labour migration structures and financing in asia

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LABOUR MIGRATION STRUCTURES AND FINANCING IN ASIA Study commissioned by ILO Rakkee Thimothy S.K. Sasikumar Padmini Ratnayake Alvin P. Ang January 2015 The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

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This presentation was given at the 5th ADBI-OECD-ILO Roundtable on Labor Migration in Asia: Building Effective Structures and Institutions for Migration Governance which was held in Shanghai, the People's Republic of China on 28-30 January 2015.

TRANSCRIPT

Page 1: Labour Migration Structures and Financing in Asia

LABOUR MIGRATION STRUCTURES AND FINANCING IN ASIA

Study commissioned by ILO

Rakkee Thimothy S.K. Sasikumar

Padmini Ratnayake Alvin P. Ang

January 2015

The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

Page 2: Labour Migration Structures and Financing in Asia

Key Observations

• With increasing magnitude and heterogeneity of international labour flows, migration management is becoming complex

• Labour receiving countries seen imposing conditionalities on the entry and rights of migrant workers

• Labour sending countries moving from protection to promotion of labour migration

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Page 3: Labour Migration Structures and Financing in Asia

The Context

• Identify the present administrative structures, services that labour sending countries provide and their financial efficiency and sustainability

• This study attempts to explore these interrelated issues by taking up the case of three major labour sending countries in Asia—India, the Philippines and Sri Lanka

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Page 4: Labour Migration Structures and Financing in Asia

The Context

• India, the Philippines and Sri Lanka demonstrate several commonalities and distinctions with respect to international labour flows

• The outcome of the study will also provide pointers to emerging migrant sending countries in evolving labour migration as a development strategy

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Page 5: Labour Migration Structures and Financing in Asia

Objectives

• Assess administrative structures, manpower requirements and new responses to facilitate labour mobility

• Examine the various migrant services extended by the government agencies

• Analyse the financial efficiency of managing migration

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Page 6: Labour Migration Structures and Financing in Asia

Conceptual Framework

Conceptual Framework of the Study

MIGRATION MANAGEMENT

REGULATING LABOUR MIGRATION & MIGRANT SERVICES

Information & Pre Departure Services; Skill Development; Regulating Recruitment; Services at the Destination; Welfare Services and; Inter Country Cooperation

ADMINISTRATIVE STRUCTURE

Mission & Vision of the Ministry & its Structure; Legislation; Policies; Available Manpower; Promotion & Training Opportunities and; New Administrative Initiatives

FINANCING

Income & Expenditure of the Ministry & Attached Institutions and; Financing of various Migrant Services

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Page 7: Labour Migration Structures and Financing in Asia

Location Labour Mobility: Comparisons

• Compared to Sri Lanka and the Philippines, data on labour outflows/inflows in India is limited

• In Sri Lanka and the Philippines the labour flows are observed to be feminised

• There are similarities with respect to destination and skill composition of migrants

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Page 8: Labour Migration Structures and Financing in Asia

Migration of Indian Population to Major Regions, 2012

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Page 9: Labour Migration Structures and Financing in Asia

Labour Outflows from India (in percent)

Country 2008 2009 2010 2011 2012

Saudi Arabia 26.9 46.1 42.9 46.2 47.9 UAE 41.3 21.4 20.4 22.2 18.9 Oman 10.6 12.3 16.5 11.8 11.3 Qatar 9.8 7.6 7.1 6.7 8.4 Kuwait 4.2 6.9 5.9 7.2 7.5 Malaysia 2.5 1.9 3.2 2.9 2.8 Bahrain 3.8 2.9 2.4 2.3 2.7 Others 1.0 1.0 1.6 0.9 0.5 TOTAL 847,994 610,270 641,355 626,565 747,041

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Page 10: Labour Migration Structures and Financing in Asia

Sri Lanka

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Page 11: Labour Migration Structures and Financing in Asia

