The World Bank recently published the World Development Report 2023 titled “Migrants, Refugees & Societies.” Crucially, this report projects that Indians working abroad can expect to see their income increase by 120%, a rate significantly higher compared to the 40% rise associated with internal migration.
Highlights of the World Development Report
A primary revelation from the report is a significant increase in earnings for Indian citizens migrating abroad. Those shifting their base to the US recorded an impressive income increase of nearly 500%. Indian migrants in the United Arab Emirates (UAE) also reported an average income hike of about 300%. However, Indian workers migrating to other Gulf Cooperation Council (GCC) nations experienced less substantial gains.
An Overview of Global Migration and Refugee Trends
According to the report, there are currently 184 million migrants (2.3% of the world’s population) including 37 million refugees. These people can be categorized into four distinct groups: economic migrants well-matched with their destination’s skills demand such as Indian IT professionals in the US; refugees whose skills are needed in their refugee nation like Syrian entrepreneurs in Turkey; distressed migrants with low skills at the US southern border; and refugees such as the Rohingya in Bangladesh.
Top Migration Corridors and Boost in Remittances
The report identifies India-US, India-GCC, and Bangladesh-India among the most active global migration corridors. It also notes a marked increase in remittances to countries with substantial migrant populations, including India. In FY 2021-22, India received a record-high foreign inward remittance totaling USD 89,127 million. The total global remittances for 2021 were projected at USD 781 billion before increasing to USD 794 billion in 2022.
A Decline in Working-Age Adults
The report also forecasts a steep decline in the working-age adult population in several countries over the coming years. For example, Spain’s working-age adult population is predicted to shrink by over one third by 2100.
Challenges Highlighted by the Report
Several key challenges are outlined within the report, including rising global inequalities. The World Bank suggests that migration issues are becoming increasingly urgent due to stark differences between and within countries regarding real wages, labor market opportunities, demographic trends, and climate-related costs. Another highlighted problem is the high volume of people without citizenship in their country of residence, along with an increase of distressed migrants who often move under dire circumstances.
Recommended Solutions
The report presents a potential way forward through a “Match-Motive Framework.” This concept revolves around aligning migrant skills with the needs of their destination country (matching), and understanding the reasons why they choose to migrate (motive). The report also advocates for strategic management of migration, balancing skill demand and social inclusion in destination countries, and providing sustainable financial and social protection for refugees. Lastly, it proposes a new approach to manage cross-border relations that focuses on strengthening the alignment between migrant skills and the needs of destination economies.
