70732 Gaining from Migration Migration Trends and Policy Lessons in the Greater Mekong Sub-region ©2012 The World Bank The World Bank 30th floor, Siam Tower 989 Rama 1 Road, Pathumwan Bangkok 10330, Thailand (66) 0-2686-8300 www.worldbank.org/th Technical Papers are published to communicate the results of The World Bank’s work to the development community with the least possible delay. The typescript manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally edited texts. Some sources cited in the paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed herein are those of the author(s), and do not necessarily reflect the views of the International Bank for Reconstruction and Development / The World Bank and its affiliated organizations, or those of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail pubrights@worldbank.org. Report Number: 70732-4M  Burmese migrant at work on the construction of a resort devastated by Cover Photo : A the tsunami on Khuk Khak beach in Bang Niang village. (MANDATORY CREDIT IOM/THIERRY FALISE/ONASIA) by Thierry Falise II FOREWORD The movement of people across international boundaries has enormous implications for growth and welfare in both origin and destination countries. By allowing workers to move to where they are more productive, migration results in an increase in aggregate output and income. Furthermore, remittances sent by migrants to their countries of origin generally reduce poverty and vulnerability. Although research on migration has been expanding in recent years, demonstrating the generally positive effects of migration, migration remains a highly controversial policy issue in many developing as well as developed countries. This report documents the relatively large volume and generally positive effects of migration in the Greater Mekong Sub-region. It illustrates the economic benefits brought by migration to Thailand, the main destination country, and to migrants from Thailand’s neighboring countries, namely Myanmar. The analysis promotes better understanding of the forces, characteristics and policy issues related to migration in the Greater Mekong Sub-region. Moreover, the analysis drawing on a unique survey of migrants from Myanmar to Thailand recognizes and seeks to address the risks facing migrants in their destination country. As the countries in the Greater Mekong Sub-region have been striving to improve the outcomes of migration, this report – and the World Bank engagement at the country level, in the Greater Mekong Sub-region and also in the ASEAN framework – may serve to provide useful insights and suggestions. Annette Dixon Country Director, Thailand East Asia and Pacific Region The World Bank III ACKNOWLEDGEMENTS This policy report concludes the “Labor Migration in the Greater Mekong Sub-region (GMS) Second Phase� project, which aims at advancing policy dialogue on labor migration in the GMS. Hana Brixi led the completion of the GMS Second Phase program as the team leader since October 2010, building on the design and early stages of the analysis developed by Jamele Rigolini and Facundo Cuevas. The team would like to gratefully acknowledge AusAid for generous support and funding. The report draws upon research from the GMS Second Phase program, namely the following background papers: Institute for Population and Social Research 2011: “Study of Migrants from Myanmar in Thailand�; Institute for Population and Social Research 2011: “Tracking Methodology Report�; Cuevas, F. and Pabon, L. 2011: “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey�; Pholphirul, P. 2010: “Immigration, Job Vacancies, and Employment Dynamics: Evidence from Thai Manufacturers�; and Pholphirul, P. 2011: “Migration and the Economy�. Hana Brixi and Brooks Evans co-authored this report in collaboration with experts and officials in Thailand. Several seminars and numerous discussions held in Bangkok during 2010-12 offered beneficial insights, including contributions by Dilaka Lathapipat of the Thailand Development Research Institute, Nara Rattanarut of the Thailand Department of Employment, Supang Chantavanich of the Asian Research Center for Migration, and Andrew Bruce of the International Organization for Migration Regional Office for Asia and Pacific. Chalermpol Chamchan, Charamporn Holumyong, Suchada Thaweesit, and Sureeporn Punpuing of the Institute for Population and Social Research of Mahidol University provided excellent background analyses. Facundo Cuevas, Laura Pabon, Piriya Pholphirul, Pamornrat Tansanguanwong, and Sutayut Osornprasop contributed written inputs. Robert Holzmann, Ahmad Ahsan, Maria Ionata, Manjula Luthria, Caglar Ozden, Lars Sondergaard, and Nikolas Win Myint shared valuable comments. Sofia Busch, Trinn Suwannapha, and Vachraras Pasuksuwan managed the design and production of the report. Finally, the team would like to express sincere thanks for the strategic guidance of Annette Dixon (Country Director for Thailand), Xiaoqing Yu (Human Development Sector Director for East Asia and Pacific Region), and Emmanuel Jimenez (former Human Development Sector Director for East Asia and Pacific Region). IV ABSTRACT This report contributes to the migration policy debates in the Greater Mekong Sub-region (GMS) by providing evidence of the impacts of migration; at the same time, it outlines possible policy approaches to increase benefits from migration. The study focuses primarily on Thailand and Myanmar: the main labor receiving and sending countries, respectively, in the GMS. This report not only presents the recent migration trends and drivers in the GMS but also addresses policy issues related to the economic and social impact of migration on countries both receiving and sending labor; it also addresses the issue of migrants’ welfare—including social services; and the role of migration policy and institutions. The findings challenge several existing paradigms of developing country migration research and may have broader transferability. Specifically, the proceeding analysis suggests (a) demographic and income differences among the GMS countries drive migration within the region, suggesting the rising prominence of South-South migration; (b) migration in the GMS tends to be long-term, contrasting the more temporary nature of migration from most of the world’s developing countries; and (c) economic factors contribute to migration within the region significantly more so than political factors. JEL Codes: E24, F22, I38, J61 Keywords: International Migration; Labor Economics; Provision and Effects of Welfare Programs V Table of Contents ABBREVIATIONS AND ACRONYMS vii EXECUTIVE SUMMARY viii INTRODUCTION 1 1. MIGRATION CONTEXT 2 1.1  MIGRATION OVERVIEW 2 a) International Migration and Remittance Trends 2 b) Regional Migration and Remittance Overview 4 1.2  DETERMINANTS OF MIGRATION 7 a) Global Migration 7 b) Regional Determinants of Migration 8 1.3  MIGRANT CHARACTERISTICS 12 a) Migrants in EAP and the GMS 12 b) Comparative Characteristics—Myanmar Migrants and Thais 14 2. MIGRATION POLICY PERSPECTIVES 19 2.1  ECONOMIC EFFECTS OF IMMIGRATION ON RECIPIENT COUNTRIES 19 a) Economic Growth 19 b) Labor Market 21 2.2  ECONOMIC IMPACT ON LABOR SENDING COUNTRIES 22 AND RISKS FACING IMMIGRANTS a) Economic Growth and Poverty 22 b) Remittances to Myanmar 23 c) Risks Facing Emigrants 24 2.3 PUBLIC SERVICES FOR MIGRANTS 25 a) Health Care 26 b) Education 27 2.4 MIGRATION MANAGEMENT 29 a) Migration Management Worldwide 29 b) Migration Policies, Institutions, and Management in the GMS 31 c) Migration Formalization in the GMS 33 3. CONCLUSIONS 37 3.1 MYANMAR: REMITTANCES, CIRCULAR MIGRATION, 37 AND MIGRANT PROTECTION a) Facilitating Remittances and their Developmental Impact 37 b) Bolstering Circular Migration 39 c) Expanding Core Legal and Protection Services for Emigrants 40 3.2 THAILAND: REGULARIZATION, ENFORCEMENT 40 AND SERVICES FOR MIGRANTS a) Reducing Obstacles to Regularizing Migrants and Migration 40 b) Protecting Immigrants’ Rights through Employers 40 c) Further Improving Migrants’ Access to Essential Services 41 3.3 THE GMS: POLICY HARMONIZATION, INSTITUTIONAL 41 STRENGTHENING, AND AWARENESS a) Harmonizing Migration Policies 41 b) Strengthening Institutional Arrangements for Migration Management 41 c)  Building Public Awareness about Migration at the Country and 42 ASEAN Regional Level APPENDICES 43 REFERENCES 45 VI ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AEC ASEAN Economic Community ASEAN Association of Southeast Asian Nations EAP East Asia and the Pacific ERIA Economic Research Institute for ASEAN and East Asia EU European Union FDI Foreign Direct Investment GMS Greater Mekong Sub-region ILO International Labor Organization IMF International Monetary Fund IOM International Organization for Migration IPSR Institute for Population and Social Research ISIC International Standard Industrial Classification of all Economic Activities KDSS Kanchanaburi Demographic Surveillance System LFS Labor Force Survey MDG Millennium Development Goal MENA Middle East and Northern Africa MOU Memorandum of Understanding MRA Mutual Recognition Agreement MWRN Migrant Worker Rights Network NESDP National Economic and Social Development Plan (Thailand) NGO Non-government Organization NSO National Statistics Office OECD Organization of Economic Cooperation and Development POEA Philippine Overseas Employment Administration PPP Purchasing Power Parity RSE Recognized Seasonal Employer (New Zealand) SAR Hong Kong Special Administrative Region, China SERC State Enterprise Workers Relations Confederation of Thailand UN United Nations UNESCO United Nations Educational, Scientific and Cultural Organization UNIFEM United Nations Development Fund for Women US United States WTO World Trade Organization All dollar amounts are U.S. dollars unless otherwise indicated. VII EXECUTIVE SUMMARY The world’s number of migrants is at a record-high quarter billion people, and it is expected to nearly double by 2050. The GMS represents a key international migration hub. Within the Sub-region, Thailand is the main labor receiving country with an estimated 3-3.5 million immigrants. 70 percent of migrants in Thailand are from neighboring countries, of which the majority are from Myanmar. The volume and growth rate of remittances in the East Asia and Pacific (EAP) region—including the GMS—are the highest among developing regions in the world. Migrant surveys suggest that migration to Thailand is driven primarily by economic incentives. This contrasts with political factors that have historically driven South-South migration. Wage differentials between Thailand and its neighboring countries are significant and a key contributor to migration in the GMS. Demographic disparity among GMS countries is a more prominent factor than previously considered. The region’s countries exhibit considerable differences in their age structure: Thailand’s population is ageing—creating labor shortages—while Cambodia, Lao PDR, and Myanmar are experiencing a youth bulge, generating a labor surplus. Surveys indicate that migration to Thailand is often permanent. This also contrasts to the often transient nature of international South-South migration. Many immigrants in Thailand indicate their intention to stay in Thailand, even without work permits. Contrary to public perception, migration has a generally positive impact on the Thai economy and labor market. Recent research finds that immigration increases output, firm profitability, and employment while keeping the wage pressure facing low-skilled workers limited. For instance, macroeconomic simulations indicate that immigrants increase Thailand’s national output by 1 percent, employment by 5 percent, and firm profitability by 20 percent. While some low-skilled Thai workers face wage pressure (a phenomenon that is common with migration and international trade), Thailand’s skilled workers—being complementary to the generally low-skilled immigrants—have seen their wages boosted by migration. Overall, wages in Thailand have grown for most workers; this corresponds to the country’s economic development supported by immigration. Importantly, the abundance of low-skilled immigrants frees the domestic labor force (from sectors such as agriculture) for higher-skilled jobs—a transition that can be further fostered by improvements in training and education, similar to Malaysia. Labor sending countries also experience a positive economic impact of migration. They gain from remittances and positive spillovers that are significant—particularly in cases of circular migration and in active engagement of returning migrants and Diaspora in a favorable domestic investment climate. Myanmar’s inward remittances—particularly through official channels—appear much lower than expected given Myanmar’s large emigrant population. This may reflect difficulties in access to reliable, formal channels in the financial system; migrants’ concerns of privacy and security; and transaction fees. Tajikistan offers a useful experience to consider: it increased its incoming remittances from 0.1 percent to 12 percent of its GDP within three years. VIII For emigrants, emigration is a source of gain but can involve risks. Emigration offers employment opportunities, higher wages, and often better welfare than what is available in their home countries, even when it is below the host country’s averages. If the emigration is irregular, emigrants tend to face risks: excessive working hours, wage withholding, and constraints to changing jobs. Their irregular status weakens their protection under the host country’s laws and often discourages them from reporting hardships and seeking help. Irregular migration, which accounts for the majority of migration in the GMS, creates negative externalities in both sending and receiving countries. Informal networks—which constitute the main migration channels in the GMS—engage in illegal border crossing, money laundering, and illicit trade. Such networks pose risks to national security and cause fear among migrants and communities, while undermining the effectiveness of public institutions and policies. Migrants face exploitation by brokers and employers; debt bondage to pay back fees for documentation, transport, and job arrangements; and trafficking driven by coercion or misinformation. Thailand’s long and porous borders make combating irregular migration challenging—this is especially so without behind-the-border approaches to incentivize formal migration. Currently, the high financial and administrative burden of regularization and the other remaining constraints facing regular migrants—such as the difficulty of changing jobs, locations, and limited legal and social protection—make formalization unappealing to migrants. Thailand, as well as other labor receiving countries, can consider improving access to essential social services for regular migrants and their dependents to boost incentives for formalization and to increase productivity and human capital development. A sizable portion of Thailand’s immigrant population plans to stay permanently. They have already experienced improvements in access to public services, especially education, although it continues to appear suboptimal from both economic and social perspectives. Only half of the regular workers have health insurance and their dependents tend to have no insurance. Years of schooling remain relatively low among migrant children, with enrollment particularly low at the post-basic education level. Countries in the GMS can build on their commendable efforts to improve the outcomes of migration. At the level of the GMS and the Association of Southeast Asian Nations (ASEAN), as well as at home through domestic constituencies, countries could recognize the positive role and significance of both unskilled and skilled migration, harmonize migration policies with their own country’s development strategies, and update bilateral labor agreements accordingly. The aligning of objectives of labor sending and receiving countries, and the effectiveness of migration policies and agreements would require a strong coordination effort. Myanmar can increase the gains from migration by facilitating remittance flows and their developmental impact, by bolstering circular migration, and by providing core legal and support services to its emigrants abroad. Thailand can further benefit from migration by reducing obstacles to regularizing migrants and migration, by protecting migrants’ rights through employers, and by further improving migrants’ access to essential services. IX INTRODUCTION The report aims to contribute to the ongoing migration policy debate in Thailand, Myanmar, and other countries in the Greater Mekong Sub-region (GMS)1 and the Association of Southeast Asian Nations (ASEAN). Thailand (as the main migration hub in the GMS) and Myanmar (as the GMS main labor sending country with an estimated 70 percent of the immigrant population in Thailand) serve as examples. The methodological approach combines quantitative and qualitative analysis. This study includes a critical review of newly commissioned and recent migration research in the East Asia and Pacific (EAP) region and the GMS. In particular, the study draws on quantitative and qualitative surveys of the welfare, employment, and social service situations of migrant and non-migrant workers and their dependents in Thailand. The quantitative survey used a comparative design of 800 (400 Thai and 400 non-Thai) households and 4,700 observations in the Kanchanaburi province of Thailand. The qualitative survey involved interviews in Samutsakhon province.2 A review of the international and the GMS migration experience complements the research to highlight relevant policy issues. The report presents its findings and recommendations in three chapters. Chapter I assesses the scope, reasons, and characteristics of migration in the GMS. Chapter II assesses the main policy issues in the GMS and particularly Thailand and Myanmar, including the economic impact of migration, the situation of migrants, and migration management. Chapter III offers policy considerations, particularly for Thailand and Myanmar, which are valid for other GMS countries in the context of the ASEAN economic integration. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 1 1. MIGRATION CONTEXT As the number of worldwide migrants disparities across countries; and with approaches a record of a quarter- international agreements seeking to billion people, migration continues to liberalize labor mobility further, such be a polarizing topic that remains at as those of the World trade Organization the forefront of the policy agendas of (WTO), European Union (EU), and ASEAN.3 countries throughout the world. This chapter contextualizes the migration debates in the The largest immigrant stocks are Greater Mekong Sub-region by presenting concentrated in North America and international, regional, and national migration Europe. Six out of 10 of the countries and remittance trends; by providing a with the largest immigrant populations are framework for understanding the factors in North America and Europe. Currently, the driving immigration and emigration; and by US has over 40 million immigrants, followed reviewing the characteristics of migrants and by the Russian Federation and Germany the local population in Thailand. with more than 10 million. Australia, Canada, France, India, Saudi Arabia, 1.1  MIGRATION OVERVIEW Spain, the Ukraine, and the United Kingdom all have immigrant populations a)  International Migration and of over 5 million. Although 57 percent of Remittance Trends migrants live in high-income countries, migration is also expanding among the The record-high number of migrants developing countries—confirmed by worldwide is expected to nearly double the GMS statistics. by 2050. Currently, at about 215 million people, the number of migrants has Middle Eastern countries have the increased substantially from 150 million highest proportion of foreign-born people in 2000. Projections put the populations. Three out of five countries number of migrants at over 400 million with the highest percentage of immigrants by 2050. The most recent growth is as a share of the population are in the largely due to population expansion with Middle East, led by Kuwait, the United the share of migrants compared to global Arab Emirates, and Qatar, with immigrants population remaining stable at about 3 accounting for more than 70 percent of percent from 2005 to 2010. Continued their populations. In Macao SAR, China, expansion of migration is expected Hong Kong SAR, China and Singapore, with further economic integration; first-generation immigrants account for with widening demographic and wage about 40-50 percent of their populations.4 1 The GMS includes Cambodia, the People’s Republic of China (the Yunnan Province and Guangxi Zhuang Autonomous Region), Lao People’s Democratic Republic, Myanmar, Thailand, and Vietnam. 