Best Practice in Temporary Labour Migration for Development: A Perspective from Asia and the Pacific

Best Practice in Temporary LabourMigration for Development: APerspective from Asia and the

Pacific

Graeme Hugo*

ABSTRACT

The dominant mode of international migration in Asia and the Pacificis temporary contract migration of low-skilled workers. The potentialfor such migration to deliver significant development dividends to origincommunities is substantial because of its large scale and the fact thatmost migrant workers return to their home community. However, thereare a number of barriers that are intervening to dampen these potentialpositive effects, such as high transaction costs, high costs of sendingremittances, and the fact that some areas of origin lack the infrastruc-ture and potential for productive investment. Moreover, destinationcountries have been very welcoming of high skill temporary migrantsbut highly restrictive in their attitudes toward their low skill counter-parts.

This paper discusses the lessons of best practice in temporary labourmigration programmes in the region, which can help to overcome theseobstacles reducing the positive development impacts of migration. Itassesses, in turn, best practice separately for each stage of the labourmigration process – recruitment and selection, and pre-departure prepara-tion – at the destination and on return. In conclusion, a number of thebarriers which impinge on Asian Pacific countries’ ability to introduce andsustain best practice are discussed. These include the need for capacitybuilding, lack of cooperation between origin and destination countries,lack of data, poor governance of labour migration a failure among govern-ments to recognise the significance of migration and the need for more‘‘development friendly’’ migration policies in destinations.

* The University of Adelaide - Geography.

� 2009 The AuthorPublished by Blackwell Publishing Ltd., Journal Compilation � 2009 IOM9600 Garsington Road, Oxford OX4 2DQ, UK, International Migration Vol. 47 (5) 2009and 350 Main Street, Malden, MA 02148, USA. ISSN 0020-7985

doi:10.1111/j.1468-2435.2009.00576.x

INTRODUCTION

With 59 per cent of the world’s population in the working age groups(15–64 years) in 2005, the Asia-Pacific region must loom large in anydiscussion of labour and labour mobility. The region is a very diverseone, ranging from the demographic giants of China and India, whichtogether account for 38.9 per cent of the global population in the work-ing ages, to tiny Nauru and Tuvalu in the Pacific, with 7,907 and 7,462persons respectively in these age groups.1 Moreover, Gross NationalIncome per person varies from US$ 38,200 and US$ 33,150 in HongKong and Japan to lows of US$ 1630 in Nepal and US$ 2050 in Laos(World Bank, 2007). There are wide differentials in national stocks ofhuman capital and in labour excess ⁄ labour surplus conditions. Theregion is the origin of many of the world’s largest labour migrationflows as well as the destination of others (United Nations, 2006; Hugo,2008a). Moreover, as inter-country differences in ageing, the growth (ornon-growth) of youth populations, and income widen, the potential forgreater international labour migration is increasing (Hugo, 2008a;Abella, 2008).

Although the Asia-Pacific region is the origin (and destination) of sub-stantial flows of labour migrants moving more or less permanently toother countries (2004), temporary movement has been the dominantmode of labour migration in the region. Indeed, until quite recently onlyAustralia and New Zealand within the region have had significantmigration settlement programmes. Castles (2003) and Hugo (2004) haveput forward some of the distinguishing features of the Asian ‘‘model ofmigration’’.

Migration is not seen as a structural element in Asian economies.

Immigration is highly restricted. It is not generally perceived as beingpositive.

Hence even when there are good reasons for migration, such as thedemand for labour or the arrival of asylum seekers fleeing persecution,permanent settlement of migrants is not allowed.

Emphasis has been on constraint, policing and exclusion rather thanmigration management. There is little tradition of the development ofmanaged migration systems.

24 Hugo

� 2009 The Author

Journal Compilation � 2009 IOM

Where the need for migrant workers, tourists and business people hasbeen recognised as essential to the economy this has been allowedstrictly only on a temporary basis.

Foreigners are not allowed to become citizens except in exceptional cir-cumstances.

Culture and identity should not be modified in response to externalinfluences (Castles, 2003: 6)

There is little or no regional or bilateral dialogue on migration issues.

Migration data are poor because it is given little priority.

While there has been some change in recent years whereby some countriesin the region have made limited steps toward the granting of permanentresidence to selected (mostly skilled) immigrants and notwithstanding thefact that some temporary immigrants transition to permanent settlement,temporary movement remains the dominant pattern.

A ‘‘new twist’’ (Ruhs and Martin, 2008: 250) in the discourse on tempo-rary labour migration in the region in the last five years, however, hasbeen the argument that by sending workers abroad, low-income coun-tries can derive a net positive development impact and reduction in pov-erty (GCIM, 2005; World Bank, 2006; United Nations, 2006).Moreover, an important part of that argument has been that temporarylabour migration programmes may be better able to deliver such devel-opment and poverty reduction dividends more effectively than perma-nent or semi permanent migration of nationals (Vertovec, 2006; GCIM,2005). This greater impact derives from the fact that circular migrantsremit a greater proportion of their incomes to their home-based familiesbecause they usually travel without their families, that they retain ahigher level of commitment to the home community, and that they aremore likely to return to the home country than their permanent migrantcounterparts. This remains a highly contested argument, with other com-mentators pointing to the history of exploitation of temporary labourmigrants, denial of their rights, their lack of opportunities for socialmobility and their exclusion from destination societies (Castles, 2006a;Vertovec, 2006). Nevertheless there are strong voices for ‘‘carefullydesigned temporary migration programmes as a means for addressingthe economic needs of both countries of origin and destination’’ (GCIM,2005: 16).

Best practice in temporary labour migration for development 25

� 2009 The Author


The objective of this paper is to examine the various types of temporarylabour migration programmes in the Asia-Pacific region and assess thelessons which have been learned from such programmes which couldfacilitate and enhance the positive developmental effects in origin com-munities and countries. The importance of these lessons is two fold. Onthe one hand, there is a plethora of existing temporary labour migrationprogrammes in the Asia-Pacific which are in need of significant reformif they are to reach their potential to assist development in origin areas.On the other hand, new programmes are being considered and willemerge as the demographic and economic gradients between high-income and low-income economies widen over the next two decades(Ruhs, 2006; Hugo, 2008b).

At the outset, the paper presents a typology of temporary labour migra-tion in Asia and the Pacific. This is necessary since there are a numberof distinctive forms of such movement and there is no ‘‘one size fits all’’pronouncement that can be made either on their actual and potentialdevelopmental impacts or the best practice in order to achieve theseimpacts. The key features of each type and their potential and actualdevelopmental impacts are discussed. The paper then moves on to distilsome of the lessons from existing temporary labour migration pro-grammes which could serve as best practice in order to maximise thechances of getting desirable developmental outcomes from migration.While some of these lessons are general across all types of labour migra-tion, others are more specific to particular types.

TYPES OF TEMPORARY LABOUR MIGRATION IN ASIA AND

THE PACIFIC

Temporary labour migration has a long history in the Asia-Pacificregion going back to colonial times when there were substantial ‘‘con-tract coolie’’ types of indentured and semi-indentured labour flowsbetween colonies organized both by colonial authorities and the privatesector (Hugo, 2003). In the contemporary period, however, temporarylabour migration both within and between countries in the region hasreached an unprecedented scale and diversity. There are several recenttypologies of temporary labour migration (Abella, 2006; Ruhs, 2006)but Table 1 presents a list of the main types of international labourmigration in the Asia-Pacific region. It is difficult to quantify the scaleof each type of movement because migration data in the region remainsunder developed and undocumented migration is substantial. The largest

26 Hugo

� 2009 The Author


TA

BLE

1

AT

YP

OLO

GY

OF

TE

MP

OR

AR

YLA

BO

UR

MIG

RA

TIO

NIN

AS

IAA

ND

TH

EP

AC

IFIC

Type

Sta

tus

inD

estination

Pote

ntialto

Move

toP

RA

bili

tyto

Bring

Fam

ilyR

ights

1.

Low

-skill

ed

contr

act

labour

tem

pora

rym

igra

tion

docum

ente

dand

undocum

ente

dvery

low

not

possib

levery

limited

2.

Hig

hskill

ed

tem

pora

ryla

bour

mig

rants

mostly

docum

ente

dhig

hallo

wed

substa

ntial

3.

Low

-skill

ed

seasonalla

bour

mig

ration

docum

ente

dand

undocum

ente

dlo

wnot

possib

levery

limited

4.

Work

ing

holid

ay

makers

mostly

docum

ente

dm

odera

tepossib

lesubsta

ntial

5.

Stu

dent

mig

ration

docum

ente

dhig

hallo

wed

substa

ntial

6.

Tra

inee

mig

ration

initia

llydocum

ente

dalthough

many

becom

eundocum

ente

dlo

wnot

possib

lelim

ited

7.

Bord

er

Com

mute

rs⁄C

ircula

tors

docum

ente

dand

undocum

ente

dlo

wnot

necessary

inm

any

cases

limited

8.

Pro

ject

tied

labour

mig

ration

docum

ente

dlo

wpossib

lelim

ited


� 2009 The Author


scale of movement is of low-skilled contract labour which overwhelm-ingly is directed toward the Middle East or other countries in theregion.

The measurement of these flows is extremely difficult because few coun-tries have complete and accurate migration data collection systems(Hugo, 2006) and there are also substantial undocumented flows. Thefigures presented in Table 2 represent estimates of the numbers of tem-porary labour migrants for the major Asian sending nations. From theperspective of the current paper these numbers point to the potential sig-nificance of this type of migration to have a significant developmentimpact in the region by virtue of the sheer number of families in origincountries that this type of migration influences through having a familymember away or returned.

TABLE 2

ASIA: ESTIMATES OF STOCKS OF MIGRANT WORKERS IN THE WORLD

OriginCountries Number Main Destinations

Source ofInformation Year

Burma ⁄Myanmar

1,840,000 Thailand BurmaNet News,8 January 2007

2006

Thailand 340,000 Saudi Arabia,Chinese Taipei,Myanmar, Singapore,Brunei, Malaysia

Migration News,March 2002,ScalabriniMigration Center1999

2002

Laos 173,000b Thailand Migration News,January 2005

2004

Cambodia 183,541 Thailand Lee 2006 2006Vietnam 400,000 South Korea, Japan,

Malaysia, Chinese TaipeiMigration News,October 2007

2005

Philippines 8,233,172 Middle East, Malaysia,Japan

PhilippinesOverseasEmploymentAgency

2006

Malaysia 250,000 Japan, Chinese Taipei Asian MigrantCenter 1999

1995

Singapore 150,000a Yap 2003 2002Indonesia 2,700,000a Malaysia, Saudi Arabia,

Chinese Taipei,Singapore, South Korea,United Arab Emirates

Ananta andArifin 2008

2007

China 530,000 Middle East, Asiaand the Pacific, Africa

Ma 2005 2004

Total 14,799,713

a. Documented.b. Undocumented.

28 Hugo

� 2009 The Author


What is apparent is that the demand for low-skilled workers in theregion shows no signs of diminishing. Malaysia is a case in point. Fig. 1shows the substantial increase in temporary migrant labour over the lasttwo decades. Such workers have gone from being 5 per cent of theworkforce in 1990 to almost a quarter in 2007. The data in Fig. 1 repre-sents only the documented migrant workers and it would seem thatthere are at least 1 million undocumented workers, most from neigh-bouring Indonesia. Moreover the government of Malaysia estimates thatby 2010 it will require 5 million foreign workers. The increasing demandfor such workers is not only because falling fertility has reduced thenumbers of locals entering the job market. Labour market segmentationhas played an important role as it has elsewhere. Locals eschew jobswhich have low pay and low status and fall into the ‘‘3D’’ category(Dirty, Difficult and Dangerous). As a result, in Malaysia, sectors suchas forestry, construction, plantations and domestic service have becomedominated by temporary labour migrants.

