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MCOM I - SEMESTER II

ECONOMICS

TRENDS IN INTERNATIONAL MIGRATION

SHIVAM BELLANI
BUSINESS MANAGEMENT
ROLL No. 4

INDEX

INTRODUCTION
International factor movements include labour migration, the transfer of capital via
international borrowing and lending, and the subtle international linkages involved in the
formation of the multinational corporations.
The principles of international factor movements do not differ in their essential from those
underlying international trade in goods. Both international borrowings and lending and
international labour migration can be thought of as analogous in their causes and effects to
the movement of goods. Although there is a fundamental economic similarity between trade
and factor movements, however there are major differences in the political context.
A labour-abundant country may under some circumstances import capital intensive goods;
under other circumstances it may acquire capital by borrowing abroad. A capital abundant
country may import labour-intensive goods or being employing migrant workers. A country
that is too small to support firms of efficient size may import goods where large firms have an
advantage or allow those goods to be produced locally by subsidiaries of foreign firms. In
each case the alternative strategies may be similar in their purely economic consequences but
radically different in their political acceptability. International factor movement trends to
raise even more political difficulties than international trade, Thus factor movements are
subject to more restrictions than trade in goods. Until the 1980s several European countries,
like France, maintained controls on capital movements even though they had virtually free
trade in goods with their neighbours.
The classical economist believed that the factor of production is immobile internationally.
This was their assumptions for the simplification of their international trade theories.
Heckscher-Oholin theory stated, movement of goods between countries is a substitute of
movement of factors of production. However the above theory is based on assumptions
which are unrealistic, hence this conclusion does not hold good. In the modern world, both
labour and capital is mobile and migration of factors of production is easy, possible and
sometimes desirable.

The General Agreement on Tariffs and Trade (GATT) and subsequently the World Trade
Organisation (WTO) promoted free or liberal trade in goods and services. WTO also
promoted liberal movement of capital between nations. Such a liberal approach, however,
was not extended to the movement of labour. Developed and rich countries are reluctant to
allow labourers a free access to their countries on several reasons such as security of the host
country, culture, religion, economic and political.
The fact, however, is migration of labour has been taking place since historical times; though
in a limited way. There was a large scale migration of Europeans to the New World (North
America), subsequently to Australia and New Zealand. Indians had migrated to African
countries and in recent decades to USA, Canada, Australia and European countries. Many
have migrated though only for a limited period, for rendering services to Gulf countries (West
Asia/Middle East), as these countries do not allow outsiders to settle down permanently
except in certain exceptional cases.
In international economics, international factor movements are movements of labour, capital,
and other factors of production between countries. International factor movements occur in
three ways: immigration/emigration, capital transfers through international borrowing and
lending, and foreign direct investment.[1] International factor movements also raise political
and social issues not present in trade in goods and services. Nations frequently restrict
immigration, capital flows, and foreign direct investment.

DEFINITIONS
Labour Migration
The term "migrant worker" has different official meanings and connotations in different parts
of the world. The United Nations' definition is broad, including any people working outside
of their home country. Some of these are called expatriates. Several countries have millions
of foreign workers. Some have millions of illegal immigrants, most of them being workers
also.

International labour migration is defined as the movement of people from one country to
another for the purpose of employment. Today, an estimated 105 million persons are
working in a country other than their country of birth. Labour mobility has become a key
feature of globalization and the global economy with migrant workers earning US$ 440
billion in 2011, and the World Bank estimating that more than $350 billion of that total was
transferred to developing countries in the form of remittances. However, despite the efforts
made to ensure the protection of migrant workers, many remain vulnerable and assume
significant risks during the migration process.

When properly managed, labour migration has far-reaching potential for the migrants, their
communities, the countries of origin and destination, and for employers. While job creation in
the home country is the preferred option, demographic, social and economic factors are
increasingly the drivers of migration. As a result, a growing number of both sending and
receiving countries view international labour migration as an integral part of their national
development and employment strategies. On one hand, countries of origin benefit from
labour migration because it relieves unemployment pressures and contributes to development
through remittances, knowledge transfer, and the creation of business and trade networks. On
the other hand, for destination countries facing labour shortages, orderly and well-managed
labour migration can lighten labour scarcity and facilitate mobility.

Today, there are an estimated 232 million international migrants around the world.
Globalization, demographic shifts, conflicts, income inequalities and climate change will
encourage ever more workers and their families to cross borders in search of employment and
security. Migrant workers contribute to growth and development in their countries of
destination, while countries of origin greatly benefit from their remittances and the skills
acquired during their migration experience. Yet, the migration process implies complex
challenges in terms of governance, migrant workers' protection, migration and development
linkages, and international cooperation. The ILO works to forge policies to maximize the
benefits of labour migration for all those involved.

CAPITAL MOVEMENT
The transfer of capital between countries either by the import or export of securities, dividend
payments or interest payments. For instance, when Japanese investors purchase American
securities, the payment will be in dollars. Hence, a demand for the dollar is created,
necessitating an increase in the dollar's exchange rate. Conversely, an American company
would have to buy yen in order to pay its creditors. This would cause a demand in yen and
the price of yen would increase in terms of dollars.
International borrowing and lending is a type of international factor movement; however,
the "factor" being moved here is not physical, as it is with labour mobility. Instead, it is a
financial transaction. It is also known as portfolio investment. International lending takes
place through both private, commercial banks and through international, public banks, like
multilateral development banks. It can be classified as a type of intertemporal trade, i.e., the
exchange of resources over time. Intertemporal trade represents a trade-off of goods today for
goods tomorrow, and it can be contrasted with infratemporal trade, an exchange of goods
taking place immediately. Intertemporal trade is measured by the current account of the
balance of payments.

According to the time value of money, the present value of money is not equal to its future
value (e.g., $1000 today is worth more than $1000 a year from now). Those wishing to
borrow money from a lender must provide a measure of compensation above the value of the
principal being borrowed. This compensation usually happens in the form of an interest rate

payment. People do not all have the same demand for present and future consumption, so if
borrowing and lending are allowed the "price of future consumption", i.e., the interest rate,
will emerge. For the purposes of international economics, countries can be thought of in the
same way as people. If a country has a relatively high interest rate, that would mean it has a
comparative advantage in future consumptionan intertemporal comparative advantage.
Countries that borrow from the international market are, therefore, those that have highly
productive current investment opportunities. Countries that lend are in the opposite situation.