2 See appendix for map of surveyed provinces. 3 International Organization for Migration, World Migration Report 2010, Geneva, 2010. 4 International Organization for Migration, World Migration Report 2010, Geneva, 2010; and United Nations Department of Economic and Social Affairs, 2009 Trends in International Migrant Stock: The 2008 Revision, POP/DB/MIG/Rev. 2008, UN DESA, Population Division, New York. 2 Gaining from Migration 8.22 0.53 9.57 8.53 0.84 Europe 2.44 15.69 North America 31.52 1.30 1.33 1.34 0.35 Asia 1.07 3.1 35.49 1.24 7.25 1.29 19.72 0.06 0.22 0.75 Latin America 13.18 0.14 and the Caribbean 3.13 3.54 0.08 0.30 Africa 1.65 0.31 0.25 0.02 0.13 0.73 Oceania 0.35 Human Development Index, 2007 0.01 Regions Number of migrants (in millions) Very high North America High Europe Intra- Medium Oceania regional Low Latin America and the Caribbean migration Asia The size of countries is proportional to 2007 population. Africa Source: HDR team estimates based on Migration DRC (2007) database. Source: UNDP Human Development Report 2009. Migrants from low-HDI countries had the most from where they were born and fewer than 1 per- to gain—and indeed on average saw a 15-fold in- Europe. cent of Africans live inFigure 1 Several scholars Most international migration occurs crease estimated in income (to US$15,000 global remittances per annum), ahavesurpassed we correlate observed that ifOrigin emigration and Destination of within regions. Approximately 40 percent doubling US$ in education 400 billionrate enrolment of which (from7647 percent rates withwas levels of development, the relation- International Migrants of emigrants move to neighboring to 95 percent) and sent countries to developing a 16-fold reductioncountries. in child shipWorldwide, resembles a ‘hump’, whereby emigration and half remain in the same region. The the top recipient countries mortality (from 112 to 7 deaths per 1,000 liverates in are 2010 lower in poor and rich countries than cost of migration, such as transport and were China, France, births). Using comparable surveys in a number ofIndia, Mexico, among and countries with moderate levels of devel- cultural differences, are important factors developing thethe Philippines. countries, study alsoIndia found and that China 9each opment. for the choice of a destination country; self-selection—the received nearly tendency US$ for those who50 move billion, shows followed that the median emigration rate in coun- 40 percent of migrants are familiar with by Mexico with US$ 22 billion, tries with thelow levels of human development is the language in their destination and Philippines with US$ for only a fraction of these gains. Analysis of 20 billion, France only about one third the rate out of countries 60 percent share a similar religion. As with US$ 15 billion, and Bangladesh at with high levels of human development. 10 When shown in Figure 1, intra-Asia migration just over US$ 10 billion. pared as background research for this report, As a share of we restrict the comparison to out-migration to is the most sizable migration flow at GDP, remittances are more significant countries, the relationship is even developed approximately 46 million individuals for smaller countries—for components of human development at destina- instance, stronger: the median emigration rate among (accounting for 20 percent of global remittances make up more than 25 countries with low human development is less migration), followed by about 32most million percent 8 in Tonga and Samoa. The main 5 the explanatory power. than 1 percent, compared to almost 5 percent within Europe. remittance discussed in detail in sending countries the next chapter. out of included countries with high levels of human de- the United States, Paradoxically, despite the fact that peopleSaudi Arabia, and Most remittances are sent from Switzerland, which moving out of poor countries have the most to both have a large prepared as background research for this report gain from moving,volume high-income countries to developing they are migrants of the and have high per- least mobile. countries. In 2009 the World Bank For example, despitecapita income. the high levels of attention controlling for characteristics of origin and des- given to emigration from Africa to Europe, only tination countries such as life expectancy, years of schooling and demographic structure. 11 24 5 Migration and Remittances Factbook, 2011. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 3 8,000 Immigrant stock 6,000 Emmigrant stock Figure 2 4,000 Immigrant and Emigrant Stocks in GMS 2,000 (thousands), 2010 - Cambodia China Lao PDR Myanmar Thailand Vietnam Source: World Bank Migration and Remittances Factbook 2011. Note: China figures for country as whole and not only its GMS regions. Irregular migration can be considerable within the region. Hong Kong SAR, China, although it tends to be undercounted. Malaysia, and Singapore each host 2-3 Available estimates suggest that irregular million immigrants. The stock of emigrants migrants account for over 30 percent of as a share of the population in primarily all migrants in developing countries, and labor sending countries ranges from 1.1 up to 15 percent in the countries of the percent in Indonesia to 67 percent in Organization of Economic Cooperation Samoa. In labor receiving countries, the and Development (OECD). The higher share of immigrants compared to the total share of irregular migration in developing population ranges from 1.1 percent in countries tends to be explained by their Korea to over 40 percent in Singapore.8 lower legislative and institutional capacity and fewer enforcement mechanisms.6 The GMS members are primarily Immigration and emigration data based sending countries although Thailand on national censuses, although more is also a significant recipient country. reliable than others, may undercount Thailand is estimated to host 3-3.5 irregular migrants. It is estimated that million migrants (out of which only about the US census misses up to 1.5 million 1.2 million—1.7 percent of Thailand’s immigrants. The undercounting of population—are registered). Cambodia’s irregular migrants is generally greater in estimated 340,000 immigrants equal 2.2 developing countries with less statistical percent of its population (Figure 2). Other and migration management capacity. GMS members have immigrant stocks Available estimates place the number of below 0.4 percent of their population. irregular migrants in developing countries After China, Vietnam has the largest at 30 million.7 emigrant stock in absolute terms of 2.2 million or 2.5 percent of its population, b)  Regional Migration and followed by Thailand with about 1 Remittance Overview million or 1.2 percent of its population. The Lao People’s Democratic Republic The East Asia and Pacific region and Cambodia have the highest share is a major sender and recipient of of emigrants in their population at 5.7 migrants. Half of the estimated 21 million percent and 2.3 percent, respectively. international migrants in EAP migrate 6 UNDP Human Development Report 2009. 7 UNDP, “Human Development Report: Overcoming barriers: Human Mobility and Development�, 2009. References to  UN.1998. “Recommendations on Statistics of International Migration�. Statistical Paper Series M No. 58. New York: Department of Economic and Social Affairs; Passel, J. S. and D. Cohn. 2008. “Trends in Unauthorized Immigration: Undocumented Inflow Now Trails Legal Inflow�. Washington DC: Pew Hispanic Center; Comelatto, P. A., A. E. Lattes and C. M. Levit. 2003. “Migración Internacional y Dinámica Demográfica en la Argentina Durante la Segunda Mitad del Siglo XX.� Estudios Migratorios Latinoamericanos 17 (50): 69-110; Andrienko, Y. and S. Guriev. 2005. “Understanding Migration in Russia�. Policy paper series No. 23. Moscow: Center for Economic and Financial Research; Sabates- Wheeler, R. 2009. “The Impact of Irregular Status on Human Development Outcomes for Migrants�. Human Development Research Paper No. 26. New York: United Nations Development Programme, Human Development Report Office. 8 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�; and IOM, “Thailand Migration Report� Bangkok, 2011 Migration data should be treated with caution as irregular, seasonal and circular migration may not be accurately captured. 4 Gaining from Migration 100,000 East Asia and Pacific Europe and Central Asia Latin America and Caribbean Middle-East and North Africa South Asia 50,000 Sub-Saharan Africa e 00 02 90 92 94 04 06 08 10 96 98 20 20 19 19 19 20 20 20 20 19 19 Source: International Monetary Fund’s Balance of Payments Statistics Yearbook. Figure 3 Global remittance inflows by developing country region (US$ million), 1990-2010e $ billion FDI 175 125 75 Remittances Private Debt and Equity 25 ODA -25 e 01 05 07 09 00 02 03 04 06 08 10 96 97 92 93 95 91 94 98 99 20 20 20 20 20 20 20 20 20 20 20 19 19 19 19 19 19 19 19 19 Source: World Bank (forthcoming) International Migration and Development in EAP. Figure 4 EAP external flows are dominated by FDI and remittances Migration Trends and Policy Lessons in the Greater Mekong Sub-region 5 The countries of the EAP have the during 2004-09.12 These levels are much highest share and growth rate of lower than those recorded for other GMS remittances among the developing countries, representing a mere 2 percent of regions in the world. Developing the amount of official inward remittances EAP countries had remittance inflows flowing to Vietnam, 8 percent of those of approximately US$ 91 billion in to Thailand, and 41 percent of the flows 2010, placing the region at the top for to Cambodia. Among GMS countries, inward flows. The growth rate of inward only Lao PDR has lower inward official remittances from 1989 to 2009 averaged remittances than Myanmar. Findings from 15.8 percent as compared to 7.8 percent selected migrant surveys suggest that for the developing world as a whole.9 non-official remittances to Myanmar may Further, while remittances worldwide fell be more than twice as high as official in 2009, EAP inflows increased (Figure 3). remittances. As the next section illustrates, The EAP countries are second to remittances may differ significantly across developing European and central local migrant communities.13 Asian countries for outflows. Remittances partly drive EAP’s external flows (Figure The EAP countries record large irregular 4), contributing 7.3 percent of GDP in migration, reflecting both high barriers Vietnam, 12 percent in the Philippines, to, and low perceived benefits of, and 36 percent in Tonga in 2009. In regularization. The EAP countries have these three countries, the average large portions of migrants who lack legal remittances equaled 43, 71, and 175 status or work permits. About half of percent of reserves and 138, 1,120, and Indonesian emigrants are estimated to be 809 percent of net FDI, respectively. Both irregular. The main EAP hubs of irregular inward and outward flows are expected migration are Malaysia, the Philippines, to remain robust given not only the and Thailand. The prevalence of informal continued resilience of many economies migration is accompanied by extensive in the region but also the further financial informal broker networks. There have been deepening and increasing labor mobility in national efforts to cut irregular migration, the region.10 with Korea and Malaysia offering amnesty to irregular migrants who register, and In the GMS, Myanmar represents Thailand expanding its registration an interesting case, having a large outreach. Parties of the Bali Process on emigrant population but relatively low People Smuggling, Trafficking in Persons official inward remittances.11 According and Related Transnational Crime held their to available data, official remittances fourth meeting in 2011, and proposed to Myanmar remained relatively stable, a regional cooperation framework for from US$ 118 million to US$ 137 million addressing the irregular movement of people and human smuggling.14 9 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 10 World Bank Migration and Remittances Factbook 2011. 11 Turnell, S. Vicary, A. Bradfrod, W., “Migrant Worker Remittances and Burma: An Economic Analysis of Survey Results, Macquarie University, Sydney, 2008; Bradford and Vicary, “Some Information About Burmese Migrant Workers in Thailand: Preliminary Survey Results�, Macquarie University, 2005; Vicary, A, “Economic Survey of ‘Burmese’ Working in Thailand: An Overview of a BEW Project� Macquarie University, 2004; and IOM, “Thailand Migration Report 2011, Migration for Development in Thailand: Overview and Tools for Policymakers�, Bangkok, 2011. 12 World Bank Migration and Remittances Factbook, 2011. 13 Turnell, S. Vicary, A. Bradfrod, W., “Migrant Worker Remittances and Burma: An Economic Analysis of Survey Results, Macquarie University, Sydney, 2008. 14 See, for instance, International Organization for Migration, World Migration Report 2011, Geneva, 2011; and World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 6 Gaining from Migration DETERMINANTS OF MIGRATION 1.2  Global Migration a)  The main drivers of migration can be categorized into push and pull factors of economic, demographic, and political natures.15 Table 1 presents such factors, which jointly influence migration choices. Push Factors in Labor-Sending Countries Pull Factors in Labor-Receiving Countries Economic Factors High unemployment Low unemployment Excess labor supply Labor shortages Relatively low income Relatively high income Relatively low wages Relatively high wages Economic crisis or downturn Economic stability Social Factors Young demographic structure Ageing population Exposure to shocks and disasters Relative security and safety Table 1 Political Factors Push and pull factors of migration Political instability or crisis Political stability Source: World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. In labor receiving countries, high Wage differentials act as a driver for labor demand is a primary catalyst migration. The pull factor is particularly for immigration. In countries with high strong when the gap is wide between levels of employment, real wages tend to proximate countries, such as the US increase over time as companies compete and Mexico, with a fivefold difference to attract workers with the requisite skills. in average per capita income. Wage Labor shortages can emerge in the short- differentials largely explain migration from term owing to seasonal cycles or long- Africa and Eastern Europe to Western term due to structural shifts. Migrants can Europe, as well as the large immigration help smooth the labor supply to account stocks in higher-income Asian countries.16 for fluctuation in seasonal labor demand, As discussed in the next section, wage which is more pronounced in industries differentials also largely explain migration such as agriculture and tourism. In the within the GMS, with Thailand’s average long-term, given that there is often a time per capita income exceeding that of its lag between the supply of an appropriately neighboring countries up to sevenfold. skilled labor force and structural economic shifts, newer and expanding industries Demographic differences create both often face labor shortages, while shrinking pull and push forces of migration industries shed labor. Furthermore, as between aging and young populations. the education and skill levels rise in an In ageing populations, the size of economy, the reservation wage and job the labor force compared to the total preferences tend to shift: this may lead population declines, the industries to labor shortages and wage increases catering to the elderly expand, and the in low-skill jobs, which both act as pull demand for social services rise and can factors for migrants. generate fiscal pressures. 15 For discussion, see United Nations Department of Economic and Social Affairs, 2009 Trends in International Migrant Stock: The 2008 Revision, POP/DB/MIG/Rev. 2008, UN DESA, Population Division, New York; and International Organization for Migration, World Migration Report 2010, Geneva, 2010. 16 World Development Indicators 2011. GNI per capita, Atlas method (current US$), US $47,390 and Mexico $8,890. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 7 This decline in labor supply and Regional Determinants of Migration b)  structural changes create opportunities for migrants. In contrast, in countries Economic and demographic factors with young demographic structures, of migration are dominant in the EAP the labor supply often exceeds demand region. The main push factors in low- with a constant inflow of new labor income EAP countries include poverty, force entrants. Absorbing labor force unemployment and underemployment, entrants creates challenges, particularly youth bulge, and low wages compared in less dynamic economies, pushing to higher-income countries in the region. workers to migrate to countries with Conversely, pull factors in higher income more employment opportunities, which EAP countries include better wages and include those with ageing populations. job opportunities—partly owing to ageing Although demographic differences are populations (for instance Japan, Korea, more common between developed and and Singapore); economic transition developing countries, they also exist to higher productivity jobs; and cost within developing countries, contributing pressures on labor intensive industries. to South-South migration—including migration within the GMS. Income and demographic disparities are significant also in the GMS. The Similarly, disasters and shocks affect GMS is heterogeneous along many migration. Conflicts and economic, dimensions (Table 2), with per capita political, or social crises often bring about income ranging from US$ 700-800 spikes in migration flows. Such spikes in Myanmar and Cambodia to US$ have been witnessed most recently in the 5,000 in Thailand in 2010. Average per Middle East and North Africa. In Libya, for capita income in Thailand was seven example, by June 2011, more than one- times higher than in Myanmar, six times third of the 1.5 million migrants fled the higher than in Cambodia, five times country. Intensified natural disasters in higher than in the Lao PDR, and four recent years have caused the migration of times higher than in Vietnam (Figure 42 million worldwide in 2010, compared 5). This is consistent even after some to 6 million in 2008. In contrast, the convergence—with real GDP growth migration impact of the recent global averaging above 7 percent in Cambodia, economic crisis has been weaker than Lao PDR, and Vietnam, and 3 percent expected. Although the 2007 global in Thailand from 2005-10.18 Cambodia, economic downturn caused job losses Lao PDR, and Myanmar have young and a decline in the renewal of migrant populations generating a labor surplus, work permits in labor receiving countries, while China, Thailand, and Vietnam have migrants have generally remained in their somewhat older populations and a tighter host country and maintained relatively labor supply (Figure 6). stable remittance flows.17 Natural disasters and political factors The above factors are expected to also contribute to migration in the remain strong and to contribute to GMS. The GMS region is prone to natural further migration in the future. disasters such as droughts, flooding, The confluence of the rapid increases and typhoons, which influence flows of in global economic integration—as well migrants (Box 1). Political factors explain as widening demographic and wage some of the emigration from Myanmar differences and idiosyncratic shocks— in previous decades: these factors are has placed global migration at a record expected to play a role in the future, high. The expansion of cross-border labor reflecting Myanmar’s transition—perhaps flows is projected to continue. partly reversing some of the past flows. International Organization for Migration, World Migration Report 2011, Geneva, 2011. 