International Organization for Migration

Maximizing the societal and human development potential of the Maximizing the societal and human development potential of the diaspora for the development of their country of origindiaspora for the development of their country of origin

Migration and Development

Africando Forum Africando Forum Miami,18-20 September 2008Miami,18-20 September 2008

By Abibatou WANE

Increasing focus on a new linkage:

The Migration & Development Nexus

Two traditional linkages:1) Underdevelopment is among the root causes of migration

2) Migration can adversely affect development:• “brain drain”• labour force depletion

3) Migration can have important benefits:

• Poverty reduction at the individual household level

• Human and financial capital of the diaspora

• Multi-sectoral links between countries of origin and destination

Poverty, lack of

development,root causes

MigrationBrain gain,

remittances, human

resources, innovation

Developmentcountries of origin and destination

Brain drain, rural exodus

Globalization

+

Migration & Development Nexus

The Contribution of Migration to Development:

• Efficient Management of Migrants’ Remittances

• Mobilizing Diasporas and Transnational Networks for Development

• Permanent and Temporary Return of Qualified Nationals

Diasporas are increasingly recognized as a highly effective resource for development

Optimizing benefits of migration for Countries of origin and destination through:

In 2005, diaspora from Sub Saharan Africa have sent more than 8

Billions to their country of origin

Challenges of Remittances Management

Remittances

• Build confidence of migrants, and attract resources currently invested in high-income countries

• Reducing transmittal costs

• Promoting productive uses of the funds

• Improving the financial infrastructure and the banking system to encourage and facilitate investment

Mobilizing Diasporas and Transnational Networks for Development

• “Diaspora”: groups or communities of migrants

• possibilities for migrants to maintain close contact with home easier• more circular migration

• 3 main benefits of diasporas/trans-national networks:• Human capital: migrants benefit from education and skills acquired abroad and transfer know-how

• Financial capital: money earned abroad sent home in form of remittances

• Social capital: represented by social and working relations and by the network of migrants’ associations, which fosters the contribution of migrants as a bridge between the country of origin and of destination.

Return of Migrants to their Country of Origin

• Returns can mitigate negative effects of the “brain drain”

• Many developing countries try to promote the return of their qualified nationals, by offering various incentives.

• International organizations such as IOM and UNDP have implemented special programmes to facilitate the return of highly qualified persons:

IOM: Return of Qualified Nationals (RQN) and MIDA

UNDP: Transfer of Knowledge through Expatriate Nationals Programme (TOKTEN)

• Returning nationals with specialized knowledge or qualifications play an essential role in capacity building, development, and reconstruction in a post-conflict environment

The IOM Approach:

MIDA Programme

MIDAMIDA is a demand-driven institutional capacity building programme. Its overall objective is to assist governments to achieve their development goals through the mobilization of vital skills and resources (financial and others) of the African diaspora to support the development of their countries of origin

Virtual / tele-work or satellite-based Information technology: provision of services such as banking, legal and medical advice with a minimal physical presence

Sequenced visits: temporary return of experts to their country of origin to create, or complement teams

Permanent relocation: subject to voluntary decision

Investments – Job generating activities

Mechanisms

Since its inception in 2001 , several MIDA projects are being implemented in the following countries : Benin, Cape Verde, Burkina Faso, Guinea, East Africa (Kenya, Tanzania, Uganda), in the Great lakes regions (Burundi, Democratic Republic of Congo, Rwanda), Ghana, Ethiopia, Mauritania, Sierra Leone and Senegal.

The MIDA Italy experienceThe MIDA Italy experience Funded by the Italian Cooperation

Examples of MIDA Projects

ObjectiveObjective: Contribute to socio economic development of GhanaGhana andSenegalSenegal,through the mobilization of human, financial, social resources(entrepreneurial capacities) of migrants in Italy, and to the promotionof partnerships between origin and host communities.

Three main components:

1.1. Decentralized cooperation initiatives (co-development)Decentralized cooperation initiatives (co-development)

2.2. Business development services (BDS) to support of SME start up in Business development services (BDS) to support of SME start up in the country of originthe country of origin

3.3. Innovative mechanisms for microfinance and money transferInnovative mechanisms for microfinance and money transfer

MIDA Ghana-Senegal (2006/2007)

•Identification of regions/provinces/municipalities with highest presence of Identification of regions/provinces/municipalities with highest presence of Ghanaian and Senegalese migrantsGhanaian and Senegalese migrants

• Involvement of migrants’ associations and local private sector Involvement of migrants’ associations and local private sector (enterprises and financial institutions)(enterprises and financial institutions)

• Working tables with local authorities interested in identifying innovative Working tables with local authorities interested in identifying innovative co-development models co-development models

•Design & Implementation of co-development projects (enterprise Design & Implementation of co-development projects (enterprise incubators, guarantee funds, cooperatives)incubators, guarantee funds, cooperatives)

1- Decentralized cooperation

•Analysis of SME project proposals presented by migrantsAnalysis of SME project proposals presented by migrants

• Assessment of training needsAssessment of training needs

• Selection of SME project proposalsSelection of SME project proposals

•Technical assistanceTechnical assistance

• TrainingTraining

• Tutoring (incl. assistance for access to credit)Tutoring (incl. assistance for access to credit)

