Transcript Commonwealth Migration and Development Forum 17th May 07

Commonwealth Migration
and Development Forum
17th May 07
London United Kingdom
Dr Banjoko
AfricaRecruit
Outline of Presentation
 Context of Migration
 Drivers of Migration
 Types of Migration
 Migration as a tool for Development
 Examples of Best Practices
 Challenges
 Potential solutions
Context of Migration
 The increasing recognition of migration as a
tool for development was heightened in the
80’s and 90’s:
– Loss/attrition of skills at a rate that has resulted
in adverse effect on some nations
– Increasing interdependencies of nations
– Increasing expectations and opportunities of
citizens
– Common currency effect “exchange rate”
Drivers of Migration
 Individual
– Exercising the choice to move for various reasons
– Osmosis effect of “social networks”
 National
– Socio-economic or political conditions
– Historical links and ties particularly across the
Commonwealth
– New emerging links “Business and Economics”
 Corporate
– Globalisation of organisations
 Educational
0%
Political
Reasons,Family
Reasons,
Others- Missionary,
Personal,Retirement
Reasons
Family Reasons
Education
Economic Reasons
Career/Professional
Reasons
Born Abroad
Breakdown of Responses
Reasons why left Africa- Survey of over 1,500 Diaspora
70%
60%
50%
40%
30%
20%
10%
Types of Migration
 Legal (focus of this presentation)
– Highly skilled migrants
– Visa Lottery
– Scholarship
– Transnational citizen ( dual nationalities
 Illegal
– Trackiffing
Migration as a tool for
Development
 Skills Capital
 Financial flows (sustenance or investment
driven)
 Social- Community Development
 Political
Skills Flow
Increasing number
of organisations
recognise the
benefit of
international
exposure and
experience and use
various modules to
access the skills:
–
–
–
–
Volunteer
Temporary
Consultancy
Permanent
Breakdown of over 70,000 Diaspora
registering intent to use skills in Africa
Industry
% breakdown
Management
Accounting
Finance
Information Technology
International Development
Oil and Gas
Telecommunication
Human Resources
Business Administration
Banking
Marketing
Education
Other
4%
5%
4%
10%
2%
4%
3%
3%
4%
3%
3%
2%
53%
Breakdown by experience
0-1
16%
over 10
21%
5-10
1-2
14%
2-3
13%
over 10
3-5
5-10
19%
2-3
1-2
0-1
3-5
17%
Range from to 0-25years plus experience
Survey of over 600 Diaspora Healthcare
Professionals on using their skills in
Africa (March 2006)
Consider
going back
on a
permanent
basis
Temporarily
as a
consultant or
expert
Prepared
to work
outside
your
country of
origin
No
8%
5%
0%
Not sure
22%
0%
0%
Yes
70%
95%
100%
Foreign Direct Investment by the
Diaspora
The ongoing acknowledgement of the
significant role of the Diaspora in
financing the Development of Africa
continues to grow globally. The need for
global partnerships; policies by both
sending and host countries as well as the
necessary infrastructure is vital in
harnessing further the informal adhoc FDI
by the Diaspora commonly known as
remittances
Remittances and Investment Capabilities: growing
phenomenon
 In 2001 remittances to developing countries stood
at $72.3 billion, 42% of total Foreign Direct
Investment (FDI).
 2003 estimated $300 billion. 2nd largest source
behind FDI of external funding for developing
countries. More stable source of capital than
private capital and is expected to rise.
 Africa =15% ( $45 billion of the total global
remittance flow).
Diaspora Investors : Emerging Investors
200
180
160
140
120
100
$bn
80
60
40
20
0
-20
Foreign Direct
Investment
Remittances
Official flows
Capital market flows
1997
1998
1999
2000
2001
2002
Source:DFID presentation at Africa Diaspora Investment 2005
Diaspora Investments: MDG’s
Overall Context
AfricaRecruit Survey-
859 Diaspora –
Sept 05
 Remittances in
 58% remit for sustenance;30%
send on average over 300
addressing sustenance
US$dollars a month total
needs- Education, Health,
Pension
 Direct to the point of need
 Role of remittances in
immediately
poverty alleviation
 33% remit to invest; 47% send
 Role of Remittances in
on average over 300
Investment’s
US$dollars/month
 Role of Remittances in
 5-25% plus of some African
National GDP’s
countries GDP
How much remitted in USdollars a month for
Investment Purposes
60%
50%
40%
30%
20%
10%
0%
0-50 US
$/month
50-100 US 100-150 US
150-200 US $/
200-300 US Over
$/month
$/month
month
$/month $300US/month
Amount
35%
30%
25%
20%
15%
10%
5%
0%
Set up or running a
business
Real Estate
Capital Markets
Capital Markets,Real
Estate
Real estates
Social/charitable
projects
Agricultural Projects
Others
Capital
Markets,Social/charitabl
e projects
Social and Charitable
projects
Areas of Investment by the
Diaspora
Areas of Investments
Other include
areas such as
education,
infrastructure,
tourism,
transport etc
0-50 US $/month
100-150 US
$/month
150-200 US $/
month
200-300 US
$/month
Amount Remitted Left Kenya
50-100 US $/month
Over 15 years
8-10 years
5-8 years
3-5 years
10-15 years
0-3 years
0 years
Over 15 years
8-10 years
5-8 years
3-5 years
10-15 years
0-3 years
0 years
Over 15 years
8-10 years
5-8 years
3-5 years
10-15 years
0-3 years
Over 15 years
8-10 years
5-8 years
3-5 years
10-15 years
0-3 years
Over 15 years
8-10 years
5-8 years
3-5 years
10-15 years
0-3 years
Over 15 years
8-10 years
3-5 years
10-15 years
0-3 years
0 years
60
Count of Left Kenya
Relationship between Amount Remitted and Years left Africa
50
40
30
20
10
0
Over 300 US $/month
and above
Challenges
 Recognition
 Awareness
 Resources
 Transglobal policies
 Transglobal structures
 Economics and Politics
Examples of Best Practice
– Commonwealth supporting the
NEPAD-AfricaRecruit Diaspora
project
– African Union- Diaspora 6th Region
– National government Diaspora Day
– VSO- Diaspora Volunteering
– THET;s
– IOM Dialogue
– UK government- Crisp Report
– DFID
– World Bank
– UNDP- Tokten
– Non Resident services by private
sector such as Banks
Diaspora
professional
associations,
national,
community
groups, themes
Role of Government’s
 India has used its skills base to gain competitive
advantage in the global economy
 Africa needs improved strategic thinking to enhance the
synergy between skills and economic policy, link skills
strategy with trade and industry and provide opportunities
for innovation.
 Africa ability to trade in the global market place is linked
to its ability to use skills to add value to domestic produce
and ensure products meet quality standards for export
more importantly move up the value chain- less raw
materials more finished goods
 Cooperation and exchange between enterprises,
government and higher learning institutions
“To unlock the vast human potential of Africa, we will work with Africa to create an
environment where its most capable citizens, including teachers and healthcare workers,
see a long term future on the continent. We will work with committed national governments
in creating that environment” Investing in People-The Gleneagles Communiqué G8
Conference July 2005
Role of Government’s-2
 Work harder to improve mobility of skills in Africa
 Effective agreement or code of conduct with developed