17 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�; and IMF, 18 World Economic Outlook, Washington DC, 2011. 8 Gaining from Migration 5,000 30% 4,500 25% 4,000 3,500 20% 3,000 2,500 15% 2,000 10% 1,500 1,000 5% 500 - 0% Figure 5 2000 2005 2010 GDP Per Capita in US$ Current Prices (left axis) Cambodia (%Thailand) Laos PDR (%Thailand) Myanmar (%Thailand) Vietnam (%Thailand) and % of Thailand GDP Cambodia Lao PDR Myanmar Vietnam Thailand Per Capita (right axis) Source: IMF, World Economic Outlook, September 2011. China Yunnan & GMS Cambodia Lao PDR Myanmar Thailand Vietnam Guangxi GZ Average Yunnan 46.0 Population (2010) 14.1 GZ 46.0 6.8 60.3 66.7 90.5 55.1 millions Yunnan $107 GDP (2010 current $11.6 GZ $140 $6.5 $45.4 $318.9 $103.6 $122.2 US$) - billions Yunnan $1,992 GNI per capita (US$, $814 GZ $2,336 US$ $1,004 $742 $4,992 $1,174 $1,815 Atlas method) Yunnan 0.71 (2008) HDI 0.523 GZ 0.776 (2008) 0.497 - 0.654 0.572 0.598 Poverty headcount 38.5 56.5 (2007) - 66.0 (2008) - - - ($2/day) (2008) Yunnan 152,200 Area (square miles) 69,898 GZ 91,400 91,429 261,227 198,115 128,565 134,976 Life expectancy at 62 73 (national) 67 64 74 75 68.4 birth Table 2 Literacy rate (% adults GMS Countries: Key 78% 94% (national) 73% 92% 94% 93% 86% Statistics age > 15) Sources: World Bank World Development Indicators, China Statistical Yearbook, IMF World Economic Outlook. A confluence of push and pull factors shifts from agriculture to manufacturing make Thailand the main labor recipient and services. Such change has been country in the GMS. Thailand offers accompanied by higher education levels wages that are generally higher than and the creation of new higher-skilled migrants could earn in other GMS jobs, which internally pulls labor from countries. It has an ageing population, lower-skilled labor intensive jobs. Labor which limits the size of its labor force. intensive industries have increasingly The economy is also undergoing structural relied on migrant workers to control Migration Trends and Policy Lessons in the Greater Mekong Sub-region 9 unit labor costs not only to maintain breadth and depth of poverty, competitiveness but also to ensure more prevalent unemployment or sufficient labor supply. Other GMS underemployment, and younger countries, by contrast, have a number populations exerting pressure on of factors that encourage emigration. national labor markets.19 These factors generally include greater Cambodia China 100+ 100+ 90-94 90-94 80-84 80-84 70-74 70-74 60-64 60-64 Female Female 50-54 50-54 40-44 Male 40-44 Male 30-34 30-34 20-24 20-24 10-14 10-14 0-4 0-4 1,000,000 500,000 0 500,000 1,000,000 75,000,000 25,000,000 0 25,000,000 75,000,000 Lao PDR Myanmar 100+ 100+ 90-94 90-94 80-84 80-84 70-74 70-74 60-64 60-64 Female Female 50-54 50-54 40-44 Male 40-44 Male 30-34 30-34 20-24 20-24 10-14 10-14 0-4 0-4 500,000 300,000 100,000 0 100,000 300,000 500,000 3,000,000 1,500,000 0 1,500,000 3,000,000 Thailand Vietnam 100+ 100+ 90-94 90-94 80-84 80-84 70-74 70-74 60-64 60-64 Female Female 50-54 50-54 40-44 Male 40-44 Male 30-34 30-34 20-24 20-24 Figure 6 10-14 10-14 Demographic Structures by Age and Gender, 0-4 0-4 2010 4,000,000 2,000,000 0 2,000,000 4,000,000 5,000,000 2,500,000 0 2,500,000 5,000,000 Source: US Source: US Census Bureau, International database. 19 World Bank. 2010 “Do Immigrants Improve Thailand’s Competitiveness?�, Report Submitted to the World Bank under the Project entitled “Managing Cross-Border Labor Mobility in East Asia and the Pacific�; and World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 10 Gaining from Migration Most migrants from Myanmar to Thailand who were surveyed for this report described economic reasons for their migration (Figure 7).20 The key factors that contributed to their migration decision were employment (60 percent), family member search (23 percent), conflict (11 percent), and pursuit of a more comfortable life (10 percent). Thailand’s massive floods in 2011, the most severe in 50 years, impacted immigrants in the country and revealed weaknesses in Thailand’s migration policies and regulations. Migrants faced harassment for not having documentation or for traveling outside of their registered province (as also reported in the qualitative survey conducted for this report). The floods hit areas with high concentrations of migrants and led to the closure of 14,000 factories in key sectors for non-Thai workers, such as agriculture and manufacturing. Over 100,000 migrants lost assets and jobs because of the flood. The job losses made them illegal immigrants because work permits are associated with specific jobs in particular provinces. Migrants had to rely on brokers to return to Myanmar and subsequently travel back to Thailand in search of new jobs. Following the floods, brokers have been reported to charge about 3,600 Baht (US$120) per person to cross borders back to Myanmar, and another 14,500 Baht (US$500) per person to cross borders from Myanmar to Thailand. Good practice disaster responses address the welfare of migrants and their families. Good practice qualitative needs assessments to inform the design and the targeting of assistance recognize the needs of migrants. For migrants, good practice disaster response seeks to restore employment opportunities and remove employment barriers, ensure essential social services, and facilitate mobility, particularly avoiding border closures. Urgently, good Box 1 practice disaster response also facilitates access to remittance channels and migrant communication networks. Migration in Natural Disasters Sources: BBC, ODI 2007, UNWIDER 2008, World Bank 2009, SERC and MWRN 2011, World Bank. Looking for a job Join parents Escape internal war Live more confortable life Join spouse Economic problem Other reasons Escape military service Visit a relative To live in parents home Get work contract Seasonal work On tour Escape arrest Escape individual/family problem Study Change job 0% 10% 20% 30% 40% 50% 60% Source: KDSS sample and World Bank “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey�. Figure 7 Reasons for Migration to Thailand 20 KDSS sample and World Bank “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey� Note: The survey sample is not representative of all Myanmar’s migrants in Thailand. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 11 MIGRANT CHARACTERISTICS 1.3  however, face greater risk of trafficking. According to the International Labor Migrants in EAP and the GMS a)  Organization (ILO), the EAP region holds about 1.4 million trafficking victims, which Migrants in the region tend to be young is estimated to be about one-half of the and unskilled. Census and household global figure.22 and labor force surveys suggest that migrants in the region tend to be younger In the GMS, Thailand is the main and less skilled than the population in migration hub with an estimated their host countries. An estimated 85 3-3.5 million immigrants who are percent of immigrants in Thailand are often undocumented. In 2009, the aged less than 40 years and 65 percent Ministry of Labor in Thailand reported are less than 30 years. Similar trends 2.8 million immigrants of which 1.5 appear in other EAP countries with half million lacked official status.23 The of migrants from Indonesia aged from 20 International Organization for Migration’s to 29. The 2000 Thailand census found (IOM) estimate was about 3.5 million that about 80 percent of migrant workers immigrants, with about 40 percent from Cambodia and nearly all migrant being unregistered family members workers from Lao PDR and Myanmar had (Table 1 and Table 3).24 The majority less than 12 years of education, which came from neighboring countries, are lower than the averages not only in particularly Cambodia, Lao PDR, and Thailand, but also in the countries of Myanmar. Of these three countries, 46 origin. About one-half of these migrant percent of migrants are classified as workers are employed in labor-intensive unregistered and family members, 30 manufacturing, construction, agriculture, percent are at some stage of national fishing, and fish processing.21 verification, and less than 3 percent are regular migrants under the existing Skilled migration generally flows from East Memoranda of Understandings (MOU). Asia to the more advanced economies Administratively, Thailand records all in North America, Australia, and New migrants from neighboring countries Zealand. Migration among skilled workers as unskilled. Recorded skilled workers within the region may, however, increase account for about 3 percent of migrants with the ongoing liberalization of the in Thailand. Thailand’s own emigrants are skilled labor market in ASEAN. largely outside the GMS mainly in China, Germany, Japan, Korea, Singapore, Females account for the majority of Taiwan, the UK, and the US.25 migration flows in a number of EAP countries. The majority of migrants Registered immigrants from Myanmar from Cambodia, Indonesia, Lao PDR, have the highest proportional and the Philippines are females. They employment in Thailand compared to tend to work in the garment and services workers from Lao PDR and Cambodia. sectors, often as domestic helpers in Myanmar’s migrant workers have the their main destination countries including largest proportional presence in fishery Hong Kong SAR (China), Malaysia, Saudi processing, with a 97 percent share of Arabia, and Singapore. Female migrants, migrant jobs, followed by 92 percent in 21 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�; Jampaklay, A., J. Bryant and R. Litwiller (2009), “Gender and migration from Cambodia, Lao PDR, and Myanmar to Thailand‘, in Gender and Labor Migration in Asia� International Organization for Migration, Geneva, Switzerland; and World Bank (2006), Labor Migration in the Greater Mekong Sub-Region: Synthesis Report Phase I, Washington, DC. 22 IOM, “Thailand Migration Report� Bangkok, 2011. 23 Holumyong, C and Punpuing, P “A Cost Benefit Analysis of the Migrant Status of Migrants�, Institute for Population and Social Research. 24  Holumyong, C and Punpuing, P “A Cost Benefit Analysis of the Migrant Status of Migrants�, Institute for Population and Social Research. 25 IOM, “Thailand Migration Report 2011, Migration for development in Thailand: Overview and tools for policymakers “, Bangkok, 2011. 12 Gaining from Migration the garment industry, and 91 percent in from Myanmar follows this trend. In the agriculture and livestock processing. rural Kanchanaburi province (where the Lao workers are the most dominant in quantitative survey for this study took services with 11 percent of jobs, while place), most documented migrants worked Cambodian workers hold 22 percent in formal agriculture and casual labor, while of the fishing boat jobs.26 undocumented workers were in casual labor that did not necessitate registration Spatial distribution of migrants with local authorities. In Samutsakhon influences their jobs. Most immigrants in province (the location of the qualitative Thailand work in locations that have large survey for this study) by contrast, most Diasporas and are close to their home workers worked in fishery-related country. The concentration of migrants industries and light manufacturing.27 Category Stay Stay and work Professional, skilled and semi-skilled workers 106,486 Other temporary stay - Stay with Thais - Stay with Thai wife - Stay with resident families - Retirement - Others 121,109 Tourist and transit visa extension 92,014 Students 19,052 Other regular Subtotal – 513,792 - Residents awaiting nationality 233,811 - Born in Thailand to non-national parents 69,799 - Previously undocumented 210,182 Undocumented expatriates (visa over-stayers) 65,558 Refugees and asylum-seekers 141,076 Migrants from Cambodia, Lao PDR and Myanmar Subtotal – 2,455,744 - Regular new entrants under MOU 78,686 - Entered or completed NV process 932,255 - Unregistered and family members 1,444,803 Total 373,251 3,141,580 Overall total 3,514,831 Source: IOM, International Migration in Thailand 2011, Bangkok 2011. 26 Office of Foreign Workers Administration, Department of Employment, Ministry of Labor, 2011. 27 Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). Migration Trends and Policy Lessons in the Greater Mekong Sub-region 13 Comparative Characteristics— b)  surveyed were male, compared to 51.3 Myanmar Migrants and Thais percent for documented migrants and 52.3 percent for undocumented migrants. This section provides characteristics of Short-term migrants were even more Thais and immigrants from Myanmar— likely to be male, averaging 53.6 years, mainly drawing on the quantitative survey whereas long-term migrants had a more in Kanchanaburi province.28 balanced gender ration of 50.8 percent male. Seven out of every 10 migrants Migrants in the sample are generally had not completed primary education younger, less educated, more likely to compared to 20 percent of Thais in the be male, and not married compared to sample of adults above 25 years. Married local Thais. Compared to the Thais in the Thais constituted 43.6 percent, which is survey, documented migrants were three two percentage points higher than that of to four years younger and undocumented; documented migrants (41.2 percent) and long-term migrants were about six years undocumented migrants (41.6 percent). younger than Thais.29 Thai heads of Short-term married migrants made up household averaged 48.2 years, compared the lowest percentage (40.8 percent) with to 45.5 for documented and 39.5 years long-term migrants slightly higher (41.5 for undocumented migrant heads of percent married).30 households. Long-term migrant heads of household were an average of 45.7 Nearly all migrants admitted illegal years, which is about four years older than entry, a lack of a work permit, and short-term migrant heads of households. a plan to stay for the long-term. As Similar age patterns are seen in the overall presented in Figure 8, more than 90 sample, with Thais averaging 29.1 years percent of the surveyed migrants entered versus 25 years for documented migrants Thailand illegally and lacked work permits. and 22.9 for undocumented migrants, However, about 80 percent are legal while long-term migrants averaged 25.2 residents and employed, and nearly all years and short-term migrants only 22.6 planned to stay in Thailand for more than years. Just under half (49.5%) of all Thais 10 more years. Planning to stay for over 10 years from now Legal resident Entered Thailand legally Job pre-arranged before arriving to Thailand Help finding a job received before arriving Help finding a job received after arriving Employed Figure 8 Having work permit Characteristics of Migrants Exited Thailand since arrival 0 20 40 60 80 100 Source: KDSS sample and World Bank “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey�. 28 The data presented is based on the KDSS sample in Kanchanaburi province of 400 Thai and 400 non-Thai households with 4,700 observations. 29 Long-term migrants are classified as those that have lived in Thailand for more than 10 years. 30 KDSS sample and World Bank “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey�. 14 Gaining from Migration Immigrant workers in Thailand have province, monthly wages ranged from lower earnings mobility and tend to shift 400–35,000 Baht for Thais, 500–22,000 jobs and work overtime. Research has Baht for documented non-Thai migrants, found that owing to the lack of upward and 1,500–6,000 Baht for undocumented income mobility in a particular job, migrant migrants. While the minimum monthly workers tend to change employers wages are similar, the maximum wages frequently to find higher paying work. Such of 35,000, 22,000, and 6,000 Baht for Thais, churning is more common among longer- documented migrants, and undocumented term migrants that have more established migrants, respectively, shows wide personal and professional networks, as well wage dispersion. Migrant wages in as having paid off any debts incurred while Kanchanaburi are lower (and the lowest for migrating. More experienced migrants tend undocumented workers) in all occupations, to seek jobs in larger and more export- with the exception of long-term agriculture oriented firms that tend to have higher pay (Figure 9). Furthermore, migrant wages and overtime work to increase their wages. are below the average wage for all but Migrants cite wanting to have better quality one occupation. As part of the qualitative (less demanding and higher paid) jobs survey, workers all stated that they and to live in urban areas.31 received the minimum wage, which is 215 Baht a day in Samutsakhon—employers Immigrant workers receive a lower interviewed stated that they would face average wage than Thai workers. work shortages if they offered a lower Research found that migrants generally wage. Undocumented workers reported receive lower wages than Thai workers, and lower wages, often based on output, such that payments are often less than expected, as number of fish or fruit processed. delayed, or withheld.32 In Kanchanaburi Baht Thai (N=99) Documented non-Thai (N=246) Undocumented non-Thai (N=36) Average 20,000 15,000 10,000 5,000 farming in rented casual labour long-term salaried personal business/ gathering forestry land or owned (farm and non-farm) agricultural/employees employment trading/ handicrafts product/trapping wild animals for selling Source: KDSS sample, IPSR 2011 report. Figure 9 Average Monthly Wage of Thai and Migrant Workers by Occupation, KDSS Sample 31 Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). 32 ILO (2006). ‘The Mekong Challenge – Underpaid, Overworked and Overlooked: The realities of young migrant workers in Thailand (Volume One)’. Bangkok, Thailand. 33 Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed); and Chantavanich, S. (2007) ‘Thailand Policies towards Migrant Workers from Myanmar’ Paper presented at the APMRN Conference at Fujian Normal University, Fuzhou, PRC. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 15 Migrants face higher unemployment subjective poverty may be attributed job security risks. In Kanchanaburi, to lower income and expenditure of unemployment was 4 percent for Thais, migrants. Thai per capita household 6 percent for documented migrants, and consumption averaged more than 2.5 17 percent for undocumented migrants. times more than documented and Among those employed, undocumented undocumented migrants (Figure 10). migrant workers mainly provide casual Thai households spend an average of labor, while documented migrants tend 4,800 Baht each month on goods and to have more than one job—except in the services as compared to 1,800 Baht for informal sector. On average, documented non-Thai households. There is near a migrants in Kanchanaburi worked tenfold difference on non-consumption fewer days than Thais, with 218 and products. Food, beverages, and tobacco 193 days respectively, but longer hours expenditures show a less severe each day (7.5 compared to 7.1 hours). difference of 3,400 Baht for Thais versus In the sample, 18 percent of Thais had 2,700 Baht for non-Thai households. As a job contract while no migrants held a is common among poorer households, contract, which made them ineligible for the largest expenditure item for migrants statutory employment security regardless is food and beverages, whereas the of their status. Qualitative research largest expenditure item for Thais is found that reasons for unemployment goods and services. included leaving an abusive workplace. One respondent reported being fired for Immigrants appeared less likely to participating in a migrant rights group.34 save or have debt. Savings can provide a source of funds for both planned and Compared to the local Thais in the unplanned contingencies, acting as a sample, migrants were twice as likely form of social protection. The research to think of themselves as poor; they showed that 58 percent of Thais saved also reported significantly lower versus only 13 percent of non-Thais. household expenditures. While 25 Despite a higher propensity to save, percent of Thais sampled perceived 60 percent of Thai households had debt their own household to be poor, 50 versus only 30 percent for non-Thais. percent of documented and 55 percent The lower savings and indebtedness of of undocumented migrant households non-Thais can be partly explained by their reported subjective poverty. The higher limited access to financial institutions. 