Some of the defining features of this type of temporary labour move-ment are shown in Table 1. Typically this group are denied many basicrights in destination countries and usually are compelled to travel with-

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Nu

mb

er

Year

FIGURE 1

MALAYSIA: STOCKS OF MIGRANT WORKERS, 1990 TO 2007

Source: Malaysia, Economic Planning Unit; Kanapathy 2008; Badri 2008.


� 2009 The Author


out their families. They usually have no access to applying for permanentresidency. Notwithstanding these restrictions some of those migrantshave settled permanently in destination countries as for example has beenthe case with significant numbers of Indonesians in Malaysia.

The potential for this type of migration to have a developmental impactis considerable not only because of their large numbers but also becausemost retain a strong commitment to their home communities since theyleave their families there. Accordingly they send back a higher propor-tion of their income in remittances than is the case for permanent set-tlers. Moreover they intend to return to their homelands and this isenforced by the migration regimes in destination countries. It has beenshown (Hugo, 2001a) that in many countries (e.g., Indonesia) this typeof migrant worker is drawn from some of the poorest areas of the coun-try (e.g., parts of Java, East and West Nusatenggara). In such areasremittances are the only substantial inflow of potential investmentmoney from the outside.

Given this substantial potential for international contract labourmigration to deliver financial resources to the grassroots in some ofthe poorest areas in the region, what are the barriers which are damp-ening these effects? One of the main issues here relates to transactioncosts. For many contract workers the amounts that they have to payto recruiters, to government officials, to travel providers, for docu-ments, training, etc., are very high and well above what could be con-sidered a reasonable charge for these services. There is too muchunproductive rent taking in the burgeoning contract labour migrationindustry in the region and this is siphoning away money that migrantsearn that otherwise would have gone toward development relatedactivity in home areas. Often migrants have to work several monthson arrival at the destination just to pay off the debts incurred by themigration process. If they are duped by recruiters so that the job theywere promised is not available or if they cannot complete their con-tract for some reason they and their families have a substantial (andrapidly increasing) debt. Exploitation of migrant workers in the recruit-ment and preparation for travel process, en route, at the destinationand on their return home is rife. It should be noted that in somecountries it is the documented migrants who have higher transactioncosts than undocumented migrants. Indeed one of the reasons whymigrants opt to take the undocumented route is to avoid the preda-tions of gate keepers who extract money, both official and ‘‘unofficial’’,at every stage of the migration process.

30 Hugo

� 2009 The Author


Migrant remittances are a key to labour migration having positive impactson development and poverty reduction in origin areas. Yet these potentialdividends can be reduced firstly by having to pay high rates to send themoney home and by the lack of investment opportunities in the homearea. It is apparent that despite a range of ingenious methods of sendingmoney home, many systems overcharge migrants to remit money so thatthe proportion of earnings that eventually get back to the origin is smallerthan it could be. In addition, Hugo (2004) found in Eastern Indonesia thatthe origin area of migrant workers to Malaysia had been so neglected bythe central and provincial governments that it lacked the basic infrastruc-ture which would be needed for the successful setting up of new enterprisesby returned migrants. There were very few productive channels open toreturnees to invest money in productive enterprises other than to purchaseagricultural land or buy a passenger motor vehicle.

The temporary labour migration of low-skilled workers has been heavilycriticised both inside and outside the region as being a ‘‘new form ofindentured labour’’. Some NGOs in the region even equate it with traf-ficking because of the exploitation of migrants that often characterizesthis movement. The undoubted social costs of long separation from fam-ilies, lack of opportunities for social mobility and lack of opportunity totransfer to permanent residency are also criticised. It is also seen to beassociated with undocumented migration. These criticisms all can be sus-tained by looking at particular migrants in particular flows of temporarylow-skilled labour migrants. However the question has to be asked as towhether the problems are intrinsic features of this type of migration orwhether they are due to a failure of governance of these labour migra-tion systems in the Asia-Pacific context. There is much evidence that itis the latter rather than the former.

There are a number of ‘‘myths’’ that have grown up around unskilledcircular migration which empirical evidence suggests are at the very leastcontestable2. These include the following:

‘‘There is nothing so permanent as a temporary migrant’’. Certainly manytemporary migrants see their move as a part of a longer term strategy toremain permanently at the destination. Yet for others circular migrationis a preferred strategy. Certainly there are sacrifices of separation fromfamily but the idea of earning in a high income ⁄ cost context and spendingin a low income ⁄ cost context is appealing as is the idea of remaining intheir cultural hearth area. Circular migration can become a continuingand structural feature of families and economies and it doesn’t have to


� 2009 The Author


lead to permanent settlement. Moreover if there is a regime which facili-tates migrant workers returning relatively frequently to their families asopposed to constraints which in fact make this so difficult that migrantsopt for a permanent settlement strategy at the destination. Where originand destination are relatively close together, improved transportation hasmade regular home visiting increasingly feasible as is the case with inter-nal circular labour migration (Hugo, 1975, 1978).

‘‘Circular migrants lack agency’’. Not all temporary labour migrants arevictims of criminal syndicates, unscrupulous recruiters and graspingemployers. Some in fact maintain a great deal of independence through-out the migration process. Indeed this group may be able to provide les-sons for improving the governance of these migration systems.

‘‘Circular migrants lack social mobility’’. In many cases circular low skilllabour migrants have considerably enhanced their position in the desti-nation. Upward mobility and enhanced training is commonplace amongEast Nusatenggara migrants to East Malaysia (Hugo, 2001a).

The key point is that low-skill circular labour migration can have posi-tive outcomes for migrant workers and their origin communities. In factit often does. However, the regime for this type of movement in someAsia-Pacific countries is characterized by poor governance, corruptionand lack of coherence so that these outcomes are compromised. Thequestion becomes whether dealing with these issues effectively canenhance the positive effects in origin areas.

The second type of temporary labour migrants are high skilled and theyare significantly smaller in number than their low skill counterparts,although the numbers of skilled Asian and Pacific emigrants movingcountries within, as well as outside, the region is increasing substantially.In the City of Shanghai, China, for example, in 2006 the official numberof skilled overseas workers in the city was 119,876 (Bureau of Exit-EntryAdministration, Shanghai Municipal Public Security Bureau).

The lot of skilled temporary labour migrants in Asia and the Pacificcontrasts starkly with that of low-skilled migrants. As Ruhs and Martin(2008: 254) have pointed out:

‘‘The international market for skilled and highly skilled migrant work-ers is characterised by ‘excess’ demand for labour … As a result quali-fied migrants are able to choose among competing destinations …

32 Hugo

� 2009 The Author


countries and employers seeking to attract skilled workers are likely tooffer them not only high wages but also substantial rights.’’

‘‘Expatriate’’ skilled temporary migrant workers often have conditionsthat are above the average for workers at their destinations because ofthe competitive situation. On the other hand, low-skilled migrant work-ers often have to accept below average wages and conditions in the des-tination because of the excess supply of such migrant workers.

Many countries in the region have developed ‘‘skill friendly’’ temporaryresidence visa systems which facilitate the immigration (albeit tempo-rary) of such skilled workers. Moreover in several countries the pathfrom temporary to permanent residence for skilled temporary migrantsis not difficult (Khoo, Hugo, and McDonald, 2008). The Australian 457Visa is similar to the United States HIB visa and Fig. 2 shows how thenumbers of temporary skilled migrants to Australia has increased sub-stantially in recent years. Moreover, Khoo, Hugo, and McDonald(forthcoming) show that an increasing proportion of these migrants arefrom Asia and the Pacific, and that many 457 temporary skilledmigrants have been able to transition to permanent residency status.

From the perspective of the impact of this type of labour migration onorigin communities a number of countries in the region have sought toencourage an upskilling of the temporary labour migrants leaving thecountry (e.g., Indonesia). The rationale here is that such workers will

0

100,000

200,000

300,000

400,000

500,000

600,000

1995

–96

1996

–97

1997

–98

1998

–99

1999

–200

0

2000

–01

2001

–02

2002

–03

2003

–04

2004

–05

2005

–06

2006

–07

Year

Nu

mb

er

FIGURE 2

AUSTRALIA: GROWTH IN THE NUMBER OF TEMPORARY BUSINESS ENTRANTS,

1995-96 TO 2006-07.

Source: DIAC.


� 2009 The Author


earn much more in destinations than their low skill counterparts andtherefore are more able to remit larger sums back to their origins. Inaddition they are more likely to acquire training and experience at thedestination which will enhance their skills than is the case with low-skilled labour migrants. This logic however does have flaws:

High skill workers often remit smaller proportions of their income to ori-gin communities partly because they tend to come from better off families(and communities) so that the level of need in the origin family will not beas great. Moreover these migrants are often able to bring their immediatefamilies with them so that they are not as obliged to send back money toimmediate family. As a result their level of commitment back to the homecommunity may not be as great as it is for low-skilled migrants.

Such migrant workers are more likely to come from cities and better offparts of origin countries (since they have higher levels of education andtraining) than low skill migrants who often come from poorer areas.

The loss of the human capital of some of these higher skilled temporarylabour migrants may have negative effects in origin areas. In the Pacificfor example it is apparent that the emigration of nurses and teachers tocountries like Australia and New Zealand under temporary visas hashad negative impacts on health and education systems in the Pacific(Voight-Graf, 2008).

Since these workers often are given access to applying for permanentresidence and even citizenship at the destination they may not return toorigin countries as much as low-skilled migrants.

On the other hand there are aspects of higher skilled temporary labourmigration which potentially could deliver development dividends at home.

As mentioned earlier, they earn more at the destination so that theamount they can potentially remit is greater.

They have the opportunity to enhance their skills and experience whichcan benefit the origin country when they return or while they are stillaway if they transmit new knowledge and ideas back to relevant groupsin the home country.

Unlike low skill migrants they are more likely to maintain non-familynetwork links with colleagues, professional organisations, etc., which

34 Hugo

� 2009 The Author


can be the conduits through which new ideas and ways of doing thingscan be introduced to the home area.

They can enhance productive linkages for trade, investment, etc.,between the origin and the destination.

The third category of temporary labour migrants are low-skilled sea-sonal migrant workers who fill seasonal labour shortages in destinationcountries, especially in the agricultural sector. They differ from the lowskill contract labour migrant considered earlier in that the latter havecontracts of two or three years while for this group it is a matter ofmonths such as in harvesting periods (Newland, Agunias, and Terrazor,2008). Such seasonal cross border movements have a long history in theregion as with the annual movement of southern Thais into northernPeninsular Malaysia to harvest rice. However, with the labour shortagesemerging in countries like Australia and New Zealand there has beenheightened interest in introducing seasonal labour migration schemes tomeet seasonal labour shortages in the viticulture, horticulture and mar-ket gardening industries. In October 2006, New Zealand introduced theRecognised Seasonal Employers Scheme (RSE) to assist employers inparticular industries to attract seasonal workers. The scheme allows forpriority to be given to workers from the Pacific for seasonal workopportunities in the horticulture and viticulture industries in planting,maintaining, harvesting and packing crops where there are no New Zea-land workers available. The initiative attempts to provide a mutuallybeneficial situation where New Zealand employers have a secure laboursupply that they can utilize in successive years and for the Pacific tohave access to the New Zealand labour market, thereby boosting theskills and economies of Pacific nations. The RSE scheme was officiallylaunched on 30 April 2007, with the first employer achieving RSE statusat the same time.

The RSE policy represents a substantial departure in immigration policyby Australia and New Zealand. Where no suitable New Zealanders areavailable, as in the heavy seasonal demands for 20 to 30,000 workers inpicking, pruning and packing in the production of fruit, vegetables andwine, employers can apply for RSE status. They can recruit firstly fromthe Pacific and if there are no suitable workers they can go to othercountries. The employees from the Pacific can stay in New Zealand upto seven months at a time (nine months if they are from Kiribati andTuvalu in recognition of higher travel costs) and they can return in con-secutive seasons. Employers are encouraged to build long-term relationships


� 2009 The Author


with the Pacific Islands residents and to build their skills over time.There are plans to develop appropriate training for migrant workers athome and in New Zealand (Taukolo, Redden, and ‘Esau, forthcoming).Initially the programme allows for Samoan workers to come to NewZealand each year and has focused on the Pacific nations of Tuvalu,Tonga, Samoa, Vanuatu and Kiribati. Employers are obliged to:

Pay half travel costs.

