Transcript Slide 1
Migration and Development: Recent Evidence and Some Lessons for Africa International Conference Sustainable Growth and Development in Africa Dakar, November 25, 2013 Christian Ebeke International Monetary Fund Washington, D.C., USA International migration: What’s behind the ramp-up? Upward trend in migration across destinations … Stock of migrants (by destination regions) 250,000,000 200,000,000 Less developed regions More developed regions 90 992 020 150,000,000 100,000,000 50,000,000 95 938 779 71 127 043 71 855 339 82 306 645 103 388 690 129 737 280 135 583 436 2010 2013 0 1990 Sources: United Nations. 2000 … with an important share within Sub-Saharan Africa. World's distribution of African migrants (in percent of total Africa's emigration) 120 Oceania North America LAC Asia Europe Africa 100 13.0 80 21.2 60 13.3 24.2 15.4 15.2 29.1 28.8 47.0 47.8 2010 2013 40 62.2 56.3 1990 2000 20 0 Sources: United Nations; author's estimates. Host countries’ immigration policies have tightened for migrants from the developing world … 2.5 2 How tight are immigration policies? (tightening faced by migrant-sending regions) 2.3 2.3 2.2 2.2 1.8 1.5 1.5 1 0.5 0 Middle East & Europe & Sub-Saharan North Africa Central Asia Africa South Asia Latin America East Asia & & Caribbean Pacific Sources: World Populations Policies; World Bank Bilateral Migration Database; and author's calculations. Female emigration is relatively large Gender distribution of African migrants (in percent of total) 120 100 Female outside Africa Male outside Africa 15.6 18.5 22.9 22.6 29.4 26.9 21.9 22.1 22.1 25.2 30.1 29.6 32.8 29.4 25.1 25.7 1990 2000 2010 Sources: United Nations; and author's estimates. 2013 80 60 40 20 Female in Africa Male in Africa 0 However, there is a large heterogeneity in emigration intensities in Sub-Saharan Africa. African migrants living abroad in 2013 (as a percentage of total population of the country of origin) 35 CPV 40 30 20 15 10 5 0 STP SOM GNQ LSO COM MUS SYC BFA MAR LBR SWZ SSD TGO TUN NAM LBY MLI ERI SLE GNB CIV ZWE BEN DZA EGY COG SEN GMB MRT GIN MOZ SDN CAF GHA BWA TCD RWA BDI AGO GAB ZAR MWI UGA DJI ZMB CMR NER ZAF KEN MDG ETH NGA TZA 25 Sources: United Nations; and author's estimates. Is Sub-Saharan Africa loosing its “Brain”? (in percent) 60 50 40 30 20 10 0 Panama Papua New Guinea Philippines Venezuela, RB Solomon Islands South Africa Iran, Islamic Rep. Fiji St. Kitts and Nevis Vanuatu Jamaica Argentina Mongolia Marshall Islands Kiribati Guyana Haiti Costa Rica Micronesia, Fed. Sts. Gabon Cuba Vietnam Madagascar Peru Lebanon Nigeria Malaysia Kenya Ethiopia Brazil Dominica Timor-Leste Colombia Grenada Thailand Seychelles St. Vincent and the Grenadines Namibia St. Lucia China Mauritius Congo, Rep. Zimbabwe Ecuador Maldives Tonga Syrian Arab Republic Dominican Republic Cambodia Nicaragua Sri Lanka Cameroon Libya Egypt, Arab Rep. India Djibouti Iraq Lao PDR Tanzania Samoa Zambia Honduras Bolivia Gambia, The Myanmar El Salvador Guatemala Yemen, Rep. Congo, Dem. Rep. Sudan Sierra Leone Suriname Indonesia West Bank and Gaza Central African Republic Jordan Ghana Pakistan Uganda Somalia Mexico Algeria Côte d'Ivoire Morocco Tunisia Angola Botswana Liberia Afghanistan Swaziland Bhutan Cape Verde Comoros Eritrea Senegal Guinea-Bissau Chad São Tomé and Principe Malawi Paraguay Mauritania Rwanda Bangladesh Burundi Togo Nepal Benin Lesotho Mozambique Guinea Niger Mali Burkina Faso Skilled emigration from Africa is not necessarily large compared to other regions … Share of skilled migrants in total emigration in the 2000s Sources: E. Artuc, F. Docquier, C. Ozden, Ch. Parsons (2013) … although in critical sectors such as health, the direct leakage seems important. Sub-Saharan African migrant physicians identified in the US physician workforce 3,000 (Graduation cohorts) 2,500 2,000 1,500 1,000 500 SSA-trained US-trained Sources: American Medical Association; Tankwanchi et al. (2013). Trained elsewhere 2000-10 1990-99 1980-89 1970-79 1969-earlier 2000-10 1990-99 1980-89 1970-79 1969-earlier 2000-10 1990-99 1980-89 1970-79 1969-earlier 0 Some countries saw a rise in outflows … Share of Sub-Saharan African-trained international medical graduates in the U.S. physician workforce 70 (in percent of total physicians in source countries) Data as of 2011 60 50 Liberia 40 30 Ethiopia 20 Ghana Zimbabwe 10 Tanzania Zambia Cameroon Nigeria Uganda South Africa Sudan Kenya 0 0 10 20 30 40 Data as of 2002 Sources: American Medical Association; Tankwanchi et al. (2013). 