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YEKATERINA GLODCENTRE FOR INTEGRATION STUDIES

EURASIAN DEVELOPMENT BANK

Labour Migration as Part of EDB’s Centre for Integration Studies’ Research Agenda

20 May 2012

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EDB IN BRIEF Created in 2006 at the initiative of the

RF and Kazakhstan

Six member states: Armenia, Belarus,

Kazakhstan, Kyrgyzstan Russia and

Tajikistan

Bank’s charter capital exceeds USD

1.5 bln

At year-end 2011, the Bank’s

investment portfolio totalled

USD 3.42 bln

Manages the Eurasian Economic

Community (EurAsEC) Anti-Crisis

Fund

Total territory of operations – over 20

mln km² with a population of 185 mln

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Bank’s activities are aimed at creating conditions for a sustainable economic development and deepening integration between Member States as well as tackling the consequences of the world’s economic downturn:

Growth in mutual trade and investments

Sustainable growth in Bank’s Member States

Expanding the geography of Bank’s operations

Bank’s Mission and Strategy 2011 – 2013

The Bank is called upon to become a consolidating element of financial infrastructure and a catalyst of integration between its member states:

Facilitating the advancement of market economies in the Bank’s member states;

Facilitating the countries’ economic growth;

Facilitating the intensification of trade and economic ties between the Bank’s member states through mutual investments.

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Financing investment projects with an integration effect

Providing technical and financial support for implementing projects with an integration effect through the Technical Assistance Fund tool

Carrying out research on economic integration by the Centre for Integration Studies

Growth in Mutual Trade and Investment

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RU46.34%

KZ36.45%

TJ1.27%

ARM1.98%

BY10.13%Other cnts

3.83%

Bank’s investment portfolio in Central Asia (Kazakhstan and Tajikistan) is 37.72%

Modernization and upgrade of Ekibastuz Electrical Power Station – 2 . Construction of a 3rd energy block.

A cotton yarn manufacture in Tajikistan, capacity 5 ton per year. Supply of textile production machinery from Germany and its operation

Bank’s projects in CA

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EDB’s Technical Assistance Fund

Financial support in pre-investment and innovation research. Aimed at boosting integration in Eurasia, strengthening market infrastructure and ensuring a stable economic growth in Bank’s MS in accordance with the Bank’s Mission

4 programmes: Technical Assistance as Part of Financing Investment Projects; Regional Integration Research; Innovative Economy Support; and Interregional and International Programmes.

Priority areas for research: - development of electric power production - enhancement of energy efficiency- transport infrastructure- high technology and innovation - agriculture

Research and Publications Competitions (application’s deadline 21 May 2012)

Further information on the TAF’s website: http://www.eabr.org/r/research/assistance/assistance/index.php

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Centre for Integration Studies

In June 2011, the EDB opened the Centre for Integration Studies (CIS) to conduct research on issues of regional economic integration

Centre manages and conducts research; publishes reports (8-10 per year), policy papers, a quarterly and a yearbook; and hosts round tables and discussions

Focus of Centre’s research:

- Trade, Economic and Corporate Integration (assessing economic effects of the Customs Union (CU); assessing economic effects and the “content” of the Common Economic Space (CES); harmonization of legislation; and activities of corporate entities)

- Fiscal integration (integration of securities markets; expansion of banks and other actors; harmonization of legislation; single currency; and the EDB’s role in above-mentioned process)

- Systematic study of regional integration (both post-Soviet and Eurasian continental perspectives)

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Research Projects Implemented in 2011 by CIS

CUSTOMS UNION AND UKRAINE: Assessment of the Economic Effects of the CU and CES and Various Forms of Deep Economic Integration with Ukraine

CIS + Institute for Economic Forecasting, Moscow + Institute for Economy and Forecasting, Kiyv; Inter-industry input-output tables; modeling of CES-3 and CES-4; analytical-forecasting toolkit to assess the macroeconomic and sector-specific parameters of development for countries within the post-Soviet area

ASSESSMENT OF THE ECONOMIC IMPACT OF KYRGYZSTAN’S ACCESSION TO THE CUSTOMS UNION

A number of imbalances in the economy of KR, the low savings rate, the nature of the movement of labour pushes the KR towards the development of export potential, especially targeting the CU market; a possible rise in prices ca. 2% of imported goods in the KR because of the application of the UCT CU but also an increase in budget revenues from customs duties will be ca. 42% (3% of general revenues).

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Labour Migration in the CES

Labour migration (mobility) is a central component in the CES. 2 out of 17 CES Agreements are on labour migration and mobility.

Labour is a factor of production. Integration of labour markets is of a higher order than trade in goods and services.

Labour mobility is of great importance for the whole of the CIS. It would be expedient to form a common labour market in the CIS to achieve the maximum effect.

Bearing in mind the scale of labour migration in the post-Soviet area, legislative regulation of migration and effective migration policies are a key component in the formation of a common labour market.

October–November 2011 – Labour Migration in the CES: IOM, Department of Population, MSU and legal experts

2 CES Agreements analysed (in force as of 1 January 2012) – On Legal Status of Labour Migrants and Members of Their Families (ALSLM) and On Cooperation in Counteracting Illegal Migration from Third Countries (ACCIM)

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CES Agreements on Labor Migration: Legal Consequences and Economic Impact

ACCIM: framework agreement – calls for developing and implementing common CES

policy on countering illegal migration (CIM) (e.g. readmission agreements, exchange of

information, etc.); establishes legal foundations for CIM and identifies directions and

formats for such cooperation, but concrete measures will have to be delineated

ALSLM: significant contribution into the development of labour mobility legislation in the

CES – sets out a legal framework for the development of a common labour market.

Expands social and economic rights of labour migrants in each of the CES countries:

cutting down on administrative procedures for accessing a labour market by labour

migrants; extending the period of stay of labour migrants and their families in an

employment country without registration; and providing social welfare and employment-

related information to labour migrants.

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CES Agreements on Labor Migration: Part 2 Low at present – countries-signatories of the Agreements are largely recipients of

labour migrants. Yet establishes a framework for development of a common labour

market within which it would be feasible to re-distribute labour force efficiently –

development of concrete programmes at the government level to this effect is required.

Significant economic impact from accession of countries-donors of migrants

(Kyrgyzstan and Tajikistan) to the Agreements, through legalization of these migrants.

Reduction of the medium wage in economic sectors hiring migrants and

consequential increase of labour supply increase in employment opportunities

increase in production outputs and profits

A full report is available on the CIS’s website: www.eabr.org/r/research

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Centre’s Research Agenda 2012 – 2013

2012: Analysis of the production links

of Russian and Kazakhstan frontier

regions; Monitoring CIS mutual

investments; Macroeconomic Effects

of the CU and CES on Tajikistan;

Eurasian grain pool; Competitiveness

of small economies in the context of

the CU and CES; Labor migration in

the CIS; EDB’s Integration Barometer

and others.

2013: Macroeconomic effects of a free

trade zone between the CES and the EU;

Integration and modernization: a growth

model for CES economies; Implementing

coordinated macroeconomic and

currency exchange policies; CES

technological convergence; and others

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Labor Migration in CIS’s Projects in 2012

EDB’s Integration Barometer In which of the countries would you like to work temporarily?

In which of the countries would you like to study? In which of the countries would you like your children to study?

Labour Migration in the CIS: the Case of Kyrgyzstan

The effects of KYR’s accession to the CU on labour migration

Macroeconomic modelling

Migration survey

Macroeconomic Effects of the CU and CES on Tajikistan

Component on labour migration

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