countries to limit or compensate for transfer of skills in
areas of critical needs
Address cultural, social, religious or ethnic barriers
Terms of Reference with Investors to include transfer and
building of skills locally
Strategies that promote long term skills development
programmes
Reform plans to attract and retain not only foreign
investment, but its citizens across the world and those at
home to invest either human or financial capital in Africa
“To unlock the vast human potential of Africa, we will work with Africa to create an environment
where its most capable citizens, including teachers and healthcare workers, see a long term future
on the continent. We will work with committed national governments in creating that environment”
Investing in People-The Gleneagles Communiqué G8 Conference July 2005
Role of Employers
 Closer cooperation between the private, public and civil




society sectors
Identify and dissemination of best practices
Share lessons learnt
Identify effective actions for governments to make labour
market more flexible
Innovation creates new businesses and present new
challenges and opportunities. The arrival of
telecommunication to Africa created new
opportunities for businesses that are now thriving as
well as employment for its citizen
“Appointment of the heads of international institutions should be decided upon by op
competition which looks for the best candidate rather than by traditions which limit th
appointments by nationality” Commission for Africa – Recommendation on leaving No
Investing in people
Role of Business
 Increased involvement of the private sector in particular





the financial sector to develop policy, create more
packages and incentives to encourage formal flows of
remittances
Closer cooperation between the private, public and civil
society sectors
Increasing partnership with Diaspora Investors
Engaging Diaspora in global supply chain lines
Understanding the investment needs of the Diaspora
Providing transparent information on investment
opportunities
Role of the Diaspora
 Structure
 Needs based
 Integration