2- Business Development Services - BDSs

• Analysis of existing initiatives to enhance impact of Analysis of existing initiatives to enhance impact of remittances remittances

• Identification of flexible financial packages Identification of flexible financial packages

• Test with a sample of migrants Test with a sample of migrants

• Definition of the intervention strategyDefinition of the intervention strategy

• Agreements among Italian, Ghanaian and Agreements among Italian, Ghanaian and Senegalese financial institutionsSenegalese financial institutions

3- Remittances and Micro-finance

• 200 migrants’ associations registered

• More than 150 SME project proposals received• 12 Co-Development projects selected (7 Senegal/5 Ghana)12 Co-Development projects selected (7 Senegal/5 Ghana)• Partnership established with 12 Italian local authoritiesPartnership established with 12 Italian local authorities• 40 beneficiaries trained in enterprise creation and management (incl access 40 beneficiaries trained in enterprise creation and management (incl access

to credit) and tutoring by specialized institutions in Ghana & Senegal to credit) and tutoring by specialized institutions in Ghana & Senegal • Creation of hundreds of permanent and temporary employment for local Creation of hundreds of permanent and temporary employment for local

populationpopulation

• Innovative mechanisms for remittances transfer identified and promoted Innovative mechanisms for remittances transfer identified and promoted with financial institutions (prepaid ethical cards)with financial institutions (prepaid ethical cards)

• Innovative credit mechanism for migrants identified and developed Innovative credit mechanism for migrants identified and developed (Senegalese Migrants Foundation)(Senegalese Migrants Foundation)

First Results

Senegal Project Proposals by Primary Sector

49%

11%2%

4%

2%

4%

9%

5%

14%

Agriculture & BreedingAgroprocessingConstructionEducationEnergyRural DevelopmentITCTourismOther

Ghana Project Proposals by Primary Sector

77%

15%

4% 4%

AgricultureAgroprocessingRural DevelopmentTourism

82 project proposals received (56 Senegal82 project proposals received (56 Senegal – – 26 26 Ghana)Ghana)

Project proposals by sector

GhanaCoopAn enterprise directly promoted and managedAn enterprise directly promoted and managed

by an association of migrants, for the development of their country of origin, by an association of migrants, for the development of their country of origin, respecting the principles of ethical economicsrespecting the principles of ethical economics..

Ghanaian fruit tradingGhanaian fruit trading

•Fair tradeFair trade of exotic fruit and vegetables from of exotic fruit and vegetables from Ghana to Italian and other European markets. Ghana to Italian and other European markets.

•Land purchase to guarantee stable production, Land purchase to guarantee stable production, network with local growers, improve quality. network with local growers, improve quality. Implementation of social projects on the Implementation of social projects on the territory, through a dedicated Fund territory, through a dedicated Fund

•300 000 pineapples sold in December 2008 300 000 pineapples sold in December 2008 through major supermarket chains in Italythrough major supermarket chains in Italy

• A newly MDA programme that aims at engaging West African women migrants living in Italy in the development of their countries , through the set up of SME •Technical support in order to enhance their entrepreneurial skills (training in business development and management ) as well as financial support will be given to women associations willing to invest in their community of origin

•A maximum of 15 SME projects promoted by women associations will be selected

MIDA for migrant women from W. Africa W-MIDA

Target country: DR Congo, Burundi, Rwanda.

Funded by Belgium , started since 2001 is at its third phase of implementation

The activities are articulated around 3 main axes: • Physical transfers (short terms missions of experts)• Financial transfers• virtual/e-learning

Results (since 2001)•Capacity Building of 100 institutions en DRC, Rwanda and Burundi trough more than 411 temporary missions and 10 permanent return•More than 1400 experts from DRC , Rwanda and Burundi living in Europe willing to participate in the programmme registered

Priority sectors identified : Health, Education , Rural Developmentl

MIDA Great Lakes

Objective: is to build the capacity of the public and private structures in the targeted countries by calling their diaspora living in Europe

Funded by Dutch government , stated since 2005

MIDA Ghana Health

Ghana currently faces a severe brain drain of professional health workers, such as medical doctors and nurses.

The MIDA Ghana Health Project mobilizes skills, experience and resources from the Ghanaian diaspora within the European Union for the development of the health sector in Ghana.

Through temporary return assignments, health professionals from the Ghanaian diaspora assist hospitals and other health institutions in Ghana in such areas as human resource development and medical care and management.

Moreover, specialized training is organized in health care institutions in the Netherlands for once, or participate in repeated visits to Ghana, or transfer knowledge electronically. Ghanaian health personnel. Results • More than 75 experts willing to participate in the programme registered • More than 90 Hospitals and institutes have expressed their needs • More than 66 temporary missions organized and 35 Ghanaians institutions have benefited • 5 candidates resident in Ghana got a specialized training in Europe training

In total direct beneficiaries are 8264 members of medical staff (doctors, nurses, medical assistant, interns, students in medecine , Medical care, etc.)

IOM - Managing Migration for the Benefit of All