The UN population agency’s report State of World Population 2006 focuses on an issue that is often missing in the debate on ‘brain drain,’ namely the enormous contribution of remittances from migrants to development back home. (The overall theme of the report is the far sexier “women and international migration,” with such mind-blowing revelations as the fact that almost half of all international migrants today are women.)
In 2005, remittances — funds sent by migrants to their country of origin — rang in at an estimated US$232 billion. With US$167 billion of the total going to developing countries, remittances are considerably larger than official development assistance (ODA) and are the second-largest source of external funding for developing countries after foreign direct investment (FDI). Experts consider the actual amount to be much higher, since these estimates do not take into account funds transferred through informal channels.
This is a bit of a hobby-horse of mine, so bear with me. I’ve been telling people back in Bosnia for years that an overeducated Bosnian working on a German bauštela contributes more to his country’s development than an overeducated Bosnian sitting all day long at Karabit being smart and looking cool (though the four packs he’ll get through that day do help the government budget). UNFPA even has some numbers:
Remittances in Europe contribute 0.5 per cent of the total GDP in the entire region. In certain countries, however, they are much more substantial: 27.1 per cent for the Republic of Moldova; 23.1 per cent for Bosnia and Herzegovina, and 18 per cent for Serbia and Montenegro.
Substantial I’d say, especially considering that once again, these numbers only include money transferred through banks or similar institutions, not through the bus driver or the relative.
Of course, exporting (mostly manual) laborers cannot be a development plan for a country like Bosnia and Serbia. But perhaps figures like those in the UNFPA report will make people think twice before they equate emigration with selfishness and staying — or returning — home with patriotism.