You are here: Home Knowledge Base Economy Fighting Against Poverty in the Crisis Aftermath Solutions Promote “circular migration” by providing re-entry visas for migrants on renewable short-term contracts, reducing transactions costs for remittances, providing policy incentives for migrants to use their contacts to set up ...
Symposium 2009

Solution for Fighting Against Poverty in the Crisis Aftermath

The Challenge

Poverty reduction has become the central objective of development policy, as reflected in the United Nations’ Millennium Development Goals (MDGs). While economic growth is seen as an important ing ...

Poverty reduction has become the central objective of development policy, as reflected in the United Nations’ Millennium Development Goals (MDGs). While economic growth is seen as an important ingredient in achieving sustainable poverty reduction, the emerging consensus is that growth has to be pro-poor to reach such ambitious targets as the MDGs.

Promote “circular migration” by providing re-entry visas for migrants on renewable short-term contracts, reducing transactions costs for remittances, providing policy incentives for migrants to use their contacts to set up companies in their home countries, and policies to enable developed countries to pay for the training invested in migrants for poor countries.

This is an effective response to the “brain drain,” which often deprives developing countries of their human capital and has serious consequences for the delivery of key services such as education or health care. Circular migration can be supported through re-entry visas for migrants on renewable short-term contracts, portable pensions, and other social benefits.

“Ethical recruitment” practices and measures to improve working conditions, infrastructure and career opportunities for high-skilled personnel in developing countries should accompany the acquisition of professionals from sectors exposed to the brain drain. On-the-job training and skill acquisition schemes affecting migrants’ employability and knowledge transfer can also support circular migration.

The number of professionals could be increased through a trade-off with developed countries. For example, a developing country trains four nurses: a developed country takes one while the developing country retains three. Countries who take on skilled professionals from developing countries should pay for the skills and the training that have been invested in them.

Remittances will contribute more to job creation if policies help to create stronger incentives to save and invest in migrants“ countries of origin—particularly in community development projects and small-scale labor-intensive business.

Policies should seek to create incentives to use more of the remittances for productive investments. Expanded access to money transfer institutions, a reduction in transaction fees and improved safety of money transfers should also be promoted. Remittances can counterbalance the deficiency of local insurance systems and function as social safety nets.

    Implemen- tations

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