Pay for an average 30 hours per week for the duration of employment.

Provide pastoral care, ongoing accommodation, basic health care andlocal transport.

Make a financial contribution to locating a worker who fails to returnhome at the end of their employment.

The introduction and progress of the scheme is being watched closely inboth New Zealand and Australia because it could be an important firststage for substantial programmes of this type in the future.

Seasonal labour migration systems have similar implications for develop-ment as were explored earlier for low-skilled temporary labour migra-tion. The frequency of return is likely to be somewhat greater than isthe case for Asian overseas contract labour migrants who usually areabsent for two or three years.

The fourth type of temporary labour migration in the Asia-Pacificregion is limited in incidence to only a few high income countries in theregion – Australia, New Zealand, Japan and Korea. This is WorkingHoliday Maker migration. The programme in Australia is typical ofsuch programmes. Working Holiday Makers (WHMs) are foreignnationals from selected countries with which Australia has a reciprocalarrangement (only South Korea, Taiwan, Japan and Hong Kong SARof China in Asia). They are permitted to stay in Australia for a yearand people who have undertaken seasonal work in Australia for a mini-mum of three months are eligible to apply for a second WHM visa.They can work for a single employer for a maximum of six months.Their wages and conditions are consistent with Australian standards. In2006–2007, 134,612 WHM visas were issued – an 18.2 per cent increaseover the previous year. While most of these young people have relativelyhigh levels of education, they work mainly in seasonal work in

36 Hugo

� 2009 The Author


agriculture, viticulture, market gardening, tourism and hospitality andservice activities. They have become a crucial element in the harvestingworkforce and labour in the intensive agriculture sector when there areseasonal peaks in demand for labour (Hugo, 2001b).

The developmental implications of this type of labour migration are lim-ited because low-income country youth do not have access to WHMschemes. The WHM programmes in Australia and New Zealand, how-ever, may be having an indirect impact in that it may be delaying thosecountries introducing large-scale seasonal agricultural labour migrationfrom low-income countries as is done in countries like Spain and theUnited States. In Australia there have long been labour shortages duringpeak activity periods in viticulture, market gardening, orcharding, etc.The WHMs have to some extent met this demand which otherwisewould have perhaps led to the introduction of a seasonal labour migra-tion scheme.

The next type of labour migration is international student migration.While the main reason for such movement is study, it has significantlabour components.

Many students remain at the destination when they have completed theirstudies.

Many students work while undertaking their studies. In Australia, forexample, they are allowed to work for up to 20 hours a week duringterm and full-time outside term.

There has been a massive growth of international student migration andespecially that out of Asian countries. Fig. 3 shows how the number ofinternational, especially Asian students, has increased in Australia. Theimpact of such migration on development has been much discussed inthe literature on brain drain because of the nexus between studentmigration and permanent settlement in destination countries (Adams,1968; Abella, 2005; Dumont and Lemaitre, 2005).

Trainee programmes are run by countries such as Japan, South Koreaand Taiwan. They usually involve a worker from a lower income coun-try who works for a company whose headquarters is in a higher incomecountry being transferred temporarily to receive training. This movementis usually covered by bilateral agreements between the origin and desti-nation country and is seen as a form of technical cooperation (Abella,


� 2009 The Author


2006). The stated objective of such programmes is to provide the workerwith skills which they can then use in the country of origin. However, inthe Asian context these programmes have been used as an avenue tobring in cheap unskilled labour to ease labour shortages. Moreovertrainees are paid very low wages. The largest programmes in the regionare in South Korea and Japan. A feature of these programmes has beenthe high incidence of ‘‘running away’’. Once trainees have familiarisedthemselves with the local labour market many leave their trainee jobsand take more remunerative jobs elsewhere, especially in the informalsector. They often become undocumented migrants as a result.

The impact of trainee programmes on origin countries from a develop-ment perspective is limited, partly because of the small numbersinvolved. In theory they result in a transfer of skills and experience tothe origin country but this is muted by the fact that in many cases thetraining component of their experience is limited because they are usedas unskilled labour. Moreover because they are greatly paid at a verylow level their remittances are limited. However for those that ‘‘runaway’’ the impacts are similar to those of the unskilled temporarylabour migrants considered earlier.

The other types of labour migrants are relatively small in number andhave limited effects. The first involves people living in border areas andcrossing the border daily or weekly to work in the neighbouring

0

50,000

100,000

150,000

200,000

250,000

300,00019

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

06

Year

Nu

mb

er

Overseas Students from Southernand Central AsiaOverseas Students from NortheastAsia

Overseas Students from SoutheastAsia

Other Overseas Students

Total Overseas Students (1983–90)

FIGURE 3

OVERSEAS STUDENTS IN AUSTRALIAN UNIVERSITIES, 1983 TO 2006

Source: DEST Students: Selected Higher Education Statistics, various issues.

38 Hugo

� 2009 The Author


country. Such movement occurs along the Thai-Malaysia border,Malaysia-Singapore, Singapore-Indonesia and the Greater MekongBasin countries (Burma, Thailand, China, Laos, Cambodia and Viet-nam). In such cases the development impacts are generally similar tothose of temporary low skill labour migrants. The final group are com-pany employees who move between countries as part of a particular pro-ject of their employer.

Thus far we have considered temporary labour migration schemes inAsia and the Pacific largely from the perspective that they can poten-tially benefit sending communities. However it is important that it berecognised that they also have some advantages from the perspective ofreceiving countries as well.

Firstly in terms of meeting receiving countries’ labour market shortagestemporary migration permits greater labour market flexibility than per-manent migration (Abella 2006). The particular labour demands thatthey meet may dry up. Singapore, for example, sees its low-skilledmigrant workforce in this way and at times of economic downturn thenumbers of workers can be easily reduced. Similarly when demand forlabour is seasonal, as in agriculture, temporary labour has some realadvantages.

Secondly the influx of skilled workers on a temporary basis can allow acountry to ‘‘buy time’’ to train sufficient numbers of its native workersto do these jobs. The migrant workers can even play a significant role inproviding that training formally or through ‘‘on the job’’ training andskills transfer.

Thirdly from the perspective of ageing of destination country societiestemporary migration may be advantageous. Migrants are always youngand on their arrival in the country they have a ‘‘younging effect’’ on thehost population although this is very small given their small numbers inrelation to the total population. However migrants age too. Hence ifthey remain in the country they will age with the host population andcontribute to ageing. For example in Australia the long history of sus-tained postwar migration has meant that in 2006 the percentage of theoverseas-born aged 65 and over was higher for the overseas-born (35%)than the Australia-born (65%). Moreover the overseas-born populationaged 65 and over increased faster than their Australia-born counterpartsover the 2001–2006 period (3% per annum compared with 1%). Hencea ‘‘revolving door’’ of migrant workers provides a constantly young


� 2009 The Author


workforce to the destination country without contributing to ageing ofthe workforce or population.

Fourthly, as Abella (2006: 2) points out, ‘‘compared to permanent immi-gration, liberalising temporary admissions is politically easier to sell toelectorates that have come to feel threatened by more immigration’’.This argument is especially germane in Asia given the prevailing ‘‘AsianModel’’ of migration discussed earlier.

Fifthly, some countries have fears of social cohesion breaking down ifimmigrant communities settle permanently and there are difficulties ofintegration.

Hence if it can be established that circular labour migration can havebeneficial effects for origin countries it can also often be a more accept-able migration option to destination communities as well. The potentialis thus there for labour migration to produce a win-win-win result forthe migrant, the origin and the destination. The fact that this has notalways been the case in the past has been largely due to the way inwhich temporary labour migration programmes have been operationa-lised. Indeed there are few areas of public policy in the Asian regionwhich are as characterized by as much poor governance, corruption,exploitation and mistreatment of people. The argument here is that it isimportant that these negative experiences not be allowed to conceal thepotential of the process to deliver a triple bottom line positive effect.The process in itself is not intrinsically bad but in many cases the wayin which it has been operationalised in the region has often left much tobe desired. Can reform of the governance of temporary labour migrationsystems result in it becoming a significant contributor to development inorigin countries? If so, what are the lessons of best practice in temporarylabour migration systems in the region which would inform that reform?It is to these questions that the next section turns.

BEST PRACTICE IN TEMPORARY LABOUR MIGRATION

SCHEMES

Introduction

The potential for temporary labour migration, especially that of low-skilled groups, to deliver development benefits in Asia and the Pacific isbeing hampered by:

40 Hugo

� 2009 The Author


A reluctance by some countries with labour shortages to admit suchworkers.

A situation whereby in much of the existing temporary labour migrationthe potential for development impact is not being realised because ofsiphoning off of the wages of migrant workers by recruiters, agents,money lenders and other intermediaries.

Clearly sound governance systems which protect the interests of destina-tion communities while also providing migrants with appropriate accessto work, protecting their rights, making it possible for them to remit asmuch as possible of their earnings home and to return home arerequired to achieve win-win-win results. The various lessons for bestpractice will be considered for each stage of the Temporary LabourMigration Program (TLMP) process – recruitment, predeparture, at thedestination and return. In doing this it is necessary to distinguishbetween skilled and unskilled migration. However at the outset somegeneral issues which impinge on Asia-Pacific countries’ abilities to intro-duce best practice systems are discussed:

There is a major need for capacity building in the whole area of develop-ment and operationalisation of labour migration policy in severalnations in Asia and the Pacific. Development of best practice requires acadre of well trained professionals across a range of migration relatedskills. They need to be resourced appropriately with appropriate soft-ware and hardware to manage the migration. This applies equally toofficials in origin as well as destination countries. The urgent need todevelop the skills and systems in this area in several Asia-Pacific coun-tries has been identified (Hugo, 2008c).

Effective governance requires cooperation between authorities at bothorigin and destination ends of the process and such cooperation hasbeen limited in the region although there are signs that this may bechanging.

Associated with the first point is that there is a pressing need to improvedata collection in this area since accurate, comprehensive and timelyinformation on demand and supply of migrant workers is a fundamentalprerequisite of effective management.

Improving governance of international labour migration systems in Asiaand the Pacific is going to involve confrontation with well established


� 2009 The Author


vested interests operating inside and outside the existing legal systemwhich are often not operating in the interests of the migrant or of devel-opment in origin communities.

There is a need for a conceptual change among policymakers to recog-nise that migration can impinge positively on development in origincommunities. Part of this is making migration policy in destination areasmore ‘‘development friendly’’. This means developing policies and pro-grammes not only with the labour market interests of destinations inmind but also their impacts in origin communities. It may involve devel-opment assistance agencies being one of the groups involved as itincreasingly is in Europe (DFID, 2007) and is in the New Zealand RSEScheme (Gibson, 2008).

Ensuring TLM Has a Sustainable Impact on Development

In Asia and the Pacific, TLM has in the past often been perceivedby governments and communities in both origin and destinationcountries as an unwelcome but necessary ‘‘fix’’ to short-term problemsof labour excess and labour shortage. Few have seen it as a struc-tural and increasingly established and long-term element in nationaland regional economies. However, steepening demographic and eco-nomic gradients between countries mean that it is becoming in manycases an established and significant feature. It is crucial therefore thatthere is an effective system of governance at both ends of the processwhich recognises this reality. International Labour Organisation andUN Conventions on migrant workers suggest that bilateral agreementsand ⁄or Memorandums of Understanding (MOUs) between origin anddestination countries are an effective way of setting out the rightsand obligations of employers, migrants, private agencies andgovernment instrumentalities in the migration process. These have cer-tainly become more popular in the Asia-Pacific region. Korea, forexample, has in recent years conducted 14 MOUs with sending coun-tries. On the sending side Indonesia has in the last few years signedMOUs with Malaysia (2), Korea, Taiwan, Japan, Australia, UAE,Jordan, Kuwait, Qatar and Syria. An important MOU signed withthe major destination of Indonesian migrant workers, Malaysia, inBali in 2006 had the following provisions (Asian Migrant News, May2006):

Employers are required to sign contracts that specify the rights and obli-gations of both parties.