Philippines

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Description 2008 2009 2010 2011 2012

Occupational Category* Household Service workers 36.3 47.0 55.8 62.5 62.1 Nurses 8.3 8.5 7.0 7.5 6.2 Cook, Waiters, Bartenders and Related Workers 14.3 11.2 7.6 7.7 8.5 Wiremen, Electrical Workers, Plumbers and Welders 18.4 15.3 12.7 11.8 12.0 Labourers and Cleaners 15.5 11.9 11.5 6.1 6.9 Caregivers 7.3 6.1 5.4 4.4 4.2 Major Destination** Saudi Arabia 28.3 26.7 26.1 24.0 23.0 UAE 19.9 18.0 17.9 17.9 18.1 Singapore 4.3 5.0 6.3 11.1 12.0 Hong Kong SAR 8.0 9.2 9.0 9.8 9.2 Qatar 8.7 8.2 7.8 7.6 7.3 Kuwait 4.0 4.2 4.7 5.0 5.2 Taiwan 4.0 3.1 3.3 3.2 2.9 Italy 2.3 2.1 2.3 2.4 1.8 Bahrain 1.3 1.4 1.4 1.4 1.6 Malaysia 0.6 0.7 0.9 1.3 2.7 Others 18.6 21.5 20.4 16.3 16.3

Taipei,China

Hong Kong, China

Page 12: Labour Migration Structures and Financing in Asia

Remittance Inflows

12

0

20,000

40,000

60,000

80,000

India Philippines Sri Lanka

2010 2013e

0

20

40

60

80

America Asia Europe Middle East

Others

2010 2013r

010203040506070

Middle East

Europe Asia America Others

2010 2012p

Figure 2.3A: Workers' Remittances: Inflows (USD million)

Figure 2.3B: Region-Wise Distribution of Private Transfers Inflows to India (in per cent)

Figure 2.3C: Workers Remittances to

Sri Lanka (in per cent) Figure 2.3D: Overseas Filipinos Cash Remittances

(in per cent)

0

10

20

30

40

Gulf Countries

North America

South America

Europe Africa East Asia Others

2009-10 2012-13

Page 13: Labour Migration Structures and Financing in Asia

Legal framework to Manage Labour Migration

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INDIA PHILIPPINES SRI LANKA Legal Basis Emigration Act

1983 Labor Code of 1974 Foreign

Employment Agencies Act 32 of 1980

Key Provisions

Facilitate Recruitment of Indian Workers on best possible terms and conditions of employment

Created the Bureau of Employment Services and facilitation of overseas work

Regulate recruitment and related aspects of foreign employment

Page 14: Labour Migration Structures and Financing in Asia

Key Functions of Overseas Migration Administrative Structures: A Comparison

MOIA, India DOLE, the Philippines MOFEPW, Sri Lanka Diaspora Services Emigration Services Financial Services Management Services Economic Services

Information & publication Service

Administrative Service Legal Service Financial Management

Service Human Resource

Development Service Planning Service Training and skills

development Regulation of Foreign

Employment Welfare Services of

OFWs Reintegration

Formulation & Implementation of Policies/Programmes/ Projects for Foreign Employment Industry Promotion of Foreign

Employment Migrant Workers Welfare Regulation & Supervision of

Employment Agencies Career Guidance on Foreign

Employment Supervision of SLBFE and SLFEA Welfare of Expatriate Sri

Lankans

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Page 15: Labour Migration Structures and Financing in Asia

Human Resources to Manage Migration

• India has a lean staff based on the Ministry of Overseas Indian Affairs (MOIA) structure

• Philippines has about 1,151 staff with 354 based overseas

• Sri Lanka has about 1,252 staff positions

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Page 16: Labour Migration Structures and Financing in Asia

Initiatives to Improve Migration Administration

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INDIA PHILIPPINES SRI LANKA New Responses to improve Administrative Services

e-Governance project to make migration management efficient

Creation of the Philippine Statistical Authority (PSA) is expected to improve data on international migration Creation of subcommittee on Migration and development at national level Work with local government units

