Select Committee on International Development Sixth Report


CONCLUSIONS AND RECOMMENDATIONS

Migration and development: looking for development gains

Understanding migration and development

1.  Policies aimed at delivering development and poverty reduction should not start from the assumption that migration is a rare occurrence, a south-north phenomenon, or a one-off event. Policies need to be based on an understanding of the multi-faceted nature of migration, including temporary, circular and seasonal migration, within and between developing countries, as well as from south to north. (Paragraph 16)

2.  Given the heightened vulnerability of female migrants to trafficking and exploitation, it is essential that policy is not based on the assumption that migrants are male. Policy-makers must pay careful attention to the experiences and concerns of female migrants to ensure that their migration is beneficial. (Paragraph 17)

3.  Understanding migration as part of the range of poor people's livelihood options has important implications for policy. Migration and migrants should not be seen as problems to be dealt with. Migration presents both challenges and opportunities. Migrants are people trying to improve their lives and must be treated accordingly. (Paragraph 21)

4.  As the poorest do not migrate, or do not migrate far, it cannot be assumed that policies which help migrants will also help the poor. […] We must not lose sight of the main question: what is the impact of migration on those left behind in developing countries? A second implication which poses a dilemma for those who would like migration management to reduce migration, is that developed countries cannot expect to solve their immigration problems by reducing poverty in developing countries. Indeed the migration hump suggests that if we are successful in reducing poverty, we should expect increased out-migration from developing countries. But there may be aspects of development - democracy, good governance, gender equality - which developed countries might promote, and which might have the effect of reducing the push factors that encourage migration, leading to a situation where migration is an informed choice rather than a desperate option. Improving governance is of the utmost importance; better governance would make some migrants less desperate to leave, and - by encouraging migrants to remit and perhaps to return - would also make that migration which does take place more development-friendly. This is primarily the responsibility of developing country governments. (Paragraph 25)

Designing policy: Identifying development wins

5.  Policy should not be designed on the basis of hunches and anecdotes. If development policies are to be well-designed, on the basis of a sound understanding of the causes and consequences of migration and development, then the evidence-base urgently needs improving. In particular, better data on internal migration is needed. (Paragraph 34)

6.  The International Organization for Migration (IOM) suggests that the Government produce a short annual report on migration to the UK from developing countries. By providing information about who is coming to the UK, where they come from, what they do in the UK, to what extent they are remitting, and whether and when they return to their countries of origin, and by outlining what the Government is doing to make migration more development-friendly, such a report could do much to raise awareness about the linkages between migration and development. We support this proposal and recommend that the Government takes it up. (Paragraph 35)

Migration journeys: from departure to return

Leaving and being left behind

7.  It is unfair, inefficient and incoherent for developed countries to provide aid to help developing countries to make progress towards the Millennium Development Goals on health and education, whilst helping themselves to the nurses, doctors and teachers who have been trained in, and at the expense of, developing countries. (Paragraph 39)

8.  As regards the regulation of the recruitment of healthcare professionals by the UK, several issues need clarifying. How effective has the NHS Code of Practice been? What will the Government do to enforce the Code of Practice or to encourage NHS employers to adhere to it? Where does passive recruitment end, and active recruitment begin? Why is there not a Code of Practice for Northern Ireland, Scotland and Wales? And perhaps most importantly, how significant a loophole is the fact that the Code does not apply to the private sector; specifically, how many health-workers from developing countries are employed in the private and public sectors, and how many of those employed in the public sector were initially recruited for the private sector? (Paragraph 44)

9.  We were pleased to read about the Government's plans to tighten up the Code of Practice, and look forward to seeing the detail of these proposals. They must be effective, and their effectiveness must be proven. James Buchan reported to us that the NHS cannot say how many nurses from developing countries it employs. He described this as "unfortunate". We need not be so restrained. Data should be collected on the number of doctors and nurses born and trained in developing countries who are employed by the NHS. This is a gaping hole in the evidence-base for policies relating to migration and development. We also recommend that UK-based employers be required to use only recruitment agencies which are registered in the countries from which they are recruiting. In this way developing country governments might have some leverage over recruitment agencies, or at the very least have some opportunity to plan for the impacts of recruitment. (Paragraph 45)

10.  The UK Government is a member of the Working Group which has developed the Commonwealth's Draft Protocol on the Recruitment of Teachers; we trust that this is a sign of its commitment. The UK is not a signatory to Commonwealth's Code of Practice for the International Recruitment of Health Workers. By its support the UK could play an important role in improving the multilateral regulation of recruitment. We invite the Government to explain its position. (Paragraph 46)