42 Hugo

� 2009 The Author


Withholding of workers’ wages are prohibited.

Salary of domestic workers should be between Malaysia Ringgit 400–500.

Workers have the right to practice their religion, vote in the Indonesiangeneral election at the embassy and have disputes settled in Malaysiancourts.

A bank account is to be opened in the name of domestic workers byemployers into which their full salary is to be deposited and employmentagencies are banned from taking a share.

This latter MOU was additional to an earlier agreement and dealt spe-cifically with the problems being experienced by the estimated 300,000Indonesian women domestic workers in Malaysia. The effectiveness ofthis and other MOUs in Asia have yet to be evaluated. Indeed this is atask which needs doing as there has been a proliferation of such agree-ments in recent years.

There has been some suggestion in the region that the increasing numberof Free Trade Agreements (FTAs) could be a vehicle for agreements tobe made between countries on the flow of labour migrants. Indeed inorganisations like APEC, which has been devoted to freeing up tradeand financial flows between countries in the region and has played a rolein encouraging FTAs, there is currently a discourse that argues thatmigrant labour flows are the missing component in these liberalisingprocesses. Newland, Agunias, and Terrazor (2008) argue that by associ-ating with FTAs international labour migration has the potential to‘‘ride on the coat tails’’ of more strategic objectives. In fact some FTAsin the region contain provisions for the ‘‘movement of natural persons’’.However these largely refer to service suppliers under private contractsand, in a few cases, professional workers; they do not allow the move-ment of low-skilled workers (Hugo, 2008). While this avenue needs tobe continued to be investigated it seems to be a second-best solution toMOUs in that any labour migration elements are likely to be seen asperipheral and not given the comprehensive attention that is possible inMOUs.

MOUs would seem to be most appropriate when dealing with the flowof low-skilled workers. Other systems such as ‘‘points systems’’ by whichskilled workers are allocated points on the basis of qualifications, skill


� 2009 The Author


type, language ability, experience, age etc., or government supervision ofprivate sectors may be more appropriate for skilled TLMPs. Pro-grammes like the HB1 in the United States and 457s in Australia fallinto the latter category. In the 457 programme in Australia, the Austra-lian government sets a number of requirements that need to be met:

It applies only to the top 3 categories in the Australian Standard Classi-fication Occupation (ASCO) – managerial, professional and semi-profes-sional, although it has been extended to some trades areas.

Minimum salaries apply.

Migrant workers have to meet health, security and other standardrequirements.

However the programme is market run in that no cap is set on numbersand employers do the recruiting, often through agents. There is a ‘‘fast-track’’ system for employers that have a good record (Khoo, et al., 2007).

Another aspect of sustainability of TLMPs relates to the interpretationof temporary. Most programmes have a maximum time that a workercan work at the destination under a contract before returning home.Some allow one renewal of a contract without returning but most insiston return after the initial contract time expires. Thus regulations canhave the effect of migrant workers ‘‘running away’’ from their employerand becoming undocumented because they fear that they will not haveaccess to jobs in the destination in the future. It would seem to be bestpractice to facilitate return or repeat labour migrations. It is certainlythe case, for example, that many Filipinos have more than a single con-tract. In the case of the New Zealand RSE Scheme it seems that themajority of the initial group of seasonal migrant workers will be, orhave been, offered second year contracts. Clearly in that case manyemployers see the continuity as beneficial because the workers haveacquired the appropriate skills, attitudes to work, local knowledge, etc.The idea of temporary labour being a more or less permanent strategy(at least for the key younger working ages) for many low-skilled Asia-Pacific migrants needs to be investigated. Potentially, at least, it wouldseem to have advantages for:

The migrant, in that they have an assured source of income for longerthan a couple of years. It also provides a greater opportunity for train-ing than would be the case in a one-off labour migration.

44 Hugo

� 2009 The Author


The employer, gains continuity and a greater degree of experience andskill which provides productivity dividends.

The origin, in that there is a greater flow of remittances and potentiallya chance to improve the stock of human resources skills through extratraining of migrants.

In addition it may have compliance implications because it reduces thenumber of runaways because the migrant worker can be assured ofaccess to work in the destination over an extended period while remain-ing within the legal system.

A key factor of skilled TLM programmes like the 457 and HB1 is thatthere is the potential for migrant workers to apply for permanent resi-dence after showing that they have integrated into the labour marketand other aspects of destination society. This could perhaps be consid-ered for all TLM programmes under some circumstances. If a TLP hasworked for an extended period in the destination and show that theycan operate effectively in the destination society and economy after fiveor more years’ experience there could be avenues for applying for per-manent residence. It is important, however, that TLMPs not be per-ceived by origin communities as being the first stage of permanentmigration and that transitioning to permanent residency is automatic.Such unrealistic expectations have been a problem in parts of the NewZealand RSE programme.

Best Practice in Recruitment and Selection

It is at the initial recruitment and selections stages in Asia and the Pacificthat many of the problems of excessive transaction costs are incurred. Toooften migrant workers and their families go into debt to meet the costswhich are imposed and this is a major barrier to the earnings of migrationbeing invested in development related or poverty reduction activity. Thisis complicated by the fact that in several countries there are a plethora ofagents, subagents, middlemen, travel providers and officials that areinvolved in the recruitment and preparation process and imposing charges– some legitimate, others not. An obvious goal is to reduce these transac-tion costs to a level commensurate with the services provided and thereare a number of practices which can help achieve this.

Information provision. Much of the excessive rent taking occurs becausethe potential migrant workers are not informed sufficiently about what


� 2009 The Author


they should be paying. The development of effective information mecha-nisms such as the setting up of Migrant Resource Centres in origin areaswhich empower the potential migrants with detailed and accurate infor-mation about the recruitment process and costs is an important elementof best practice. Programmes in the Philippines by both government andNGO instrumentalities have demonstrated how effective this can be.

In some sending countries the official processes necessary for workingoverseas are excessively complex, costly and time consuming. Fig. 4, forexample, shows all the stages that Indonesian official labour migrantshave to go through. Moreover since disembarkation training and pro-cessing can only be at selected cities the potential OCW has to travel tothat place and stay there, often for months, to undergo processing. Thisincreases costs considerably. Best practice here is to streamline the pro-cess and develop ‘‘one stop shop’’ facilities to gain necessary governmentclearances.

Effective management and control of private sector agents and othersinvolved in the recruitment process. In some countries the links betweenprivate sector agents and government officials involved in the recruit-ment process are close and corrupt. The development of a professional,diligent and appropriately recompensed group of officials to manage thisprocess is an important part of best practice.

FIGURE 4

INDONESIA: OVERSEAS EMPLOYMENT THROUGH LEGAL CHANNELS

Source: Ananta, et al., 1998 : 330.

46 Hugo

� 2009 The Author


Involvement of NGOs in the process as an independent voice to provideadvice to potential migrant workers can be effective as it has been in thePhilippines.

Development of appropriate and fair loans for potential workers to takeout from governments or banks to fund their travel to work overseaswith low interest rates. These are needed to replace the usurious loansgiven by village money lenders and often recruiters themselves. Suchloans should be an alternative product to banks since they can be theirmeans by which some migrants are introduced for the first time to theformal financial sector (Titu Eki, 2002).

Transport Involvement of the destination-based employer in meeting thecosts of recruitment. Best practice here is found in the Philippines Sea-Based Migrant Worker Scheme where the employer meets all the costsof recruitment (Magsaysay, 2005). Some involvement of employers inmeeting some of the costs would seem workable. For example, in theNew Zealand RSE employers are responsible for half of the airfare costsof Pacific seasonal agricultural workers. There is often ‘‘double dipping’’by middlemen taking recruiting fees from both employer and employee.

Regulation of the private sector recruiters who are the main elements inthe recruitment of TLMs in Asia and the Pacific, especially low-skilledworkers is fundamental. In many countries, however, while such regula-tions can be quite stringent there is a gap between policy and practice.The capacity of Immigration and Labour Departments in origin coun-tries to enforce such regulations is limited. Moreover corruption is oftensignificant. One of the most effective models for effective regulation ofprivate recruiters is in the Philippines. Abella, Martin and Midgely(2004) have shown that there is a substantial education campaign aimedat potential migrant workers informing them of the regulations includingthe fact that migrants can be charged not more than a month’s salaryfor recruitment services. The regulation regime of the recruiters is a mixof carrots and sticks to comply with recruitment laws.

In Asia and the Pacific periodically sending countries have applied banson recruitment of workers to be deployed to particular countries or onparticular types of migrant workers. Indonesia, for example, at differenttimes has banned sending unmarried women or women below age 24 tobe migrant domestic workers. This has simply resulted in the falsifyingof information. Moreover bans to certain destinations are circumventedby reverting to undocumented migration. Clearly such bans are to be


� 2009 The Author


avoided and best practice is to provide safe and fair channels for migra-tion.

Recruitment always will be selective as in all forms of migration but bestpractice should avoid unfair discrimination. For example, some agricul-tural worker programmes such as New Zealand’s RSE favour marriedmen because they are seen as being more stable and reliable and lesslikely to run away than single men because they have families at home.However by denying single young men access to foreign work can createa range of problems at home.

The above elements of best practice lie mainly in the ambit of sendingnations and hence in some ways are easier to implement because theydo not involve the complication of involving the destination where thegovernment has no jurisdiction. However, achieving best practice inrecruiting is no small task in many countries. It assumes a high degreeof political commitment since it involves taking on considerable vestedinterests within and outside of government if the unnecessary rent takingon the labour migration process is to be significantly reduced and theresources freed up made available for development in origin communi-ties. It also presupposes dedicated and well-trained officials to developand operationalise the practices. In reducing transaction costs it may beuseful to examine the way in which some undocumented migration inthe Asia-Pacific is managed. In countries like Indonesia, it is the largedifferential in transaction costs that accounts for many Indonesianworkers choosing to migrate using these means to migrate. Examinationof these processes may give clues as to how the costs of legal migrationcan be reduced.

Recruitment of skilled workers is generally less characterized by exces-sive transaction costs, exploitation and corruption and recruitment,although often involving agents, is much more through formal mecha-nisms than is the case for lower skilled workers. The internet andother formal job advertisements are often important in recruitingskilled workers. Clearly, the recruitment of doctors, nurses, teachers,etc., is having some detrimental effects on the health and educationsystems in countries like the Philippines and some Pacific nations. It isobviously impractical for either sending or receiving nations to simplyban such recruitment but there may be more ethical and responsiblepractices which can be produced in such recruitment. These are beingconsidered especially in Europe but could include, on the receivingcountry’s part:

48 Hugo

� 2009 The Author


Schemes whereby low income countries which are a source of highlyskilled medical staff are provided with development assistance by thereceiving country targeted at developing their medical training system. Ithas been shown that in emigration countries, where it is clear that edu-cation increases the chances of emigration, there are benefits to the ori-gin country because of the larger number of people who seek education.

Recruiting countries encourage the return of the skilled medical profes-sionals once they have worked for a period at the destination.

One interesting approach to recruitment is to involve communities oforigin more in the recruitment and selection of migrant workers. Thishas been trialled in the New Zealand RSE programme. In seekingrecruits from Samoa, for example, much of the initial selection of can-didates was undertaken by local communities in association with localgovernment. Communities were keen to only select those men andwomen who were considered to be diligent, adaptable and unlikely torun away since it was known that if the group of migrant workers didnot make a good impression it would be likely that New Zealandwould go elsewhere to recruit seasonal agricultural workers. This seemsto have been very successful (Gibson, 2008). It also seems that linkagesdevelop between particular employers and particular communities inorigin areas. This has occurred, for example, for particular employersin Sabah, East Malaysia and communities in East Flores, Indonesia.Over the years there has been a steady flow of undocumented workersfrom these particular communities to single employers and a strongrelationship developed between them which has been beneficial to bothparties.

