The Economics of Migration

In the current debate surrounding refugee migration, most people seem to fall into one of two camps: those who favor hosting refugees, and those who oppose it. But many seem to have forgotten that human migration has supported human progress and contributed to global development for centuries.

For opponents of migration, the large influx of foreign born laborers seeking jobs, education, and security is something to be feared. They fear that refugees and other migrant groups are low skilled workers hoping only to benefit from social welfare programs and decrease the standard of living in their host country.  Evidence suggests, however, that on average over a third of migrants entering the workforce have completed post-secondary education, and that in most countries, migrants contribute more in taxes and social contributions than they receive in individual benefits.

We must rise above this seemingly instinctual reaction and consider the benefits that migration has had in those countries that migrants and refugees leave behind. Not only does migration increase wages for workers that stay behind, but migrant workers often remit money to their families back home. This supplementary income is, in turn, invested in education and health care, important indicators of a country’s development that can lift people out of poverty. The Migration and Remittances Factbook 2016 suggests that total remittances were estimated to have reached $601 billion in 2015, of which $441 billion went to developing countries, a total that is almost three times larger than official development aid flows. These remittance flows to developing countries have grown significantly in recent years, from $325 billion in 2010, to $372 billion in 2011 and $401 billion in 2012.

Nevertheless, the high financial costs of international migration and the transmission of remittances are inhibiting the benefits of migration. The 2015 Sustainable Development Goals (SDGs) address these issues. Target 8.8 notes that labor rights, including those of migrant workers, should be protected, and Target 10.7 calls for the facilitation of the orderly, safe, regular and responsible migration of people through the implementation of planned and well-managed migration policies. In addition, Target 10.c strives to reduce the costs associated with remittances to 3% by 2030. Taken all together, these innovative targets would reduce the cost of remittances and encourage sustainable and profitable international migration.

As the Sustainable Development Goals suggest, we need to recognize what technology can do today and use it to redesign the world for a more inclusive and prosperous tomorrow. Modern technology requires specialized knowledge, and the easiest way to gather such knowledge is to recruit from outside of the system. It is easier to move brains than it is to move knowledge and expertise. As such, migration is key to the diffusion of knowledge and its long-term positive impact on worldwide development. In short, we cannot have global markets, trade, products, and services without global migration.

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Peace Day 2015 Highlights Growing Impact of Private-Sector Partnerships

International Day of Peace has been observed around the world on 21 September every year since 1982.  The United Nations (UN) General Assembly established this day to coincide with its opening session, which is held on the third Tuesday in September.  According to the UN General Assembly, September 21 commemorates “devotion to strengthening the ideals of peace, both within and among all nations and peoples.” In 2001, by unanimous vote, the General Assembly established September 21 as an annual day of non-violence and cease-fire.

The theme of this year’s commemoration, “Partnerships for Peace – Dignity for All,” aims to highlight the importance of collaboration between all segments of society and to strive for peace.  The theme also highlights a shift in the way the UN and other international organizations view the sources of foreign assistance. Over the last 30 years, private giving has surpassed ODA and now accounts for nearly 80% of development assistance. The work of the UN would not be possible without thousands of partnerships between the private sector and civil society.

2015 International Day of Peace Poster (Source: UN)
2015 International Day of Peace Poster (Source: UN)

Following this year’s International Day of Peace, several major multinational corporations from a variety of industries partnered with the UN’s World Food Programme (WFP) to help raise awareness about the vital role that food assistance plays in creating a more peaceful world.  These companies donated digital and television network time for a 30 second advertisement that shines a spotlight on WFP’s work. The advertising campaign, currently airing in 38 countries, is meant to show consumers how they can support the refugees and displaced people who are struggling to feed their families. According to WFP Executive Director Ertharin Cousin, “Food assistance plays a powerful role in times of conflict by saving lives and alleviating suffering. Food brings and keeps families together. Food security gives families hope during desperate times while eliminating the need for families to resort to extreme and harmful measures as the only option for survival.” The WFP’s emergency response fund will use the money raised by this effort to help its most critical operations, like those in Syria, Iraq, South Sudan and Yemen.

