Migration and Development: A Framework to Identify the Links, Policies and Institutions that Matter

Abstract

It is estimated that the gains to global welfare from a modest increase in migration greatly outweigh the gains to we(fare from any further trade liberalization. Yet, migration remains an ill-understood and under-researched instrument of development. In fact, only recently has the liberalization of labour markets been discussed in the same policy-oriented way as the liberalization of goods or capital markets.

This address will present an analytical framework for thinking about economic migration and explore the channels through which development outcomes eventuate. It will distinguish between permanent and tempora1y migration flows and outline the policy challenges faced in both forms of movements. Both sending and receiving countries have a role to play in ensuring that migration policies are development friendly while remaining market-driven. In particular, it will highlight the market failures that plague the temporary movement of people and keep such movements at sub-optima/levels worldwide. These market failures are particularly onerous for the small fragile states of the Pacific that seek to improve the economic outcomes of their citizens through regional integration but are faced with the challenges of geography and size. Given the importance of promoting more pro-poor migration globally and in the Pacific, this keynote will outline the policy and institutional underpinnings that are needed to facilitate tempor01y programs for the poor.