Best Practice in Predeparture Preparation

It is apparent that, in the case of low-skilled workers especially, someform of predeparture training and preparation can improve theirchances of being successful in the destination. Such preparation is man-datory in some systems in the region (e.g., Indonesia) but its quality isoften questionable. Low-skilled workers with low levels of formal educa-tion and often unable to speak the majority language at the destinationoften find it difficult to cope with their work and other aspects of livingat the destination. This is particularly the case when the migrant workeris isolated from fellow countrymen at the destination. Domestic workersare in this situation. Training must not be seen as yet another opportu-nity for squeezing money out of the migrant workers, nor can it be


� 2009 The Author


excessively long. The elements of best practice in predeparture traininginclude:

Specific skills training where the worker is expected to operate machin-ery or carry out tasks (e.g., pruning) which are not familiar.

Targeted cultural awareness training to guard against the workers upset-ting destination populations by inappropriate behaviour.

Some key phrases in the language of the destination.

Clear explanation of what the rights and obligations of both the migrantworker and the employer are.

Ridding workers of false expectations at the destination and the job theyare going to.

Empowering migrant workers by guiding them as to how they shouldrespond to exploitation, cheating, excessive work loads, non-payment ofsalary, etc. They should be provided with clear instructions of how tocontact embassies, consulates and labour attaches if they are confrontedwith such a situation. The provision of each worker with a cellphonewith pre-programmed emergency numbers is increasingly being seen asbest practice in this area. Gaining cooperation of telecommunicationproviders here is already occurring in the Asian region.

Training needs to be appropriate to the particular work and cultural sit-uations that migrants are going to. In the Philippines, some excellentmaterials have been produced in comic book form to assist in this pro-cess. NGOs can and do play important independent roles in this train-ing.

In some cases it may be possible for predeparture training in particularskills to be integrated with later training at the destination. In the NewZealand RSE and contemporary discussion for a similar programme inAustralia, there has been discussion of integrating predeparture trainingin the skills required in harvesting, pruning, etc., be integrated with Aus-tralia-New Zealand-based courses in these areas so that the skillsacquired by the migrant workers are given appropriate certification.

This dimension need not be confined to the low-skilled among tempo-rary migrant workers. One of the real issues in the region which is a

50 Hugo

� 2009 The Author


barrier to liberalising skilled worker movements between countries isqualification recognition. There are often differences in the way thingsare done in some skill areas between countries even though most of it isvirtually the same. There are a number of possible ways to amelioratethese problems and several of them apply to the context of before whenthe migrant worker leaves for the destination:

There could be regional attempts for an agreed core of skills whichwhen certified could be recognised across the region. For example, it hasbeen suggested that this could readily be the case in areas like weldingand operating of sophisticated machinery. Discussions are occurring inAPEC on this.

Bilateral and multilateral efforts between countries to examine curriculaand qualifications to establish if they are acceptable at the destinationand if not what needs to be done to make up the deficiencies.

Bridging courses both in origin and ⁄or destination to make up thesedeficiencies in training but also to provide the migrant worker with theinformation and knowledge to deal with the differences in context at thedestination.

In the predeparture preparation it is good practice to use returnedmigrant workers who can pass on first hand their experience of theproblems which are frequently encountered and effective strategies fordealing with them. The predeparture context can also be useful in help-ing the workers set up secure and cheaper mechanisms for remittingfunds back to their home communities.

In the Philippines the government has organized its Technical Educationand Skills Development Authority (TESDA) so that it not only providestraining to the native workforce but also to skill development of migrantworkers. Undoubtedly this is a factor in the premium which Filipinoworkers are able to command around the world.

Best Practice in the Destination

The success of temporary labour migration, while it can be stronglyshaped by their recruitment and predeparture experience, hinges mostlyon their experience in the workplace and society more generally at thedestination. While the country of origin can influence this through devel-oping MOUs on conditions of workers, setting up mechanisms like


� 2009 The Author


labour attaches and branches of national banks in destination countries,their power and influence is strictly limited by diplomatic practice andprotocol. The employers and governments at destinations have a highlevel of influence in shaping the experience of migrant workers and, aswas stated earlier, there is a need for a conceptual leap among policy-makers in most destinations to begin to factor in to their deliberationsthe possible effects of their policies and programmes not only for theirown communities, employers and countries but also those for the immi-grant workers themselves and development impacts in origin communi-ties.

While governments lack jurisdiction in destination countries, NGOs canoften effectively bridge origin and destination countries by working clo-sely with different, but related, NGOs established in the destination.While NGOs by nature are separate from government, migrant workeradministrations in sending countries in the region have varied widely intheir attitude toward NGOs and other elements of civil society. In somecountries (e.g., the Philippines) governments have been supportive ofNGO activity in the protection and support of migrant workers and,partly as a result, NGOs have played an important role in advocatingfor, and assisting, migrant workers at home and abroad (Asis, 2005). Inother sending countries government has not been so supportive of NGOactivity in this area. In Indonesia, during the Suharto era up to 1998especially, NGOs were not encouraged at all. Despite this, migrantworker NGOs developed and have flourished especially in the post-Suharto era although government attitudes remain ambivalent (Ford,2006; Hugo, 2005). Experience would indicate that support of NGOactivity, especially that which bridges international boundaries in a waythat government cannot, should be seen as best practice in internationallabour migration as would supporting that activity by origin and desti-nation governments.

In considering the role of civil society in supporting OCWs in both ori-gin and destination contexts labour unions, potentially at least, are wellplaced. However labour unions generally are not strong in origin coun-tries of TLPs and most have not shown a strong interest in migrantworkers. The latter applies both to unions at the origin and the destina-tion. In receiving countries this is often associated with the fear thatmigrant workers can drive down the wages and conditions of localworkers or even take their jobs. While such concerns are legitimate thedemographic pressures which are slowing the growth of local labourforces in destinations increasingly mean that supply of local labour is

52 Hugo

� 2009 The Author


not sufficient to meet demand in some sectors and a stronger apprecia-tion of this among unions may help change these entrenched attitudes.Indeed if it was possible for migrant workers to join or be affiliated withlocal unions at destinations, it potentially would both protect the rightsand conditions of local workers as well as provide protection and sup-port for migrant workers. Unions in sending countries have also showna reluctance to involve migrant workers yet they have the potential toprotect their interests not only in the recruitment and predeparture per-iod but through their international union movement linkages to destina-tion country unions to play a role in migrant worker support at thedestination as well.

In considering best practice in relation to labour migrants’ experience indestination countries we will examine the roles of sending and receivingcountries separately. However, it is important to underline that bestpractice would involve a high level of cooperation between the govern-ments of sending and receiving countries on these issues involving:

An MOU which specifies the conditions under which labour migrantsare accepted into a country, their minimum conditions, rights and obli-gations (and those of their employer), etc.

A mechanism to allow regular discussions between the countries onmigrant issues.

A mechanism through which there can be timely and effective actiondecided upon to deal with pressing specific issues relating to migrantworkers.

An open channel of communication between governments in which therecan be frank regular interchange and discussion of migrant workerissues.

For sending countries there are major limits on what they can do toprotect their migrant workers in destinations because of jurisdictionalissues. This is even more the case when migrant workers in destinationsare undocumented and have no legal status at the destination as is oftenthe case in the Asian context. Nevertheless, nation states do have anobligation to protect and support their citizens in foreign countries andthere are standard diplomatic channels which respect this and facilitateit. A major issue is the strength of political will in receiving country gov-ernments to protect and stand by their citizens working overseas and


� 2009 The Author


this does vary between sending nations. Again some of the best practicesin this area within the Asia-Pacific region come from the Philippines(Martin, Abella and Midgley, 2004) and elements of their approach areas follows:

The government has demonstrated over the years a strong commitmentto support their workers overseas. For example when a Filipino maidwas sentenced to death for killing her employer in the UAE, three Fili-pino ministers flow to the UAE and successfully pleaded for her life tobe spared (Martin, Abella and Midgely, 2004: 1553). At the outbreak ofwars in Kuwait and Lebanon, decisive government action was taken torepatriate Filipino migrant workers. There are many other exampleswhere the government has demonstrated that it has the commitment andcapacity to support their overseas workers when they are in trouble.

The Philippines has been very active in setting up labour attaches inembassies and consulates in all countries (indeed major cities) wherethere are substantial numbers of Filipino OCWs deployed. In 2008,there were Filipino labour attaches in 35 locations. Moreover, the roleof the labour attache is well developed and migrant workers areinformed of how to contact them.

Sending country governments can also encourage their national banksto establish branches in major destinations of OCWs to facilitate thesending of remittances. Russell (1991) notes that when the Philippinesnational bank first sets up in a new location there is a noticeable spikingin the flow of remittances from that country.

Sending countries can encourage and assist NGOs to be involved (withpartner NGOs in the destination) to provide support, advocacy and pro-tection for migrant workers at the destination.

Remittances are usually the raison d’etre of temporary labour migrationfor both the migrant and the sending country and maximising their flowis a priority for both (Athukorala, n.d.: 2). In some cases, policies ofthis type have been quite ill conceived. For example, in Indonesia’s1994–99 Sixth Five Year Plan and also subsequently the government hasexpressed the aim of replacing its dominantly unskilled worker outflowwith semi-skilled and skilled workers in order to maximise remittanceinflows. However, as Hugo (1995: 291) states, there is a discordancebetween such plans and reality. The outflow is overwhelmingly unskilledand this has remained the case over the last decade. Indeed, the compar-

54 Hugo

� 2009 The Author


ative advantage enjoyed by Indonesia is largely in supplying unskilledworkers and there is a major surplus of such workers in Indonesia.

There has been an increasing realisation in several Asian emigration andlabour exporting countries that remittances can make an important con-tribution to national, regional and local economies. This was heightenedin several nations like the Philippines, Thailand and Indonesia duringthe Asian economic crisis during the late 1990s, when there was a sud-den decline in foreign investment and an increase in unemployment andunderemployment. Remittances gained new emphasis as a source of for-eign exchange and emigration was made even more attractive by thedevaluation of local currencies. Overseas labour migration was one ofthe strategies used to cope with the effects of the crisis.

Some nations have built remittance targets into their national Develop-ment Plans. In Indonesia, for example, in the Fifth Five Year Plan(1989–94) it was estimated that US$ 1.8 billion was transferred throughofficial channels and so a target of US$ 8.4 billion was set for the SixthPlan (Hugo, 1995). Other nations have put in place programmes to cap-ture as much of the foreign exchange earned by its nationals based over-seas as possible. South Korea was a pioneer in this, stipulating as acondition of issuing exit permits to contract workers that at least 80 percent of earnings had to be remitted through the Korean banking system(Athukorala, n.d.: 3). Attempts by the Philippines, Pakistan, Thailandand Bangladesh to do something similar have failed (Abella, 1992). It isdifficult to enforce such regulations when much of the labour migrationis occurring outside of government influence.

Athukorala (n.d.: 4) points out that to encourage migrant workers tosend remittances through official channels sending countries use two sys-tems: repatriable foreign currency accounts and foreign currency domi-nated bonds. Most Asian countries with substantial numbers of workersoverseas, both temporary and permanent, have systems in place in theirdomestic banks for remittance of earnings to repatriable foreign cur-rency accounts. These accounts are not subject to existing foreignexchange regulations and in some cases (e.g., India and Pakistan) havean interest rate policy which allows such accounts to earn interest aboveprevailing world rates (Athukorala, n.d.).

Some Asian nations have attempted to tax remittances at various timesbut in most cases this has failed with the main effect being to channelthe remittances through non-official channels. In 2002, Sri Lanka


� 2009 The Author


announced that it would impose a 15 per cent tax on the US$ 1.2 billionremittances received each year. However, it had to quickly withdraw themeasure when there was a massive outcry (Migration News, January2003).