Foreign Direct Investment (FDI) is the ownership of assets in a country by foreigners


where the ownership is intended to provide control over those assets. The foreign owner is
often a firm. FDI is one way in which factors of production, specifically capital, move
internationally. It is distinct from international borrowing and lending of capital because the
intent of FDI is not simply to transfer resources; FDI is also intended to establish control.

Two aspects of the above definition are often debated due to their inherent ambiguity. First, if
a firm acquires an ownership interest in another firm, how do we determine the "nationality"
of either the acquiring or acquired firms? Many companies operate in multiple countries,
making it difficult to assign them a nationality. For example, Honda has factories in multiple
countries, including the United States, but the firm began in Japan. How, therefore, should we
assign a nationality to Honda? Should it be on the basis of where the company was founded,
where it primarily produces, or some other metric? Assigning a nationality is particularly
problematic for firms founded countries with very small domestic markets and for companies
that specifically focus on selling goods on the international market.

The second problem with FDI's definition is the meaning of "control." The U.S. Department
of Commerce has defined FDI as when a single foreign investor acquires an ownership
interest of 10% or more in a U.S. firm. The number 10%, however, is somewhat arbitrary, and
it is easy to see how the Commerce Department's definition might not capture all instances of
actual foreign control. For example, a group of investors in a foreign country could buy 9%
of a U.S. firm and still use that ownership to exercise some measure of control. Alternatively,

a foreign investor that purchases 10% of a U.S. firm may have no intention of exercising
control over the company.

One important question economists have preoccupied themselves with regarding FDI is why
ownership of domestic resources could be more profitable for foreign firms than for domestic
firms. This questions rests on the assumption that, all things being equal, domestic firms
should have an advantage over foreign firms in production in their own country. There are
many explanations for why foreign firms acquire control over businesses in other countries.
The foreign firm may simply have greater knowledge and expertise regarding productions
methods, which gives it an advantage over domestic firms. The acquisition of a foreign firm
could be based on a global business strategy. Finally, foreign firms might use a different
discount rate or return on investment, which are essentially "cost of capital" considerations,
when evaluating investment opportunities. However, Krugman and Graham, through a survey
of the relevant literature, concluded that industrial organization considerations are more likely
than cost of capital concerns to be the driving force for FDI.

MOVEMENT OF LABOUR
Labour mobility or worker mobility (Migration) is the movement of people from one
geographical location to another, involving permanent or temporary settlement. Migration is
the socio-economic ease with which an individual or group of individuals who are currently
receiving remuneration in the form of wages can take advantage of various economic
opportunities.
Migration can be of two types
I)
II)

internal migration
international migration.

When people migrate within the same country or region is called Internal migration. For
example, moving from Maharashtra to Karnataka.
When people migrate from one country to another then it is called International migration.
For example, moving from India to the USA.
People migrate for many different reasons. These reasons can be classified as follows,
1. Economic migration - moving to find work or follow a particular career path. When
people are interested in a particular job and if it is available, in that case people are motivated
to move to that area.
2. Political migration - Individuals prefer to stay in peace. When there is constant fear of war
people move to escape political harassment or war.
3. Social migration - People also move due to social factors like the urge to have a better
quality of life or to be closer to family or friends.
4. Environmental causes of migration include natural disasters such as flooding, earthquakes,
famines, highly polluted area which adversely affects the health of the individuals.

Push and Pull Factors of Migration:

Push factors: Due to lack of services, lack of safety, high crime, crop failure, drought,

flooding, poverty, war people leave an area it is known as Push factors.


Pull factors: Due to higher employment, more wealth, better services, good climate,
safer, less crime, political stability, more fertile land, people attracted towards a
particular country is known as Pull factor.

Migration usually happens as a result of a combination of these push and pull factors.

CAUSES OF MIGRATION

1.

Employment Opportunities: In the last few centuries, mainly in the 19th and 20th,

large scale migration taken place from Western Europe to North America - USA and Canada,
Australia and within Europe from less well to do countries to better off countries. The main
reason was the availability of employment opportunities in more developed economies.
2.

Better Living Standard: Migration to advanced countries provided employment hence

more income. With higher income the living standard of not only migrant labourers, even of
their family members left behind in their native countries has improved with the help of
remittance.
3.

Education: In the new countries, those who migrated with their family could provide

qualitative education to their children. This could be possible due to higher income and better
education facilities in the host countries.
4.

Demand for Labour: Rapidly developing countries during the 19th and early 20th

century experienced scarcity of labour, specially unskilled and semi-skilled labour. This
situation provided scope to the labour class in the poor countries to migrate.
5.

Colonial Powers: A good number of labour class migrated from the colonies to the

countries of their colonial masters. Hence we find Indians in UK, Algerians in France and
people from different colonial countries in the Western Colonial power nations.

6.

Military Involvement: Korean and Vietnamese people are found in USA, primarily

due to the involvement of USA in the war in these countries.


7.

Early Industrialisation: Western countries which have undergone early

industrialisation have attracted labour from the periphery. Industrialisation has led to
prosperity which in turn provided opportunities for employment. Prosperity in Gulf-countries
due to petroleum products provided employment to a good number of workers from Asian
countries.
In western countries because of the above reasons, we find Irish in Britain, Poles in Germany
and Italian in France.
Besides the above reasons, there was forced migration in the form of slaves. It was estimated
that about 15 million slaves were forcibly taken to USA and elsewhere between the 15th and
19th centuries.

TRENDS IN MIGRATION
The nationality composition of the immigrant population in several countries have changed
due to the introduction of systematic regulation of immigration to suit the manpower
requirement of the host countries along with the differences in the supply response of various
emigrant countries.
Regulation and changes in the nationality composition: Countries like United States, Canada
and Australia which had previously favoured immigrants from Europe and discriminated
immigrants particularly from Asia introduced changes in their immigration legislation which
shifted the emphasis away from the national origin of the immigrants to the skills which the
potential immigrant possess. These changes occurred partly as a response to various pressures
against racial or national origin discrimination, and partly because of the need for welldefined industrial and professional skills and the disappearance of traditional European
sources of skilled workers. The changes in the immigration policy of the developed countries
which opened up large avenues of emigration from the developing countries have resulted in
a brain drain from these countries.
Similarly, there has remarkable change in the nationality of the population in the Middle East
countries as well. The non- Arab countries in the Middle East came from countries like
Pakistan, India, Bangladesh, Philippines and Korea, counter to the general tendency to attract
workers from immediately neighbouring and culturally more similar countries.
Migration has been taking place globally since historical times. It has been voluntary as was
the case after slavery was abolished in North America.
According to UNO, in 2010, there were 200 million international migrants. Migration is not
confined between poor and rich countries only. It takes between the developed countries with
different levels of development. Many from Western European countries migrate to USA,
Canada and Australia. The composition of migrants also differs in the level of education.
Majority of the migrants are with lower level of education, though over a period of time the
percentage of skilled and the educated is increasing.

