From Nextbillion.net, a piece entitled “The Dark Side of Remittance Economies” asks:
In Development and Base of the Pyramid circles, we often discuss remittance economies and innovative ways to send remittances home; what we don’t always think or talk about is what forces people to leave their home countries in the first place and what they experience when they go abroad. In the case of Nepal, as I’ve written about before, migrant laborers most oftentravel to the Middle East and Southeast Asia, often having their passports taken away from them upon arrival and not getting paid for months at a time. So would systems that facilitate sending remittances home actually encourage and facilitate such an unjust ecosystem?
First off, having your passport taken away and not getting paid for months at a time constitutes slavery (Article 1 of the Supplementary Convention on the Abolition of Slavery). Incredibly, slavery remains a major issue today, as more than 27 million people “live their every day in slavery or slavery-like conditions.” And while not all enslaved persons are migrant laborers (and of course, vice versa), it is true that many economic migrants end up in terrifying situations. As noted by the UN Special Rapporteur, “Some of the most traditional forms of slavery such as debt bondage [have] evolved and now manifests [themselves] in the plight of some migrant domestic workers.”
Remittances from migrant workers, however, are one of the most stable, largest sources of capital for many developing countries, more so than official development aid (ODA) or foreign investments. Moreover, remittances are actually more reliable and tend to be counter-cyclical. While remittances are going to decline this year, along with ODA and private investments, they will decline less. According to the Migration and Remittances Group at the World Bank, “despite the prospect of a sharper decline in remittance inflows than anticipated earlier, these flows will remain more resilient compared to many other types of resource flows such as private debt and equity flows and foreign direct investment, which are expected to decline or, in the case of portfolio flows, perhaps become negative in 2009 as foreign investors pull out of emerging markets.”
To be clear: the most sustainable form of capital flows to the developing world is not only in decline, but in its current form, relies – at least in part – on modern forms of slavery and forced labor. Indeed, for these flows to remain stable, millions of people have to endure harrowing trips across, and sometimes between, continents. There are more than a few stories about boat loads of migrants that capsize, end up shipwrecked, with their occupants arrested, and often deported.
It’s an incredible shame that there aren’t better systems in place to promote a much healthier form of migrant labor – in Spain, for example, the government used to run a program to recruit foreign workers in Morocco and Latin American countries, based on the labor needs expressed by industry groups. These people were given temporary work authorizations and were subject to quite strict verifications – nonetheless, their conditions of employment were far, far better than what most can expect when immigrating on their own.