8 6 4 2 Figure 10 Per Capita Household Consumption 0 5 6 7 8 9 10 log of per capita household consumption Thai Undocumented migrant Documented migrant Source: KDSS sample and World Bank “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey�. 34 Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed); and Qualitative survey of Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). 16 Gaining from Migration Migrants reported significantly lower such as easing transport (motorcycles assets ownership (Figure 11), which and cars), improving health, lowering the lowers their resilience to shocks and time spent for market visits (refrigerator), ability to make productive investments. and reducing information asymmetries In addition to providing an indicator of regarding product prices and public welfare, assets can provide an important services (televisions, mobile phones, and safety net as a source of wealth. For radios). As well as having lower stocks of example, assets can be liquidated or assets as safeguards, migrants appear to used as collateral for loans to finance have less ability to improve their well- catastrophic health expenses. Many being through productive asset use. assets can play a productive role as well, 100 Television Motorcycle Phone Refrigerator Stereo Car 80 60 40 20 0 Thai Documented Undocumented Source: KDSS sample and World Bank “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey�. Interestingly, immigrants in the other shocks for non-Thai households Figure 11 Kanchaburi survey reported relatively were more on parity. The research Asset Ownership by Household Type low perceived vulnerability. The survey showed 26 percent of Thai households asked respondents if they had endured reported economic shocks (9 percent economic, socio-political, consumption, or social and political), whereas 10 percent other vulnerabilities in the previous five of non-Thai households reported years. The survey included 18 possible economic shocks (6 percent social and shocks, including the unexpected loss political). Health shocks were reported of a job, crime, and major illness—47 substantial for both groups at about 20 percent of Thai households reported percent. The qualitative survey conducted vulnerability compared to 32 percent in Samutsakhon province (where the of non-Thai households (Table 4). Thai majority of migrants were short-term) households reported more economic and indicated a higher level of perceived socio-political shocks, while health and vulnerability among migrants. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 17 Household Vulnerabitity Non-Thai Thai Total Economic** - Yes 9.7 26.0 17.8 - No 90.3 74.0 82.2 Social and Political - Yes 5.7 8.5 7.1 - No 94.3 91.5 92.9 Health - Yes 17.9 19.2 18.6 - No 82.1 80.8 81.4 Others Table 4 - Yes 5.5 5.8 5.6 Percentage Distribution of Vulnerability by - No 94.5 94.2 94.4 Household Type Total (N) 100(402) 100(400) 100(802) Source: KDSS sample, IPSR 2011 report. Note: ** = significant at 1% level. Household Vulnerabitity Non-Thai (% income) Thai (% income) Total (N) Economic*** 31,917.4 81,053.9 67,653.1(143) (859%) (1,364%) Social and Politics 14,957.8 34,508.8 26,619.8 (57) (403%) (581%) Table 5 Health 16,927.9 44,024.8 30,931.0(149) Mean Costs (Baht) (456%) (741%) Incurred from the Shocks by Impacted Household Other 35,135.5 69,725.1 52,815.1(45) (% Monthly Income) (946%) (1,173%) Source: KDSS Sample, IPSR 2011 report. Note: *** = significant at 1% level. The average cost of shocks was twice that of non-Thai households, while reported near double for Thai Thai households paid near triple for health versus non-Thai households. Sizable shocks. The reason for the differences differences exist in all shock categories in reporting could be partially explained (Table 5). Non-Thai households had mean by differing thresholds and perceptions, costs of 32,000 Baht compared to 81,000 as well as by the length of migrant stay Baht for Thai households. The mean cost and local conditions (as illustrated by the incurred for Thais for social, political, and qualitative survey). other shocks were also approximately 18 Gaining from Migration 2. MIGRATION POLICY PERSPECTIVES Internationally, the gains from migration ECONOMIC EFFECTS OF 2.1.  are reported as significant; they are IMMIGRATION ON RECIPIENT projected to exceed the gains from further COUNTRIES liberalization in the trade of manufactured goods and agricultural products. The Recipient countries generally benefit benefits include reducing labor scarcity in from both skilled and unskilled migration. more developed countries from the more Available evidence suggests that migrants abundant labor supplies in lower income tend to have a positive impact on the countries, lessening skills gaps, facilitating recipient countries’ economy. Skilled human capital accumulation and diffusion, migrant workers, representing a ‘brain and adding the related productivity and gain’, can facilitate innovation, technological innovation.35 Similar to trade in goods, change, and spillovers. Unskilled migrants however, migration is often portrayed as tend to lower unit labor costs, benefitting having winners and losers in terms of particularly labor-intensive sectors, and domestic industries, jobs, and wages. allow domestic workers to shift to more productive jobs. The diversity of cultural The perceived impact of migration may and educational backgrounds can differ by constituencies. Policymakers reinvigorate businesses with differing in Thailand, Myanmar, and other GMS perspectives on business processes countries (similar to the rest of the world) and international markets. face challenges in balancing the often conflicting interests of key constituencies, Economic Growth a)  including firms and workers. The diverging interests can exert pressure on the policy Migration has increased economic growth process, resulting in reactionary, ad-hoc in EAP’s labor-receiving countries. At the decisions rather than strategic approaches firm level, analyses in Korea, Malaysia, grounded in empirical evidence.36 Singapore, and Thailand found that immigrant workers raise firm profitability, This chapter presents findings on the in spite of reducing workers’ training and impact of migration to contribute to the possibly slowing technological change ongoing policy debates in the GMS. temporarily.37 The recent analyses also The policy issues examined include (1) confirmed positive macroeconomic the economic impact of migration on labor effects of migration in labor-receiving receiving countries, particularly Thailand; countries.38 Countries that received more (2) the economic impact on labor sending migrants have experienced increased countries, such as Myanmar; (3) the production and returns to capital, which provision of public services for migrants; in turn encouraged more investment and and (4) migration management. the expansion of capital over time. The 35 Cattaneo et al, “International Trade in Services: New Trends and Opportunities for Developing�, World Bank, June 2010, p. 30. 36 Holzman, R ‘Presentation: International Labor Mobility: Migration: Determinants, Impact and Policy Issues�, Seoul, December 2011. 37. Pholphirul, et al. 2010 “Do Immigrants Improve Thailand’s Competitiveness?� World Bank Bangkok Office; and Bryant, J. and Rukumnuaykit, P. (2007) “Does Immigration to Thailand Reduce the Wages of Thai Workers?, Labor Migration in the Greater Mekong Sub-region�, The World Bank. 38 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 19 combination of the increased stock of long-term structural shift by freeing up labor and capital has generally led to domestic labor to work in more productive an increase in real GDP in labor-receiving sectors (Figure 12). The percentage of countries in EAP. domestic workers in the less productive agricultural sector declined from 30 to Immigration can support technological about 10 percent from 1986 and 2006. advancement in the long-term by While the percent of migrant workers in the freeing up domestic workers for sector also declined slightly, the number more productive jobs, particularly if of workers more than tripled. Malaysian accompanied by improvements in workers shifted to manufacturing, training and education. In the longer- as well as high-skilled services jobs, term, research in Thailand has not such as finance and real estate, where detected an expansion of low-skilled, the number of workers in high-skilled labor intensive sectors owing to services increased from 232,000 to technology stalling with most labor 700,000. Similar evidence runs against moving within and not between sectors. the technological stalling hypothesis, and In Malaysia migration—jointly with suggests significant benefits if migration efforts to improve the skills of domestic is combined with improved domestic workers—appears to have facilitated a education and training. Panel A: Distribution of Native Workers 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Agriculture, forestry, livestock and fishing quarrying Manufacturing and water Construction restaurant and hotels and communication business services and personal services Mining and Electricity, gas Wholesale and retail trade, Transport, storage Finance, insurance, real estate and Community, social 1986 1996 2006 Panel B: Distribution of Migrant Workers 45.0 40.0 35.0 30.0 25.0 Figure 12 20.0 Malaysia: Distribution 15.0 of Native and Migrant 10.0 Workers, 1986 to 2006 5.0 0.0 Agriculture, forestry, livestock and fishing quarrying Manufacturing and water Construction restaurant and hotels and communication business services and personal services Mining and Electricity, gas Wholesale and retail trade, Transport, storage Finance, insurance, real estate and Community, social 1986 1996 2006 Source: World Bank (forthcoming),� International Migration and Development in East Asia and the Pacific�. 39 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 20 Gaining from Migration Labor Market b)  should be more restrictive, while only 40 percent believed that migrants had a In the labor market, immigration positive effect on the economy. However, has been generally associated with 24 percent expressed support of migrants expanding employment and an and migration, with a wide difference in the ambiguous impact on wages. Studies share of supporters between Bangkok (60 on EAP and OECD countries found that percent) and the regions outside Bangkok immigration does not erode employment (20 percent). A 2006 ILO and UNIFEM opportunities of domestic workers: it report found that respondents generally can actually expand employment as it stated that Thailand does not need stimulates output. The impact on wages migrants in the agricultural and industrial seems less clear. High skilled domestic sectors.41 Representatives of firms in workers generally experience a wage Thailand, however, have recently expressed increase owing to increased economic concern about the negative consequences output and firm profitability. The wages from a possible decline in the number of of low-skilled domestic workers may have immigrants from Myanmar on the Thai decreased by less than 0.1 percent in labor-intensive industries (owing to the Thailand and by 0.1-0.3 percent in Malaysia, liberalization of Myanmar’s economy).42 depending on education levels. In contrast, immigration did not change wages in Korea Immigrants in Thailand appear to and increased wages in Singapore. The contribute considerably to economic latter two countries have strong migration output, employment, and firm management systems that allow them to profitability—particularly in labor- import labor in sectors with shortages. intensive sectors. Studies have shown Overall, the wage impact depends that migration supports localities by on whether international migrants are attracting labor-intensive industries and complements, where the effects are neutral investment, and it can have a positive or positive, or substitutes where foreign employment spillover by creating additional workers may compete with segments of jobs in these or supporting industries.43 the domestic labor force on cost or skills.40 In a qualitative survey in Samutsakhon, In Thailand, for instance, immigrants have even the Thai respondents acknowledged generally complemented the domestic labor the contribution of migrant workers to force because they filled the labor shortages job creation in manufacturing and the facing Thailand’s labor intensive industries. benefits from overtime wages in certain occupations.44 In Thailand, firms in In Thailand, similar to other countries, labor-intensive export industries such as the public may worry that migrants agriculture and manufacturing benefited ‘steal’ jobs and depress wages. In an from the lower unit labor costs, which ILO public opinion poll of attitudes towards have supported their competitiveness migrants and migration in Thailand in 2010, domestically and internationally.45 approximately 90 percent of respondents Research—using computable general stated that government migration policy equilibrium models and growth 40 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 41 The ILO poll was conducted as part of the Tripartite Action to Protect Migrants within and from the GMS from Labor Exploitation (TRIANGLE) with 1,000 respondents each in Thailand, Malaysia, Singapore and Korea. ‘Support of migrants’ is defined as having knowledge of migrants and non-discriminatory behavior. See also Beutin, R. et al (2006) Migration and Public Perception, Bureau of European Policy Advisers, European Commission; and The Nation, ‘The Effects of Low Skill Immigration on the Thai Labor Market’. 42 Wall Street Journal. April 2, 2012. “Myanmar Reforms Could Mean Tighter SE Asia Labor Market�. 43 Pholphirul et al. 2010 “Do Immigrants Improve Thailand’s Competitiveness?� World Bank Bangkok Office; and Bryant, J. and Rukumnuaykit, P. (2007) “Does Immigration to Thailand Reduce the Wages of Thai Workers?, Labor Migration in the Greater Mekong Sub-region, The World Bank�. 44 Qualitative survey of Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). 45 Pholphirul, P. “Immigration, Job Vacancies, and Employment Dynamics: Evidence from Thai Manufacturers� World Bank, 2010. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 21 accounting—estimate that the removal to operate more often at capacity and of migrant workers from the economy have overtime when demand increased. would decrease Thailand’s real GDP by 0.75-1.0 percent, and total employment by  CONOMIC IMPACT ON LABOR 2.2 E 5 percent. The declines are attributed to SENDING COUNTRIES AND RISKS higher wage costs and lower production, FACING IMMIGRANTS particularly in labor-intensive industries, that would accompany the removal of a) Economic Growth and Poverty migrants. In the agricultural sector, the exclusion of foreign workers is estimated to Emigration generally generates a decrease the sector’s output by 1.3 percent, positive impact on labor sending manufacturing output would contract by 1 countries through remittances. percent, and services output by 0.5 percent. Remittances raise household income At the firm level, the removal of immigrants and consumption, thus helping to reduce is estimated to reduce profits by 22 percent poverty in the short run. They can also with the increasing labor cost likely offsetting act as a form of social protection as well improvements in productivity.46 as a source of capital for investment. The probability of being poor in Indonesia, Migrant workers in Thailand provide for example, is around 30 percent lower labor in less desirable occupations. for remittance receiving households. The Among the nearly 1 million registered impact of remittances on human capital migrants, most workers are concentrated accumulation has been different across in agriculture and construction, with countries and dependent on gender, as each employing more than 150,000 mothers have been shown to more likely workers. Among the 813,000 registered to spend the remittances on education migrant workers from Myanmar, 18 of, and healthcare for, their children. percent work in agriculture and livestock, Among labor sending countries in EAP, 18 percent in services, and 17 percent remittance receiving households in the in construction. The 30 percent of the Philippines and Indonesia have been 63,000 Lao PDR registered migrants work likely to spend more on education as well in services, followed by 18 percent in as housing.49 In the longer-run, particular other categories. The 56,000 Cambodian circular migration and Diasporas can migrants are most concentrated in support positive structural changes in the construction with 25 percent of workers, economy through skills and technology followed by agriculture and livestock. dissemination and investments. Such These sectors are generally considered positive spillovers are particularly likely low-skilled, and have faced shortages in labor sending countries with a good of Thai workers, particularly in jobs that business climate. are dangerous, demeaning, or dirty (‘3D’ jobs). In the services sector, most The linkage between remittances and migrants work on the lower end of the economic growth in EAP countries has skills spectrum—complementing rather not been well documented. A forthcoming than substituting domestic workers.47 World Bank study that uses nine sending Employers in the qualitative study EAP countries suggests that remittances corroborated the benefits of migrant labor have a weak relationship with growth rates providing a larger and more stable supply of per-capita incomes and GDP in labor of labor, which allowed their factories sending countries. Similarly, although on 46 Pholphirul, et al. 2010 “Do Immigrants Improve Thailand’s Competitiveness?� World Bank Bangkok Office. Other studies use computable general equilibrium models and similarly find decreases in output, these studies include Sussangkaran (1996) and Pholphirul and Rukumnuaykit (2010). 47 Office of Foreign Workers Administration, Department of Employment, Ministry of Labor, 2011; and IOM, Thailand Migration Report, Bangkok 2011. 48 Qualitative survey of Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). 