Inflows of Permanent Immigrants into selected OECD


(Organisation of Economic Cooperation and
Development) Countries (2003-2010)
Number of Persons
2003
2005
2007
2008
2009
2010
Total Number 29,94,7033,69,2047,68,3045,56,60 42,37 , 41,13,300
of Persons

0'

000

-4

-7

Annual
Percent
Change

-3

All Countries

Source: OECD, International Migration Data


In recent years, that is, in the second half of the last decade, migration has slowed down.
From the above table we find that there has been a decline since 2008. Financial crisis in the
west which led to global recession was a major factor which contributed to the decline in the
immigration to the organisation of economic cooperation and development (OECD)
countries.
This table shows a decline of immigrants to OECD countries in 2008, 2009 and 2010. It was
reported that 2011 witnessed a fragile recovery.
OECD data reveal an increase in migration into OECD countries rose by 2% in 2011 as
against 2010 which recorded a decline of 3 percent. A similar increase was also recorded in
2012.
Euro crisis, earthquake and tsunami in Japan, slow economic recovery of USA, are some of
the events which have contributed for the decline of immigrants to these countries. The 'Arab
Spring' which is spreading among the gulf countries has also reduced employment

opportunities for immigrants. Many gulf countries are adopting a policy of employment to the
local people first, which has reduced the opportunities for migrants to those countries.
The current economic and political atmosphere is not very conducive for international
migration of labour.
Until the early1960s, about 80 of the immigrants in United States, Canada, and Australia
came from the other industrial counties and the remaining coming from the developing
economies. But by 1980s, the trend reversed with 80 percent of the immigrants in US came
from the developing economies which accounted for nearly a quarter of the increase in
population of which half of it came from Asia. Similarly there has been a rising share of
immigrants from the developing countries to Canada, Australia and Europe. The aspiration
for migration from the developing countries to developed countries will be stronger as the
population rate of the developing countries has been falling while that of the developing
economies has been on the rise.
The number of people migrating to some of the OEDC was on rise in the year 2003, 2004 and
2005 from 29,94,700 people to 47,68,300 people but from the year 2008 there had been a
decline in immigrants to these countries mainly because of the Euro crisis, earth quakes and
tsunami in Japan and slow economic recovery of US. The immigrants to the gulf countries
also reduced due to the Arab Spring which is spreading in gulf countries which has reduced
the employment opportunities of the immigrants. Moreover, the change in the policy of the
gulf countries to employ first the local people has reduced the employment opportunities to
the migrants in these countries.
In the recent years, movement of people from one country to another has restricted due to the
fear of terrorism. In the long run as the developing counties develop and quality of life
improves, the rate of migration will tend to decrease.

Table: US Immigration, 1820-2000

Total
Years
1821-1830
1831-1840
1841-1850
1851-1860
1861-1870
1871-1880
1881-1890
1891-1990
1901-1910

Number
152
599
1,713
2,598
2,315
2,812
5,247
3,688
8,795

Total
Rate
1.2
3.9
8.4
9.3
6.4
6.2
9.2
5.3
10.4

Years
1911-1920
1921-1930
1931-1940
1941-1950
1951-1960
1961-1970
1971-1980
1981-1990
1991-2000

Number
5,736
4,107
528
1,035
2,515
3,322
4,493
7,338
9,095

Rate
5.7
3.5
0.4
0.7
1.5
1.7
2.1
3.0
2.7

Source: OECD, Trends in International Migration (Paris, OECD, 2002), Table A.1. Produced
from International Economics, Eight Edition - Dominick Salvatore, P. 418.
From the above table, it is evident, that migration to USA was maximum in 1901-1910 at
10.4% and declined thereafter to 2.7 percent of the population in 1991-2000. In recent years,
the migration of laborers has slowed down as result of global recession.
As the developing countries progress and quality of life improves, the rate of migration tends
to declines. In recent years most of the countries have become extremely careful due to
terrorism, hence restricted the number of immigrants.

WORLDWIDE PERSPECTIVES

CANADA
Since the 1960s, farmers in Ontario and other provinces have been meeting some of their
seasonal labour needs by hiring temporary workers from Caribbean countries and, since
1974, from Mexico under the Canadian Seasonal Agricultural Workers Program (CSAWP).
This federal initiative allows for the organized entry into Canada of low- to mid-level skilled
farm workers for up to eight months a year to fill labour shortages on Canadian farms during
peak periods of planting, cultivating and harvesting of specified farm commodities. The
program is run jointly with the governments of Mexico and the participating Caribbean states,
which recruit the workers and appoint representatives in Canada to assist in the program's
operations.
In Canada, non-agricultural companies are beginning to recruit temporary foreign workers
under Service Canada's 2002 expansion of an immigration program for migrant workers.
As of 2002, the federal government introduced the Low Skill Pilot Project. This project
allows companies to apply to bring in temporary foreign workers to fill low skill jobs. The
classification of "low skill" means that workers require no more than high school or two
years of job-specific training to qualify.
In 2006, the federal Conservatives expanded the list of occupations that qualified for the Low
Skill Pilot Project and increased the speed of processing applications.

CHINA
Overall, the Chinese government has tacitly supported migration as means of providing
labour for factories and construction sites and for the long-term goals of transforming China
from a rural-based economy to an urban-based one. Some inland cities have started providing
migrants with social security, including pensions and other insurance. In 2012, there are a
reported 167 million migrant workers, but with trends of working closer to home (within their
own or a neighbouring province) but with a wage drop of 21%. Migrant workers in China are

notoriously marginalized, especially by the hukou system of residency permits, which tie one
stated residence to all social welfare benefits.