India has a long history of encouraging Indians living abroad to remitmoney to their home country. One has been a number of schemes tosell national bonds to Indian nationals. In 1998, for example, theIndian government offered ‘‘Resurgent Indian Bonds’’ denominated inforeign currency available only to Indian investors (Dalal, 1998: 53)which are:

free from exchange risk;

exempt from Indian wealth and income taxes;

carry interest rates of 7.75 per cent (US$), 8 per cent (Sterling) and 6.25per cent (Deutschmark).

This bond issue sought to raise US$ 5–6 billion which compared withIndia’s total foreign exchange reserves at that time of US$ 24 billion.While part of the money is kept abroad, much is used to fund infra-structure projects. In addition, there are a range of schemes to attractdeposits from Indians abroad. In the Middle East, where there are2.5 million Indians living and working, there are non-resident accountsavailable at local bank branches.

Pakistan, too, has developed a package of measures to attract remit-tances from overseas citizens through official channels as opposed to theHundi system. This has partly also attempted to overcome the suspi-cions of overseas Pakistanis caused by corruption and inefficiency in thePakistani banking system and the government’s short lived decision in1999 to freeze foreign currency accounts (Pakistan Economist, 13–26 March 2000). The Ministry of Finance has introduced a ForeignExchange Remittance Card (FERC) issued if US$ 2,500 are remittedthrough official channels and enables holders to get free issuance andrenewal of passports, duty free allowances etc. (Asian Migration News,31 August 2001). A different range of privileges are available to thoseremitting larger sums annually.

In the Philippines, a number of incentives are given to overseas workersto remit and spend their foreign earnings at home. The ‘‘Balikbayan

56 Hugo

� 2009 The Author


Program’’ contains a number of measures such as granting OverseasForeign Workers (OFWs) permission to spend up to US$ 2,000 in tax-free stores within two weeks of coming back to the Philippines (AsianMigration News, 31 October 2000). The government issues small denom-inational Treasury bonds to mobilise dollar remittances from OFWs(Asian Migration News, 31 March 1999). There has been governmentaction to establish Filipino banks in main destinations to facilitate thecapture of remittances (Manila Chronicle, 28 May 1995).

Best practice in both origin and destination countries involves educatingmigrant workers and potential migrant workers about all of the alterna-tives for sending money home and above all the availability of lowercost and more secure options. The sending country can support this byencouraging national and other banks from the home country establish-ing low cost channels for remittances and setting up establishments inthe major destinations to facilitate sending money back. Particularnotice should be taken of new low cost alternatives including cell-telephone based remittances (World Bank, 2006: 150). FamiliarisingTLMs with remittance systems and involving them in them can be theirfirst step toward ‘‘financial literacy’’ and involvement in the formalfinancial system which can be of help to them in the future (Terry andWilson, 2005).

One dimension of ensuring that as much as possible of the earnings ofmigrant workers is repatriated to the home community to be availablefor development is the portability of social security and health insurancepayments made by migrant workers. Holzmann, Koettl and Chernetsky(2005) argue that portability involves the ability of the migrant workerto preserve, maintain and transfer acquired social security rights regard-less of the country of residence. It is thus important for countries of ori-gin to negotiate bilateral social security arrangements with majordestinations where the migrant workers accumulate such rights. This,however, mostly applies only to skilled temporary labour migrants inAsia and the Pacific.

One dimension of international temporary labour migration which isoften overlooked is the social costs which are endured by the migrantand their family by extended separation (Hugo 2004). There may be arole for sending governments in ameliorating the social costs on thefamily that remain behind. At present it is the extended family, commu-nity solidarity and NGOs that provide support, however governmentsmay also be able to play a role.


� 2009 The Author


Although sending governments can play a role in the protection andsupport of TLMs in other countries, the migrant experience in destina-tions is influenced more by employers, governments and society in thosedestinations. Governments play a central role because they set the condi-tions under which migrant workers can enter their country and therights, access to services and obligations which they have while in thecountry. An example of best practice here would include those under-taken by the New Zealand government in piloting its RSE seasonalTLM programme for selected Pacific Island countries (Gibson, 2008;Klapdor, 2008; Ramasamy, 2008; Gibbs, 2008). Some of the initiativesof government have included:

Involvement of New Zealand’s development assistance agency as well asimmigration authorities and other relevant government departments atall stages of the design of the programme. This was to maximise thepositive developmental impacts in origin communities. In the past, onlyimmigration authorities have been involved in the development ofmigration programmes, with security and foreign affairs agencies.Involvement of such agencies is a prerequisite for developing ‘‘develop-ment friendliness’’ in labour migration programmes.

New Zealand also has involved employers and employer organisationsat each stage in the development of the policy and operationalisation ofthe programme. This has led to employers agreeing to pay part of theairfares to bring in workers and developing pastoral care programmes toassist the workers to adjust.

Minimum wage levels were fixed and these were the same as for NewZealand workers doing the same work. There were deductions for hous-ing and other costs. Minimum housing standards were set. Since thework is seasonal the employers also had to guarantee a minimum num-ber of days work each week.

The New Zealand government carries out audits of employers ofTLMs from time to time to ensure that they are meeting the require-ments of regulations concerning work pay and conditions, housing,etc.

The New Zealand government is carrying out an evaluation of theimpact of the RSE programme in New Zealand and in the origin coun-tries (Ramasamy, 2008). This involved base line studies being under-taken at the outset of the programme (Gibson, 2008).

58 Hugo

� 2009 The Author


Ruhs (2005, 2006) has argued that the first fundamental step for destina-tion countries developing sound policies on temporary labour migrationis effectively managing the demand for labour. Employers will alwayshave a ‘‘demand’’ for foreign workers if it results in a lowering of theircosts. Temporary labour migration must not be a means for drivingdown the conditions of local workers or even displacing them. Thebacklash against the Australian 457 Skilled Temporary Migration Pro-gram has been driven by reported abuses of the system by a few employ-ers to pay lower than award wages and replace local workers withforeign workers. Best practice should be to offer wages at the same (orbetter) levels than are offered to local workers. In this way, labourshortages reported by employers are more likely to be genuine. Somecountries in Asia have imposed levies on employers who have foreignworkers to moderate the demand for foreign workers. While Malaysiaand Taiwan have versions of this approach, it is Singapore which hasdeveloped the complex set of levies shown in Table 3. As Abella (2006:43) has pointed out:

The avowed purpose is to moderate the demand for foreign workers bymaking it more costly to employ one, especially unskilled workers …

TABLE 3

SINGAPORE: FOREIGN WORKER LEVY RATES FOR WORKER PERMIT AND S PASS

HOLDERS

Sector Dependency Level (DC)

Category ofForeignWorkers

LevyRatesS ($)

Manufacturing Up to 40% of the totalworkforce

Skilled 100Unskilled 240

Above 40% to 50% of thetotal workforce


Above 50% to 60% of thetotal workforce

Skilled ⁄ Unskilled 500

Construction 1 local full-time worker to4 foreign workers


Marine 1 local full-time worker to3 foreign workers


Process 1 local full-time worker to3 foreign workers


Service Up to 30% of totalworkforce


Above 30% to 40%of total workforce

Skilled ⁄ Unskilled 500

Source: Abella, 2006: 43.


� 2009 The Author


The policy also aims to penalise dependence on foreign labour by mak-ing the levy rise with the proportion of foreign workers employed.

A more common approach is to apply labour market testing to establishlabour shortages. However, such testing and forecasting is not a preciseart (Ruhs, 2006: 19).

One approach which is worth considering by potential destinationcountries is to undertake a Pilot Scheme of temporary labour migra-tion. This should involve targeted industries and a limited number ofcountries of origin. Monitoring of impact and fine tuning of themechanisms of migration is possible. The RSE Scheme in New Zea-land is following this approach and it is apparent after the first yearof operation that a number of changes (albeit small ones) are neces-sary if the scheme is to fulfil its potential to meet the needs of thedestination and assist development in the origin (Gibson, 2008;Maclellan, 2008).

One of the fundamental responsibilities of destination countries is toensure that migrant workers’ labour and human rights are protected.Since most labour migrants are tied to a particular employer they areoften more subject to exploitation and abuse than local workers. Macle-llan and Mares (2006: 39–40) maintain that accordingly ‘‘safeguardsmust be built in to protect workers’ rights and guarantee freedom ofassociation. There must also be a mechanism of independent dispute res-olution to manage conflicts when they arise’’. As Ruhs (2006: 16) haspointed out, liberal and democratic host countries have a poor record ofenforcing the law against employers of migrant workers.

One of the real challenges for governments seeking to protect migrantworkers in Asia is the fact that many are not employed in standardworkplaces which are subject to standard labour laws within countries.This especially applies to many women labour migrants, especially thosewho work as domestics and carers in private homes. More than threemillion Asian women at any one time are away from their home coun-tries (especially Sri Lanka, Indonesia and the Philippines) working insuch situations. However, entertainment workers are also significant innumber and often work in situations where they are at high risk ofexploitation. There are few examples of best practice which are availablehere because these workplaces are also beyond the reach of standardworkplace protection mechanisms for native workers as well. As Yeoh,Huang and Rahman (2005: 9) point out:

60 Hugo

� 2009 The Author


… transnational domestic workers brought in to perform what is per-ceived to be low-skilled work are admitted as contract workers embody-ing cheap labour, not as social or political subjects and, as such, areaccorded few rights of participation in wider society. Their transience iscarefully ensured by state regulatory mechanisms.

They show how in Malaysia, Taiwan, Hong Kong and Singapore draco-nian policy measures have been put in place which limit the rights ofdomestic workers – tying them to a single employer, banning marriageto a local, compulsory health tests, disallowing dependents, enforcing‘‘live in’’ situations and immediate repatriation if found to be pregnant.However, increasingly there is evidence of migrant domestic workeractivism especially in Hong Kong and NGOs (often organized by localwomen) taking a prominent role in supporting the rights of migrantworker women in vulnerable situations (Wee and Sim, 2005; Rahman,Yeoh, and Huang, 2005).

Perhaps best practice in this area has been demonstrated in the smallLive-in Caregiver Program (LCP) of Canada (McKay, 2005). This prog-rame allows caregivers to apply for permanent residence in Canada afterthree years. Yet even in this programme, McKay (2005: 323) maintainsthat legislation and policies to protect the rights of such workers arehighly ineffective. The following elements would appear to be best prac-tice in this very difficult area:

Providing mechanisms for live-in workers to make complaints and fairprocesses to investigate and adjudicate on them.

Making ‘‘live-in’’ status optional.

Encouragement of the development of NGOs supporting the rights ofdomestic workers.

Ensuring that the basic rights of workers applying to formal workplacesapply also to domestic workplaces.

As Ruhs (2006: 30) has pointed out a temporary labour migrant pro-gramme can never give an upfront guarantee or even raise the expecta-tion that a worker admitted under the programme will eventually andinevitably acquire the right to permanent residence in the destination.However this does not ‘‘preclude the possibility that the host countrymight facilitate a strictly limited and regulated transfer of migrants


� 2009 The Author


employed as TMPs into permanent residence based on a set of clearrules and criteria’’.

One best practice which applies not only to migrant domestic workersbut other temporary labour migrants is the establishment and resourcingof Migrant Resource Centres (MRCs). These have been predominantlydeveloped by NGOs although in major immigration countries like Aus-tralia, state and federal government have been instrumental in the devel-opment of MRCs. Such centres have been shown to play an importantrole in facilitating the adjustment and protection of migrants. Amongother things, the functions of MRCs can include:

A point of contact in emergency situations.

A mechanism for informing OCWs of their rights and obligations.

A place to provide support for OCWs – economic and emotional.

A place to provide information on how to access services in the destina-tion.

Facilitation of keeping linkages with the homeland (including remit-tances).

Provision of training – e.g., in language.

Assistance in preparing to return.

Legal aid.

In fact informal meeting places have evolved in places like Singaporeand Hong Kong where domestic and other works congregate on theirday off and MRCs can build on and formalise the support provided inthese places.

