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June 17 2010 June 17 2010 1 Dr Mothae Anthony Maruping Dr Mothae Anthony Maruping MIGRATION DEVELOPMENT AND MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs REMITTANCES IN THE LDCs CONTEXT CONTEXT MAINSTREAMING MIGRATION, DEVELOPMENT AND MAINSTREAMING MIGRATION, DEVELOPMENT AND REMITTANCES AT THE COUNTRY LEVEL: CHALLENGE REMITTANCES AT THE COUNTRY LEVEL: CHALLENGE FOR LESOTHO AND OTHER LDCs FOR LESOTHO AND OTHER LDCs UNHQ NEW YORK UNHQ NEW YORK June 17, 2010 June 17, 2010 Dr. Mothae Anthony Maruping, Ambassador Lesotho in Dr. Mothae Anthony Maruping, Ambassador Lesotho in Geneva Geneva

MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

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MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT. “MAINSTREAMING MIGRATION, DEVELOPMENT AND REMITTANCES AT THE COUNTRY LEVEL: CHALLENGE FOR LESOTHO AND OTHER LDCs UNHQ NEW YORK June 17, 2010 Dr. Mothae Anthony Maruping, Ambassador Lesotho in Geneva. LACK OF DATA: ESPECIALLY IN LDCs. - PowerPoint PPT Presentation

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Page 1: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 11Dr Mothae Anthony MarupingDr Mothae Anthony Maruping

MIGRATION DEVELOPMENT MIGRATION DEVELOPMENT AND REMITTANCES IN THE AND REMITTANCES IN THE

LDCs CONTEXTLDCs CONTEXT““MAINSTREAMING MIGRATION, DEVELOPMENT AND MAINSTREAMING MIGRATION, DEVELOPMENT AND

REMITTANCES AT THE COUNTRY LEVEL: CHALLENGE REMITTANCES AT THE COUNTRY LEVEL: CHALLENGE FOR LESOTHO AND OTHER LDCsFOR LESOTHO AND OTHER LDCs

UNHQ NEW YORKUNHQ NEW YORKJune 17, 2010June 17, 2010

Dr. Mothae Anthony Maruping, Ambassador Lesotho in GenevaDr. Mothae Anthony Maruping, Ambassador Lesotho in Geneva

Page 2: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 22

LACK OF DATA:LACK OF DATA:ESPECIALLY IN LDCsESPECIALLY IN LDCs

UP-TO-DATE, ADEQUATE & RELIABLE DATA: MAJOR CHALLENGE IN LDCs

ANALYSTS , POLICY MAKERS & POLICY IMPLEMENTORS ARE “DRIVING IN THE DARK IN RUGGET TERRAIN”

DATA ON MIGRATION & REMITTANCES IS OFTEN: - SCARCE OR UNAVAILABLE

- INCOMPLETE

- INACCURATE/UNRELIABLEFORCES RESORT TO: - interpolations

- extrapolations

- guestimates

Page 3: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 33

NEED TO RETURN TO PLANNING PROCESS:NEED TO RETURN TO PLANNING PROCESS:ESPECIALLY IN LDCsESPECIALLY IN LDCs

• Policy Framework Papers (PFPs)• Medium Term Public Expenditure Frameworks

(MTEFs)• Poverty Reduction Strategies Papers (PRSP); etcAll tended to replace Sound Planning Process in Most

LDCsNEED TO RETURN TO:• STRATEGIC FRAMEWORK ( LONG TERM)• ACTION PLAN ( MEDIUM TERM), and• COMPREHENSIVE PROGRAMMES OF ACTION (AN

EFFECTIVE IMPLEMENTATION TOOL)BUT CAN STILL CONTINUE WITH PFPs MTEFs PRSPs etc

Page 4: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 44

REVIVAL OF THE LEGITIMATE ROLE OF REVIVAL OF THE LEGITIMATE ROLE OF STATESTATE

GLOBAL FINANCIAL & ECONOMIC CRISES REVEALED• Vulnerability brought about by excessive

liberalisation• Need for reinstating legitimate role of the State in the

economy: - regulation & supervision - functional state institutions (with

satisfactory service delivery) - credible enabling legal framework - forging partnerships with the private