49 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 22 Gaining from Migration average remittances have a slightly positive  emittances to Myanmar b) R effect on savings and investment in labor- sending countries globally, the evidence for Surveys differ in their findings about the labor-sending East Asian countries is the volume of remittances sent by inconclusive. Moreover, a high reliance on Myanmar immigrants from Thailand. remittances may increase the labor sending In Kanchanaburi less than 3 percent country’s external financial exposure, of (generally long-term) migrants sent as well as contribute to exchange rate cash remittances across the border, appreciation with negative consequences with an average amount of 5,200 Baht for competitiveness. For remittance per year. All (generally recent) migrants receiving households, remittances can surveyed in Samutsakhon province, by serve as a disincentive for employment contrast, reported sending remittances to and labor force participation.50 Myanmar monthly, or every few months, with the purpose of supporting children While skilled emigration can have or enabling relatives to expand farming positive effects on labor sending or to start a small business in Myanmar. countries through Diasporas and the In another survey of Myanmar, about half circulation of ideas and technology of the workers in 12 Thai provinces sent dissemination, labor sending counties remittances that had a median value equal with more permanent and isolated to half of their median income. The survey emigration risk losses in human capital. of over 1,000 Myanmar migrants in 2003- Sending countries may suffer from ‘brain 04 found the aggregate ratio of annual drain’ if skilled workers permanently remittances to disposable income to be 38 emigrate without maintaining productive percent (comparable to the average 20-40 connections. The emigration rate of percent estimated among migrants in the university graduates is high in Lao PDR US and other countries). While only being (37%), Vietnam (27%), and Cambodia estimates, if extrapolated for all Myanmar (18%) and may indicate a more significant migrants in Thailand at the time, the ‘brain drain’ compared to Myanmar (4%), authors suggest the actual remittance flow China (4%), and Thailand (2%). Migrants may have been five times the official level. that do return, however, may introduce new The survey also found that the absolute innovations and capital into an economy amount sent increased with disposable with the Diaspora from China, southern income and that remittances declined with Vietnam—and more recently India— the duration of stay in Thailand. Among providing examples of return migrants that individuals living in Thailand five years have helped spur development in their or longer, remittances averaged around home country though entrepreneurship 19,000 Baht compared to about 8,500 skills, strong trade and investment ties, Baht for residents of 20 years and more.52 and capital accrued in other countries. For labor sending countries such an experience Respondents reported obstacles in represents ‘brain circulation’ as well as sending remittances to Myanmar. access to new financing sources.51 Such Constraints included the lack of proper gains often depend on the business climate identification documents among migrants, in labor sending countries as well as on high costs, the prevalence and preference policies to facilitate their ties with Diasporas, for informal channels, and efforts to avoid circular migration, and the eventual return of political interference for recipients.53 In the their skilled emigrants. qualitative survey, all respondents reported using informal networks. Significant portions 50 World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 51 World Bank Migration and Remittance Factbook 2011; and Newland, K. and Patrick, E., “Beyond Remittances: The Role of Diaspora in Poverty Reduction in their Countries of Origin�, Migration Policy Institute, 2004. 52 Turnell, S. Vicary, A. Bradfrod, W., “Migrant Worker Remittances and Burma: An Economic Analysis of Survey Results, Macquarie University, Sydney, 2008. 53 Turnell, S. Vicary, A. Bradfrod, W., “Migrant Worker Remittances and Burma: An Economic Analysis of Survey Results, Macquarie University, Sydney, 2008. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 23 of remittances were sent through barter. to support policy design, monitoring, The reliance on informal networks may and evaluation. Policies that support be contributing to illicit activity including the regularization of migration and trafficking and money laundering, and remittance flows at the bilateral levels may reduce Myanmar’s development include supporting the legal protection of gains from remittance flows.54 emigrants, simplifying the identification and registration process of migrants, and As has been demonstrated in countries lowering the cost for other countries to hire such as Tajikistan, remittances can have migrants. The GMS countries (Myanmar a large development impact with well- in particular, given the small current role of designed policies. There is considerable remittances) can use these international scope for countries such as Myanmar practices to increase both the volume and to increase the development impact of the development impact of remittances. remittances. Tajikistan was successful in this regard as it transitioned to a market Further research is needed to better economy, reaching remittances of about understand and to address Myanmar’s 21-28 percent of GDP in 2004 depending existing remittance constraints. A on the methodology. The poverty impact stronger evidence base could be built was significant with migrants earning an through a nationally representative average of 10 times higher abroad and migration and remittance survey module remitting approximately half of those that includes not only questions about earnings.55 The remittances increased the reasons for sending and not sending consumption, spending on health remittances but also questions about education, and savings of recipient the reasons for using formal or informal households. The longer-term impact channels for remittances and migration. was lower due to limited opportunities for productive investments, which was Risks Facing Emigrants c)  constrained by an unfavorable business environment for small and medium sized Emigrants face a number of non- businesses. International experiences economic risks, such as exploitation show that countries have increased the and trafficking. Migrants, particularly if development impact of remittances by (a) irregular, can be exposed to a number of facilitating a pro-business environment non-economic risks. Migrants may face through macroeconomic stability and abuse by employers, such as strenuous simplifying licensing; (b) financial sector or dangerous tasks and long work hours. strengthening to increase savings and Individuals lacking documentation have investment of remittances (including weak bargaining power and are likely to supporting banking competition and fear arrest or deportation, which increases the introduction of international banks the likelihood of exploitation. The GMS to increase technological development and Indonesia are the two main hubs for to lower fees and to increase trust in human trafficking in EAP, with Thailand the banking sector), improving financial being both a significant destination and literacy among citizens, and scaling-up of source country. A portion of female and the remittance services of microfinance male migrants in the region are affected institutions; and finally (c) improving by human trafficking, including forced statistics on formal and informal remittances labor, sex trafficking, debt bondage, and child labor.56 54  Adams and Page, “Do International Migration and Remittances Reduce Poverty in Developing Countries?� World Development, 2005. 55 World Bank. 2006. “Tajikistan Policy Note: Enhancing the Development Impact of Remittances�. Washington DC. 56 IOM, “Thailand Migration Report� Bangkok, 2011; and World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 24 Gaining from Migration Some migrants in Thailand, particularly if they changed jobs; and that they fear recent arrivals, indicated a relatively to report exploitation by employers .58 high level of vulnerability in relation to their employers, brokers, and police. PUBLIC SERVICES FOR MIGRANTS 2.3  The majority of short-term migrant workers interviewed in the qualitative survey in Although often contested, the provision Samutsakhon reported greater vulnerability of public services for migrants can than the long-term migrants interviewed in increase short-term worker productivity the quantitative survey in Kanchanaburi. and longer-term human capital In the qualitative survey, migrants reported development. Many developed and being fearful of arrest, which can result developing countries face the challenge in deportation and of payments to police of providing adequate coverage and quality ranging from 6,000 to 10,000 Baht. If these of social services for their own citizens; payments are made by the employer, it therefore, extension to migrant workers could lengthen the period of debt bondage. and their families can be met with some Others have experienced under-payment resistance. Cost-benefit exercises should or excessive working hours. In some account for both the economic contribution instances, migrants stated that brokers of migrants and the productivity gains provided them with false work permits from improved health and training. Public and health insurance cards, which excluded services such as health and education them from entitlements.57 increase the human capital of migrant youth, which is in the national interest if Media has reported the mistreatment of many migrants are permanent. There are immigrant workers by employers who also rights-based agreements regarding withhold their documentation—including the provision of social services, as well as registration and health cards—to prevent the concept of a social contract whereby them from leaving. Such practice is more in exchange for contributing to a society, prevalent among irregular immigrants, who it is argued that such services are both an are more likely to be in debt bondage and obligation and can increase social cohesion. their employers may share immigration costs with brokers; in consequence, these Access to social services has been employers seek to keep immigrant workers improving in the GMS but challenges until these expenses have been repaid. persist. Thailand’s ‘Education for All’, universal healthcare, and healthcare for The Thai work permit provision that migrants initiatives have raised school prevents regular migrants from enrolments of migrant children and changing employers was cited as migrants’ access to essential healthcare.59 a source of exploitation. Regular Migrants, however, still face obstacles in immigrants indicated that the rigidity access to essential social services. The of work permit rules that prevent them Kanchanaburi survey provides an illustration from changing jobs and locations was a of the remaining gaps: they remain primary source of their non-economic risk. particularly wide in social protection with Employers held leverage over migrants non-education government loans (received owing to not only the exclusivity of the by 1 percent of migrants compared to 31 relationship but also the fear of migrants of percent of Thais), education loans (1 percent losing their official status. In the surveys compared to 11 percent), living allowance conducted for this report, some immigrants for the elderly (0 compared to 20 percent), reported that employers keep their work and social security (0.3 percent compared permits; that brokers threatened to report to 7.5 percent). These protections remain them to the police out of reach for most migrants.60 57 Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). 58 Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). 59 IOM, “Thailand Migration Report� Bangkok, 2011; and IOM, “IOM, Cambodian Ministry of Health, Strengthen Migrant Health Services in Border Areas�, 2010, http://www.iom.int/jahia/Jahia/media/press-briefing-notes/pbnAS/cache/ offonce/lang/en?entryId=28071 60 KDSS sample and World Bank “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey�. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 25 Health Care a)  dependents of regular migrants are not eligible for health insurance cards, and they Policy and other factors have led to lower pay for public services out of pocket. access to healthcare for regular and irregular migrants and their dependents. In the sample, health coverage ranges The Ministry of Public Health has required from complete coverage for Thais, to 64 registered migrants to purchase health percent for documented migrants and insurance cards since 1998 at a cost 6 percent coverage for undocumented that currently approximates 1,300 Baht migrants. The majority of Thais and (US$40). Despite the requirement, nearly documented migrants are covered by the half of registered migrants did not apply Universal Coverage (UC) scheme, while for cards in 2004-06, which made them Thais also receive coverage through the ineligible for health benefits. In other Social Security Scheme (SSS) and Civil instances, employers have withheld health Servant Medical Benefit Scheme (CSMBS), cards to forcibly retain workers, or brokers thereby providing some Thais with more have issued fake cards and work permits, than one source of health coverage (Table making some regular workers ineligible for 6). Health coverage is lower for migrants, health insurance. Irregular migrants and particularly undocumented, and increases vulnerability. Utilization of outpatient care is similar across the groups. Mean Thai (N=471) Non-Thai-documented Non-Thai-undocumented Total (N=908) (N=389) (N=48) CSMBS 8.5% 0.0% 0.0% 4.4% SSS 13.2% 1.3% 0.0% 7.4% UC 76.9% 57.6%* 6.3% 64.9% Table 6 Entitlement to Health Migrant Health Card 0.0% 4.4% 0.0% 1.9% Benefits/Insurance Others 5.5% 0.5% 0.0% 3.1% (N = 908) Total 104.0%** 63.8% 6.3% 81.6% Source: IPSR 2011 report. Note: * Estimated health cards sold at local hospitals to the non-Thai residing in the area for provision of basic care. ** Multiple responses allowed. 100% 1.2% 1.5% 1.4% 3.1% 2.0% 3.4% 1.3% 4.6% 16.2% 17.6% 19.6% 100% 22.4% 80% 2.9% 5.9% 3.4% 4.0% 60% 25.1% 22.1% 29.3% 96.6% 100% 90.0% 86.0% 40% 76.5% Figure 13 Method of Treatment 45.9% and Hospitalization for 20% 35.1% 55.9% OP and IP Sickness by Nationality 3.4% 1.8% 2.0% 0.0% 0% Thai NT-doc NT-undoc Total Thai NT-doc NT-undoc Total (N=174) (N=136) (N=17) (N=327) (N=51) (N=30) (N=1) (N=82) OP sickness IP sickness Do nothing Self medication (drug store) Health center Private clinic/polyclinic Public hospital Private hospital Other Source: KDSS sample, IPSR 2011 report. Note: OP = outpatient, IP = inpatient. 26 Gaining from Migration Health seeking behavior varies among support, compared to 28 and 30 percent Thais and migrants, with Thais more for documented migrants respectively, likely to use public services. The and almost no support for undocumented quantitative study found that Thais were migrants. Compared to Thais, the financial most likely to use public health services, burden of ill health is nearly six times higher while documented and undocumented for documented migrants and seven times migrant workers were more likely to higher for undocumented migrants. For use private health facilities (Figure 13), healthcare, Thais paid an average of 12 reporting concerns of arrest, cost, Baht per 1,000 Baht of income, compared language barriers, and discrimination. Both to over 60 and 70 Baht paid by documented documented and undocumented migrants and undocumented migrants, respectively used self-medication more regularly at 56 (Figure 14). The proportion of households and 77 percent, respectively as compared that experienced catastrophic health to 35 percent of Thais. expenditures (defined as equal to or above 40 percent of annual income) was 7 percent Financial risk in health appears more among Thai households and 16 percent significant among migrants. Among among migrant households in the sample. Thais, 55 percent of outpatients and 67 percent of inpatients received financial Baht 80 60 40 20 Figure 14 Average Health Expenses for Care per 1,000 Baht Income 0 Thai NT-doc NT-undoc Total Source: KDSS sample, IPSR 2011 Report. b) Education Thailand has achieved major jumped to almost 30 percent among improvements in promoting access children aged 5-14. Currently, regardless of migrant children to education. In of cultural and language challenges,61 2004, of the estimated 200,000 migrant school enrolment of both documented children defined as those under the age and undocumented migrant children aged of 17 in Thailand, the IOM estimated that 7-10 appears universal. The findings less than 7 percent attended school. of the quantitative survey confirm this Following the adoption of the ‘Education conclusion (Figure 15). for All’ initiative in 2005, this figure quickly 61 Among the IPSR KDSS sample only 10-13% of migrants spoke Thai as compared to 72% for Thais. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 27 100 90 80 70 60 50 40 Figure 15 30 School enrolment by 20 years completed and migration status 10 0 7 8 9 10 11 12 13 14 15 16 17 18 Total Years Thai NT-doc NT-undoc Source: KDSS sample, IPSR Report. Challenges remain for children beyond 15). The decline in school enrolment primary education. The sample of during teenage years among documented more than 1,200 children aged 7-18 migrants is less severe but still pronounced. years in the Kanchanaburi Demographic Consequently, at the age of 17, Thai Surveillance System (KDSS) survey children average the completion of over 11 shows a sharp decline in non-Thai years of schooling compared to less than attendance, particularly for children in eight years completed by migrant children in non-documented migrant households. Thailand (Figure 16). Moreover, low school The enrollment of undocumented migrant attendance among teenage migrant children children 15 years old is approximately may have contributed to the occasional half of that of Thai children in the sample complaints of the poor social behavior of and drops to one-third at age 17 (Figure migrant children.62 14.0 12.0 11.4 10.1 10.2 10.0 9.7 8.7 8.3 7.5 7.9 8.0 7.5 7.3 6.4 7.0 6.6 7.4 6.8 years 5.7 6.0 5.3 5.0 5.1 6.0 4.4 3.6 3.8 4.0 3.7 5.0 4.0 3.3 2.6 2.9 2.1 Figure 16 2.5 2.9 2.0 2.5 Average Years of 2.0 Completed Schooling by Age and Migration Status 0.0 age 7 8 9 10 11 12 13 14 15 16 17 18 Thai NT-doc NT-undoc Source: KDSS sample, IPSR Report. 62 International Organization for Migration and et al. (2008). “Situation Report on International Migration in East and Southeast Asia:� Regional Thematic Working Group on International Migration including Trafficking; and Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). 28 Gaining from Migration The challenge of keeping migrant The bilateral and multilateral character children in school beyond the primary of migration has complicated the level reflects several factors. First, the development of effective migration education of parents tends to be lower management systems. There are few in migrant households compared to Thai instances of both recipient and sending households. In the sample, the head countries having mutually agreed upon of the Thai household averaged close migration policies. Recipient countries are to five years of education compared more likely to have more resources and to two years of education for migrant interest in managing incoming labor flows, households, regardless of their registration while sending countries may have less status. Second, migrant children arriving incentive or capacity to manage emigration. to Thailand after completing primary There are currently few recipient countries school in their home countries (which with well-articulated polices; however, there appears to be a common practice) face is positive action in this direction, most more pronounced cultural and language notably the Stockholm Programme in the obstacles, and may require special EU. There are even fewer sending countries assistance in order to enter the Thai with robust migration management (the school system. Third, migrant children Philippines being one of the few exceptions). tend to enter the labor force at the age of Conflicting and unclear interests remain 14-15 years, which corresponds to the end a central issue, as countries often have of compulsory education in Thailand. 