Increased manpower, improved administrative efficiency, established Regional Administration for district and divisional based welfare activities Establishment of a national advisory council on Labour Migration

Page 17: Labour Migration Structures and Financing in Asia

Training of Labour Welfare Officers in Sri Lanka

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Programmes Duration Organisers Content

Certificate Course on Labour Migration and Operational Procedures in Sri Lanka Diplomatic Missions in Labour Receiving countries

3 Months

• MOFEPW • SLBFE • Ministry of External

Affairs • Diplomatic Officers

Training Institute. (Bandaranayake International Diplomatic Training Institute, Colombo)

• International labour migration in historical and contemporary perspective;

• Socio-economic impacts of migration;

• Rights of migrant workers and international Conventions on labour migration; diplomatic practices and protocols

• Strategies for promoting labour migration and migrant services

Special Training for selected LWOs to familiarise with the functions and procedures

2-3 weeks

• Ministry of External Affairs,

• Consular Affairs Division, MOFEPW

• SLBFE

• Functions and responsibilities of LWOs

• Migrant workers grievance handling mechanism

• Familiarise duties and responsibilities of the SLBFE and the Consular Affairs Division of the Ministry of External Affairs

• Special training on Manual of procedure of the Labour Divisions of the Sri Lanka Diplomatic Missions

Continuous Capacity Building Programmes of the LWOs while in service

2-3 Days • MOFEPW • SLBFE

New developments related to labour migration, manual of procedures etc.

Page 18: Labour Migration Structures and Financing in Asia

Information Services for Migrants

• India provides information through tri media and electronic media on the legal routes of migration mostly focused on migration to the Gulf countries

• There are existing 24 hours helpline and walk in counselling through Overseas Workers Resource Centers (OWRCs)

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Page 19: Labour Migration Structures and Financing in Asia

Pre-departure Orientation Services

In India pre-departure orientation not mandatory

In the Philippines and in Sri Lanka, pre departure is mandatory Government and CSOs provide a joint platform to extend

pre-departure services in the Philippines

Sri Lanka has pre departure orientation programme catering to the requirements of different migrant groups

Delivery of pre departure orientation subjected to periodical review

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Page 20: Labour Migration Structures and Financing in Asia

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INDIA PHILIPPINES SRI LANKA

Pre-departure Orientation

Not mandatory Compulsory Offers customised departure programmes for different categories of migrants. Also provide Pre-Employment Orientation Seminar (PEOS) and Post-Arrival Orientation Seminar (PAOS)

Compulsory Offers customised departure programmes for different categories of migrants - Certificate is mandatory before registering for SLBFE

Pre-departure Orientation Services

Page 21: Labour Migration Structures and Financing in Asia

Migrant Services at the Country of Origin

Skill Development

• In India Centre of Excellence in the North East Region Recently announced Swarna Pravas Yojana – train 5 million

people up to 2022 to make India the main source of skilled labour

National Skill Qualification Framework adopted

• In the Philippines, Technical Education and Skills Development Authority (TESDA) is the main body responsible for training, assessment and certification of skills – National Skill Qualification Framework adopted

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Page 22: Labour Migration Structures and Financing in Asia

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INDIA PHILIPPINES SRI LANKA

Skill Development Skills Training Initiative for North Eastern States; propose to implement Sarna Pravas Yojan

Training, assessment and certification provided by Technical Education and Skills Development Authority (TESDA); OWWA also conducts specialised programmes like Skills-for-Employment Scholarship Program (SESP) and Seafarer’s Upgrading Program (SUP)

Skill development programmes conducted with technical support from the Ministry of Youth Affairs and Skill Development and the State and Non State Technical Education and Vocational Training (TEVT) network Country specific training programmes