sector (PPPs) as partners in development

Page 5: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 55

HETEROGENEITY OF LDCsHETEROGENEITY OF LDCs

• LDCs ARE HETEROGENEOUS• CLASSIFICATION OF LDCs INTO AFRICAN, ASIAN, PACIFIC,

SERVES NO USEFUL PURPOSE FOR UN LDCs IV• LDCs ECONOMIES DIFFER IN: - LEVEL OF DEVELOPMENT

- STRUCTURE

- RESOURCE ENDOWMENT

- MODE OF FUNCTIONING

- MOMENTUM/DYNAMISM

LDCs CAN BE: - LANDLOCKED OR SEALOCKED

- HAVING A LARGE OR VERY SMALL POPULATION

- POST – CONFLICT BUT RESOURCE ENDOWED

- PART OF DYNAMIC REGIONAL INTEGRATION GROUPING, ETC

CLASSIFY LDCs ACCORDING TO THEIR CHARACTER NOT REGIONS!

Page 6: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 66

MULTIPLE CRISES FACED BY LDCsMULTIPLE CRISES FACED BY LDCs

LDCs HAVE FACED MULTIPLE CRISES:

• SOVEREIGN DEBT CRISIS• FUEL PRICES CRISIS• FOOD PRICES CRISIS• CLIMATE CHANGE CHALLENGES• GLOBAL FINANCIAL & ECONOMIC CRISES

YET LDCs ARE THE LEAST EQUIPPED TO COPE WITH LONG LASTING ADVERSE EFFECTS OF THESE CRISES

THESE CRISES WERE NOT INITIATED BY LDCs

Page 7: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 77

TYPE OF ECONOMIC GROWTH DESIRED TYPE OF ECONOMIC GROWTH DESIRED BY LDCsBY LDCs

LDCs YEARN FOR TYPE OF ECONOMIC GROWTH THAT IS:

• JOB CREATING• ENSURING EQUITABLE DISTRIBUTION OF INCOME• BRINGING ABOUT FOOD SECURITY• FACTORING IN THE ENVIRONMENT• INCLUSIVE & PARTICIPATORY ESPECIALLY WITH REGARD

TO:

- YOUTH

- GENDER

- DISABLED

IN SHORT: GROWTH THAT IS PRO-POOR

Page 8: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 88

IRREVERSIBLE GLOBALISATION IRREVERSIBLE GLOBALISATION PROCESSPROCESS

GLOBALISATION PROCESS SEEMS IRREVERSIBLEGLOBALISATION DYNAMICS ENTAIL INCREASING

MOVEMENT OF PEOPLE (=MIGRATION) INTER ALIA• GLOBAL ECONOMIC INTEGRATION• MULTILATERAL TRADING SYSTEM (IN GOODS & SERVICES)• GROWING TRENDS IN OUTSOURCING AND PRODUCTION

NETWORKING MODES OF OPERATION• TRANSPORT AND COMMUNICATIONS ADVANCES, etc

ALL THESE BRING THE ISSUES OF MIGRATION, MIGRANT WORKERS, REMITTANCES & THEIR IMPLICATIONS ON SOCIO – ECONOMIC DEVELOPMENT TO THE FORE

Page 9: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 99

PARTIAL PICTUREPARTIAL PICTURE

OFTEN FIGURES ON MIGRANTS GIVE AN INCOMPLETE PICTURE

THERE ARE:• RECORDED MIGRANTS• UNRECORDED BUT LEGITIMATE MIGRANTS• IRREGULAR MIGRANTS

DEFINITION OR INTERPRETATION CAN ALSO LEAVE A BLURRED PICTURE

Page 10: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1010

REMITTANCES TRANSFERS: FIGURES REMITTANCES TRANSFERS: FIGURES CAN ALSO GIVE PARTIAL PICTURECAN ALSO GIVE PARTIAL PICTURE

TRANSFER OF REMITTANCES CAN BE:• RECORDED – ESP. IF VIA FORMAL CHANNELS• UNRECORDED – EVEN IF GOING VIA FORMAL CHANNELS (DUE

TO IDENTIFICATION PROBLEMS)

- IF GOING THROUGH INFORMAL CHANNELS

USE OF INFORMAL CHANNELS CAN BE CAUSED BY:

• EXCHANGE RATES CONSIDERED UNFAVOURABLE BY REMITTERS• TEDIOUS PROCEDURES ENTAILED IN FORMAL TRANSFERS• PERCEIVED HIGH RISK INVLOVED IN FORMAL CHANNELS• HIGH COST OF TRANSFERS THROUGH FORMAL CHANNELS• CHALLENGING ACCESS TO THE REMITTANCES BY THE

RECEPIENTS WHEN THEY ARRIVE ESP IN RURAL AREAS

Page 11: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1111

GLOBAL REMITTANCESGLOBAL REMITTANCES(2000 – 2009)(2000 – 2009)

AVAILABLE DATA SHOWS EXPONENTIAL INCREASE OF GLOBAL REMITTANCES

OVER 2000 – 2009 PERIODTHIS HAS BEEN SO EVEN IN THE FACE OF GLOBAL FINANCIAL

AND ECONOMIC CRISES

• 2000 USD132bln• 2009 USD414blnDEVELOPING COUNTRIES DID EXPERIENCE A DECREASE OF 6% DUE

TO THE FIN & ECON CRISES

Page 12: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1212

MIGRATION: PUSH FACTORSMIGRATION: PUSH FACTORS

PUSH FACTORS IN COUNTRIES OF ORIGIN:• POPULATION GROWTH RATE OUTSTRIPPING ECONOMIC

GROWTH • CLIMATE CHANGE & ENVIRONMENT DEGRADATION

CHALLENGES• NATURAL DISASTERS• ARMED CONFLICTS

ALL RESULT IN:- HIGH UNEMPLOYMENT RATE- POVERTY INTENSIFICATION- HIGH DEGREE OF INSECURITY- SEARCH FOR ALTERNATIVES

Page 13: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1313

MIGRATION: PULL FACTORSMIGRATION: PULL FACTORS

PULL FACTORS ABROAD (COUNTRIES OF DESTINATION FOR MIGRANTS):

• UNFILLED JOB OPENINGS• LURE OF BETTER PAY• ATTRACTION OF PERCEIVED COMFORTABLE LIVING

STANDARDS

Page 14: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1414

STOCK OF MIGRANTSSTOCK OF MIGRANTS(2005)(2005)

WORLD DEVELOPING LDCs LESOTHO

Migrants 190.6 145.0 21.8 0.26?

(mlns)

Migrants

As % 3,0 2,7 2,9 14,4?

Of Pop:

NB: Figures on Lesotho seem inflatedSource: World Bank

Page 15: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1515

RECORDED REMITTANCES INFLOWSRECORDED REMITTANCES INFLOWS(IN USD IN BILLIONS)(IN USD IN BILLIONS)

WORLD DEVELOPING LDCs LESOTHO

2000 131.5 84.5 6.2 0.25

2001 146.8 95.6 6.7 0.21

2002 169.5 115.9 8.4 0.20

2003 205.6 143,6 9.6 0.29

2004 231.3 161.3 10.8 0.36

2005 262.7 191.2 11.9 0.33

2006 297.1 221.3 14,0 0.36

2007 317.7 239.7 15.6 0.45

2008 - - 22.5 0.44

2009 - - 24.0 0.49Source: World Bank

Page 16: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1616

RECORDED REMITTANCE INFLOWS:RECORDED REMITTANCE INFLOWS:LDCsLDCs

(as % of GDP)(as % of GDP)

2006 2009Lesotho 24.5 27.3Haiti 21.6 18.7Nepal 18.0 21.6The Gambia 12.5 -Cape Verde 12.0 -Kiribati 9.9 -Guinea Bissau 9.2 -Bangladesh 8.8 11.4Uganda 8.7 -Togo 8.7 10.1NB: Samoa (2009) 25.8% Senegal (2009) 9.8%Source: World Bank

Page 17: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1717

ECONOMIC IMPLICATIONS OF REMITTANCES ECONOMIC IMPLICATIONS OF REMITTANCES TRANSFERS TO COUNTRY OF ORIGINTRANSFERS TO COUNTRY OF ORIGIN

REMITTANCES TRANSFERS CAN TRIGGER BENEFICIAL CHAIN REACTIONS IN THE ECONOMY OF THE RECEIVING COUNTRY THROUGH:

• FOREIGN EXCHANGE HOLDINGS

• INCREASED DEMAND FOR CONSUMER GOODS & SERVICES

• NATIONAL SAVINGS RATE

• INVESTMENT

Page 18: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1818

IMPLICATIONS OF REMITTANCES VIA IMPLICATIONS OF REMITTANCES VIA FOREIGN EXCHANGE INCREASEFOREIGN EXCHANGE INCREASE

• FOREX INFLOWS CAN BOOST CONFIDENCE• ENHANCED CONFIDENCE CAN: - IMPROVE CREDIT RATING (CREDIT WORTHINESS) [EASIER ACCESS TO INTERNATIONAL CREDIT MARKETS] - GENERATE FDI INFLOWS ( INCREASED INVESTMENT LEADING TO CREATION OF JOBS)NB: The downside of it is that: - if not properly managed this can lead to appreciation of currency: > exports could lose competitiveness in international markets > imports would be cheaper > external current account balance could be adversely affected

- pumping too much money into the system (excessive Money Supply) through loose monetary policy will tend to lead to higher inflation rate

Page 19: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 1919

IMPLICATIONS OF REMITTANCES VIA IMPLICATIONS OF REMITTANCES VIA DEMAND BOOSTDEMAND BOOST

REMITTANCES INFLOWS WOULD TEND TO BOOST DEMAND FOR GOODS & SERVICES [ AS RECIPIENTS SEEK TO MEET BASIC HUMAN NEEDS: FOOD, CLOTHING, SHELTER,

HEALTH, EDUCATION]THROUGH THE MULTIPLIER EFFECT:

- BENEFICIAL EFFECTS WOULD SPREAD RIGHT THROUGH THE SYSTEM

- PUBLIC REVENUE WOULD RISE (LDCs DEPEND HEAVILY ON INDIRECT TAXES TO RAISE PUBLIC REVENUE – MORE IS COLLECTED WHEN SPENDING IS HIGH)

RISK: IF NOT PROPERLY MANAGED THIS CAN TRIGGER INFLATION

Page 20: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2020

IMPLICATIONS OF REMITTANCES VIA IMPLICATIONS OF REMITTANCES VIA SAVINGSSAVINGS

INCREASED SAVING:

• AMOUNTS TO MOBILISATION OF DOMESTIC RESOURCES FOR INVESTMENT

• IT WOULD BE A CUSHION AGAINST SHOCKS FOR INDIVIDUALS CONCERNED

• FORMAL & INFORMAL DEPOSIT TAKING INSTITUTIONS WOULD TEND TO THRIVE

Page 21: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2121

IMPLICATIONS OF REMITTANCES VIA IMPLICATIONS OF REMITTANCES VIA INVESTMENTINVESTMENT

IF REMITTANCES TRANSFERRED GO DIRECTLY INTO INVESTMENT:

- BUYING TREASURY BILLS (TBs) AND BONDS - EQUITY MARKETS ( BUYING SHARES) - INVESTING DIRECTLY IN SMEs & OTHER

Investments would : - generate employment - boost demand for capital products - through development of linkages benefits would permeate

through the system

REMITTANCES INFLOWS SEEN BY SOME ANALYSTS AS MORE STABLE THAN ODA & FDI

Page 22: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2222

IMPACT OF MIGRATION AT OTHER IMPACT OF MIGRATION AT OTHER LEVELSLEVELS

• CONTRIBUTES TO HUMAN DEVELOPMENT• MIGRANTS THEMSELVES GET TO BE

TRANSFORMED FOR THE BETTER (EXPOSURE). THIS IS IMPROVED HUMAN CAPITAL

• ENCOURAGES TRANSFER AND DIFFUSION OF KNOW-HOW & TECHNOLOGY

• GENERATION OF TRADE LINKS BETWEEN HOST AND ORIGIN COUNTRIES (identification of business opportunities, development of trade networks between countries of origin and destination)