63 difficulty formulating migration polices that fulfill the economic, social, and political 2.4  MIGRATION MANAGEMENT interests of national stakeholders. A weak evidence base, misunderstandings, Migration management presents a and misreporting further impede policy challenge in most countries striving formulation and implementation.64 to increase migration gains. Often, countries find it difficult to align their Effective migration management requires migration policies with the broader balanced approaches across ministries economic development objectives, to in both labor receiving and sending coordinate across policies and institutions, countries. Good practice labor market and to manage the diverging interests of approaches in sending countries include stakeholders. This section reviews the pre-departure training, as is done in the main challenges faced and offers possible Philippines, while receiving countries may solutions that could be tailored based on facilitate job placement. In the social sectors, country contexts. good practices include the public awareness building regarding migrants’ eligibility for a)  Migration Management Worldwide social services, the portability of benefits, and the transition of returning migrants to Most countries lack clearly articulated the domestic social service delivery systems. and comprehensive, objective-driven Table 7 provides more examples. migration policies. Migration policies tend to be reactive and driven by political Migration policies may have long-term expediency rather than by strategic socio- consequences. Migration policies that economic goals aligned with the national target low-skilled or less educated workers development strategy. An objective- (termed ‘negative selection bias’) may driven migration strategy along with have detrimental long-term effects on robust monitoring and evaluation reorient human capital accumulation, and countries migration policy to a proactive stance that may want to balance the type of workers allows for more rapid refinements to meet that immigrate as well as provide support a country’s objectives. of public services and facilitate integration in the host country. For instance, without 63 Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed). 64  Holzmann, R. and Pouget, Y. “Toward an Objective-Driven System of Smart Labor Migration Management�, World Bank, December 2010. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 29 benefitting from any targeted support, in occupations where domestic skills are children of Europe’s guest workers (recruited limited, which can support more dynamic in the 1950s from rural and low-income economic growth. The public perception areas of other European countries) exhibited of migration, however, may impact efforts lower educational performance than their for selecting migrants, particularly among compatriots back home. Reasons for workers that may face greater competition. the lower attainment included difficulties In the US in 1995, 70 percent of high for immigrants to integrate in their host school dropouts wanted to restrict countries. In contrast, in the US, partly immigration compared to only 48 percent owing to less pronounced migration with graduate education, largely because selection bias and wide immigrant support most immigrants were low-skilled and networks, migrant children have performed competed with domestic workers. better compared to peers in their origin Accordingly, public support for immigration country. Selective migration allows countries tends to be higher in complementary rather to recruit workers with high human capital than substituting jobs. 65 Sending countries Receiving countries Migration Develop policies to align economic benefits of management temporary and long-term migration with country development strategy, and to meet the essential needs of temporary and long-term migrants Remove barriers to seasonal or temporary migration through lowering the cost and bureaucratic barriers, and allowing registered migrants to return in future years Facilitate the return of migrants and prevent overstaying Involve employers, develop cost-sharing mechanisms to balance migration incentives Widen formal channels for remittances Employment Screen potential emigrants In collaboration with employers, annually estimate Provide pre-departure training the type and number of migrants needed Facilitate regular migration by reducing the cost Facilitate information sharing, job placement, and of formal channels, and incentivizing workers worker protection and employers to use them For returning migrants, facilitate their reintegration in the domestic labor market (e.g. job placement) Education, Facilitate nutrition, health care and education of Specify migrants’ social service entitlements health and social migrants and their children Raise migrants’ awareness of their service protection Support access to and portability of benefits, eligibility Table 7 including health insurance, pensions, and Remove administrative barriers in migrants’ Good Migration unemployment insurance by establishing access to services (e.g. avoid documentation Management Practice agreements with receiving countries withholding) Examples in Sending and Facilitate transition of returning migrants and Consider automatic enrollment of migrants and Receiving Countries their household members to the domestic social their household members in programs to access service systems essential social services Source: Authors, based on Holzmann, R. and Pouget, 2010. Effective management regimes seek also articulate social service and other to avoid a negative human capital responsibilities of sending and recipient impact. Good practice migration policies country governments, employers, migrants, specify objectives for temporary or and other stakeholders. Approaches tend circular migration as well as longer-term to differentiate among migrants according migration in line with country development to their length of stay—longer-term migrants objectives. Good practice migration polices would receive more extensive coverage.66 Dronkers, J and de Heus, M. “Negative Selectivity of Europe’s Guest Worker Immigration? Educational Achievement 65  of Immigrant Children Compared with Native Children in Their Origin Countries�, Research Centre for Education and the Labor Market, Maastricht University, The Netherlands, and Stockholm University, Swedish Institute for Social Research), Sweden, 2010; and Borgas, G. Heaven’s Door: Immigration Policy and the American Economy, Princeton, New Jersey, 1999. Holzmann, R. and Pouget, Y. “Social Protection for Temporary Migrant Workers: Conceptual Framework, Country 66  Inventory, Assessment and Guidance�, World Bank and Marseille Center for Mediterranean Integration, 2010. 30 Gaining from Migration Migration Policies, Institutions, and b)  slower than expected, with obstacles Management in the GMS remaining in the implementation of the MRAs.68 Labor mobility, specifically for skilled workers, is becoming a regional policy priority, particularly in the ASEAN Migration policies in the GMS draw on context. In 2007, the ASEAN countries multilateral agreements and bilateral adopted the ASEAN Economic Blueprint MOUs. The GMS involves 14 sub- to accelerate regional integration in the regional cooperation frameworks, which ASEAN Economic Community (AEC)67 include ASEAN clauses pertaining to with the free flow of skilled labor as a key the movement of specific high-skilled objective, linked to the liberalization of occupational groups by 2015, increased services and investment flows. student mobility, and efforts to establish MRAs for skills competencies so that The AEC efforts for skilled labor include certified individuals can more easily work establishing Mutual Recognition in other countries. The GMS countries Agreements (MRAs) for priority service generally recognize the importance sectors, easing visa and work permit of increasing cross-border labor and restrictions, and increasing mobility of capital mobility, and many of the GMS university professionals and students. countries are party to regional and UN Progress toward the proposed free flow of conventions on human rights and labor skilled labor in ASEAN, however, appears conditions.69 These include bilateral The Korean Employment Permit System (EPS) has been recognized by the UN in 2011 as the best system for minimizing public service corruption, as well as being lauded for its effectiveness in managing immigration. The EPS is an immigration system that has the objectives of relieving SME work shortages, increasing regular migration and transparency, responding to employer demand and protects migrant rights. The EPS uses MOUs with 15 countries (all GMS countries included except for Lao PDR) as a legal framework and has been managed by the Department of Labor. Since the introduction of EPS in 2004, when it improved upon its predecessor, it has lowered sending costs by 2/3 ($2,000), decreased absentee workers from 50 percent to 3 percent, and lowered violations of labor laws and irregular recruitment. The EPS hiring process is transparent for selecting workers, which benefits sending and recipient countries. Sending countries select qualified workers, while Korean employers decide on the number and profile of migrants needed. The selected workers sign a labor contract that includes the wage and working hours, and workers complete a minimum of 20 hours of training upon arrival. Immigrants are afforded equal protection as national workers under labor laws, and the government conducts regular inspections to ensure satisfactory working conditions. Immigrants benefit from greater legal protection and the diminished role of informal broker networks. Workers receive relatively good social protection coverage, including national health insurance and industrial accident insurance if a company hires more than one worker; employment insurance if more than four workers are hired in agriculture, forestry, fishery and housekeeping; and national pension if the sending country has a reciprocal agreement. From an economic standpoint, the EPS is well designed as it adapts to labor demand and increase worker selectivity. The system has built-in flexibility, including a quota for the number of foreign workers based on Box 2 the economic and labor market conditions in Korea. There is also close coordination with other government Korean Employment agencies to prevent overstaying. Korea as the recipient is able to improve selectivity of workers and have Permit System: Good a more complementary than substitute effect, such as having skills in industries lacking sufficient domestic Migration Management labor, while requiring Korean language proficiency to help integration. Practice The AEC consolidates previous agreements, notably the ASEAN Free Trade Area, the ASEAN Framework Agreement 67  on Services, and the ASEAN Investment Area. The AEC Blueprint provides a binding agreement for Member Countries with 176 priority actions by 2015. Soesastro. “Implementing the ASEAN Economic Community (AEC) Blueprint�, ERIA, 2007, pp. 48-49; Yue, Chia Siow, 68  “Free Flow of Skilled Labor in the ASEAN Economic Community�, ERIA and Singapore Institute of International Affairs, 2010; and ASEAN, “ASEAN Economic Community Scorecard�, Jakarta, March 2010. GMS countries, as WTO members, are expected to follow the WTO’s General Agreement on Trade in Services (GATS), 69  which seeks to liberalize the trade in services with Mode IV addressing movement of people. WTO, “The General Agreement on Trade in Services (GATS): Objectives, Coverage and Disciplines�, http://www.wto.org/english/tratop_e/ serv_e/gatsqa_e.htm Migration Trends and Policy Lessons in the Greater Mekong Sub-region 31 MOUs and an ASEAN declaration to implementation, and they are not explicitly combat trafficking in the GMS. Most linked to its national development plan.73 GMS countries have bilateral MOUs that Overall, however, Thailand has managed focus on low-skilled labor and irregular migration relatively well as evidenced by migration (also being discussed through the continued absorption of increasing the Bali Process).70 Bilateral migration numbers of immigrants and their ongoing agreements implemented by South Korea regularization and improving access to have been seen as good practice in EAP services. A central migration authority for migration management (Box 2).71 could further improve coordination. GMS countries tend to promote Thailand has gradually moved to a more emigration of low-skilled workers strategic approach to migration. Thailand and restrict employment of foreign witnessed an influx of immigration during workers. Among labor sending countries, its economic boom in the late 1980s and Vietnam and Myanmar actively promote 1990s, before it began formulating polices emigration through bilateral agreements. to address problems such as the lack Following the recent financial downturn, of control over irregular migration. What as well as following the 1997-98 financial has ensued has been a series of acts and crisis; however, GMS countries increased revisions to government policies generally restrictions on foreigner employment. more focused on addressing short- In Thailand, subsequent shortages for term issues than fostering longer-term low-skilled workers contributed to policy development. Efforts have been punitive reversal. Restrictions are common in in the past; they included deporting recipient countries, particularly in skilled workers that lacked legal status, though occupations such as accountants, more recent initiatives have sought to lawyers, and engineers.72 induce formalization. These past efforts have had mixed success as the costs Thailand’s migration management has have often been placed on employers and been making commendable progress. migrants, so incentives for evasion were At the international level, Thailand is party high. A more sector based approach for to the WTO and ASEAN agreements and registration was used after 2000, and in has MOUs with its neighboring countries. 2001, the National Committee on Illegal As most migrants do not use the MOU, Worker Administration was established; the Thai government has used cabinet consequently, since 2004, the government acts and, since 2004, the Nationality has been more proactive to register Verification (NV) initiative to increase the workers, as well as to extend social share of regular migrants. As in many services (with mixed success). Recent NV developing countries, Thailand’s migration efforts have increased the registration of policies lack some cohesion in design and irregular migrants.74 70  Mekong Migration Network, “Migration in the Greater Mekong Sub-region� 2008; and UNESCAP, “Economic Cooperation and Regional Integration in the Greater Mekong Sub-region (GMS), September 2008. 71  Yue, Chia Siow, “Free Flow of Skilled Labor in the ASEAN Economic Community�, ERIA and Singapore Institute of International Affairs, 2010; and Dee, Philippa “Services Liberalization Towards an ASEAN Economic Community�, ERIA and Australian National University, 2010. 72  UNESCAP, Migration Patterns and Policies in the Asian and Pacific Region, 2003; World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�; IOM, “Thailand Migration Report� Bangkok, 2011. 73  The Tenth National Economic and Social Development Plan in Thailand, for example, recognizes the need to better adapt to great migration flows associated with globalization, however there is little detail on how to address such labor migration issues. Furthermore, most references are for retaining or attracting high-skilled workers with no mention of low-skilled workers that compose the majority of the migrants workforce. See also “International Migration in Thailand 2011�, Bangkok 2011. 74 Holumyong, C and Punpuing, P “A Cost Benefit Analysis of the Migrant Status of Migrants�, Institute for Population and Social Research; and IOM, “Thailand Migration Report� Bangkok, 2011. 32 Gaining from Migration Further improvements in migration a permit included the perception that it frameworks in the GMS are expected. was not needed (71 percent), a lack of There have been proposals in some knowledge of the procedures (12 percent), countries, including Thailand, to have one and the concern that the process was too central agency coordinate migration policies expensive (6 percent). Close to 80 percent and their implementation across ministries. of those holding a work permit received it in At the sub-regional level, governments and less than three months and the average cost development organizations such as the IOM, was 2,700 Baht. the ILO, and the United Nations Inter-Agency Project on Human Trafficking in the Greater The associated broker networks hinder Mekong Sub-region (UNIAP), and NGOs efforts toward the regularization of such as the Mekong Institute have been migration. The vast network of illicit supporting policy dialogue and coordination migration in the GMS slows efforts for across countries.75 Initiatives at the ASEAN formalization owing to strong vested level are expected to contribute gradually to interests to keep the status quo and to increased coordination, starting with specific benefit from the rents gained from irregular segments of skilled migration. migration. The irregular networks include many stakeholders, including traders, c)  Migration Formalization in the GMS officials benefiting from bribes, migrants that often find irregular migration less time Irregular migration is common in EAP consuming, and businesses that are able and the GMS, where perhaps a majority to access low cost labor without needing of migrants lack legal status or work to provide benefits. Consequently, any effort permits. Irregular migration remains a to support formalization requires a strong major economic, social, and security issue. capacity to enforce laws and to implement Examples of large irregular cross-border policies.77 Studies have found that some flows include Malaysia with Indonesia Thai employers openly cooperate with and the Philippines, and Thailand with brokers, or take a laissez faire approach neighboring Cambodia, Lao PDR, and of not checking worker status owing to Myanmar. Thailand’s long and porous the general lack of enforcement. borders with lower income GMS countries make enforcement impossible without Frequent policy changes raise measures to increase the attractiveness uncertainty for migrants and of formal (as opposed to informal) migration. businesses and thus impede migration Possible measures include keeping regularization. Rules for irregular and regularization barriers low, improving legal regular migrant workers have been and social protection for migrants, and revised nearly on an annual basis in enforcing punitive measures against brokers, Thailand and have lacked predictability. employers, and others as a deterrent.76 Employers and migrants face difficulty understanding migration policy and have The perceived benefit of regular status cited inconsistent policies as a significant seems low. Only 9 percent of migrants obstacle to migration regularization. surveyed in Kanchanaburi province have Further, there have been frequent changes a work permit. Strikingly, only 2 percent of in the division of responsibilities for respondents planned to apply for a work migration policy and its implementation permit. The main reasons for not having across agencies. There have been a series 75 UNESCAP, “Migration Patterns and Policies in the Asian and Pacific Region�, 2003; World Bank, (forthcoming). “International Migration and Development in the East Asia and Pacific Region�; and IOM, “Thailand Migration Report� Bangkok, 2011. 76 IOM, “Thailand Migration Report 2011, Migration for Development in Thailand: Overview and tools for policymakers “, Bangkok, 2011. 77 Holzmann, R. and Pouget, Y. “Admission Schemes for Foreign Workers: A Labor Market Tool for National Economic Development� World Bank, October 2011. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 33 of cabinet acts in the past two decades The MOU process creates considerable to increase regularization to complement disincentives between migrants and the two primary laws being the 1978 Alien employers. Thailand’s current MOUs with Employment Act and 1979 Immigration neighboring countries (signed in 2002 and Act. There have been innovative initiatives 2003) aim to address the negative effects of to increase regularization in 1992, 1996, irregular migration and boost regularization. 