Skills Development

Page 23: Labour Migration Structures and Financing in Asia

Sri Lanka Training for Prospective Migrants

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Training Course Target Group Age

Limit (yrs)

Duration (Days)

Fees (USD)

Domestic Housekeeping (Sinhala & Tamil Medium)

Female workers to Middle East 21-45 21 57*

Domestic Housekeeping & Care giving Male & female workers to Cyprus and who can speak English

21-45 30 69*

Domestic Housekeeping & Care giving Female workers to Singapore/Hong Kong, China and who can speak English

21-45 30 69*

Training Programme for Experienced Domestic Sector Workers

Female workers who can speak Arabic (Middle East) and Greek (Cyprus)

21-45 07/63 46

Care Giving Male & female health care workers to Israel

21-45 25/28 27

Care Giving Male & female experienced health care workers to Israel

21-45 15 46

Literacy Training (Sinhala &, Tamil medium) Illiterate migrant workers 21-45 18 19

Special English Literacy Training Migrant workers to Cyprus, who cannot read, write & speak English**

21-45 18/180 23

Special Training Programme for Oversees Job Seekers other than domestic housekeeping

First time migrant workers (male/female) to Middle East, Maldives & Malaysia

18-45 21 57*

Page 24: Labour Migration Structures and Financing in Asia

Regulating Recruitment

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INDIA PHILIPPINES SRI LANKA Regulating Recruitment

Licensing recruitment agencies, granting of emigration clearance and verification of contracts - Ceilings imposed on recruitment fees based on skills category (USD 37 for unskilled to USD 184 for other categories)

Monitoring operation of recruitment agencies, facilitating recruitment and validation of employment contracts

Regulating and monitoring operation of recruiting agencies and provide clearance to migrant workers. - Introduced the grading of licensed recruitment agencies

Page 25: Labour Migration Structures and Financing in Asia

India

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Status 2010 2011 2012*

Regi

ster

ed

Show Cause Notice issued 145 212 234 Registration Certificate - Suspended

10 20 37

Registration Certificate - Cancelled

29 44 15

Dropped/Settled/Revoked 82 94 36

Unr

egis

tere

d Cases referred to State Government/POE for action

166 225 240

Prosecution sanctions sought 10 9 14 Prosecution sanctions issued 10 9 14

Complaints and actions taken against recruiting Agents

Page 26: Labour Migration Structures and Financing in Asia

Sri Lanka • Redress mechanism in Sri Lanka

– The SLBFE Is the key institution handling complaints and grievances of Migrant Workers.

– Conciliation Division, Foreign Relations Division, Investigation Division and Welfare Division of the SLBFE handles the complaints according to the nature of the complaints.

– Web-based complaint handling system is in operation connecting the SLBFE, Diplomatic Mission and Recruitment Agencies for speedy resolutions of complaints.

– SLBFE officials can conduct inquiries, make awards/decisions and take legal action against the recruiting agents.

– 24hr/365 days operational migrant resource centre/complaint receiving centre at the SLBFE Head Office.

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Page 27: Labour Migration Structures and Financing in Asia

INDIA PHILIPPINES SRI LANKA Key programmes to assist migrant workers & their families at the country of origin

Pravasi Bharatiya Bima Yojana (PBBY) – compulsory insurance scheme for overseas workers include work insurance, health insurance and a 1 way airfare and maternity benefits. Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) – voluntary life insurance, education loan and scholarships for children, reintegration services like OIFC

Philippine Health Insurance Corporation (PhilHealth) and Pag-IBIG, Education and Livelihood Assistance Program (ELAP), Livelihood Program, Groceria Project, National Reintegration Center for Overseas Filipino Workers Compulsory insurance for all workers in 2010.