EUROPEAN UNION
The recent expansions of the European Union have provided opportunities for many people
to migrate to other EU countries for work. For both the 2004 and 2007 enlargements, existing
states were given the rights to impose various transitional arrangements to limit access to
their labour markets. After the Second World War Germany did not have enough workers so
the invited people from other European states to work in their country, this invitation ended in
1973, these people were known as Gastarbeiter.
The 1st of March has become a symbolic day for transnational migrants' strike. This day
unites all migrants to give them a common voice to speak up against racism, discrimination
and exclusion on all levels of social life. The transnational protests on 1 March were
originally initiated in the USA in 2006 and have encouraged migrants in other countries to
organise and take action on that day. In Austria the first transnational migrants' strike
(Transnationaler Migrant innenstreik) took place in March 2011, in the form of common
actions, e.g. a manifestation, but also in form of numerous decentralised actions.

FINLAND
According to the Finnish trade union organizations SAK (Central Organisation of Finnish
Trade Unions) and PAM Finnish Service Union United PAM foreign workers were
increasingly abused in the construction and transportation sectors in Finland in 2012, in some
cases reporting hourly wages as low as two euros. Bulgarians, Kosovars and Estonians were
the most likely victimised in the building trade.

INDIA

There has been a substantial flow of people from Bangladesh and Nepal to India over recent
decades in search of better work. Researchers at the Overseas Development Institute found
that these migrant workers are often subject to harassment, violence, and discrimination
during their journeys at their destinations and when they return home. Bangladeshi women
appear to be particularly vulnerable. These findings highlight the need to promote migrants'
rights with, amongst others, health staff, police and employers at destination.

INDONESIA
The population of Indonesia, as the world's 4th largest, has contributed to the surplus of work
forces. Combined with a scarcity of jobs at home, this has led numbers of Indonesians to seek
job abroad. It is estimated around 4.5 million Indonesians work abroad, 70% of them are
women, most are employed in domestic sector as maid and in manufacture sector. Most of
them aged between 18 to 35 years old. Around 30% are men, mostly work in plantation,
construction, transportation and service sector. Currently Malaysia employs the largest
numbers of Indonesian migrant workers, followed by Taiwan, Saudi Arabia, Hong Kong, and
Singapore. It is important to note that these are official numbers, the actual numbers might be
far larger contributed by unrecorded illegal entry of Indonesian workers into foreign
countries. They are prone to exploitation, extortion, physical and sexual abuses, suffered by
those enduring human trafficking. Several cases of abuses upon Indonesian migrant worker
has been reported and some has gained worldwide attention.

LATIN AMERICA
Immigrants often take whatever job is available and often they find employment in the fields.
When they finally do find jobs they usually consist of hard manual labour along with unfair
pay. In the article "Migrant Farmworkers: Is government doing enough to protect them? by
William Triplett, Triplett describes that the median annual income was $7,500, and 61
percent had income below the poverty level (Triplett). After losing their cultural identity
immigrants try to find the way to feed their families and end up being exploited. The study by
William Triplett describes the annual income to be about 7,500 dollars, or about 625 dollars a
month. Triplett also mentions that since 1989, their average real hourly wages (in 1998
dollars) had dropped from $6.89 to $6.18 One cannot expect to live a healthy life making

this kind of money. The pursuit of happiness must not apply to all humans as stated in the
constitution. Without help immigrants will constantly be forced to work horrible labour jobs
for little to no money. Although battles have been fought for betting the wages researchers
found that they have actually decreased. As the cost of living has increased the average pay
for a migrant farm worker has actually decreased. Along with economic exploitation in the
work place immigrants also suffer from physical exploitation in the work place.

MALAYSIA
Foreign workers in Malaysia numbered 3.5 million as of mid-2011. Among 3.5 million
migrant workers, there are 1.5 million legal foreign workers and 2 million illegals. According
to Malaysia Factbook, Malaysia is seeing fewer skilled foreign workers and expatriates with
low-skilled migrant workers. Nearly 40% of migrant workers had no formal education, as
compared to the 10% with tertiary experience. Even so, there are more skilled migrant
workers in Malaysia than there are skilled jobs. The share of migrants in skilled occupations
has declined sharply from a peak level of 10% in 2002 to 5.8% in 2008. This was due to
rising domestic education levels, with the overall skill level of the natives increasing.

PHILLIPINES
In 2013, the Commission on Filipinos Overseas (CFO) estimated that approximately 10.2
million Filipinos worked or resided abroad. In the census year of 2010, about 9.3 percent of
Filipinos worked or resided abroad.
More than a million Filipinos every year leave to work abroad through overseas employment
agencies, and other programs, including government-sponsored initiatives. Overseas Filipinos
often work as doctors, physical therapists, nurses, accountants, IT professionals, engineers,
architects, entertainers, technicians, teachers, military servicemen, seafarers, students and fast
food workers.
Also, many overseas workers are women applying as domestic helpers and caregivers. The
Philippine Overseas Employment Administration is an agency of the Government of the
Philippines responsible for opening the benefits of the overseas employment program of the

Philippines. It is the main government agency assigned to monitor and supervise recruitment
agencies in the Philippines.

SINGAPORE
Since the late 1970s Singapore has become one of the major receiving countries of foreign
workers in Southeast Asia with 1,340,300 foreign workers constituting 37% of the total
workforce in December 2014. It is the highest proportion of foreign labour force in Asia.
About 991,300 of these foreign workers fall under the category of unskilled or low-skilled.
Currently, there are 322,700 male construction workers and 222,500 are female domestic
workers in Singapore. They are from different countries like Bangladesh, India, Indonesia,
Sri Lanka, the Philippines and Thailand. In order to control the lager amount of these labours,
Singapore implemented clear migration policies with visa categories available for all skill
levels. The entry of foreign domestic workers is controlled through strict enforcement of a
"guest worker policy of transience". The employers are required to post a S$5,000 bond with
the Government to guarantee the worker's repatriation at the end of her two-year work permit.
The government control the entire migrant workers with this law.

SOUTH KOREA
Like many nations, South Korea started as a labour exporter in the 1960s before its economic
development in the 1980s changed it to a labour importer. In 1993, the Industrial Trainee
Program was established to meets the needs of migrant workers. It provided work for
foreigners as trainees in small and medium-sized businesses. However, these workers were
considered trainees and not official employees, so they could not receive protection under
Korean labour laws. On February 14, 1995 Guidelines for the Protection and Management of
Foreign Industrial Trainees provided legal and social welfare for migrant workers. The Act on
the Employment of Foreign Workers which states that a foreign worker shall not be given
discriminatory treatment on the ground that he/she is a foreigner, was put into force on
August 16, 2003. Later that year the numbers of migrant workers multiplied dramatically.
Even though there has been a drastic rise of migrant workers in Korea and policies are in
place for their protection, the lack of cheap labour in Korea has forced the Korean community

to condone the maltreatment of illegal migrant workers, and other unsavoury practices. In
response, the Korean government has increase the quota for migrant workers by 5,000, to
62,000 individuals in 2013. In addition, on January 31, 2013, the minimum wage for migrant
workers increased to 38,880 KRW for eight hours per day or a monthly rate of 1,015,740
KRW. Programs were put into place to protect migrant workers and ease their integration to
Korean society. Programs sponsored by the government such as Sejonghakdang,
Multicultural Centre of Gender Equality and Family Program, Foreign Ministry Personnel
Centre Program, and Ministry of Justice Social Integration Program provide free Korean
language lessons for migrant workers. In addition, by fulfilling all the requirements of the
Ministry of Justice Social Integration Program, migrant workers can apply for Korean
citizenship without taking the Naturalization exams.

