skilled
jobs. The Asian financial crisis also
demonstrated that keeping markets open to migrants and migration is important
to stimulating a quicker economic recovery.
Therefore, flexible, coherent and comprehensive
policies are needed to ensure that:
IOM’s position
IOM
considers the following four points to be of particular relevance when
responding to requests for policy guidance from government policymakers and
other stakeholders:
1. On the basis of past experience with similar crises
and the current economic outlook, the financial crisis is likely to have
negative effects on both migrants and nationals, although these effects will
differ according to country, geographic region as well employment sector. Considerable attention, therefore, needs to
be devoted to ensure that migrants, who are particularly prone to
stigmatization in such circumstances, are adequately protected from xenophobia
and discrimination in the employment and social spheres.
2. Given that migration, and labour migration in
particular, is an integral part of today’s global economic, political and
social life, flexible, coherent and comprehensive policies are needed to
effectively manage migration, and such policies are all the more pertinent in
an economic downturn.
3. A strong degree of solidarity between countries of
origin and destination is called for to safeguard and continue to harness the
benefits flowing from the migration and development relationship to both sets
of countries as well as to migrants and their families.
4. Migration is part of globalization and the global
economy. Consequently, this requires
that it be factored into policy responses aimed at economic recovery.
In addition, IOM underscores the need to carefully monitor the impact of the financial crisis on migrants as well as countries of origin, transit and destination, and to carry out, collect and disseminate relevant research and data in collaboration with its Member States, international agencies (e.g. those agencies participating in the Global Migration Group) as well as other pertinent stakeholders.
================================================================
To contact the list administrator, or to leave the list, send an email to:
wunrn_listserve-request@lists.wunrn.com. Thank you.
[1][1] World Migration 2008: Managing Labour
Mobility in the Evolving Global Economy (IOM,
[2][2] D. Ratha, S. Mohapatra and Z. Xu, “Outlook for Remittance Flows 2008-2010: Growth expected to moderate significantly, but flows to remain resilient”, 11 November 2008, Migration and Development Brief No. 8, Migrant and Remittances Team, Development
Prospects Group, The World Bank,
http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1110315015165/MD_Brief8.pdf.