An important element in best practice of destination countries involvesthe setting up and administration of regulation of employers of TLMs.Best practice here seems to involve granting special status to employerswho have a good reputable history of abiding by regulations and fair-ness in dealing with migrants. This status involves less complex applica-tion for workers and reporting. However, for other employers,inspection and full compliance with regulations is necessary. Moreover,

62 Hugo

� 2009 The Author


employers that repeatedly fail to meet the requirements of regulationsshould be banned from employing TLMs. Best practice involves adopt-ing a system of labour inspections to meet the specific problems ofmigrant workers.

Another element of best practice at destinations involves provision oftraining for TLMs. This provides not only a better workforce foremployers but the opportunity for social mobility among the migrantworkers. In the New Zealand RSE Scheme some large employershave establishing training facilities in origins to prepare them forwork in New Zealand. Training also means that the migrant workerwill return to his or her origin country with new skills which can beof benefit not only to them but to the development project in thehome country.

At the destination, visa issuance delays and complexities can also be anissue. Best practice involves minimising time and cost while ensuringthat all appropriate health, skill and security checks are carried out. It isapparent that the complexity of entry in official migration systems isone of the major reasons why undocumented migration is so prevalent.Several countries have developed very ‘‘skill friendly’’ visa systems butthis needs to be extended to lower skilled workers. A related issue hererefers to the ability of migrant worker to return to visit their homecountry for vacations or when there are family crises. At present, suchvisiting is discouraged, even when the origin country is close by (e.g.,the Malaysia ⁄ Indonesia situation).

It is possible that the difficulty of return can be a major factor inencouraging temporary labour migrants to seek to remain at the destina-tion on a permanent basis. An often repeated phase in the literature is‘‘there is nothing as permanent as a temporary migrant’’. In fact, thereis evidence that many low-skilled migrant workers see a number ofadvantages of maintaining a regular pattern of circular internationalmigration in preference to permanent settlement at the destination forthe following reasons:

They are able to ‘‘earn’’ in the high-income, high cost destination, and‘‘spend’’ in the low-income, low cost origin and hence maximise the pur-chasing power of their earnings.

They seek to retain the traditional cultural language and other associa-tions of their homeland.


� 2009 The Author


They wish to maintain strong family linkages and this can be more eas-ily done at home rather than at the destination.

Moreover compared with the situation which prevailed in western Eur-ope in the 1950s and 1960s (on the experience of which much of the fearof temporary migrants becoming permanent is based), modern forms oftransport and communication have greatly reduced the friction of dis-tance between origin and destination countries. This has meant thatmigrants are able to maintain closer and more intimate linkages withtheir home area than ever before. Cheapening the cost of phone calls,the introduction of email and fax, and the cheapening and speeding upof international travel have not only made it possible for migrants tointeract in real time with their home country on a regular basis but visithome more frequently in emergencies and for breaks. This has greatlyreduced the imperative for many temporary workers wanting their fam-ily to join them in the destination. Indeed, in the writer’s experience inthe right contexts, circulation can become a permanent internationalmigration strategy. However, this does presuppose the migrant workerbeing able to interact freely with her ⁄his home country. Frequently, it isthe case that such interaction is made difficult, especially where themigrant workers are undocumented. Hence, increasing policing of theMexico-US border has resulted in a reduction in circulation and anincrease of Mexicans permanently settling in the United States (Corne-lius, 2003). Similarly the hardening of attitudes in Malaysia on borderentry (Inglis, 2002) may be contributing to more Indonesian TLMsdeciding to settle there.

It may also be that destination governments can play a role in reducingthe transaction costs of sending remittances back to origin countriesthrough its regulation of the local banking system. If there is ‘‘develop-ment sensitivity’’ in the migration system at the destination such inter-ventions can be part of the ‘‘development assistance’’ of the destinationcountry even though it doesn’t take place in the origin country. In a simi-lar vein it may be that the development assistance programme of the des-tination country could also be ‘‘migration sensitive’’. This could involve,for example, the introduction of programmes in the origin communitiesof TLMs to facilitate their readjustment to the home community andprovide development investment opportunities for them (Hugo, 2008c).

There is an emerging opinion that the adoption of a Points System by des-tination countries can provide a fair and efficient system. However experi-ence with such systems has been mainly confined to skilled migration,

64 Hugo

� 2009 The Author


especially permanent settlement as has been the case in Canada, Australiaand New Zealand. There is a substantial administrative cost associatedwith testing for recognition of qualifications and other items. However, inthe EU the new Bleu Card will allow third country nationals who areskilled workers and professionals to temporarily reside there while on acontract (Asian Migration News, 1–31 May 2008). It is difficult to see howsuch a system would be workable with low-skilled migrants.

As was indicated earlier, one of the most vexed issues in destinationcountries of TLMs is the fear that they will transition into becomingpermanent settlers as was the case with guestworkers in several WesternEuropean countries in the 1950s and 1960s (Castles, 2006b). The compli-ance issues and costs associated with detecting and repatriating overstay-ing TLMs loom large in destination and potential destination countriesof low-skilled migrant workers. Best practice in this area would includethe following:

Provision of ample opportunity for TLMs to visit their home countryon vacations and for key family events.

Provision for repeat temporary labour migration.

Provision for fair return for the work done by migrant workers.

Provision of the ability to receive training as a migrant worker.

Potentially provision for the temporary worker to apply for permanentresidence in specific circumstances such as marriage with a native, appli-cation of an employer who after five years of experience of employingthe temporary migrant wishes to hire them on a permanent basis.

Auditing and regulation of employers so that there is no incentive forthe temporary worker to run away to escape below average conditionsor be attracted by conditions in alternative employment.

Best Practice on Return

Return to the home country is a fundamental characteristic of tempo-rary labour migration and can be crucial in determining the extent ofthe developmental impact of that migration. The destination country isinvolved to the extent that it can facilitate the termination of work andtravel to the homeland to be as secure and inexpensive as possible. In


� 2009 The Author


some contexts of Indonesians in Malaysia employers refuse to pay thefull wages (some of which are often retained by the employer) or toreturn their passport without payment. The imposition of unauthorisedcharges on accommodation, transport, etc., is also common at this stage.In cases where the migrant workers have been contributing to compul-sory (or voluntary) pension schemes full portability is best practice. Ithas been known that criminals cluster in transport points and bordercrossing areas to prey on returning migrant workers so it is imperativeto provide secure passage in such situations.

Nevertheless, it is predominantly the responsibility of the origin countryand the community to provide the context in which the returningmigrant worker can have maximum impact on local, regional andnational development. As is the case with destination countries facilitat-ing the safe and free return to the home community is an important partof best practice. However, this is not always the case. In Indonesia, forexample, legal OCWs are compelled to return through infamous Termi-nal 3 at the Jakarta airport. Here they are subject to a number ofimposts, official and unofficial (Silvey, 2004). They are compelled toreturn to their home area using a sanctioned carrier at an inflated price.Such practices are to be deplored and best practice would instead facili-tate a speedy and safe return to the home area.

Reintegration programmes for returning migrant workers have not beenwell developed in the region. However, it is apparent that many returneecommunities lack the potential for productive development investmentby the migrant worker or anyone else for that matter. It is not reason-able to expect returnees to invest in their home communities if thoseareas have no potential for providing returns on that investment. Hugo(2004) shows that in East Nusatenggara province in Indonesia, TLMsreturning from East Malaysia have few opportunities to invest theirearnings in development related activity because this peripheral regionhas been all but ignored by central government and lacks infrastructureof all kinds. For example, the lack of transport prevents the develop-ment of a fish canning and freezing industry for which there is substan-tial potential. In addition, while many invest in the education of theirchildren this money is often used to send their children to Java becauselocal schools are limited in level and quality. Thus, the macro-economiccontext must be conducive if it is expected that returning TLMs aregoing to invest in development related activity. The important point isthat remittances need to be built into local and regional planning so thatreal opportunities are created for migrants to invest in.

66 Hugo

� 2009 The Author


One of the elements to facilitating remittances to be invested in develop-ment related activity is that there needs to be financial institutions in theorigin with appropriate financial products to deal with the remittancesand to encourage their effective investment. Titu Eki (2002) has shownhow in the East Flores area of East Nusatenggara in Indonesia migra-tion has facilitated greater financial literacy while banks have respondedby locating branches in outmigration areas.

There have been only very limited attempts by governments in Asia tochannel remittances into productive investment. Athukorala (n.d.: 9) hasindicated that these policy initiatives have taken two forms – businesscounselling and training on the one hand and training cum action pro-grammes to turn return migrants into entrepreneurs. In relation to the firsttype, he discusses programmes in Thailand, Pakistan, the Philippines andSri Lanka, while with respect to the second type programmes in Sri Lanka,the Philippines and Kerala, India are examined. However, efforts in theseareas remain very limited. The fact remains that remittances’ impact ondevelopment will be maximised where there are sound macro-economicenvironments and policies at both national and regional level.

CONCLUSION

Best practice in labour migration aim at matching workers from onecountry with appropriate job opportunities in other countries such thatdocumented migration becomes a more favoured option than undocu-mented migration, that workers are protected and their effects on devel-opment at home are maximised while they fill labour gaps in thedestination. In the Asia-Pacific region, TLM often does not attain itspotential beneficial impact on development in origin areas because ofthe poor governance which prevails in many such migration systems.Best practice examples are limited. In particular, there is excessive renttaking, which is siphoning off a large share of the earnings of themigrant workers that otherwise could have been directed to developmentrelated expenditure in the origin area. Moreover, poor governanceresults in significant undocumented migration, lack of protection andexploitation of the migrant workers and destination communities devel-oping anti-migrant attitudes and practices.

There is no single best practice in temporary labour migration which issuited to all or even most origin and ⁄or destination countries. Muchdepends on the particular context. It is not so much that specific


� 2009 The Author


practices can be lifted from one country to another but more that the les-sons that are learned from the experience of a single country are learnednot only by that country but others as well. Moreover, there is a need toenhance our understanding of ‘‘what is likely to work under what condi-tions’’. Appreciation of the significance of context is important.

Abella (2006: 53) while agreeing that it is not possible to put forwardbest practices in temporary labour migration that are applicable to allor most countries it is possible nevertheless to identify the elementswhich make for successful programmes. These included:

Proper management of labour demand.

Combining long term forecast of supply deficits with practical methodsfor responding to current demands of industry.

Transparency of the admissions criteria for selection and length ofapproval process.

Recognition of qualifications to enhance utilisation of migrants’ skills.

Cooperation between origin and destination countries especially insupervising recruitment and employment.

Protection of the fundamental rights of the migrant workers.

Flexibility in determining periods of stay to allow for differences in thetype of work to be performed and conditions in the labour market.

Allowing for change of employers within certain limits.

Avoiding creating conditions (i.e., imposing forced savings schemes,employment of cheap labour though trainee schemes) which will moti-vate migrants to opt for irregular status.

To these we might add:

The adoption of more ‘‘development friendly’’ migration policies byboth sending and receiving countries.

The success of any temporary labour migration programme depends onthe sending and host countries’ commitment to applying and enforcing

68 Hugo

� 2009 The Author


law strictly to all parties – the migrants, recruitment agents, employers,etc. (Ruhs, 2005: 16).

Effective administration of a temporary labour migration requires bothsending and receiving countries having the capacity to manage such pro-grammes – committed, properly remunerated staff and the access to andtraining in the hardware and software of modern migration management.

The governance of migration systems is critical to its success.

Effective cooperation between sending and receiving countries is neces-sary for effective labour migration systems.

Empirical evidence confirms that temporary labour migration can workto the benefit of development in origin countries in Asia and the Pacific.The argument in the origin should not be as to whether or not circularmigration can have a positive developmental impact in origin areas, butmore in terms of:

Under what circumstances does it have a positive impact?

What policies and opportunities are needed to maximise the develop-ment dividend and reduce the chances of a negative impact?

Whether circular migration can have positive impacts on development isinfluenced greatly by the governance of the migration system involved.For such benefits to be maximised will not only involve reform of thesesystems but an acceptance throughout the region that widening demo-graphic and economic gradients between nations render such migrationnot only desirable but necessary if national prosperity and sustainabilitygoals are to be realised. This conceptual shift to a full recognition oflabour migration as an essential structural element in many nationaleconomies is required if governance of labour migration systems is to begiven the attention and resources it needs.