THAILAND
In Thailand, migrants come from bordering countries such as Burma, Laos and Cambodia.
Many face hardships such as lack of food, abuse, and low wages. Often deportation is their
biggest fear. In Bangkok, Thailand many migrant workers attend Dear Burma school where
they study subjects such as Thai language, Burmese language, English language, computer
skills and photography.

UNITED ARAB EMIRATES


The treatment of migrant workers in the UAE has been likened to "modern-day slavery".
Migrant workers are excluded from the UAE's collective labour rights, hence migrants are
vulnerable to forced labour. Migrant workers in the UAE are not allowed to join trade unions.
Moreover, migrant workers are banned from going on strike. Dozens of workers were
deported in 2014 for going on strike. As migrant workers do not have the right to join a trade
union or go on strike, they don't have the means to denounce the exploitation they suffer.
Those who protest risk prison and deportation.The International Trade Union Confederation
has called on the United Nations to investigate evidence that thousands of migrant workers in
the UAE are treated as slave labour.

Human Rights Watch have drawn attention to the mistreatment of migrant workers who have
been turned into debt-ridden de facto indentured servants. Following their arrival in the UAE.
Confiscation of passports, although illegal, occurs on a large scale, primarily from unskilled
or semi-skilled employees. Labourers often toil in intense heat with temperatures reaching
4050 degrees Celsius in the cities in August. Although attempts have been made since 2009
to enforce a midday break rule, these are frequently flouted. Those labourers who do receive
a midday break often have no suitable place to rest and tend to seek relief in bus or taxi
stands and gardens. Initiatives taken have brought about a huge impact on the conditions of
the labourers.

EFFECTS OF MIGRATION
POSITIVE EFFECTS
1. Wage Rate: Labourers usually migrate from low wage countries to higher wage
nations. Unless prevented .or guarded by law, wages will change in both countries.
Such an effect on wages is brought out in the Figure below.

MPL

MPL*

L1

L2

O*

Home Employment. Foreign Employment.


Migration of Labour from Home to Foreign
Total World Labour Force
Source : Paul R Krugman and Maurice Obstfeld, International Economics Theory and
Policy, 6th Edition, P. 196.
In the above Diagram employment of home and foreign country is measured on OX
axis and Marginal Product of Labour (MPL) is measured on OY axis. Each country is
represented by a MPL curve. MPL represent the marginal product of labour of home
country and MPL* represents marginal product of labour of the foreign country. The
Diagram gives the explanation of two countries that is home and foreign.

The home's labour force of home country is at point C and labour force of foreign
country is at point B. In the absence of labour mobility, these points would stay the
same. However, when you allow labour to move between countries, assuming the
costs of movement are zero, the real wage converges on point A, where the home

country workers gain and to foreign where they will earn a higher wage. No doubt
such a movement leads to gain in home country workers, whereas there will be loss in
wages of workers in the foreign country. The overall effect is equalization of real
wages which is a positive effect. However the net positive effect depends on the
number of labourers involved in the increase and decrease of real wages.
It is also possible that over a period of time real wages may increase both in host
countries and native countries. A case study by Jeffrey G Williams, of eight countries,
host countries Argentina, Australia: Canada and United States of America and native
(home) countries - Ireland, Italy, Norway and Sweden - between the period 1870 an
1913 has come to the conclusion that real wages during this period had increased in
all the countries, but substantially in the horn countries.

Welfare Effect: Welfare effect can be analysed in a similar type c diagram as shown
below. The figure below explains changes in wages an also total output leading to
increase in welfare.

---Total Supply of Labour of Nations I and 2 combined --+


Fig. 21.2: Output and Welfare Effects
Source: Dominick Salvatore - International Economics, 8th Ed., P. 414.
In figure 21.2, we have nation 1 and nation 2. On the left vertical axis value of
marginal product of labour in nation 1 is measured and on right vertical axis,
nation 2 is shown. Nation 1 employs OA of labour with OC real wage, producing
OFGA output. Nation 2, with O'A of labour produces O'JMA output paying O'H real
wages. The migration of AB of labour from nation 1 to nation 2 equalises real wages
in both the nations at BE (ON = 01T).
The total output in nation 1 is reduced to OFEB and in nation 2 increased to O'JEB.
There is net increase in output to the extent EGM (the shaded area).
Migration not only equalises real wage rate but also increases total output leading to
higher welfare.
3.

Supply of Labour: Developed countries like Canada, Australia, some

European countries and USA have experienced scarcity of skilled as well as unskilled
labour. Many Asian doctors and engineers, nurses and teachers are employed in
developed countries. Unskilled labour migrated from developing countries, provided
labour to those areas where the native people would not wish to take up the jobs. This
is more evident in the so called 'dirty jobs'. In USA such jobs are taken up by
labourers from Mexico, South America, Africa and Asia.
Migrant students pursuing higher education especially in USA, Canada, UK and
Australia work part time, thus providing cheap labour. Subsequently after completing
their education many stay back increasing the availability of educated labour force.
4.

Employment: Migration takes place primarily in search of employment, to

earn more income and to enjoy better quality of life. While enjoying these benefits in
the host countries the migrants at the same time help their native countries reduce
both open as well as disguised unemployment. In the early stages of large scale
migration from Europe to North America, it helped in mitigating population problem
of European countries.
5.

Remittance: Emigrants remit a part of their income back to their families in their

native country. Many of the European countries, Mexico and Asian countries have benefited

from the remittance of their emigrants. At present China and India receive a substantial
amount of remittance. It helps the home countries reduce their balance of payment problem
or increase investment at home, import capital goods thus promote development of their
economies. Remittance would reduce over a period of time as the emigrants settle in the
migrated country along with their families. The size of the remittance depends on the number
of emigrants from a country and the nature and duration of employment. Many countries
including India, offer additional incentives to the emigrants to remit and keep the money back
in their home country.

