Mainstreaming Migration into the Development

Agenda: Sri Lanka

Roshini Jayaweera Research Officer, Institute of Policy Studies of Sri Lanka

Outline of Presentation

Introduction Objective

Why should

migration be a main concern ?

Policies and

ProposalsConclusion

INTRODUCTION

Benefits of Mainstreaming Migration into Development

Process of assessing the implications of migration in any goal planned in development and poverty reduction strategy

Mainstreaming Migration

into Development

Broader development

strategy

Funding and

technical assistance

Gaps in existing

legislative and policy framework

s

Coordination among different

institutions

The outflow of Sri Lankan workers has shown an increasing trend

A surge in inflows of remittances

There is a significant impact of migration and remittances on development

‘Migration policies’ and ‘development policies’ have been treated separately

OBJECTIVES

Migration needs to be mainstreamed into Development Agenda

Answer 6 Questions

Global Migration Group (2010), Mainstreaming Migration into Development Planning: A Handbook for Policy Makers and practitioners, IOM

Is there political will/interest in harnessing migra tion for development?

Is migration a prominent issue in public or political debates?

Are there any possible effects, positive or negative, of these migration trends?

Are there sizeable financial transfers or remittances from migrants?

What sorts of experiences are migrants having?

Does the country have large stocks of migrants?/What have recent patterns of migration been?

To what extent, migration has already been incorporated into Sri Lankan development agenda

Why Should Migration Be A Main Concern?

Sri Lanka has a large stock of migrants.

This stock comprises of both men and women.

Departures for Foreign Employment, by Gender (%), (1986-2011)

Source: Annual Statistics Handbook of Foreign Employment, 2011, SLBFE.

Majority of Sri Lankan migrant workers are young.

Departures for Foreign Employment by Age Group (2007-2011)

Source: Annual Statistics Handbook of Foreign Employment, 2011, SLBFE.

The major market for Sri Lankan labour is the Middle East.

Unskilled labour migration is a prominent feature relevant to Sri Lankan out-migration.

Departures for Foreign Employment by Manpower Groups (1994-2010)

Source: Annual Statistics Handbook of Foreign Employment, 2010, SLBFE.

Issues Faced by Sri Lankan Migrant

Workers

Malaysia, Jordan, and K.S.A, can be identified as riskier countries

Migration experience does not affect men and women in the

same way. ◦ In 2011, more than 9000 complaints.

◦ Nonpayment of agreed wage and the breach of employment contract.

◦ Of both, the majority of complaints came from female migrant workers.

◦ Nonpayment of agreed wage - almost 80 % of complaints from female migrant workers

◦ Breach of contracts - 58 % from female.

◦ Another considerable percentage (15 per cent) of complaints is about physical and sexual harassment, and 96 per cent of total complaints are from female migrant workers.

Non p

aym

ent o

f agr

eed

wage

Lack

of c

omm

unicat

ion

Sick

ness

Haras

smen

t (Ph

ysica

l and

sex

ual)

Death

- nat

ural

deat

h -a

ccid

entia

l

deat

h- h

omicid

e

deat

h su

icid

e

not s

ent b

ack

afte

r com

plet

ion

of con

tract

Lack

of r

ecep

tion

on a

rriva

l

Prob

lem

at h

ome

(Sri

Lank

a)

Breac

h of

em

ploy

men

t con

tract

Stra

nded

with

out e

mpl

oym

ent

Prem

atur

e te

rmin

atio

n

Illeg

al m

oney

tran

sact

ion

Other

(Dom

estic

sec

tor)

Other

(non

dom

estic

sect

or)

Other

s

Tota

l 0

102030405060708090

100

male female Total

Nature of Complaints

% o

f com

pla

ints

Nature of Complaints, by Gender (%), 2011

Source: Annual Statistics Handbook of Foreign Employment, 2011, SLBFE.

Migrant Worker Remittances

Trends in Remittance Inflows (% of GDP)- 1990-2010

There are sizeable financial transfers from Sri Lankan migrants………..

0

1

2

3

4

5

6

7

8

9

0

1000

2000

3000

4000

5000

%

of

GDP

Year

US

$

Mn

Remittances As a % of GDP

Source: Central Bank Annual Report, Various Issues.

Remittances Inflows to Sri Lanka by Region (2005-2011)

Impact of Migration and Remittances

Macroeconomic Stability…..

Inflow of Remittances> FDI & ODA

Less Volatility

Counter-Cyclical Role

% of GDP 1991-1994

1995-1999 2000-2004

2005-2010

Domestic Savings

16.5 17.3 16 17.2

National Savings

20.5 21.4 21 22.6

Total Investment

19.9 25.4 23.7 27.1

Contribution of Remittances to National Savings

Source: Central Bank of Sri Lanka, various issues.

Number of Migrants

Unemployment

Labour Market Impacts…….

Domestic Demand for Carpenters/Masons

Shortages of Carpenters

12% increase in nominal wages

Labour Market Impacts

Source: Central Bank of Sri Lanka , Annual Report, 2011

Micro Level Impact….

Higher expenditure on food, non-food, education, health, durable goods, and housing

Return is lower

1st

2nd

3rd

4th

5th

6th

7th

8th

9th

10th

0

50

100

% of HHs receiving remittances Remittances as a % of Total HH income

Distribution of Remittance Receiving Households by Expenditure Deciles

Source: MFEPW (2011)

Political Interest on Migration and Development

There is a political will and interest in harnessing migration for development

Establishment of the Ministry of Foreign Employment Promotion and Welfare

Policies and Proposals Related to Sri Lankan Migration

Policies and

Proposals

Recruitment

Return Reintegration

Remittances

National Migration Policy in Sri Lanka Signing of MOUs bilateral and agreements Welfare programmes for migrant workers Human Resource Development

Policies and proposals related to recruitment…….

Well-developed financial system

MFEPW introduced special debit cards for migrant workers

Bilateral agreements/MoUs

Policies related to remittances….

Policies Related to Return Reintegration………

?

Policy Recommendations

Migration was identified as an important development issue when the ‘Mahinda Chintana: Vision for the Future’. It aims

◦ increase male migration by 50 per cent.

◦ to secure more than 50,000 employment opportunities in several countries including Korea, Japan, and Libya;

◦ to expand the opportunities for those with skills in specialized fields such as nursing, nautical services, accountancy, IT, banking, and engineering to enter the international labour market;

◦ to maintain a foreign employment provident fund for all migrant workers.

◦ It suggests improvement in the level of diaspora engagement in development activities and returnee reintegration.

◦ to establish a dedicated bureau in order to identify and resolve problems faced by Sri Lankans living in abroad and create a conducive environment in Sri Lanka for them to live upon their return to Sri Lanka

◦ to create an attractive bonus scheme for Sri Lankans who send their foreign exchange to Sri Lanka.

There are sufficient policies that have been implemented by the government◦ to increase the number of migrants◦ to increase the volume of remittance◦ to protect migrant workers

However, there are some aspects of migration which have been neglected by these polices. ◦ stimulation of investment of remittance ◦ stimulation of sound remittance management◦ returnee reintegration

Stimulate Invetment

• Introduction of SME programmes

• Microfinance facilities to start self-employment

• tax breaks on imports of capital goods

Remittance Management

• financial education

 

Thank You