McDonald’s is spearheading the multi-million dollar Peace Day.  When the fast food corporation approached the UN to discuss a potential partnership, UN officials asked the company to raise awareness of the refugee crisis and encourage people to donate to the WFP.  McDonald’s CEO Steve Easterbrook did not hesitate and issued a statement: “If anyone can help an international effort to help feed refugees and the fight against hunger, it’s us.”  McDonald’s went on to enlist the support of global philanthropy leaders like Google, Facebook, DreamWorks Animation, United Airlines, MasterCard, OMD, and Twitter, as well as other food and beverage giants like Cargill, McCain Foods, and Burger King.

The WFP has been outspoken in its praise of McDonald’s and its partners for their efforts in the Peace Day campaign.  Jay Aldous, WFP Director of Private Sector Partnerships, noted that “The private sector has a significant role to play in ending hunger and promoting peace…And this global effort is a powerful example of brands coming together with one voice to make a tangible impact in the lives of vulnerable people.”  As conflicts in the Middle East escalate the refugee crisis and stretch humanitarian resources, McDonald’s can be commended for both the timeliness and scale of its campaign.

In collaboration with WFP, McDonald’s and its Peace Day campaign partners illustrate the ever-growing need and impact of private sector philanthropy in global humanitarian assistance. As Ms. Cousin noted, “Humanity has one future together. This effort provides a great example of people and companies joining forces to make sure we achieve the goal of a zero hunger future.”

Public-Private Partnerships: The Key to Successfully Implementing the SDGs

The Brookings Institution and the Organization for Economic Co-operation and Development (OECD) recently partnered to present a talk on utilizing public-private partnerships (PPPs) in order to effectively implement the United Nations’ (UN) Sustainable Development Goals (SDG). The SDGs are a list of goals, proposed by the UN, that target issues related to health, poverty, hunger, inequality, education, and climate change. According to the expert panel, partnerships connect decision-makers at the global level with the private sector, local governments, and civil society in an effort to capitalize on their specific strengths and balance their weaknesses.

Bill Gates speaking at a press conference at the end of the GAVI Alliance pledging event
Bill Gates speaking at a press conference at the end of the GAVI Alliance pledging event

For example, Gavi, The Vaccine Alliance, is a PPP that provides access to vaccines in developing countries. The major players in this alliance consist of the World Health Organization, UNICEF, The World Bank, and the Bill and Melinda Gates Foundation. Together, these organizations have successfully contributed scientific research, vaccines, and financial tools. According to Gavi, “Since its launch in 2000, [the alliance] has helped developing countries to prevent more than 7 million future deaths…Gavi support has contributed to the immunization of an additional 500 million children.” Gavi’s objectives were strategically implemented to produce results that protect developing populations and improve healthcare, which aligns with SDG 3 that aims to “ensure healthy lives and promote well-being for all at all ages.”

Partnerships are arguably the driving force behind the successful implementation of the SDGs. Governments are often slow and unreliable, while existing institutions like private corporations and civil society organizations have “on the ground” experience navigating the challenges inherent to their industry. The success of a PPP is determined by inclusivity, local implementation and ownership, transparency, accountability, political engagement, and strong focus on results. According to a study conducted by the OECD, “effective partnerships must have strong leadership, be country-led and context specific, apply the right type of action for the challenge, and maintain a clear focus on results.”

The SDGs also focus on more specific goals such as improving infrastructure, conserving oceans, and sustaining energy, which leaves room for partnerships to narrow their focus and innovate, particularly in the private sector. According to Devex, “Business leaders are still trying to understand the concept of sustainability, too, and how to integrate it into their business models.” The ODA method of developed countries donating funds to developing countries is ineffective since monetary aid does not specifically encourage the creation of new and sustainable systems. According to the Wall Street Journal, “Over the past 60 years at least $1 trillion of development-related aid has been transferred from rich countries to Africa. Yet real per-capita income today is lower than it was in the 1970s.” As is often the case, this money is lost in transit and never reaches the local level due to corrupt bureaucracies and weak relations with civil society organizations. Financial contributions from the private sector, when combined with effectual and enabling political leadership, move beyond temporary alleviation to foster a more permanent impact.