11.  If the NHS is to depend on overseas workers, then we recommend that the Government considers designing schemes to train nurses in developing countries for temporary employment for a specified number of years in the NHS, on the understanding that they would then return to their home country. Such schemes should be designed with the input of developing countries, migrants' organisations and employers. The nurses would have an opportunity to earn more and to acquire skills. The UK would receive a temporary influx of staff for its health service. The developing country would see an increase in its skills base. Such a scheme would need careful design, not least to ensure that migrants did return to their home countries. But the potential development benefits, and the fact that this would be a more cost-effective way of training nurses, no matter where they ended up working, make it worthy of serious consideration. The costs of training nurses should not be borne by countries which do not benefit from their training. (Paragraph 48)

12.  We acknowledge that "just training yet more nurses" as Hilary Benn put it, will not in itself reduce the brain-drain, although it may help to address what appears to be a global shortage of nurses. However, in combination with efforts to address the push factors, such an approach has considerable potential to make migration work better - more fairly, and more cost-effectively - for development and poverty reduction. (Paragraph 49)

Travelling, arriving and living

13.  One way of reducing illegal migration might be to open up more transparent and efficient channels for legal migration. Indeed, this is what the UK has been doing in recent years, through measures such as reform of the seasonal agricultural workers scheme and the introduction of sector-based short-term work schemes for hospitality and food manufacturing workers. Migration, especially legal migration, can be of benefit to the UK, migrants, and their home countries. But whilst opening up channels for legal migration may undercut traffickers and smugglers, it will not satisfy the latent demand for migration. Migration still needs to be managed, and illegal migration tackled. (Paragraph 52)

14.  The UK Government, and governments of other developed countries, need to address the issue of sex tourism which fuels the exploitation of women and children in south-east Asia particularly, and ensure that existing legislation protecting the rights of migrant workers is vigorously enforced. (Paragraph 53)

15.  Governments, including the UK Government, need to ensure that they do not, in their enthusiasm to control migration - prevent refugees from gaining asylum. And if public confidence in a government's ability to control migration is to be maintained, asylum claims need to be processed fairly and quickly. If this is not achieved, public support for economic migration will disappear, and with it the potential development gains. (Paragraph 56)

16.  A reader of the British press might assume that the UK is in the front-line of dealing with refugees. Such a view is incorrect and should not be allowed to mis-inform debates about migration. (Paragraph 59)

17.  It is essential that the UK contributes its fair share to international humanitarian assistance. There is also a need for both donors and developing countries - including government at national and local levels - to take into account the needs of refugees, and the implications for policy, in Poverty Reduction Strategy Papers. (Paragraph 60)

18.  Host countries need to ensure that migrants living within their borders are able to live productive lives, enjoy adequate access to services, welfare services, and have their rights protected. We were pleased to hear that DFID is funding innovative rural livelihoods programmes in India which, by including support to migrants, are making a big difference to migrants' lives. […] We applaud such creative efforts to improve the lives of migrants, which will in turn help to make migration work better for development and poverty reduction. We trust that mechanisms will be put in place to ensure that policy-makers elsewhere can learn from these projects. (Paragraph 62)

19.  We invite the Government to outline what it does to help migrants' integration in the UK, and to consider Oxfam's recommendation of a comprehensive support and education system. Similarly, where appropriate, the Government should encourage and help its developing country partners to establish similar schemes. (Paragraph 64)

20.  Oxfam have told us that Home Office research disproves the idea that giving asylum seekers the right to work would increase the attractiveness of the UK to potential refugees and asylum seekers. We would welcome clarification of the Government's views. (Paragraph 65)

21.  Governments should do their utmost to protect migrants' rights - through legislation and its enforcement, and through the provision of information - to ensure that they are not subject to exploitation by employers, gangmasters and employment agencies. We welcome the swift progress of the Gangmasters (Licensing) Bill through Parliament; once this Bill becomes law it will be an important step in preventing the exploitation of workers, including migrant workers, by gangmasters. (Paragraph 65)

22.  We invite the Government to explain why it has not ratified on the UN Convention and to provide us with the evidence to support the assumption that there is a trade-off between migrants' rights and immigration control. We would also like to know how the Government came to the conclusion that it had struck the right balance; that is, how was the value of migrants' rights and the value of immigration control assessed? (Paragraph 68)

23.  If there were a multilateral commitment on the part of all migrant-receiving countries to ratify the Convention, and to protect migrants' rights accordingly, then no one country would risk being seen as a soft-touch as a result of its ratification.(Paragraph 69)