50 60 70 … with young qualified physicians exiting Africa’s labor force. Characteristics of the SSA born and trained doctors in the U.S. (Data as of 2011) 9 Years of service before migrating to the U.S. 7 Nigeria South Africa Ethiopia Tanzania Sudan Cameroon Liberia Zimbabwe Kenya Ghana Zambia Uganda 5 3 27 29 31 33 35 37 Estimated mean age at U.S. entry Sources: American Medical Association; Tankwanchi et al. (2013); and author's calculation. Is the Sub-Saharan region benefiting from remittances? Remittance inflows to Sub-Saharan Africa have fully recovered their pre-crisis levels … Africa: Remittances and Aid in comparison to pre-crisis levels (2007=100) Remittance-to-pre-crisis level Aid-to-pre-crisis level 113.0 100 100 113.1 125.1 123.8 105.3 110.4 2007 2008 2009 2010 Sources: African Development Indicators; author's computation 133.0 118.6 2011 … and represent an effective insurance mechanism against disasters events … Remittances inflows around natural disaster events in Sub-Saharan Africa (median values in percent of GDP; average over 1980-2010) 0.9 0.6 0.3 0 -5 -4 -3 -2 -1 0 +1 Time Sources: EM-DAT CRED; and author's calculations. +2 +3 +4 … and during political conflicts. Remittances inflows around major conflict events into Africa (median values in percent of GDP; average over 1980-2011) 3.5 Battle deaths > 100 casualties 3 Battle deaths > 500 casualties 2.5 2 1.5 1 0.5 0 -4 -3 -2 -1 0 +1 +2 +3 Time Sources: African Development Indicators; and author's calculations. +4 Remittance inflows also help mitigate food price shocks … Remittances and Food price shocks 20 Combes, Ebeke, Ntsama, and Yogo (2013). World Development. 10 15 18.05 9.81 0 5 8.44 High Intermediate Range of vulnerability to food price shocks Low Remittance inflows are strongly associated with booms in the construction sector in SSA… Remittances inflows around booms in the construction sector in Sub-Saharan Africa (median values in percent of GDP; average over 1980-2012) 3 2 1 0 -4 -3 -2 -1 0 +1 +2 Time Sources: African Dev. Indicators; and author's calculations. +3 +4 … thereby reducing the prevalence of working poverty. Remittances reduce working poverty -40 -20 0 20 40 SWZ IDN IDN IDN COG IND SWZ PAK FJI IDN IND PAK NGA LAOBWA LAOSEN LAO GIN MLI TZA IDN NGA SEN PAK VNM MDG LBR GIN CMR ZMB VEN VEN PNG BGD BGD MEX RWA GAB MDG SEN ZMB VEN NAM MDG MEX BGD MDG PAN BFA MEX NPL MEX PAK GHA MLI MEX BLZ COL VEN RWA GEO PAKUGA MOZ MEX MEX MDA BLZ HND BEN GNB MEX UGA ZAF BFA KHM DOM MLI JAM PAN MEX MOZ BFA ZAF PHL COL BGD TJK ARG CRI COL C OL UGA MYS ARG PHL CAF VNM KGZ VNM CRI CHL KAZ CHL PAN SUR DOM MRT COL KHM CRI PAN KAZ CRI MYS BLR KAZ PAN ECU NPL PAN CRI CHL E CU DOM ARG PAN BOL VEN GTM CRI ARG GTM SLV TUR CRI JAM PER SEN JPHL AM CHL COL TUR KGZ MYS MDA ARM GNB MWI CRI DOM PER CMR ARM THA HND NGA GTM BOL ZAF BRA BRA GHA PER HND URY PAN PAN JAM URY SLV BRA BRA PER MOZ MDV BRA THA THA ECU NER GIN PHL SLV IRN THA PER PAN DOM MYS SLE LKA KGZ BRA GEO ARG PHL SLV NER VNM ECU ZAF SLV BRA LKA SLV BRA TUR SLV ARM HND THA GEO UGA BRA THA DOM SLV BRA SLV AZE GHA NER SRB ARM TJK LKA MKD PER MKD BLR DOM ECU LKA BDI PRY GEO HND CPV ARM ARG GMB TUR SLB BOL ECU CIV IRNIRN ALB NIC BOLTGO ARM KAZ UKR MNG TUN HND DOM TUN ETH CIV PRY NIC YEM NIC EGY CIV BIH MDA AZE HND MRT PRY JOR MKD UKR MDV MKD ETH PRY MKD KEN EGY AZE NIC CIV ALB EGY CIV ETH GUYPRY ARM PRY PRY EGY MDA MAR MAR ALB KGZ JOR MAR GUY KENSYR BIH KGZ ALB JOR YEM KEN ALB KEN JOR MDA BIH MDA DJI -10 0 10 20 30 Remittance-to-GDP residuals Data sources: ILO KILM 7th Edition dataset, The World Bank; and Ebeke et al. (2013). Now, let’s discuss some new empirical evidences: Political and Institutional Effects of Migration Migration and Transfers of Norms • Return migration and: – Voter turnout rates in Mali: (Chauvet and Mercier, 2013) – Convergence in fertility choices in Egypt: (Bertoli and Marchetta, 2013) – Cross-country study of the convergence in fertility rates: Beine et al. (2013). • Migration and governance back home – In Cape Verde: Batista and Vicente (2012) • Emigration and democracy: – Cross-country work: Docquier et al. (2011) 100 Remittance inflows are associated with lower political accountability in Sub-Saharan Africa … Ebeke and Yogo (2013). 