Migration

Declining Dollar Hurts Remittance Recipients

Topics: Migration
Countries: United States, Nicaragua

What impact is the U.S. economic slowdown having on developing countries? Matt Homer of the World Politics Review writes that the weakening U.S. dollar is having an adverse effect on individuals in developing countries relying on remittances for large parts of their income. A bigger problem, however, is that the negative impact of the declining dollar is likely to go beyond the individual level. For a number of developing countries, remittances make up a significant percentage of total GDP, and several countries are already expressing concern that a decrease in remittances could hurt their entire economies.

In Tonga, for example, remittances account for just over 32 percent of the country’s total GDP. Yet because up to 80 percent of all remittances come from sources in the U.S., there is concern that continued declines in the U.S. economy “will hit Tonga extremely hard.” Economists in Nicaragua are also predicting that “any decline in the amount of remittances will undoubtedly affect consumerism within the Nicaraguan economy.” While around 40 percent of Nicaraguans receive remittances, most of which come from the U.S., economists estimate that almost 90 percent of remittance money sent to the country is spent in the local consumer economy.

From Migrant to Migration Expert

Topics: Migration
Countries: Mexico, India

To some the word "immigration" evokes an image of people standing in line at Western Union, waiting to wire money home to families for groceries and clothing. It happens thousands of times each day all over the world. All those remittances — the small amounts of cash wired across borders — add up to a whopping $300 billion a year.

Dilip Ratha believes this $300-billion industry can play an important role in international development. He's a World Bank employee who is working to make it easier for migrants to transfer money and direct the cost savings towards economic development in their own countries.

Skeptics argue that if remittances equaled development, Mexico would look like Switzerland. Ratha might argue that without remittances, Mexico's economy might look a whole lot worse. His new paper suggests that Africa could add as much as $3 billion to public coffers just by reducing the costs that migrants pay to send remittances. (Currently, charges on these cross-border money transfers can be as high as 10 percent.)

Ratha hopes to prove that hundreds of billions of remittance dollars can be funneled toward poverty alleviation by making simple policy changes.

His personal story has shaped his beliefs. In the U.S., he earns a salary that is 100 times what he could have earned in his birthplace of India, and his own remittances have helped build schools and pay medical bills there.

And while the negative impacts of immigration often make headlines, Ratha stresses that there are costs of not immigrating, too — costs borne by people living in poverty and by everyone in the global economy.

Developing Economies and Technology

The World Bank has just published a statistical report on worldwide computer access and ownership, wondering, among other things, just how well developing countries are utilizing technological innovations. It found that

With [technology], labour and capital can be used and combined far more effectively. So it is good news that the bank finds that the use of modern technology in emerging economies is coming on in leaps and bounds.

For Better or Worse...

Can migrant workers help to improve an economy? An article in the Economist says they can. According to the National Research Council with a high school education a migrant worker can contribute as much as 105,000 dollars in taxes, along with the contribution of their children once they are employed.

Migrants need health, skills, determination, a willingness to take risks and some entrepreneurial nous to take the plunge, which marks them out as special people. Moreover, migrants increasingly alleviate specific labour shortages in rich economies. Some economies could not function without foreign workers.

World on the Move

Topics: Migration
Countries: Cape Verde

Cape Verde, Africa is feeling the affects of migration, says The New York Times. With roughly half of its population gone, family relations have become strained, families separated, and skilled workers lost. Its hard to complain, especially when migrant's remittances make up 12% of the nation's GDP.

Even as Cape Verdeans struggle to get out, others are migrating in. This, too, is characteristic of the age of migration — most “sending” countries are also “receiving” countries, underscoring how universal the phenomenon is. Nearly half the migrants from poor nations move to other poor nations.“Migration is probably more important to more people than it has ever been,” said Dr. Carling of the International Peace Research Institute, a nonprofit group in Oslo. “But what characterizes the world today is also the feeling of involuntary immobility.”

Mexico's Other Border

Topics: Migration
Countries: United States, Mexico

While the immigration debate in the United States is largely focused on the U.S.-Mexico border, an article from National Geographic looks a bit farther to the south. An estimated 400,000 migrants from Central America cross the border into Mexico every year, and though some stay to work in Mexico, most are headed for the U.S.

The economic prosperity of the U.S. has a strong pull effect on the Latin American poor, and the money that migrant workers send home to their families is having an increasingly large impact on their national economies. In Honduras, for example, remittances sent home from the U.S. made up one-fifth of the country’s gross national income in 2006.