NOTES

1. http://www.census.gov/cgi-bin/ipc/idbsprd2. Here the writer is drawing predominantly on his field experience in

Indonesia.


� 2009 The Author


REFERENCES

Abella, M.I.1992 ‘‘Contemporary labour migration from Asia: policies and perspec-

tives of sending countries’’, in L.L. Lim and H. Zlotnik (Eds),International Migration Systems: A Global Approach, Oxford Uni-versity Press, Oxford: 263–278.

2005 ‘‘Global competition for skilled workers and their consequences’’.paper presented at Conference on Competing for Global Talent,Singapore Management University, Singapore, 13-14 January.

2006 ‘‘Policies and best practices for management of temporary migra-tion’’, International Symposium on International Migration andDevelopment, UN Population Division, Turin, 28-30 June.

2008 ‘‘Challenges to governance of labour migration in Asia-Pacific’’,keynote address II to PECC-ABAC Conference on DemographicChange and International Labour Mobility in the Asia-PacificRegion: Implications for Business and Cooperation, Seoul, 25-26March.

Adams, W.1968 The Brain Drain, Macmillan, New York.

Asis, M.M.B.2005 ‘‘Caring for the world: Filipino domestic workers gone global’’, in

S. Huang, B.S.A. Yeoh and N.A. Rahman (Eds), Asian Women asTransnational Domestic Workers, Marshall Cavendish Academic,Singapore: 21–53.

Athukorala, P.n.d. Improving the Contribution of Migrant Remittances to Development:

The Experience of Asian Labour Exporting Countries, mimeo,Department of Economics, La Trobe University, Melbourne.

Castles, S.2003 ‘‘Migrant settlement, transnational communities and state region’’,

in R. Iredale, C. Hawksley and S. Castles (Eds), Migration in theAsia Pacific: Population, , Settlement and Citizenship Issues,Edward Elgar, Cheltenham: 3–26.

2006a ‘‘Back to the future? can Europe meet its labour needs throughtemporary migration?’’ International Migration Institute WorkingPaper No. 1, International Migration Institute, Oxford.

2006b ‘‘Guestworkers in Europe: a resurrection?’’ International Migra-tion Review, 40(4): 741–766.

Cornelius, W.2003 ‘‘Mexico, new security concerns, and implications for develop-

ment’’, presentation at the MPI Meeting on Remittances and Cir-cular Migration as Drivers of Development, University ofCalifornia at San Diego, 3 April.

70 Hugo

� 2009 The Author


Dalal, S.1998 ‘‘Sanctions, so what? ’’, Far Eastern Economic Review, 13 August:

53.Department for International Development (DFID)2007 Moving Out of Poverty – Making Migration Work Better for Poor

People, Department for International Development, London.Dumont, J., and G. Lemaitre2005 ‘‘Counting immigrants and expatriates in OECD countries: a new

perspective’’, Conference on Competing for Global Talent, Singa-pore Management University, Singapore, 13-14 January.

Eki, A.2002 International Labour Emigration from Eastern Flores Indonesia to

Sabah Malaysia: A Study of Patterns, Causes and Consequences,Ph.D. dissertation, Population and Human Resources, Depart-ment of Geographical and Environmental Studies, The Universityof Adelaide, Adelaide.

Gibbs, M.2008 ‘‘The RSE policy and its implementation’’, presentation to Con-

ference on Pathways, Circuits and Crossroads: New Research onPopulation, Migration and Community Dynamics, Wellington,9-11 June.

Gibson, J.2008 ‘‘Preliminary findings from World Bank ⁄University of Waikato

surveys in Vanuatu and Tonga’’, presentation to Conference onPathways, Circuits and Crossroads: New Research on Population,Migration and Community Dynamics, Wellington, 9-11 June.

Global Commission on International Migration (GCIM)2005 Migration in an Interconnected World: New Directions for Action,

Report of the Global Commission on International Migration,Geneva.

Holzmann, R., J. Koettl, and T. Chernetsky2005 ‘‘Portability regimes of pension and health care benefits for interna-

tional migrants: an analysis of issues and good practices’’, SocialProtection Discussion Papers, No. 519, World Bank, Washington,DC.

Hugo, G.1975 Population Mobility in West Java, Indonesia. Ph.D. dissertation,

Department of Demography, Institute of Advanced Studies, Aus-tralian National University, Canberra.

1978 Population Mobility in West Java, Gadjah Mada University Press,Yogyakarta.

1995 ‘‘Labour export from Indonesia: an overview’’, ASEAN EconomicBulletin, 12(2): 275–298.

2001a ‘‘Labour circulation and socio-economic transformation: the caseof East Java, Indonesia’’, Bulletin of Indonesian Economic Stud-ies, 37(1) April.


� 2009 The Author


2001b ‘‘International migration and agricultural labour in Australia’’paper presented at Changing Face Workshop, Imperial Valley,California, 16-18 January.

2003 ‘‘Information, exploitation and empowerment: the case of Indone-sian contract workers overseas’’, Asian and Pacific Migration Jour-nal, 12(4): 439–466.

2004 ‘‘International labour migration and village dynamics: a study ofFlores, East Nusa Tenggara’’, in T.R. Leinbach (Ed.), The Indone-sian Rural Economy: Mobility, Work and Enterprise, Institute ofSouth East Asian Studies, Singapore: 3–26.

2005 ‘‘Indonesian international domestic workers: contemporary devel-opments and issues’’, in S. Huang, B.S.A. Yeoh and N.A. Rah-man (Eds), Asian Women as Transnational Domestic Workers,Marshall Cavendish Academic, Singapore: 54–92.

2005 ‘‘Migration in the Asia-Pacific region’’, paper prepared for thePolicy Analysis and Research Programme of the Global Commis-sion on International Migration, Geneva, September.

2006 ‘‘Improving statistics on international migration in Asia’’, Interna-tional Statistical Review, 74(3): 335–355.

2008a Demographic Change and International Labor Mobility in theAsia-Pacific Region – Implications for Business and Cooperation.Second Draft of a Synthesis Report of a PECC-APEC LaborMigration Study funded by KOPEC.

2008b ‘‘Demographic change and its implications for labour mobility inAsia and the Pacific’’, keynote Address to PECC-ABAC Confer-ence on Demographic Change and International Labour Mobilityin the Asia-Pacific Region: Implications for Business and Cooper-ation, Seoul, Korea, 25-26 March.

2008c ‘‘People movement in East Asia: a thematic paper’’, revised ver-sion of a paper for AusAID for a Series on Key TransboundaryIssues in East Asia.

Inglis, C.2002 ‘‘Malaysia wavers on labor crackdown’’, Migration Information

Source, Migration Policy Institute, Washington, DC.Khoo, S., G. Hugo, and P. McDonald2008 ‘‘Which skilled temporary migrants become permanent residents

and why?’’ International Migration Review, 42(1): 193–226.Khoo, S., et al.2007 ‘‘Temporary skilled migration to Australia: employers’ perspec-

tives’’, International Migration, 45(4): 175–201.Klapdor, M.,2008 ‘‘New Zealand’s seasonal guest worker scheme’’ Background Note,

Parliament of Australia, Parliament Library, Canberra.

72 Hugo

� 2009 The Author


Maclellan, N.2008 Workers for All Seasons? Issues from New Zealand’s Recognised

Seasonal Employer (RSE) Program, Institute for Social Research,Swinburne University of Technology, Victoria.

Maclellan, N., and P. Mares2006 ‘‘Remittances and labour mobility in the Pacific’’, working paper,

Institute for Social Research, Swinburne University of Technol-ogy, Victoria.

Magsaysay, D.2008 ‘‘Implications for business and cooperation in the region’’ paper

presented at the PECC-ABAC Conference on DemographicChange and International Labour Mobility in the Asia-PacificRegion: Implications for Business and Cooperation, Seoul, 25-26March.

Martin, P., M. Abella, and E. Midgley2004 ‘‘Best practices to manage migration: the Philippines’’, Interna-

tional Migration Review, 38: 1544–1559.McKay, D.2005 ‘‘Success stories? Filipina migrant domestic workers in Canada’’,

in S. Huang, B.S.A. Yeoh and N.A. Rahman (Eds), Asian Womenas Transnational Domestic Workers, Marshall Cavendish Aca-demic, Singapore: 305–340.

Newland, K., D.R. Agunias, and A. Terrazor2008 ‘‘Learning by doing: experiences of circular migration’’, Insight,

September.Rahman, N.A., B.S.A. Yeoh, and S. Huang2005 ‘‘‘Dignity overdue’: transnational domestic workers in Singapore’’,

in S. Huang, B.S.A. Yeoh and N.A. Rahman (Eds), Asian Womenas Transnational Domestic Workers, Marshall Cavendish Aca-demic, Singapore: 233–261.

Ramasamy, S.2008 ‘‘The RSE research and evaluation strategy’’, presentation to Con-

ference on Pathways, Circuits and Crossroads: New Research onPopulation, Migration and Community Dynamics, Wellington,9-11 June.

Ruhs, M.2005 ‘‘The potential of temporary migration programmes in future

international migration’’, paper prepared for the Global Commis-sion on International Migration, Geneva, September

2006 ‘‘The potential of temporary migration programmes in futureinternational migration policy’’, International Labour Review, 145:1–2.

Ruhs, M., and P. Martin2008 ‘‘Numbers vs rights: trade-offs and guest worker programs’’, Inter-

national Migration Review, 42(1): 249–265.


� 2009 The Author


Russell, S.S.1991 Population and Development in the Philippines: An Update, Asia

Country Department II, Population and Human Resources Divi-sion, World Bank, Washington, DC.

Silvey, R.2004 ‘‘Transnational domestication: state power and Indonesian

migrant women in Saudi Arabia’’, Political Geography, 23: 245–264.

Taukolo, V., J. Redden, and R. ‘Esauforthcoming ‘‘Labour mobility and poverty reduction in Tonga’’, in J.

Redden, L.A. Jackson and A. Stoler (Eds), Trade and Pov-erty Reduction in the Asia-Pacific Region, Institute forInternational Trade, Adelaide.

Terry, D.F., and S.R. Wilson (Eds.)2005 Beyond Small Change: Making Migrant Remittances Count, Inter-

American Development Bank, Washington, DC.United Nations2002 International Migration Report 2002, United Nations, New York.2006 ‘‘International migration and development’’, Report of the Secre-

tary-General, Sixtieth Session, Globalisation and Interdependence:International Migration and Development, United Nations, NewYork, 18 May.

Vertovec, S.2006 ‘‘Is circular migration the way forward in global policy?’’ Around

the Globe, 3(2): 38–44.Voigt-Graf, C.2008 ‘‘Migration, labour markets and development in PICs’’, presenta-

tion to Conference on Pathways, Circuits and Crossroads: NewResearch on Population, Migration and Community Dynamics,Wellington, 9-11 June.

Wee, V., and A. Sim2005 ‘‘Hong Kong as a destination for migrant domestic workers’’, in

S. Huang, B.S.A. Yeoh and N.A. Rahman (Eds), Asian Women asTransnational Domestic Workers, Marshall Cavendish Academic,Singapore: 175–209.

World Bank2006 Global Economic Prospects 2006: Economic Implications of Remit-

tances and Migration, World Bank, Washington, DC.2007 World Development Report 2008: Agriculture for Development,

World Bank, Washington DC.Yeoh, B.S.A., S. Huang, and N.A. Rahman2005 ‘‘Asian women as transnational domestic workers’’, in S. Huang,

B.S.A. Yeoh and N.A. Rahman (Eds), Asian Women as Transna-tional Domestic Workers, Marshall Cavendish Academic, Singa-pore: 1–20.

74 Hugo

� 2009 The Author


Documents

Best Practice in Temporary Labour Migration for Development: A Perspective from Asia and the Pacific