Upon registration with SLBFE coverage. Videsha Rakia (Foreign Workers insurance) - medical and also extendable to family members. compulsory insurance schemes per country e.g. Saudi Arabia and Jordan

Social Protection

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Page 28: Labour Migration Structures and Financing in Asia

Migrant Services at the Destination

Indian Community Welfare Fund (ICWF) established by MOIA in 2009

Labour attaches functioning within the Indian Embassy/Consulate in foreign countries

In the Philippines several agencies are involved in providing on-site services

In Sri Lankan Diplomatic Missions in the labour receiving countries is assigned the task of providing migrant services at the destination

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Page 29: Labour Migration Structures and Financing in Asia

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India Philippines Sri Lanka

Key Agencies that provide migrant services at destination

Indian Community Welfare Fund (ICWF) and labour attaches functioning within Embassy/ Consulate

POLO Network - Filipino Workers Resource Centre (FWRC) in 32 sites in 25 countries

Labour attaches in 13 countries – legal, medical, counselling and sheltering facilities. There is also an e-ombudsman operating from the SLBFE office, Sahana Piyasa

Migrant Services at the Destination

Page 30: Labour Migration Structures and Financing in Asia

Sri Lanka

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• Labour Welfare Services are provided through Labour Welfare Officials in 14 Diplomatic Missions in the destinations.

• Duties and responsibilities of the LWOs are defined in the Act, which is mainly the protection of the rights of Migrant Workers and promoting safe migration, welfare of the Migrant Workers and promotion of employment opportunities.

• All the expenses on welfare and protection of Migrant Workers are borne by the Workers Welfare Fund of the SLBFE.

Page 31: Labour Migration Structures and Financing in Asia

Migrant Services: Cooperation Between Origin and Destination Countries

• INDIA - MOIA has several operative bilateral SSAs and is in the process of formalising such agreements with many countries

• There also exist MoU and Agreement on Human Resource Mobility Partnership (HRMP) with many countries

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Signed & Operative Signed but not Ratified Draft Finalised

Belgium (2006), Denmark (2010), France (2008), Germany (Social Insurance) (2008), Germany (Comprehensive) (2011), Luxemburg (2009), Netherlands (2009), Republic of Korea (2010), Switzerland (2009)

Austria (2013), Canada (2012), Czech Republic (2010), Finland (2012), Hungry (2010), Japan (2012), Norway (2010), Portugal (2013), Sweden (2012)

Quebec

Page 32: Labour Migration Structures and Financing in Asia

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INDIA PHILIPPINES SRI LANKA

Cooperation between countries of origin and destination

Signed several bilateral social security agreements, MoUs, Labour Mobility Partnership Agreement (LMPA)

Signed several Bilateral Labour Agreements (BLAs) – 82 with 59 receiving countries

Singed a number of MoUs/ Agreements, initiated a social security programme for workers migrating to Republic of Korea and signed an agreement with a private entity in Saudi Arabia

Migrant Services: Cooperation Between Origin and Destination Countries

Page 33: Labour Migration Structures and Financing in Asia

Migrant Services: Reintegration

• MOIA provides various reintegration services to migrant workers

Overseas Indian Facilitation Centre (OIFC)

Special packages are announced to meet emergencies

In the Philippines and Sri Lanka, reintegration issues are seen in a holistic perspective

A range of services are offered both monetary and non monetary support and investment options to different categories of migrant workers

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Page 34: Labour Migration Structures and Financing in Asia

Philippines

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Table 4.12: Performance of Re-integration Programme in the Philippines

Item 2010 2011 2012

OFW Groceria Project Number of Projects Maintained 100 1,970 - Total Amount Released/Collected (USD) 5,387 1,417,560 - Number of Members/Beneficiaries - - - OWWA-NLSF Livelihood Development Number of Projects Approved 203 267 169 Amount of Loans Released (USD) 628,247 896,610 650,386 Total Number of Beneficiaries 585 697 524

Note: Based on average peso-dollar conversion rates for 2010, 2011 and 2012. Source: BLES, 2013.