“There is no solution to this,” a former Chiapas state official said wearily, after ticking off a list of southern border upgrade programs that have fizzled into ineffectiveness over the past decade. “You can put all the control measures down there that you want, but it’s not going to be fixed. The solution is to eliminate poverty.”

From the Archives

China's Internal Migrants

Topics: Urbanization, Migration
Countries: China
Previously filed under: Asia, Global Economy
This Council on Foreign Relations backgrounder reveals the impact of China's household registration system, the hukou, on rural-to-urban migrants.

From the Archives

Not One Less

Topics: Migration, Culture
Countries: China
Previously filed under: Asia, Book and Film Reviews
Not One Less is a film about a determined little girl hoping to triumph over ignorance and poverty in modern-day China.

Migrants Feel Pinch

Topics: Migration
Countries: United States

Today the Christian Science Monitor posted an article about how the declining dollar is affecting migrant workers in the United States:

Across the US, the falling dollar value has sent ripples through immigrant communities that send money to family overseas. As some currencies for developing countries have risen substantially against the dollar, many immigrant workers are increasing their workweek by up to 20 hours or taking second jobs. If the dollar's slide continues, the US may become less attractive to migrant workers, analysts say.

Developing Countries Attract Migrants, Too

Interesting article about migration from one low-income country to another. In 2005, two World Bank researchers determined that an estimated two in five migrants traveled to urban areas of relative wealth outside rich countries.

One reason why outsiders pay little attention is that most poor migrants do not move far. Roughly half of all South-East Asian migrants are thought to have remained in the neighbourhood, and nearly two-thirds of migrants from eastern Europe and Central Asia have stayed in their own region. Nearly 70% of migrants from sub-Saharan Africa remain on their continent.

Migration experts believe climate change is a key contributor to such high migration rates:

“There is a direct impact on migration. You see people leaving sub-Saharan Africa in search of more habitable land,” says Mr Ameur, the minister for Moroccans abroad.

From the Archives

The Chinese Immigrant Experience in Russia

Topics: Migration
Countries: Russia
Previously filed under: Global Economy
Frustrated by a weak economy and a lack of jobs, many Russians have directed blame toward a growing immigrant population.

From the Archives

Access to Education in Beijing

Topics: Migration, Education
Countries: China
Previously filed under: Asia, Interviews
Zheng Hong, the principal of the Dandelion School in Beijing, China, discusses how and why she started this middle school for migrant youth and the challenges she has faced.

From the Archives

Chinese Migration Goes Global

Topics: Migration
Countries: China
Previously filed under: Asia, Global Economy
Migrants from the world's most populous nation influence more than 150 countries.

From the Archives

Megacities, Mega Dreams for a Connected World

Topics: Migration
Countries: India
Previously filed under: Asia, General Globalization
Cities such as Bombay present many strange paradoxes, linking challenge with opportunity.

From the Archives

In Dazzling Dubai, a Superlative Struggle for Rights

Topics: Migration, Justice
Countries: United Arab Emirates
Previously filed under: North America, Global Economy
For foreigners visiting the chic city of Dubai, a dazzling futuristic playground awaits; unless, of course, you number among the unlucky foreigners who are building it.
Keywords: Dubai

Breaking News

Africa: Waste Headed for a Third World Bin

All Africa - Tue, 05/13/2008 - 07:31
The Panamanian flagged ship Probo Koala unloaded more than 550 tonnes of toxic waste at Abidjan port in Cote d'Ivoire a month back. Emissions from that toxic waste have killed seven people and poisoned thousands.

Better a Small Fish

OneWorld Daily Headlines - Wed, 05/14/2008 - 01:44
Across Bangladesh, poor rural women are building up their country's fragile democracy by methodically and discreetly eliminating the small inequities of their daily lives. From: Ms. Magazine

Many Hispanics Are Hit Hard by Economic Slump

New York Times - Tue, 05/13/2008 - 04:09
What had been a story of steady advances for Hispanics has given way to growing joblessness and lost homes.

Food Crisis Hits Fallujah

OneWorld Daily Headlines - Wed, 05/14/2008 - 01:44
FALLUJAH, May 12 (IPS) - Sharp increases in food prices have generated a new wave of anti-occupation and anti-U.S. sentiment in Fallujah.

Gambia: Rural Water Project Improves Lives

All Africa - Mon, 05/12/2008 - 07:27
The rural water project initiative, which resulted from the long-term bilateral co-operation between the governments of the Gambia and Japan, has been taking pace in the rural areas, especially in areas around of the Lower River Region, most notably, in the Districts of Kiang.

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