NEGATIVE EFFECTS

1.

Brain Drain: Emigrants comprise people educated and trained at different

levels. Majority of the emigrants are of low education and unskilled. Emigrants also
include highly educated professionals such as doctors, engineers, professors and other
technically and professionally trained people. A good number of medical, engineering
(including IIT students) and management students from India migrate to countries like
USA, Canada, Australia, New Zealand, Germany, France and to some rich Gulf
countries. These students take the advantage of subsidised education financed by tax
payers money and leave the country when they become productive agents or
labourers.
Such an emigration creates a scarcity of trained and skilled professionals and workers,
if the native countries of migrants are in need of them. Instead of contributing to the
development of their home countries, the emigrants are lured by personal gain abroad.
At times, such migration takes place due to lack of incentives and opportunities in the
native country. According to reports, such a situation took place in England from
1983-1985 when many scholars left British universities for USA. Similarly Russia
experienced such migration to USA during late 1980s and early 1990s.

It is also argued that educated emigrants help the home countries when these countries
are not in a position to employ them. Besides it also reduces the claim on goods and
services of the home country when labourers migrate.
2.

Problem of Social Integration: Immigrants in a country belong to different

countries, race, religion and culture. They form their own groups based on the above
factors. In the initial stages these groups live in ghettoes. Social assimilation with the
people of the host country becomes difficult. In USA, Canada and Australia or in
countries dominated by white coloured people, social integration becomes
difficult due to colour complex. Religion is another factor which makes immigrants
identify with the host country where the majority belong to another religion. Cultural
differences also deter the process of integration specially when each group develops a
complex of cultural superiority. At times ethnic and religious differences create a
problem for the host country as it happens in UK and India.
3.

Illegal Immigrants: It is a serious problem for many countries. USA has a large

number of illegal immigrants from Mexico. Similar problems are faced by Canada,
Australia and some of the European countries. Illegal migration to a neighbouring
country is a common occurrence due to political, economic, social and religious
factors. India is facing such a problem with illegal immigrants from Bangladesh,
Pakistan and Sri Lanka.
4.

Cheap Labour: Developed countries, specially organised labour through their

Trade Union oppose the liberal migration policy. They argue that the _ migrant
labourers who are willing to work at lower wages (cheap labour) bring down the wage
rate of the host country workers. However this argument does not merit serious
consideration as the developed countries are competitive market economies, thus
wage rate in such economies is determined by market forces. Exploitation can be
prevented through minimum wage law, which also safeguards the interest of migrant
labourers.
5.

Fiscal Imbalance: Immigrants positively contribute to the growth of the host

country. When immigrants constitute in large numbers, the host country requires to
spend huge amount of capital to provide the required economic and social
infrastructure. As they settle down permanently, the government requires to spend for

providing social security benefits. Expenditure on all these counts may create fiscal
imbalance in the form of increased budgetary deficit.

The ILOs Fair Migration Agenda

Making migration a choice and not a necessity, by creating decent work opportunities
in countries of origin.
Respecting the human rights, including labour rights, of all migrants .
Ensuring fair recruitment and equal treatment of migrant workers to prevent
exploitation and level the playing field with nationals.
Formulating fair migration schemes in regional integration processes
Promoting bilateral agreements for well-regulated and fair migration between member
States .
Countering unacceptable situations through the promotion of the universal exercise
of fundamental.
Promoting social dialogue by involving Ministries of Labour, trade unions and
employers organisations in policy making on migration .
Contributing to a strengthened multilateral rights-based agenda on migration.

The ILO Response to the Syrian Refugee Crisis


(Update: February 2016)
As part of the wider UN response to the Syrian refugee crisis, the ILO has adopted a
development-focused and employment-driven strategy to support host communities
and refugees so as to maintain and reinforce the social and economic stability of the
affected neighbouring countries (Jordan, Lebanon, Turkey and Egypt), with projects
of a total value of nearly USD 22 million. This addresses in particular the key
strategic direction of the 3RP of investing in livelihoods and employment

opportunities to better equip refugees and host community members to provide for
themselves and their families.

The Global Economic Crisis and International


Migration:
In the course of 2008 the financial crisis and the subsequent economic recession
spread from the United States of America to almost the entire world. At the moment
of writing this document several consequences have already become evident, some
are getting more evident, while others are still unclear. This article assesses the
(possible) consequences of the financial crisis and the subsequent economic recession
for international migration within as well as from and to Europe.1 Will the crisis lead
to less or more movements across borders, and to for example more return migration?
Will the effects vary from country to country, and if they vary, which countries will be
impacted most? Is it mainly labour migration that is affected or will the patterns of
family and refugee migrations also change? Are all sectors of the labour market hit
similarly, or are sectors with relatively large numbers of migrants hit unevenly? And
what room is there for policies to help accommodate the impact of this economic
crisis?
The assessment is based on
(1) international migration theory,
(2) the impact of past financial crises on international migration and
(3) published expert opinions, studies and discussions on the Internet.
Published accounts of empirical evidence are still rare. It takes time for effects to
materialise and for getting the results of empirical studies published online and in the
scholarly literature.
In Europe, international migration is a significant phenomenon. Nearly 6 per cent of
the population of Europe (EU-25) are not citizens of the country in which they reside.
In 2004 the total amounted to about 25 million (Eurostat 2006). In that year an

estimated 4.1 million migrants arrived to the EU-25 (3.3 million to EU-15), while 2.3
million left EU-25 (1.6 million left EU-15). About 1 million migrants moved country
within EU-25.
The structure of the report is as follows. First we use migration theory to assess the
likely consequences of the economic downturn. We take two theoretical perspectives.
The first is an individual and household perspective that views migration as an option
in the life course. The second is that of a social network and the social capital it
generates. The third is a macro-perspective that views migration as an adjustment
mechanism in the labour market. As we will show, the micro-, meso- and macro-level
perspectives are intertwined. People have preferences but the presence of social
networks and economic, political and other conditions may facilitate or inhibit
behaviour. Migration theory tells us what we may expect. In the next section we look
at economic recessions in the past and their effects on international migration. The
third section reviews the scholarly literature on the impact of the recession on
migration. In the absence of empirical evidence, we use published expert opinions.
The study ends with an overview of some of the most recent policy advice.