Page 23: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2323

MAINSTREAMING MIGRATION INTO MAINSTREAMING MIGRATION INTO NATIONAL POLICIES FOR NATIONAL POLICIES FOR

DEVELOPMENTDEVELOPMENTGIVEN TREMENDOUS POSITIVE IMPACT THAT

MIGRATION IS HAVING ON LDCs & DEVELOPING COUNTRIES IN GENERAL IT IS IMPERATIVE TO MAINSTREAM MIGRATION ISSUES IN NATIONAL & REGIONAL POLICIES, PLANS & PROGRAMMES

MIGRATION SHOULD ALSO BE AN INTEGRAL PART OF THE UN LDC IV OUTCOME DOCUMENT & OF ADOPTED NEW PLAN/PROGRAMME

BEST PRACTICES AMONG DEVELOPING COUNTRIES SHOULD BE SHARED

AT THE NATIONAL & REGIONAL LEVELS LDCs SHOULD BE ASSISTED WITH THE TASK OF ADOPTING BEST PRACTICES IN THIS AREA

Page 24: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2424

POLICIES FOR MAINSTREAMING POLICIES FOR MAINSTREAMING MIGRATION IN NATIONAL & REGIONAL MIGRATION IN NATIONAL & REGIONAL

ENDEAVOURSENDEAVOURSAGREE WITH AUTHORS OF BACKGROUND PAPER

THAT:• MIGRATION SHOULD BE MAINSTREAMED IN NATIONAL & REGIONAL

POLICIES, STRATEGIC FRAMEWORKS, ACTION PLANS & PROGRAMMES OF ACTION IN ORDER TO MAXIMISE ITS BENEFITS

• IMPROVE INTERNATIONAL AGREEMENTS TO FACILITATE MIGRATION & REMITTANCES TRANSFERS (BILATERAL & MULTILATERAL)

• INITIATIVES SUCH AS FINANCING FACILITY FOR REMITTANCES (FFR) SHOULD BE STRENGTHENED & THOSE SERVING THE URBAN COMMUNITIES NEED TO BE DEVELOPED IN LDCs

Page 25: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2525

LESOTHO: HISTORY OF MIGRANT LESOTHO: HISTORY OF MIGRANT LABOURLABOUR

HAS BEEN DELIBERATE POLICY OF THE COLONIAL REGIME TO TURN & MAINTAIN LESOTHO ( ALONG WITH BOTSWANA, MALAWI, MOZAMBIQUE & SWAZILAND) AS RESERVOIRS OF CHEAP UNSKILLED LABOUR FOR SOUTH AFRICAN MINES & FARMS SINCE THE 19TH CENTURY

- MIGRANTS SERVED SHORT TERM CONTRACTS- NO UNIONS & NO LABOUR RIGHTS- NOT ALLOWED TO BE ACCOMPANIED BY SPOUSES- VERY LOW WAGES & NO BENEFITS OR SOCIAL SECURITYIT WAS SOME FORM OF SLAVE LABOURCONTINUATION WAS ENSURED BY NOT DEVELOPING THESE

COUNTRIES. IT BECAME A TRADITION

Page 26: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2626

LESOTHO: CHANGING COMPOSITION LESOTHO: CHANGING COMPOSITION OF MIGRANTSOF MIGRANTS

MIGRATION PRACTICE WAS CULTIVATED FOR OVER DECADES IN THE COLONIAL DAYS & IS ENTRENCHED

WHILE STRUGGLING WITH THE DEVELOPMENT EFFORTS MIGRATION IN ONGOING DUE TO THE PULL AND PUSH FACTORS CATALOGUED EARLIER

COMPOSITION OF MIGRANTS HAS BEEN CHANGING FROM UNSKILLED ( MINE-WORKERS & FARM WORKERS) TO INCREASINGLY SEMI-SKILLED & HIGHLY SKILLED (PROFESSIONALS)

Page 27: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2727

LESOTHO: CHANGING COMPOSITION LESOTHO: CHANGING COMPOSITION OF MIGRANTS (CONT.)OF MIGRANTS (CONT.)

• THERE IS SYSTEMATIC RELATIVE DECLINE OF RECORDED UNSKILLED MIGRANTS (MINING, FARMS, FACTORIES, SERVICE SECTOR)

• NOTICEABLE INCREASE OF ARTISANS, TECHNICIANS & PROFESSIONALS

• SOME INCREASE OF IRREGULAR (UNRECORDED) MIGRANTS FOR REASONS LISTED EARLIER

Page 28: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2828

PREFERRED COUNTRY OF PREFERRED COUNTRY OF DESTINATION BY LESOTHO MIGRANTSDESTINATION BY LESOTHO MIGRANTS

SOUTH AFRICA IS BY FAR THE MOST PREFERRED COUNTRY OF DESTINATION: WHY SO?