Other major programmes that provide loans to returnee workers include the following: (a) The 2 Billion-Peso Reintegration Fund for enterprise development; (b) Balik-Pinas, Balik Hanapbuhay (return to the Philippines, return to work) programme for displaced/distressed workers and; (c) a micro-credit programme to meet credit needs of aspiring and existing entrepreneurs by utilising established NGOs as partners in lending and technical assistance.

Page 35: Labour Migration Structures and Financing in Asia

Sri Lanka

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• Initiate special programmes on re-integration at district and

divisional levels, loan schemes, entrepreneurship development programmes, health and safety of Migrant Workers and their family members, financial literacy, counselling programmes etc.

• Established ‘Rata Viruwo’ programme in 2010 (Heroes of the Nation) to strengthen services to returnees

• Working with Samurdhi Authority (Poverty Alleviation agency) to facilitate housing loans and support to build a house.

Page 36: Labour Migration Structures and Financing in Asia

FINANCING MIGRANT SERVICES

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INDIA PHILIPPINES SRI LANKA

Major Items of Expenditure

MOIA--various programmes and schemes for migrants and organising Pravasi Bharatiya Divas (PBD) - Day of Migrants

OWWA-- social protection programmes including disability and death benefits and livelihood support to families of deceased OFWs. POEA - salaries/wages and other administrative services and PhilHealth CFOs--various welfare programmes to migrants

SLBFE--Workers Welfare Fund and staff salary. SLFEA--administration services

Major Source of Revenue Mainly Government Funds Mainly Government Funds. In the case of OWWA significant revenue is generated through membership fees and interest income of investments

Mainly Government Funds. In the case of SLBFE significant share of revenue is generated through recruitment fees, receipts to the Workers Welfare Fund, registration fees on contract agreements and job orders collected from the foreign employers and recruitment agencies and for SLFEA through Korean Programme and migrants’ insurance

Page 37: Labour Migration Structures and Financing in Asia

Non-plan Revenue Expenditure of MOIA, 2013-14 (Budget Estimate)

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Page 38: Labour Migration Structures and Financing in Asia

Expenditure of OWWA and POEA

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Expenditure of OWWA, 2012 Expenditure of POEA, 2011

Page 39: Labour Migration Structures and Financing in Asia

Income and Expenditure of SLBFE

2005 2011 INCOME Recruitment Fees 52.9 45.7 Facilities Fees 4.6 2.3 Licence Fees 0.6 0.3 Cess Income 0.8 0.9 Korean Programme 12.0 4.2 Workers Welfare Fund 27.5 43.7 Others 1.5 2.8 EXPENDITURE Staff cost 19.8 28.4 Establishment Charges 8.7 10.6 Operational costs 20.0 10.1 Advertisement and Publicity 1.3 2.9 Business Promotion 2.6 4.0 Workers Welfare Fund 47.5 44.0

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Page 40: Labour Migration Structures and Financing in Asia

Key Trends Emerging from Income and

Expenditure Assessments

In India mainly from government grants

Philippines and Sri Lanka, income generated from diversified sources

Administrative expenses dominate in Sri Lanka and Philippines, in Sri Lanka’s SLBFE case more expenditure on workers welfare fund

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Page 41: Labour Migration Structures and Financing in Asia

Policy Implications

• Strengthen the human resource to manage migration both at the countries of origin and destination

• Orientation programmes on migration related issues

should also be designed for officers in other ministries/departments—of skill development or health, for instance—to develop a coherence in the administrative arrangement to manage migration.

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Page 42: Labour Migration Structures and Financing in Asia

Policy Implications

• Need to reorient budget allocations in favour of activities like pre-departure orientation, skill upgradation programmes

• Measure like diversified investment portfolio of welfare funds resources critical to step up income generation efforts

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Page 43: Labour Migration Structures and Financing in Asia

Thank You

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For further correspondence: [email protected] S.K. Sasikumar V.V. Giri National Labour Institute , India

Alvin P Ang Economics Department Ateneo de Manila University [email protected]