Remittances sent by international migrants worldwide are an important source of


external finance for many developing countries. The 200809 global financial crisis
raised fears of a slowdown or even a reversal of migration flows and a consequent
decline in remittance flows, especially to low-income countries. In this chapter, we
present recent trends in, and the outlook for, migration and remittance flows for 2010
11. Historically, remittances have been noted to be stable or even countercyclical and
have tended to rise in times of financial crises and natural disasters because migrants
living abroad send more money to help their families back home. For example,
remittance inflows increased to Mexico following the countrys financial crisis in
1995, to the Philippines and Thailand after the Asian crash in 1997, and to Central
America after Hurricane Mitch in 1998. Unlike past emerging market crises, however,
the current crisis started in the high-income countries and has spread to the
developing countries, resulting in a global crisis. Migrant destinations in both the
North and the South have been affected to varying degrees, and that, in turn, is
affecting employment and income opportunities for migrants. For the first time since

the 1980s, remittances to developing countries are estimated to have declined by a


modest 6 percent in 2009. Unlike private capital flows, remittance flows have
remained resilient through the crisis and have become even more important as a
source of external financing in many developing countries.

Recent Trends in Remittances in 2009


Officially recorded remittance flows to developing countries in 2008 reached US$336
billion. This is three times as large as overall official development assistance to
developing countries, and larger than private capital inflows in many countries. The
true size of flows, including unrecorded flows through formal and informal channels,
is even larger. For many states, remittances are now the largest and least volatile
source of foreign exchange, and for some countriessuch as Lesotho, Moldova,
Tajikistan, and Tongathey exceed one-third of national income.
On the basis of high-frequency data for the first three quarters of 2009, we estimate
that remittance flows to developing countries reached US$316 billion in 2009,
marking a 6 percent decline from 2008. This decline, however, masks significant
variation across the developing regions. Remittance flows to South Asia grew strongly
in 2008, despite the global economic crisis; but now there are risks that they may slow
in a lagged response to a weak global economy. East Asia and Sub-Saharan Africa
also face similar risks. By contrast, remittance flows to Latin America and the
Caribbean and to the Middle East and North Africa were weaker than anticipated in
2009; but they appear to have reached a bottom already, with the expectation of a
recovery in 2010 and 2011.
Remittance flows to South Asia and (to a lesser extent, East Asia) continued to grow
in 2009, although at a markedly slower pace than in the pre-crisis years. Flows to
Pakistan and Bangladesh increased by 23.9 percent and 19.4 percent, respectively, in
2009, but the growth of these flows has decelerated since the last quarter of 2009 in a
lagged response to the debt crisis in Dubai. In the Philippines, a surge in the last
quarter of 2009 increased remittances by 5.6 percent as migrants sent money to help
their families affected by typhoons Ondoy and Pepeng.1 Remittance flows to
countries in the Latin America and the Caribbean Region in 2009 show larger declines
than expected. In Mexico, they fell by 15.7 percent in 2009, and flows to El Salvador
decreased by 8.5 percent. However, the decline in flows appears to have bottomed out

in most countries across the region. This reflects the fact that the crisis in the United
States and Spain (particularly in the construction sector)key destination countries
for Latin American migrants started sooner than the crisis in other parts of the
world. The Europe and Central Asia Region is estimated to have experienced the
largest decline in remittance flows among all developing regions in 2009, in part
because of depreciation of the Russian rubble relative to the U.S. dollar.
Remittances to the Middle East and North Africa Region were also weaker compared
to the previous year. Flows to the Arab Republic of Egypt (the largest recipient in the
region) declined by 18 percent, and flows to Morocco fell by 9 percent in 2009. Data
on remittance flows to Sub-Saharan Africa are sparse, but these flows appear to have
declined only modestly in 2009. Flows to Ethiopia, Kenya, and Uganda show higher
growth or smaller declines than expected. Remittances to Cape Verde declined in U.S.
dollar terms in 2009 but were almost flat in local currency terms.
International Remittances Agenda

Performing monitoring, analysis, and projections


Improving retail payment systems through use of better technologies
and appropriate regulatory changes
Linking remittances to financial access at the household level
Leveraging remittances for capital market access at the institutional
or macroeconomic level.

CRISIS MIGRATION
The crises that continue to unfold in regions across the world call urgent attention to the
humanitarian, social and economic needs of all refugees and migrants, including migrants
who move through irregular means. Deadly conflicts, persecution, extreme poverty,
underemployment and high levels of unemployment, drive people in search of safety and
protection, decent work and better livelihoods, sometimes exposing them to increased risks of
trafficking and exploitation. These situations challenge the international community to
respond to the root causes of these movements.

Imbalances in the global climate, environmental degradation and natural disasters are also
major drivers of population displacement. Every year, millions of people are forcibly
displaced by floods, wind storms, earthquakes, droughts and other natural hazards. Many find
refuge within their own country, but some have to flee abroad. In the context of climate
change, such movements are likely to increase in future.
Key elements in addressing the drivers of growing migration, both regular and irregular,
require the international community to invest in the creation of more productive, sustainable
and better jobs; more inclusive and effective social protection systems; and social justice for
all in countries of origin. In the context of climate change, displacement could often be
avoided or at least mitigated by taking appropriate disaster risk reduction measures. These
objectives present important opportunities to the ILO and its constituents to apply the decent
work agenda in the crisis context.
ILO Response
In dealing with different crisis situations, there is first and foremost a humanitarian
imperative to save lives. While there are no easy solutions, it is vital that the international
community acknowledges the shared global responsibility of developing collective and
inclusive action, particularly in the context of the Sustainable Development Goals (SDGs) of
the post-2015 development agenda. The elements of effective approaches need to include: the
creation of more productive and decent work in countries of origin (as per SDG 8); the
possibility of creating more regular and safe channels of migration which meet real labour
market needs and facilitate family reunion; ensuring that climate change agreements address
employment, social inclusion and just transition issues; and placing human rights, including
labour rights, at the core of all interventions.
In considering more durable solutions and their impact on labour markets, a wide-range of
actors must be at the table, including Ministries of Labour, trade unions and employers
representatives. A measured response must also involve stronger and closer cooperation
among States and among and within regions to engage in renewed dialogue on the
establishment fair, effective and robust governance mechanisms for labour migration. These
endeavours should be underpinned by closer collaboration and coordination between all
multilateral actors, including the 18 agencies of the Global Migration Group (GMG).