1999, 2001, 2004 and recently nearly Thai employers submit a request for annual registration periods. workers using authorized brokers. Fees are imposed on both the workers and The first effort to register irregular workers employers. Workers are required to stay was in 1992 that sought to provide with their assigned employer and in their temporary permits for Myanmar workers assigned province. Employers complain in select provinces—however few tried that the process is slow. Employers also to register. A 1996 cabinet resolution worry that workers may flee, which would sought to regularize irregular workers from make the fees paid upfront a loss. The neighboring countries if they registered qualitative survey conducted for this study and applied for a work permit, and over indicates that employers and brokers may 300,000 registered and 240,000 received place immigrant workers in debt bondage work permits. In 1999 a quota system was as a result. Partly reflecting these problems, initiated to limit the number of registered Cambodia and Lao PDR have met about workers. In 2001 a cabinet resolution only 10 percent of Thailand’s requested allowed employers in all sectors to register number of workers though the MOU their workers with no restrictions on process. Many workers have opted to use province or job type, which led to nearly informal networks to save money and time 570,000 workers registering and 410,000 and to avoid possible debt bondage and renewing the following year. In 2004 a exploitation.79 campaign sought to regularize as many workers and their families as possible, In Thailand, the Nationality Verification providing registered foreign workers represents a positive step toward an ID card that allowed temporary stay regularization. Under the NV process, the and temporary work permits led to 1.28 Thai government requests the governments million migrants applying and 840,000 of neighboring countries verify the nationality migrants registering, as well as 250,000 of migrant workers in Thailand. Upon employers registering. In the past few confirmation, workers are required to obtain years, registrations generally occur annually, travel documents and return to their home though the registration period is only one country to receive identity cards. While the month. The most recent registration process percentage of migrants completing the NV was in 2011, for migrant workers and has since increased, Table 8 shows progress children under 15 years old. Individuals as of the end of 2010, with less than 40 that entered the country illegally could percent completion by eligible migrants register; however, their registration card from Myanmar. Efforts to increase NV have indicates their illegal status and that they included having more officials from sending are pending deportation.78 countries establish offices in Thailand; however, only Cambodia has consistently done so with most of Lao PDR’s workers 78 Institute for Population and Social Research’s “Study of Migrants from Myanmar in Thailand� (processed); and IOM, “Thailand Migration Report 2011, Migration for Development in Thailand: Overview and Tools for Policymakers “, Bangkok, 2011. 79  Memorandum of Understanding Between The Government of the Kingdom of Cambodia AND The Government of the Kingdom of Thailand on Cooperation in the Employment of Workers, 2003; Memorandum of Understanding Between The Government of Lao People’s Democratic Republic AND The Government of the Kingdom of Thailand on Labor Co-operation, 2002; Memorandum of Understanding Between The Government of The Kingdom of Thailand AND The Government of the Union of Myanmar on Cooperation in the Employment of Workers, 2003; Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed); and IOM, “Thailand Migration Report 2011, Migration for development in Thailand: Overview and tools for policymakers “, Bangkok, 2011. 34 Gaining from Migration needing to return home. There are more to travel to their home country can concerns among Myanmar workers, who lead to substantial costs in terms of fear that going through the NV process transportation, forgone earnings, and may result in Myanmar officials forcing the possible need to use brokers for relatives in Myanmar to provide a share arranging transportation and employment of their remittance income, while others upon return. The limited NV time window, are concerned of arrest or having to pay usually one month, was commonly cited bribes upon returning to Myanmar to as a reason why individuals lacked regular register. Moreover, the requirement under status.80 the NV process for irregular immigrants Nationality Eligible for NV, Feb 2010 Completed NV process, Not completed NV process, Dec 2010 Dec 2010 Cambodia 56,479 45,417 (80.4%) 11,062 (19.6%) Table 8 Lao PDR 62,792 34,999 (55.7%) 27,793 (44.3%) Status of Nationality Verification as of Myanmar 812,984 308,090 (37.9%) 504,894 (62.1%) December 2010 Total 932,255 388,506 543,749 Source: IOM, “International Migration in Thailand 2011�, Bangkok 2011. The 2008 Alien Employment Act in The perceptions of the economic and Thailand sets the framework for regular social cost of migration by the different immigration of low-skilled workers. stakeholders influence the process of The Alien Employment Act establishes formalization. Table 9 presents scenarios the legal guidelines for authorized migrant for the fixed economic cost of recruitment workers, including their rights and of migrant workers, the perceived social obligations. Under the act, workers can cost in labor receiving countries, and obtain work permits lasting two years, the associated policy emphasis. The which are renewable for a maximum of four primary design considerations four years. The act also stipulates that are cost, choice of workers, circularity, employers can be fined up to 100,000 and commercial viability. Higher baht for employing undocumented costs of migration constrain efforts workers. The law lists 36 types of jobs and for regularization among low income 43 provinces for workers from neighboring workers. High costs are a regularization countries. While not yet approved, there is disincentive for both firms and migrants a requirement for workers and employers in Thailand. The choice of workers refers to contribute to a deportation fund, which to the skills of workers and matching is refunded if workers pay for their own them with proper employment to passage. Migrant workers must present avoid abuse of the migration system their work permit to provincial authorities by over or under-qualified workers. every three months, and the permit is Circularity—the ease of migrating renewed annually subject to a 1,900 once or in the future—also helps avoid baht processing fee, a 600 Baht medical irregularity. Good migration schemes checkup, and a 1,300 Baht contribution for adjust according to country’s economic the universal health insurance scheme.81 conditions: for instance, the annual Institute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed); and IOM, 80  “Thailand Migration Report 2011, Migration for development in Thailand: Overview and tools for policymakers “, Bangkok, 2011. nstitute for Population and Social Research “Study of Migrants from Myanmar in Thailand�, (processed); and IOM, 81  “Thailand Migration Report 2011, Migration for development in Thailand: Overview and tools for policymakers “, Bangkok, 2011. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 35 setting of quotas. Their implementation is between the perceived economic benefits difficult, particularly when the share of low and social costs is wide. skilled workers is large, and the distance Fixed cost is high Fixed cost is low Policy emphasis Social cost high [A] [B]  urden is on sending -B -Firms want permanent migration -Firms can do temporary government to actively -Sending government may want migration. screen, regulate, and permanent migration -Sending government may want repatriate -Host country wants temporary permanent migration  eed mechanisms -N migration -Host country wants temporary to ensure sending -Problem area— domestically and migration government Internationally—firms and Host -Problem area, but domestic cooperation country want different outcomes cooperation possible because firms and host country interests are aligned Social cost low [C] [D] Burden on host country - -Firms want permanent migration -Either outcome probably Need mechanisms to - -Sending government wants acceptable ensure host country temporary migration commitment and -Host country wants permanent cooperation migration -If host country and firms collude, Table 9 commitment problem Migration Scenarios for Economic and Social Policy emphasis  urden on firms—robust eligibility -B Costs criteria for employers, and strong enforcement with ex post penalties Source: Luthria, M. World Bank, January 2011. Note: Fixed cost = selection, recruitment, training, and travel; Firms denote employers in the host country. 36 Gaining from Migration 3. CONCLUSIONS The analysis has illustrated the Myanmar as well as other labor benefits and risks pertaining to sending countries can increase migration in the GMS. The findings the gains from migration by show that labor receiving countries, facilitating remittance flows and their including Thailand, benefit from migration developmental impact, by bolstering particularly in terms of their economic circular migration, and by providing output, employment, and firm profitability. core legal and other support services Labor sending countries gain from to its emigrants abroad. remittances and potential positive spillovers of knowledge, technology, Thailand as well as other labor and investment. While providing public receiving countries can benefit from services, such as health and education migration by reducing obstacles to to migrants may be a political challenge, regularizing migrants and migration, overcoming this challenge can help raise by protecting migrants’ rights through productivity, build human capital, and employers, and by further improving incentivize the formalization of migration migrants’ access to essential services. and migrants. In this respect, Thailand has achieved significant progress in  YANMAR: REMITTANCES, 3.1 M addressing the disparities—particularly CIRCULAR MIGRATION, AND in migrants’ access to basic education. MIGRANT PROTECTION Migration policies and institutions influence the gains, nature, and risks Facilitating Remittances and their a)  of migration. Based on the findings and Developmental Impact international good practice, this section offers considerations for migration policy Myanmar has a major scope and management in Myanmar, Thailand, for increasing the volume and and throughout all GMS countries. developmental gains of remittances. As demonstrated by countries such as Countries in the GMS can build on their Tajikistan, where remittances as a share commendable efforts to improve the of GDP increased from 0.1 percent of outcomes of migration. At the GMS and GDP to 12 percent within three years, it ASEAN level, as well as at home through is possible to boost the level and impact domestic constituencies, these countries of remittances as part of economic could recognize the positive role and transition.82 Myanmar’s economic significance of both unskilled and skilled transition is likely to attract the interest migration, harmonize migration policies of its Diaspora and—particularly if with their own country’s development complemented by measures to address strategies, and update bilateral labor the obstacles and concerns experienced agreements accordingly. The aligning by its emigrants and their relatives at home of objectives of both labor sending and with respect to remittance flows—can receiving countries and the effectiveness bring about a major increase in the inflow of migration policies and agreements of remittances. To achieve such positive would require a strong coordination effort results, reforms need to work at two levels: both domestically and across countries. First, make sending remittances—and the use of formal channels for their transfer— easier and more attractive. Second, 82 World Bank. 2006. “Tajikistan Policy Note: Enhancing the Development Impact of Remittances�. Washington DC. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 37 expand the potential for productive American region, for example, launched investment, including investment in a remittance price assessment tool, business and human capital. Best Enviacentroamerica, which includes practices from international experience are an online price comparison tool for presented below. comparing sending costs from the US to each country in the region.83 Third, Steps to increase remittance flows to expand financial sector coverage include (a) stocktaking of the current and to promote public trust and price level and mix of remittance modalities; competition, Myanmar could encourage (b) diagnosing the constraints to the entry of private and foreign financial remittance flows generally and intermediaries. This step may generate through the formal financial system; useful modernization spillovers for (c) strengthening the financial system Myanmar’s financial system as a whole. to better support remittance flows; Fourth, credible legal actions would be and (d) raising public awareness of the necessary to prevent remittance rent remittance processes. For Myanmar, seeking by public and private sector the initial stocktaking discussed above agents. To promote awareness of indicates that remittance inflows are remittance senders and recipients on the much lower than expected given the processes for formal remittance flows extensive Diaspora; and Myanmar’s and formal migration (and investment emigrants tend to favor informal as well as consumption opportunities in remittance channels. Constraints include Myanmar), the government could partner difficulty in using formal channels without with financial institutions and launch proper identification documents, limited outreach campaigns. financial sector coverage, high transfer fees and other costs, mistrust and privacy Measures to enhance the development concerns through the formal financial impact of remittances based on system, and possible rent seeking. international experience include (a) improving the business climate, and (b) Remittance flows could be increased increasing the statistical capacity to through regularization of migrants, inform policy design and adjustments. lower costs and greater competition Improvements in the business among remittance intermediaries, environment increase the opportunities expanded coverage and modernization for productive investments.84 At the micro of the financial sector, the prevention level, a better business climate would of rent seeking, and increasing encourage households to use remittances public awareness. First, to increase toward expanding their income- inward flows, Myanmar could pro- generating activities and—in the presence actively support Thailand’s migration of quality services including education regularization efforts, including the NV, and health—investing more in the and quickly and cheaply provide the human capital of children. At the macro required identification documents to level, beyond facilitating the productive its citizens abroad. This may require use of remittances, a better business that Myanmar opens more migrant- environment would support the expansion supporting offices in Thailand and other of private economic activity and foreign host countries near the main migrant investment, including the introduction of communities. Second, Myanmar new technologies. Statistical capacity to could facilitate information sharing on gather information on remittances and remittance transactions cost. The Central their use through instruments such as Examples of fees included are transaction and foreign currency exchange costs. See www.enviacentroamerica. 83  org. The project is in collaboration with the Center for Latin American Monetary Studies, the Inter-American Development Bank ,World Bank and other partners. See World Bank’s ‘Doing Business’ and ‘Enterprise Surveys’ for specifics on improving the business and 84  investment climate. 38 Gaining from Migration household surveys85 and censuses can to migrants, while avoiding the negative support policy evaluation and further externalities of irregular migration. Both reforms.86 sending countries and receiving countries must cooperate closely for circular Bolstering Circular Migration b)  migration to be successful. Temporary and particularly circular 87 Specific steps and roles for sending migration can have multiple benefits countries, such as Myanmar, include for sending countries, and it is often screening workers to find those meeting more attractive to host countries than the skills requested by a host country, permanent migration. Research shows assisting with pre-departure training, and that shorter-term migrants remit more being proactive to ensure that workers than longer-term migrants owing to return though incentives. These incentives stronger ties with their home countries. could include job placement and payments These ties also make shorter-term upon return and cooperating with law workers more likely to return, which enforcement in other countries to deter allows for skills sharing and use of capital overstaying, including punitive measures. gained abroad. As Myanmar’s economy Host countries, such as Thailand, can have is likely to increase job opportunities their ministry of labor work with employers and to experience structural shifts to to determine the annual demand and the more productive sectors with its ongoing skill profiles for various sectors, to assist reforms, there may be greater interests with documentation upon arrival, to provide of having workers return as well as to support to migrants while in the country, circulate to gain skills.88 and to re-certify companies that comply with the rules (such as protecting their While temporary migration may be a workers and ensuring their timely return). policy objective of host and sending countries, evidence suggest that The New Zealand Recognized Seasonal establishing an institutional framework Employers Scheme (RSE) is viewed as for circular migration may be more being a successful circular migration effective for promoting shorter stays arrangement, which benefits not only by workers. Research has found that New Zealand’s agricultural employers but institutions and policies that allow for also immigrants from five Pacific Island migrants to easily, cheaply, and repeatedly countries. Employers gain from a stable move between and among countries labor supply and lower wage costs, while increases the likelihood of such behavior, migrants gain from secure employment and whereas more restrictive policies—such higher wages than their home countries as not allowing return or incurring high can offer them. Circular migration schemes costs and time requirements—can lead have been most successful not only migrants to overstay or to use informal when costs are kept low for workers and channels. Additionally, regular circular companies but also when there is active migration offers greater legal protection participation by the public and private sectors in each country.89 85  See newly released study IFPRI and World Bank. 2012. “Improving the measurement and policy relevance of migration information in multi-topic household surveys�. Washington DC. 86  Turnell, S. Vicary, A. Bradfrod, W., “Migrant Worker Remittances and Burma: An Economic Analysis of Survey Results, Macquarie University, Sydney, 2008; For further details on increasing remittances flows and their development impact, see World Bank. 2006. “Tajikistan Policy Note: Enhancing the Development Impact of Remittances�. Washington DC; and Adams and Page, “Do international migration and remittances reduce poverty in developing countries?� World Development, 2005. 