• ENTRENCHED TRADITION• PROXIMITY (IMMEDIATE & ONLY NEIGHBOUR)• EASE OF EFFECTING TRANSFERS ( COMMON

MONETARY UNION & HAND-TO-HAND DELIVERY DUE TO PROXIMITY)

• ETHNIC & CULTURAL TIES

Page 29: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 2929

SIGNIFICANCE OF REMITTANCES IN SIGNIFICANCE OF REMITTANCES IN LESOTHO’s ECONOMY:LESOTHO’s ECONOMY:

SOURCES OF FUNDING DEVELOPMENT IN LESOTHOSOURCES OF FUNDING DEVELOPMENT IN LESOTHO (2000 – 2009) (2000 – 2009)

As % of GNI

FDI ODA DS EB RR FX

2000 2.8 3.24 28.4 58.0 23.5 9

2001 3.0 3.78 35.0 78.3 22.2 11.7

2002 3.2 5.19 30.0 57.4 21.6 6.4

2003 3.3 3.78 25.7 45.5 21.3 5.6

2004 3.3 2.87 26.6 39.3 21.0 5.2

2005 3.3 2.82 23.0 36.5 18.4 5.5

2006 4.9 2.04 30.9 35.6 19.0 6.7

2007 5.3 2.48 29.9 37.0 21.7 7.6

2008 9.6 2.9 35.3 37.8 20.6 8.5

2009 7.6 8.19 29.6 27.3 17.2 7.9

Source: Central Bank of Lesotho

Notes: Foreign Direct Investment (FDI), Official Development Assistances (ODA)

Domestic Savings (DS), External Borrowing (EB), Recorded Remittances (RR)

Foreign Exchange Holdings in months of import cover (FX)

Page 30: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 3030

SIGNIFICANCE OF REMITTANCES IN SIGNIFICANCE OF REMITTANCES IN THE ECONOMY OF LESOTHO (CONT.)THE ECONOMY OF LESOTHO (CONT.)

CLEARLY IN LESOTHO ODA & FDI PLAY RELATIVELY LESS ROLE.

ODA PER CAPITA IS VERY LOW IN LESOTHO EVEN THOUGH AN LDC

DOMESTIC SAVINGS (?), EXTERNAL BORROWING (MAINLY CONSESSIONAL FROM IDA & AFDF etc), REMITTANCES & EXPORT EARNINGS PLAY A RELATIVELY MAJOR ROLE IN FINANCING SOCIO - ECONOMIC DEVELOPMENT IN LESOTHO

Page 31: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 3131

MAINSTREAMING OF MIGRATION IN MAINSTREAMING OF MIGRATION IN NATIONAL DEVELOPMENT POLICY IN NATIONAL DEVELOPMENT POLICY IN

LESOTHOLESOTHOTHOUGH MIGRATION & REMITTANCES PLAY SUCH A

PIVOTAL ROLE IN THE ECONOMY OF LESOTHO THEY ARE NOT MAINSTREAMED IN THE NATIONAL DEVELOPMENT POLICY

THERE IS URGENT NEED TO DO SO

NATIONAL STRATEGIC PLAN (VISION 2020) DOES NOT ADDRESS IT

PRSP MENTIONS IT EN PASSE

DEVELOPMENT PLANNING PROCESS IS JUST BEING RESUSCITATED (HOPEFULLY WILL MAINSTREAM THE ISSUE)

Page 32: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 3232

MIGRATION IN POLICY & PLANSMIGRATION IN POLICY & PLANS

MIGRATION AND REMITTANCES ISSUES OUGHT TO BE AN INTEGRAL PART OF:

• NATIONAL POLICY• PLANS:

- STRATEGIC FRAMEWORK

- ACTION PLAN

- PROGRAMMES OF ACTION ( INCLUDING PRSP)