Returning, reintegrating and circulating

24.  There are temporary migration schemes that work, and schemes that do not work. What is not in doubt is that there is a demand for workers in developed countries such as the UK, and demand for employment from people in developing countries. There is a need to examine the evidence to learn the lessons and to understand what can be done to make temporary migration and assisted voluntary return schemes work and deliver development benefits. The UK Government, working with the IOM and other international organisations, should ensure that this challenge is taken up. (Paragraph 74)

25.  DFID, and through DFID, other development stakeholders - including migrants' organisations and labour ministries in key migrant-sending countries - should be consulted when the UK Government is designing and revising temporary migration schemes. If countries with a Department or Ministry concerned with the welfare of their overseas workers were given priority in such consultations, developing country governments might be encouraged to do more to protect their overseas workers. The input of development stakeholders would make the schemes work better for the UK and deliver more benefits to developing countries. On 27 April 2004 the Prime Minister announced a wholesale review of the UK's immigration schemes; DFID must be fully involved in this review so that development objectives are fully considered. (Paragraph 76)

26.  Well-regulated recruitment agencies - offering transparent fee structures, involving migrant workers' associations, and rigorously enforcing minimum wage and other health and safety conditions in the workplace - could be given preferential access to legal immigration routes into the UK, providing an incentive for, and a model of, good practice. (Paragraph 77)

27.  Temporary migration can enable migrants to learn new skills, and in many cases it can play a useful role in exposing migrants - as well as host societies - to new ideas and ways of doing things, some of which may be usefully continued or adopted after the migrant's return. The experience of VSO volunteers and their "volunteer journeys" may hold important lessons for efforts to improve the skills acquisition element of temporary migration. (Paragraph 79)

28.  Migrants could be encouraged to return home by reimbursing them with a portion of their unused National Insurance contributions once they had left the UK. Given that migrants who leave will not be making a claim on their contributions, we consider that there is some sense of fairness in this suggestion. (Paragraph 80)

29.  The Government should consider seriously the idea of involving employment agencies in making temporary migration schemes work, as well as the proposal to reimburse National Insurance contributions. It should also ensure that lessons are learnt and disseminated from the experience of other countries such as Canada and the USA with making their temporary migration schemes truly temporary. (Paragraph 81)

30.  To ensure that returning migrants have something to go back to, governments, with the support of donors, need to:

  • be serious about welcoming migrants back
  • make progress with improving governance and tackling corruption;
  • ensure that pay structures and progression within the civil service do not unfairly penalise migrants who have worked elsewhere and may have acquired useful skills; and,
  • help returning migrants to find suitable jobs, or to set up their own businesses. (Paragraph 84.)

31.  We were pleased to hear that DFID and the EU are supporting programmes including the IOM's Migration for Development in Africa and pilot schemes in Ghana and Sierra Leone. It is only through learning from experience that the best ways of facilitating sustainable return can be discovered. (Paragraph 86)

32.  If developing countries are to benefit from the sustainable return of their migrants, they need to pursue policies - better governance, less bureaucracy, and economic growth - which will make migrants want to return, and which will ensure that those migrants who have returned have a sense that they, and their country, are moving towards a brighter future. (Paragraph 87)

33.  The UK Government should explore the potential development benefits which might be gained from more circular migration, and - alongside its developing country partners - should examine the different ways in which such circular migration might be encouraged. The Government should also consider whether there is scope - in sectors such as health where developing countries would benefit a great deal - to help migrants to return home temporarily by offering leave of absence from employment and other forms of assistance. (Paragraph 89)

34.  DFID reported that the UK's position on GATS Mode 4 is widely viewed as being among the most progressive. The Government should make the UK's policy stance on GATS Mode 4 clearer and explain what the UK is doing to promote an agenda which will be to the mutual benefit of the UK and developing countries. The Government should also clarify its position on a simplified GATS visa. (Paragraph 93)

35.  As is the case with trade liberalisation more widely, developing countries could secure benefits from liberalising south-south migration, perhaps through the establishment of regional passports, and by making it easier for skilled people from the north to offer their services in developing countries. There is a pool of people in countries such as the UK who are keen to employ their skills in developing countries; developing countries should take advantage of this. As regards south-south migration, we were interested to hear that the European Commission is working with the African Union on migration management in Africa. We would welcome further information about this. (Paragraph 94)

36.  We seek assurances that the Government is pursuing a joined-up approach to its policy on Somaliland. The Foreign and Commonwealth Office should clarify its position on the issue of recognition, particularly if Somaliland continues to govern itself in a responsible and democratic way, while the other parts of Somalia continue as a failed state. We would welcome a response from the Government on the measures it has taken to assist the successful resettlement of those who have been repatriated. (Paragraph 98)

Resource flows: Remittances and the role of the diaspora

Remittances for poverty reduction?