RECOMMENDATIONS/SUGGESTIONS
Migration has become a global phenomenon. As discussed earlier people migrate to another
country for a number of reasons of which economic and political are the important ones.
From our earlier explanation it is evident that migration has positive as well as negative
effects both on the host and native countries. In a globalised world, the number of migrants is
bound to increase. However in the larger interest of nations and people (migrants involved it
is necessary to introduce measures so that the positive effect are maximised while the
negative ones are minimised if they cannot be totally eliminated.
Following are some of the suggestions in this direction:

Promote labour rights to immigrants. Allow the migrant workers to, join Trade

Unions.
Treat immigrants on the same level as those of workers of host country)
Safety conditions should be made applicable even if they are o temporary

work.
Promote ethical recruitment. Prevent exploitation and discrimination
Reform work permits schemes to reduce powers of employers.
Legislate to prevent employers from withholding migrant worker passport.
Initiate international action to regulate the activities of private recruitment

agencies.
All the countries should ratify 1990 UN convention on the protection of rights
of all migrant workers and their families.

CONCLUSION
Officially recorded remittance flows to developing countries reached US$316 billion in 2009,
down 6 percent from US$336 billion in 2008. With improved prospects for the global
economy, remittance flows to developing countries are expected to increase by 6.2 percent in
2010 and 7.1 percent in 2011. The decline in remittance flows to Latin America that began
with the onset of the financial crisis in the United States appears to have bottomed out since
the last quarter of 2009. Remittance flows to South Asia (and to a smaller extent East Asia)
continued to grow in 2009, although at a markedly slower pace than in the pre-crisis years.
Flows to Europe and Central Asia and the Middle East and North Africa fell more than
expected in 2009.

These regional trends reveal three features:

The more diverse the migration destinations, the more resilient are remittances.
The lower the barriers to labour mobility, the stronger is the link between

remittances and economic cycles in that corridor.


Exchange rate movements produce valuation effects. However, they also influence
the consumption-investment motive for remittances.

The resilience of remittances during the financial crisis has highlighted their importance in
countries facing external financing gaps. Remittances are now being factored into sovereign
ratings in middle-income countries and debt sustainability analysis in low-income countries.
Countries are also becoming increasingly aware of the income and wealth of the overseas
diaspora as potential sources of capital. Some countries are showing interest in financial
instruments such as diaspora bonds and securitization of future remittances to raise
international capital.

The World Migration Report 2015 contributes to the global debate on migration and
urbanization in three ways:

The report takes migration enquiries to the city level and helps improve our
understanding of the local political economies of migration, and highlights the close
connection between migration and urban development. Much of the current
discussion about migration trends and migration policy tends to focus on the national
level.

The report draws attention to the livelihood of migrants in the cities of the Global
South. The existing discussions on migrants and cities are inclined to concentrate
primarily on the Global North and the integration of international migrants.

The report examines both internal and international migration. Cities across the
development spectrum have increasingly mobile and diverse populations to manage.

While acknowledging the vast differences between international and internal migration
scenarios, and between the capacities of various countries to deal with these, the report
highlights the growing evidence of potential benefits of all forms of migration and mobility
for city growth and development. It showcases innovative ways in which migration and
urbanization policies can be better designed for the benefit of migrants and cities.

Migration to cities is on the rise


For the first time in history, the majority of people in the world now live in cities. WMR 2015
has drawn attention to the fact that an increasing proportion of people living in cities are
migrants. Migration is currently at an all-time high and has largely become an urban
phenomenon with the exodus of people from rural areas to urban settlements. For cities
everywhere, diversity is a reality of urban life and has to be factored into governance and
development policies as internal and international migration continues to rise. A growing
number of cities in the developed world are seeking to embrace the challenges presented by
having diverse populations live side by side to build institutional capacity and strengthen
partnerships and turn diversity into an asset. In the less developed world, the lack of
resources may mean that city authorities are unable to deal with such challenges, resulting in
tension among migrant and host communities and the emergence of migrant ghettos of
extreme poverty.

Migration to cities brings both challenges and opportunities


Migration to cities may often involve using informal and irregular channels in the absence of
regular migration routes. Once in cities, migrants often face difficulties in accessing housing,
employment opportunities and other basic services such as health care. Migration is likely to
be an important factor in the growth of many informal settlements in the peri-urban areas of
less developed countries. In such places, migrants end up working in low-paying jobs and
potentially exploitive conditions in the informal economies of these cities. Migrants move to
cities in search of livelihood opportunities and to escape socioeconomic and other pressures

in their communities of origin. Yet, migration may increase vulnerability to hazards and
reduce resilience to such threats. The urban environments that migrants find themselves in
may be prone to disaster and the lack of access to adequate housing, employment and social
services renders them less able to cope. Hazards in urban areas disproportionately affect
migrants as a subset of the urban poor. Language, knowledge, administrative and legal
barriers can serve to aggravate the situation. Mass displacement to urban areas is another
phenomenon which brings particular risks and challenges in the delivery of humanitarian
assistance. Nevertheless, in informal settlements, migrants may also find protection and
income opportunities despite the lack of basic services and infrastructure. In response to the
precarious existence in urban environments, migrant households may engage in circular and
temporary migration as well as commuting as a preferred mobility/livelihood strategy. This
practice is found in many urban parts of fast-urbanizing Asian and African countries,
especially China and India as well as Ghana and Kenya. This migration pattern plays a
critical role in establishing linkages between rural origins and urban destinations. These
linkages have multifaceted positive impacts on individuals, families and communities. The
potential for the co-development of urban and rural communities exists but requires
partnerships between the migrants and the local authorities of both communities as well as
support from national governments. Taking the migration enquiry to the city level helps
increase the understanding of the local political economies of migration, and the close
connection between migration and urban development. It assists to shift the focus away from
why people move to how they work, live and shape their habitats. Cities across the
development spectrum have growing mobile and diverse populations to manage. In
developed countries, one of the main sources of population diversity is international
migration while, in less-developed countries, it is most likely internal migration1 and, to a
lesser extent, growing international SouthSouth migration. While acknowledging the vast
differences between international and internal migration scenarios, and also between the
ability of rich, emerging countries and poor countries to deal with these, this report has
highlighted the growing evidence of the potential benefits of all forms of migration and
mobility for city growth and development. In order to maximize the developmental benefits
of these new mobility patterns in terms of improving migrant well-being, it is imperative for
cities to put inclusive urban policies in place for basic services and socioeconomic inclusion.

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