Public-private partnerships are a vital part of Goal 16, which seeks to “promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.” Ultimately, PPPs allow for a more inclusive and communicative atmosphere conducive to tackling important development issues on a more direct and practical platform that enables self-sufficiency and citizen accountability. If the SDGs are to be achieved, the vital role of PPPs cannot be ignored.

A Coalition For Asian Development

Following the introduction of the UN’s Sustainable Development Goals in 2014 many questioned how such ambitious goals could be met by 2030. The SDGs address, among other developmental issues, the eradication of poverty, hunger and income inequality. In Asia, civil society demonstrates that it can bridge the gap between these lofty goals and their eventual success. According to Nicholas Booth and Beniam Gebrezghi, it is “Precisely because of civil society’s role in representing the interests of the poorest, most marginalized and excluded groups, [that it] seems more urgent than ever before in every aspect of a new agenda which seeks to ensure no one is left behind.”

Over the last 30 years there has been dramatic growth in Asian civil society. Today, the United Nations Development Programme works closely with local civil society organizations on a variety of development projects. In the wake of Japan’s triple disaster in March of 2011 (the earthquake, along with the resulting tsunami and nuclear disaster) for example, civil society organizations played a crucial role in reconstruction and community development efforts. Nicholas Booth and Beniam Gebrezghi again point out: “These civil society groups worked side-by-side with local communities, educators, businesses, local governments, and national governments to help the victims and to get Japan back on its feet.”

More recently, civil society helped rebuild Nepal after the country was devastated by an earthquake in April 2015. With the Nepalese government unable to conduct proper disaster relief, the people of Nepal turned to one another. In June, our blog focused on Nepal and its efforts to rebuild with the aid of international philanthropy. Using Twitter and Facebook, Nepalese citizens were able to arrange rescues, deliver supplies and provide shelter. According to Christian Science Monitor, “Nepal’s response to the [earthquake] was helped by an increase in the number of civil society groups since the introduction of multiparty democracy in the 1990s.” In response, Google has brought back “Person Finder,” a system used after Haiti’s 2010 earthquake to check social media for possible updates on missing persons. Locally based initiatives including Tomnod, a program designed to crowdsource images of structural damage, provided first responders with valuable information.

While civil society is filling the gaps left by other sectors, there is still much that Asian governments can do to encourage third sector growth. China, Nepal and Japan have seen an increase in civil society registrations, but CSOs in other Asian countries are combating increasingly restrictive policies. In Laos, the Ministry of Home Affairs has amended the decree on nonprofit associations (NPAs) and foundations by adding the requirement that groups must notify or obtain permission from the government for funding that they receive from foreign sources. This new policy, which echoes Russia’s infamous “Foreign Agent Law,” can lead to funding delays of up to 18 months and pose significant operational difficulties for programs funded by international philanthropy. The Laotian government’s crackdown on civil society has been downright hostile. John Sifton, Asia Advocacy director of the Human Rights Watch explained the situation, “If a human rights defender like Aung Sang Suu Kyi were to stand up in Laos and speak out against authoritarian rule, she would be immediately arrested.”

These restrictions are, unfortunately, not limited to Laos. In Singapore’s recent elections, the People’s Action Party (PAP) retained its majority in parliament, a position that it is held since 1959. The PAP, positioned as a center right party, has a reputation for restricting the actions of free speech within the city. In March 2015 Amos Yee, a teenager responsible for a video that criticized a former Singapore leader was arrested. Yee was sentenced to 18 months of “reformative training.” Amnesty International was quick to respond: “According to the Office of the UN Commissioner on Human Rights, reformative training is ‘akin to detention and usually applied to juvenile offenders involved in serious crimes’ and was referred to in a recent Singapore district court decision as ‘incarcerative in nature and should be imposed cautiously’.” Limits on free speech have a direct and negative impact on many civil organizations whose intrinsic goals of aiding society often conflict with official government policy.

Without the assistance of civil society organizations, the Sustainable Development Goals laid out by the UN cannot be met by 2030. If Asia’s leaders want to see these goals met, the restrictions on civil society organizations must be eliminated. Asian countries have both the organizational capacity and financial resources to help combat poverty, hunger and inequality, but will they be able to step up to the challenge?