80 RWA AGO MWI TCD 60 BDI ETH CAF TZAMDG GNB NAM UGA BEN SLE GMB COM GAB MRT CMR NGA BWA NERMOZ CIV KEN MLI SEN ZMB SDN BFA LSO 20 40 ZWE TGO COG GIN GHA 0 2 4 Remittances per capita (log) 6 0.75 .4 .6 .8 … therefore reducing the political business cycle. Combes, Ebeke and Maurel (2013). 0.26 0.19 0 .2 0.17 [0, Q1] [Q1, Q2] [Q2, Q3] Remittance-to-GDP range [Q3, max] How best to maximize the benefits of migration in Sub-Saharan Africa? More dual-citizenship laws? 150 Remittances are significantly larger in countries allowing holding multiple-citizenships … Ebeke (2013). 5 5.2 4 3.9 2 3 100 Remittances in percent of GDP 50 142.9 0 0 1 40.1 0 No dual-citizenship 1 Dual-citizenship 0 1 No dual-ctizenship Dual-citizenship … and so is the sensitivity of private investment to remittances. (Ebeke, 2013). .2 .3 0.32 0 .1 0.17 0 No dual-citizenship 1 Dual-citizenship Barriers to people mobility exist, even in the sending countries! Look at passport costs … Passport costs are especially high in Sub-Saharan Africa Passport costs around the developing world (as percentage of GDP per capita) 70 60 TCD BDI 50 RWA 40 30 20 10 0 ETH NPL NER CAF TZA TJK BFA CMR NGA TUR MRT BEN COG BOL GMB BGD AGO PAK SEN LBN ZMB IND ECU HND NIC CHN UKR PER AZE LKA VNM ALB MAR HRV IDN EGY GTM MYS LSO COL CHL GHA JAM BRA MEX KEN ROM SYC TUN NAM THA PHL ARG BGR ZAF VEN MUS POL SVK CRI RUS SLV LTU KOR SVN HUN ISR EST BWA *** CZE Sources: McKenzie, D. (2005); The World Bank Group. How about remittance transaction costs? Sending money to Africa is more costly … 0 5 10 15 20 Cost of sending US$ 200 (in percent) EAP ECA LAC MENA Source: World Bank; author's estimates. SA SSA … and more so when considering within-Africa corridors. 5 10 15 20 25 Is sending remittances from SSA more expensive? Outside SSA Source: World Bank; and author's estimates. SSA Sending money to Africa also takes much more time to arrive… 0 2 4 6 Remittances: Median speed of transfers EAP ECA LAC MENA Source: World Bank; and authors' estimates. SA SSA 2 3 4 5 6 Is sending money from Africa less rapid? 1 Speed … and even more within Sub-Saharan Africa’s corridors. Outside SSA Source: World Bank; and author's estimates. SSA Costs are too high across operators, … Cost of sending US$ 200 to Sub-Saharan Africa (SSA) 5 10 15 20 (in percent of amount transfered) Bank MTO Non-Bank FI Source: World Bank; and author's estimates. Post office … , and sending money to Sub-Saharan Africa is achieved from a less competitive market structure … Remittance inflows: How competitive are the markets? 0 .5 1 1.5 2 Competition is lower regarding remittances sent to SSA EAP ECA LAC MENA Source: World Bank; author's estimates SA SSA … especially in within-Africa corridors. 0 .2 .4 .6 Are within-SSA corridors less competitive? Outside SSA Source: World Bank; and author's estimates. SSA Unresolved issues in the migration-development literature I. Long-term growth and development? Despite strong evidence that migration and remittances lower poverty, no strong evidence that they promote long-term growth. Why? – – – – – Does the size matter? Brain drain? Remittances fully consumed rather than re-invested? Are remittances an engine of informal sector growth? Public moral hazard: Migration/Remittances increase corruption (Abdih et al., 2011; Ahmed, 2013), reduce public social spending (Ebeke, 2012). – Private sector’s moral hazard: reduce accountability and voter turnout (Ebeke and Yogo, 2013), remittances and lower labor force supply. II. Harnessing the diasporas: – How to maximize the re-investment of migrant remittances? – and how to fully internalize the benefits of returnees? Thank you for your attention.