37.  We recognise the difficulty of gathering reliable data on unofficial remittances, and applaud the Government for its efforts to gather information about remittance outflows from the UK. The Government should encourage other European governments to do the same. In the absence of such information, evidence-based policy on remittances and on migration will remain an aspiration. (Paragraph 103)

38.  Migrants and their families have long been aware of the value of remittances. Greater awareness on the part of governments and development agencies is welcome. But if the potential of remittances is to be maximised, then more needs to be done to understand remittances and their use, to increase the flow of remittances and to make them work better for poverty reduction. (Paragraph 106)

39.  The UK could encourage remittances through the provision of guarantees to back the issue of bonds by developing country governments, by the use of tax incentives such as treating person-to-person remittances as charitable and therefore tax-deductible donations. For their part, migrants' associations might wish to investigate acquiring charitable status, or, a charitable arm. As a charity, donations channelled through them would be tax-deductible. (Paragraph 107)

40.  As with temporary migration, so with remittances; there will be schemes which work for poverty reduction and schemes which do not. Along with other development agencies such as the World Bank, DFID needs to ensure that lessons are learnt and best practice is disseminated widely. DFID should also help its partner governments in developing countries to assess whether and how they might encourage their migrant workers to remit. The DFID-World Bank International Conference on Migrant Remittances provided an excellent start, bringing together as it did a wide range of stakeholders. Such activity needs to be taken forward. (Paragraph 108)

41.  If transactions costs are to be reduced, then the market for remittance services needs to work better so that service providers compete harder, to offer better and cheaper services, to more informed customers. (Paragraph 109)

42.  The UK Government, NGOs and the private sector can all play their part in driving down the costs of remittances. Competition will help, but the Government needs to encourage this process by raising awareness about remittances, disseminating good practice and ensuring that the market is transparent and well-regulated. Banks should not be allowed to crowd out their competitors by excluding them from access to banking services. In order to prevent the voice and interests of powerful players dominating, we recommend that the Government support the establishment of an Association of Independent Money Transfer Companies. We also recommend that the Government consider the merits of a code of practice to regulate banks' relationships with independent transfer companies. Further, the Government might encourage an NGO or consumers' organisation to compile a price-comparison table - "Which remitter?" - showing the costs of transferring remittances to a range of developing countries through different firms. (Paragraph 112)

43.  Hawala and other informal funds transfer systems play a key role in facilitating remittances. Governments need to ensure that such systems are not abused by criminals, but should also ensure that regulatory solutions are proportionate to the risks and sensitive to the possible impacts on those who rely on remittances. We are pleased that the UK Government - informed by DFID's analysis - appreciates the need to strike a balance between tackling the financing of terrorism, and ensuring the free-flow of remittances. The UK Government was praised by our witnesses for its light-touch approach to regulating the UK remittance sector. It should persuade its EU partners to follow suit. (Paragraph 113)

44.  As part of its continuing dialogue with diaspora organisations, DFID should learn from the diaspora's existing practices, and explore: what enthusiasm there is for Government-involvement in establishing voluntary schemes to channel remittances towards poverty reduction; what ideas migrants have for the design of such schemes; and, how best DFID might help. In addition, the UK Government, along with the IOM or the World Bank, should ensure that lessons are learnt from existing voluntary schemes and that best practice is widely shared. (Paragraph 119)

45.  The Government should encourage innovative public-private-NGO partnerships which aim to make remittances work better for poverty reduction, and do what it can to make them a success. (Paragraph 120)

46.  We were pleased to hear that there is a team within DFID's policy division looking at financial sector reform and banking systems, particularly in rural areas, and the linkages with remittance issues, and look forward to seeing the fruits of this team's work. (Paragraph 121)

47.  The best way of making remittances work for poverty reduction is to ensure that there is an investment climate and an infrastructure which enables their productive use. Key factors include: stable exchange rates, low inflation, the absence of excessive bureaucracy and corruption, reliable power supplies, decent roads and other communications. (Paragraph 122)

48.  Donors and the international community have a role to play in helping to remove international and structural obstacles to poor countries' development, and in supporting developing countries to improve their infrastructures and to create good business environments. The primary responsibility however lies with developing countries themselves, or if the government itself is an obstacle, with the political process. (Paragraph 123)