87 Temporary migration usually refers to short-term migration, whereas circular migration involves for more than one stay. 88 World Bank. (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 89  Holzmann, R. and Pouget, Y. 2010. “Toward an Objective-Driven System of Smart Labor Migration Management�, World Bank; Luthria, M. 2008. “Seasonal migration for development? Evaluating New Zealand’s RSE program�. World Bank and Australian National University; and World Bank. (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 39 Expanding Core Legal and Protection c)  to be completed beyond the currently Services for Emigrants problematic one month deadline. Importantly, the work permit rules can While Myanmar has some offices in labor be relaxed to allow immigrants to change receiving countries such as Thailand, employers and geographic locations the number of offices and the services without losing status—an issue that was they provide could be further expanded proven critical and problematic during to adequately support Myanmar’s Thailand’s floods in 2012. emigrants abroad. Myanmar’s offices in Thailand, for instance, can provide International experience suggests emigrants with identification and other that Thailand would benefit by further documentation and with assistance collaborating with its neighboring in emigrants’ native languages on the countries to reduce the obstacles to regularization procedures and on the rights regular migration. Thailand could support of emigrants. In addition, such offices labor sending countries to open more could offer legal protection in cases where offices in Thailand to assist immigrants in employers may be breaking labor laws of the regularization process; to familiarize the host country. The Philippines Overseas migrants with their rights, existing policies, Employment Administration (POEA) and the benefits of regularization; and to represents a good model in the region. The support circular migration. POEA assists with job recruitment prior to departure and helps to protect the welfare Protecting Immigrants’ Rights b)  of emigrants abroad.90 through Employers 3.2  THAILAND: REGULARIZATION, Thailand could address the non- ENFORCEMENT AND SERVICES FOR economic risks reported by immigrants MIGRANTS by imposing strict sanctions against employers who withhold migrant a)  Reducing Obstacles to Regularizing documentation or otherwise infringe Migrants and Migration upon immigrants’ rights. Thailand could clarify the rights of both regular and Reducing the financial and irregular immigrants and strengthen their administrative burden associated with enforcement. In addition, Thailand could regularization would contribute to review its legal and regulatory framework regularizing processes, thereby making to identify and address any existing irregular migration less attractive. measures—such as the connection of Given its large number of irregular work permits to a single employer and migrants, Thailand could consider location that weaken the realization streamlining the number of administrative of immigrants’ rights and discourage steps and time required for regularization. regularization. The provision of greater It could lower the cost required to obtain protection to migrants could be coupled identification and work documentation with more consistent punitive measures and to abolish the NV requirement against employers and brokers that violate for immigrants to return to their home migrant rights. Furthermore, offices of country for documentation verification labor sending countries to support their and to allow such verification in the labor emigrants in Thailand can further improve sending countries’ representative offices the channels for protecting immigrants’ in Thailand. Thailand could also extend rights vis-à-vis employers. the allowed period for the registration 90 World Bank. (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 40 Gaining from Migration Further Improving Migrants’ Access to c)  increasing the development effect of Essential Services migration (namely limited information on employment opportunities abroad Improving immigrants’ access to and limited support for emigrants). essential services can serve multiple To address these constraints, the PRSP aims: incentivizing regularization, commits the government to reaching out increasing shorter-term productivity, to emigrants and providing them with building longer-term human capital, information on employment and financing and mitigating risk exposures in opportunities, training, and assistance.91 communities. Establishing a well-defined package of essential services for regular In addition to national policies, bilateral migrants—as compared to an open-ended migration policies could be improved service commitment—can limit Thailand’s to match the diverging interests of fiscal burden. Further, while essential sending and receiving countries more health and education should be accessible accurately. Although multilateral labor to all in accordance with Thailand’s agreements are important, the trade- national and international agreements, offs necessary in reaching them tend to access to a broader set of services— limit their scope (focusing only on high including essential services for early child skilled workers in selected occupations, development and social protection—may as is the case of ASEAN Economic induce migrants to regularize. Community Blueprint) and depth. Bilateral labor agreements allow governments THE GMS: POLICY HARMONIZATION, 3.3  to reach agreements most relevant to INSTITUTIONAL STRENGTHENING, both countries’ respective priorities.92 AND AWARENESS However, most of the existing bilateral agreements in the GMS, such as the Harmonizing Migration Policies a)  currently valid MOUs, have not been updated for about a decade while the The countries of the GMS can further socio-economic situation across the elaborate on the role of migration in GMS countries has evolved. The MOUs their national development documents in the GMS, for instance, could better to harmonize the frameworks and address regularization objectives and objectives for migration. National approaches and migrants’ rights. Korea’s development plans and strategies should MOUs with more than 15 countries that ideally state—with sufficient detail—how underpin the Korean Employment Permit emigration and immigration support System (see Box 2), representing a good national socio-economic development. practice in EAP for effective migration Migration laws, regulations and policies, management underpinned by bilateral and their enforcement can then be labor agreements.93 aligned with the stated objectives and plans. Senegal, which incorporates Strengthening Institutional Arrangements b)  migration and remittances in its poverty for Migration Management reduction strategy paper (PRSP), provides a good example of a country that has Stronger institutional arrangements in been successful in this regard. The both sending and host countries can PRSP recognizes the sizable contribution bolster the design, coordination, and of migration and remittances to the implementation of migration policies. economy and to household welfare; The multi-thematic nature of migration it further analyses the constraints to necessitates cross-ministerial institutional IOM Global Migration Group, “Mainstreaming Migration into Development Planning: A Handbook for Policymakers 91  and Practitioners�, forthcoming. For example, the content of the updated bilateral labor agreements would vary when Thailand is primarily a recipient 92  country with Cambodia, Lao PDR, and Myanmar, and when Thailand is the primary sender to countries such as Malaysia, Taiwan, and Singapore. World Bank. (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 93  Migration Trends and Policy Lessons in the Greater Mekong Sub-region 41 cooperation. In this respect, Thailand’s Illegal Alien Workers Management Committee Building Public Awareness about c)  (IAWMC)—involving multiple ministries— Migration at the Country and ASEAN although limited in scope to irregular Regional Level workers, represents a good step and could expand its role to mitigate the competing Both sending and receiving countries interests across ministries and stakeholders. in the GMS would benefit from raising public awareness with respect to The countries of the GMS may consider the benefits and to the process establishing inter-ministerial bodies of migration and migrants’ rights. that address both regular and irregular Public awareness campaigns have migration issues in accordance been particularly successful when with long-term strategies. Singapore involving multiple stakeholders, including presents a good regional example for domestic and international organizations, institutional arrangements to support employers, non-government migration policies and management. organizations, and governments. The Singapore has two separate policies, one European Commission’s (EC) and IOM’s for low- and one for high-skilled workers ‘Migrants in the Spotlight’ campaign— that serve differing objectives, with the focusing on Eastern Europe—sought former for temporary labor demands and to improve understanding of migration the later to support growth sectors. The benefits through training for media Ministry of Home Affairs is in charge of companies toward more objective media regulating migrants’ entry and works with reporting. Other examples are the EC the Ministry of Manpower, which issues Fund for Third Country Nationals for work permits. In Malaysia, 13 ministries integration of migrants that included are on the Cabinet Committee on Workers universities and sports teams to increase and Illegal Immigrants chaired by the public awareness. Another example was Deputy Prime Minister.94 The Ministry the radio drama Pueblo de Paso that of Human Resources sets the number was broadcasted on 184 radio stations of foreign workers needed for each throughout Latin America to dispel sector depending on labor demand and public misunderstandings—such as the Ministry of Home Affairs processes perceptions that migrants generally have migrant visas for both low and high- a negative economic and social impact. skilled workers accordingly.95 The program supported integration efforts and helped shape NGO activities in the region.96 Countries in the GMS and ASEAN as a whole may consider similar communication strategies to support their migration policy objectives and to expand widely-shared migration gains. Other ministries include the Ministry of Public Works, Ministry of International Trade and Industry, Ministry of Foreign 94  Affairs, Ministry of Agriculture and Agro-Based Industry, Ministry of Finance, Ministry of Plantation Industries and Commodities, Ministry of Rural and Regional Development, Ministry of Health, and the Ministry of Tourism. See PIDS . 2012. “Policy on Irregular Migrants in Malaysia� for further detail. World Bank. (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. 95  See International Organization for Migration, 2011. World Migration Report 2011, Geneva, which focuses on 96  communication and public awareness of migration, for further details. 42 Gaining from Migration APPENDICES Map of Southeast Asia Source: World Bank Migration Trends and Policy Lessons in the Greater Mekong Sub-region 43 Map of Thailand, surveyed provinces marked in red Source: World Bank 44 Gaining from Migration REFERENCES Adams and Page. 2005. “Do International Migration and Remittances Reduce Poverty in Developing Countries?�. World Development. ASEAN. 2010. “ASEAN Economic Community Scorecard�. ASEAN. Jakarta. Attzs, M. 2008. “Natural Disasters and Remittances: Exploring the Linkages between Poverty, Gender, and Disaster Vulnerability in Caribbean SIDS� UN WIDER. BBC. 2011, “Hard Disk and Camera Makers Hit by Thai floods�, 1 November 2011, http://www.bbc.co.uk/news/technology-15534614 BBC. 2011. “Thailand Factory Output Slumps on Severe Flooding�, 28 November 2011, http://www.bbc.co.uk/news/15916553 Borgas, G. 1999. Heaven’s Door: Immigration Policy and the American Economy. Princeton, New Jersey. Bradford and Vicary. 2005. “Some Information About Burmese Migrant Workers in Thailand: Preliminary Survey Results�. Macquarie University. Sydney. Bryant, J. and Rukumnuaykit, P. 2007. “Does Immigration to Thailand Reduce the Wages of Thai Workers?, Labor Migration in the Greater Mekong Sub-region�. The World Bank. Cattaneo et al, 2010. “International Trade in Services: New Trends and Opportunities for Developing Countries�. World Bank. Chantavanich, S. 2007. “Thailand Policies towards Migrant Workers from Myanmar�. Paper presented at the APMRN Conference at Fujian Normal University, Fuzhou, PRC. Cuevas, F. and Pabon, L. 2011. “Migration from Myanmar to Thailand: Empirical Findings from a Unique Survey�. World Bank. Dee, P. 2010. “Services Liberalization Towards an ASEAN Economic Community�, ERIA and Australian National University. Dronkers, J and de Heus, M. 2010. “Negative Selectivity of Europe’s Guest Worker Immigration? Educational Achievement of Immigrant Children Compared with Native Children in Their Origin Countries�. Research Centre for Education and the Labor Market, Maastricht University, The Netherlands, and Stockholm University, Swedish Institute for Social Research, Sweden. Gibson, J. and McKenzie, D. 2010. “Spurring Development through a Seasonal Migration Program�, World Bank. Global Migration Group. “Mainstreaming Migration into Development Planning: A Handbook for Policymakers and Practitioners�. To be published by IOM. Holumyong, C and Punpuing, P “A Cost Benefit Analysis of the Migrant Status of Migrants�, Institute for Population and Social Research. Holzman, R. 2011. “Presentation: International Labor Mobility: Migration: Determinants, Impact and Policy Issues�, Seoul. Holzmann, R. and Pouget, Y. 2010. “Social Protection for Temporary Migrant Workers: Conceptual Framework, Country Inventory, Assessment and Guidance�, World Bank and Marseille Center for Mediterranean Integration. Holzmann, R. and Pouget, Y. 2011. “Admission Schemes for Foreign Workers: A Labor Market Tool for National Economic Development� World Bank. Holzmann, R. and Pouget, Y. 2010. “Toward an Objective-Driven System of Smart Labor Migration Management�, World Bank. IFPRI and World Bank. 2012. “Improving the Measurement and Policy Relevance of Migration Information in Multi-topic Household Surveys�. Washington DC. ILO. 2006. “The Mekong Challenge – Underpaid, Overworked and Overlooked: The realities of young migrant workers in Thailand (Volume One)�. Bangkok, Thailand. ILO. 2010. “Public Attitudes to Migrant Workers: A Four Country Study�. Bangkok. IMF. 2011. World Economic Outlook, Washington DC. Institute for Population and Social Research. 2011. “Study of Migrants from Myanmar in Thailand�. Bangkok (processed). Migration Trends and Policy Lessons in the Greater Mekong Sub-region 45 Institute for Population and Social Research. 2011. “Tracking Methodology Report�. Bangkok. (processed). International Organization for Migration. 2010 “IOM, Cambodian Ministry of Health, Strengthen Migrant Health Services in Border Areas�. http://www.iom.int/jahia/ Jahia/media/press-briefing-notes/pbnAS/cache/offonce/lang/en?entryId=28071 International Organization for Migration. 2008. “Situation Report on International Migration in East and Southeast Asia�. Regional Thematic Working Group on International Migration including Trafficking. International Organization for Migration. “Strategies to Counteract Irregular Migration�, http://www.iom.int/jahia/Jahia/about-migration/managing-migration/managing- migration-irregular-migration/strategies-to-counteract-irregular-migration International Organization for Migration. 2011. “Thailand Migration Report�. Bangkok. International Organization for Migration. 2010. World Migration Report 2010. Geneva. International Organization for Migration, 2011. World Migration Report 2011, Geneva. Jampaklay, A., J. Bryant and R. Litwiller. 2009. “Gender and migration from Cambodia, Lao PDR, and Myanmar to Thailand�, in Gender and Labor Migration in Asia. International Organization for Migration. Geneva. Lathapipat, D. 2010. “The Absorption of Immigrants and its Effects on the Thai Wage Structure.� Thailand Development Research Institute. Luthria, M. 2011. “Labor mobility for the poor: is it really possible?�, World Bank. Luthria, M. 2008. “Seasonal migration for development? Evaluating New Zealand’s RSE program�. World Bank and Australian National University. “Memorandum of Understanding Between The Government of the Kingdom of Cambodia AND The Government of the Kingdom of Thailand on Cooperation in the Employment of Workers�. 2003. “Memorandum of Understanding Between The Government of The Kingdom of Thailand AND The Government of the Union of Myanmar on Cooperation in the Employment of Workers�. 2003. “Memorandum of Understanding Between The Government of Lao People’s Democratic Republic AND The Government of the Kingdom of Thailand on Labor Co- operation�. 2002. Migrant Worker Rights Network and State Enterprise Workers Relations Confederation of Thailand. 2011. “Thai and Myanmar Governments to Ensure Migrant Flood Victims Enter Thailand Legally after Abuse�. Ministry of Commerce, Myanmar. “Trade Regime of Myanmar�, http://www.commerce. gov.mm/index.php?option=com_content&view=article&id=128&Itemid=15&lang= en, accessed 1/11/12/ Mohapatra, S. et al. 2009. “Remittances and Natural Disasters: Ex-post Response and Contribution to Ex-ante Preparedness�. World Bank. The Nation. 2011. ‘The effects of low skill immigration on the Thai labor market’ http:// www.nationmultimedia.com/national/The-effects-of-low-skill-immigration-on-the- Thai-l-30171711.html, December 13, 2011. Newland, K. and Patrick, E. 2004. “Beyond Remittances: The Role of Diaspora in Poverty Reduction in their Countries of Origin�, Migration Policy Institute. Office of Foreign Workers Administration, Department of Employment, Ministry of Labor. 2011. Pholphirul, et al. 2010. “Do Immigrants Improve Thailand’s Competitiveness?�, World Bank, Bangkok. Pholphirul, P. 2010. “Immigration, Job Vacancies, and Employment Dynamics: Evidence from Thai Manufacturers� World Bank. Pholphirul, P. 2011. “Migration and the Economy�, in the Chapter 4 of Jerrold W. Huguet and Apichat Chamratritirong Thailand Migration Report 2011, pp.53-61 (ISBN: 978-92-9068-613-2). The International Office for Migration. Bangkok. Savage, K. and Harvey, P. “Remittances during crises: implications for humanitarian response� ODI, May 2007. 46 Gaining from Migration Soesastro,. “Implementing the ASEAN Economic Community (AEC) Blueprint�, ERIA, 2007, pp. 48-49. Turnell, S. Vicary, A. Bradfrod, W.,2008. “Migrant Worker Remittances and Burma: An Economic Analysis of Survey Results�. Macquarie University. Sydney. Tussie, D. and Aggio, C. “Economic and Social Impacts of Trade Liberalization�. UNCTAD. UNDP. 2009.“Human Development Report: Overcoming Barriers: Human Mobility and Development�. UNESCAP. 2008. “Economic Cooperation and Regional Integration in the Greater Mekong Subregion (GMS)�. UNESCAP. 2003. “Migration Patterns and Policies in the Asian and Pacific Region�. Trends in International Migrant Stock: The 2008 Revision. 2009. United Nations Department of Economic and Social Affairs. Population Division. New York. UNDP. 2009. Human Development Report. New York. Vicary, A. 2004. “Economic Survey of ‘Burmese’ Working in Thailand: An Overview of a BEW Project� Macquarie University. Wall Street Journal. April 2, 2012. “Myanmar Reforms Could Mean Tighter SE Asia Labor Market�. World Bank. (forthcoming). “International Migration and Development in the East Asia and Pacific Region�. World Bank. 2006. “Labor Migration in the Greater Mekong Sub-Region: Synthesis Report Phase I�. World Bank. 2011. “Migration and Remittances Factbook 2011�. Second Edition. Washington DC. World Bank. 2006. “Tajikistan Policy Note: Enhancing the Development Impact of Remittances�. Washington DC. WTO. “The General Agreement on Trade in Services (GATS): objectives, coverage and disciplines�, http://www.wto.org/english/tratop_e/serv_e/gatsqa_e.htm Yue, C. 2010. “Free Flow of Skilled Labor in the ASEAN Economic Community�. ERIA and Singapore Institute of International Affairs. Migration Trends and Policy Lessons in the Greater Mekong Sub-region 47