Page 33: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 3333

EFFORTS OF MIGRANTS & DIASPORA EFFORTS OF MIGRANTS & DIASPORA IN LESOTHOIN LESOTHO

MIGRANTS WITH CO-OPERATION AND ASSISTANCE OF AUTHORITIES MEANTIME HAVE:

• FORMED CO-OPERATIVES (RETAIL AND SMALL SCALE MANUFACTURING)

• ENGAGED IN SOME AGRICULTURAL PROJECTS• FORMED AND MAINTAINED SAVINGS & LOANS

ASSOCIATIONS & CREDIT UNIONS• UNDERTAKEN PPP PROJECTS (e.g. New Referral Hospital)• BOUGHT EQUITY IN SOME COMPANIES• BUILDING DECENT SOLID MODERN HOMESMUCH MORE CAN & NEEDS TO BE DONE WITH ASSISTANCE

AND CO-OPERATION OF THE AUTHORITIESLESSONS CAN BE LEARNED FROM BEST PRACTICE CASES

Page 34: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 3434

WAY FORWARD FOR LESOTHOWAY FORWARD FOR LESOTHO

• INTENSIFY DEVELOPMENT EFFORTS ON ALL FRONTS (WITH CLEAR OBJECTIVES & STRATEGIES)

• BORROW LEAF FROM BEST PRACTICE CASES IN MAINSTREAMING MIGRATION [e.g. DRC (2006), Rwanda (2007), Senegal (2006), Sierra Leone (2005) & Bangladesh (2005) Ghana (2005) though not an LDC]

• EXPEDITE: - FORMATION OF EFFECTIVE DIASPORA ASSOCIATIONS (AUTHORITIES SHOULD KEEP

IN CLOSE TOUCH WITH THEM)

- ADOPTING POLICIES THAT RESPECT RIGHTS AND CHOICES OF MIGRANTS AND DIASPORA

- FORMULATING POLICIES THAT FACILITATES QUALITY MIGRATION

- PROVIDING GUIDANCE AND SUPPORT TO MIGRANTS

- ENCOURAGING & NURTURING HIGHER SAVINGS, MORE INVESTMENT, FOR MIGRANTS AND DIASPORA (PARTNERSHIPS & NETWORKING)

- IMPROVING ARRANGEMENTS WITH DESTINATION COUNTRIES

• REGIONAL STRATEGIES IN THIS REGARD ARE NECESSARY

Page 35: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 3535

WAY FORWARD FOR LESOTHO WAY FORWARD FOR LESOTHO (CONT.)(CONT.)

• CREATE RELEVANT INSTITUTIONS & REORGANISE EXISITING STATE INSTITUTIONS IN A WAY THAT ACCOMMODATES & ADDRESSES MIGRATION & DIASPORA ISSUES

e.g. focal point, inclusive national steering committee,

relevant national implementation unit, • DEVISE EFFECTIVE MONITORING & EVALUATION

MECHANISM & A CLEAR ACCOUNTABILITY FRAMEWORK

Page 36: MIGRATION DEVELOPMENT AND REMITTANCES IN THE LDCs CONTEXT

June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 3636

CONCLUSIONCONCLUSION

• MIGRATION, REMITTANCES WILL CONTINUE GLOBALLY• FINDING WAYS OF MAXIMISING IMPACT OF REMITTANCES

ON DEVELOPMENT IN DEVELOPING COUNTRIES, ESPECIALLY LDCs, IS A CHALLENGE

• SOME COUNTRIES, INCLUDING LDCs, HAVE STARTED WORKING HARD TO ENSURE MAXIMISATION OF BENEFITS EMANATING FROM MIGRATION

• MAINSTREAMING MIGRATION IN NATIONAL & REGIONAL POLICIES, PLANS & PROGRAMMES IS IMPERATIVE

• EXPERIENCE SHARING SHOULD BE ENCOURAGED• NEW UN LDCs (2011) OUTCOME DOCUMENT SHOULD

ADDRESS MIGRATION AND RELATED ISSUES ADEQUATELY

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June 17 2010June 17 2010 Dr Mothae Anthony MarupingDr Mothae Anthony Maruping 3737

THANK YOU FOR YOUR KIND THANK YOU FOR YOUR KIND ATTENTIONATTENTION