Diaspora communities and development

49.  In calculating the costs and benefits of migration, and designing policies to make migration work better for poverty reduction, governments should not focus solely on factors which can be valued in monetary terms. Migration can lead to political, social and cultural change in the countries of origin - and indeed in host societies - as people become aware that other ways of life, and other ways of organising society and politics, are possible. (Paragraph 127)

50.  Diasporas' views are valuable and may help to deliver peace in their home countries, but it would be a mistake to assume that communities in exile are better able than people back home to represent their nations' interests. (Paragraph 128)

51.  We welcome the Government's recognition of the importance of working with Black and Minority Ethnic organisations, and look forward to seeing more rapid progress in this area. The Africa Foundation for Development called for DFID to report regularly on its engagement with diaspora communities and particularly on what DFID is learning from the dialogue; we support this suggestion. (Paragraph 132)

52.  There are a range of ways in which the Government and DFID might work more with the diaspora:

  • DFID might usefully include diaspora organisations more systematically in consultations on draft Country Assistance Plans, and in consultations on policy areas in relation to which migrants' organisations may have valuable insights;
  • DFID and other Departments including the Treasury should explore with diaspora organisations the possibility of developing schemes to enable migrants, if they so wish, to channel remittances so that they have maximum impact on poverty;
  • DFID and relevant Departments should examine, alongside diaspora organisations, whether there are initiatives they could take to encourage the temporary return of migrants to their home countries;
  • and, most simply, the Government should encourage initiatives to create migrant associations, promote and publicise their activities, and help them to work effectively. (Paragraph 133)

53.  Diaspora organisations must not be seen as marginal players in international development; rather, the Government, DFID and mainstream NGOs should work harder to involve them more fully. (Paragraph 134)

Managing migration for poverty reduction

Migration partnerships for poverty reduction

54.  DFID should ensure that its partner governments take account of migration as a development issue and are aware of its potential to deliver development benefits. Beyond this the UK should help partner governments to consider their various options for managing migration, helping them to design effective strategies, and providing support so that they can implement these strategies. This should include, but not be limited to, support for refugee-hosting countries. (Paragraph 141)

55.  PRSPs and Country Assistance Strategies should not mention every single development issue, but for countries where migration is important, DFID's Country Assistance Strategies should outline what DFID will do to help developing countries: to improve their data-gathering and information management capacities; to identify specific ways in which the costs and risks of migration might be minimised and the benefits maximised; and, to provide a policy and governance environment conducive to making migration development-friendly. (Paragraph 143)

56.  We applaud DFID for the leading role it is playing in moving migration up the international development agenda. The Government should consider further what might be done at a multilateral level to manage migration better, and particularly to make it work better for poverty reduction. In addition we would like to be kept informed as to the involvement of the UK Government in the Global Commission on International Migration. This Commission provides an excellent opportunity to promote a more positive and development-friendly agenda on migration; the UK Government should be an active participant. (Paragraph 150)

Towards policy coherence for development

57.  The Government needs to make clear how the High Level Working Group on Asylum and Migration imagines that aid and development strategies might be employed in the battle to limit economic migration, and what its assessments concluded. (Paragraph 160)

58.  It is sensible to support governments which are moving in the right direction, improving governance and fighting poverty, but it would be a mistake to make aid conditional on measures which aim to limit out-migration. Withdrawing aid to countries which fail to limit out-migration would simply plunge them further into poverty; threatening such a withdrawal would force developing countries to spend scarce resources on border controls rather than poverty reduction, would undermine any notion of partnership, and would simply succeed in pushing more migrants into the arms of smugglers and traffickers. Development assistance or the threat of its withdrawal must never be used as a tool for migration management. We trust that this remains the Government's position. (Paragraph 162)

59.  The Presidency of the European Union in 2005 will provide the UK with an opportunity to promote a positive agenda on migration which takes full account of its development potential. We trust that the Government is preparing now to take this opportunity. (Paragraph 163)

60.  DFID has an important role to play in the domestic context, helping the Government to examine the development implications of its migration policies, and working hard to ensure that development objectives are not marginalised Immigration from developing countries has been increasing, in absolute terms and in terms of its share of the whole. On this basis alone, DFID must be fully involved in the formulation of policies on migration. A clear statement of the objectives of UK development policy in relation to migration will also be valuable; this is something we expect to see from DFID by the end of 2004. (Paragraph 166)

61.  We invite the Government to outline, in relation to migration initially: the issue areas where Departments' objectives and policies overlap; the nature of each of these overlaps; what scope there is for increasing policy coherence in these areas; and finally, what mechanisms are in place, and how they are being used, to achieve greater policy coherence for development. (Paragraph 167)


 
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