Southeast Asian countrie like the Philippines will have a better chance of reducing poverty if governments will lift the restrictions to migration, the World Bank said. Llowering barriers to mobility would allow Asean workers to take advantage of higher wages, new employment opportunities and more options to move to new employment opportunities.
“In receiving countries, foreign workers can fill labor shortages and promote sustained economic growth, if migration policies are aligned with their economic needs. Inappropriate policies and ineffective institutions mean that the region is missing opportunities to gain fully from migration,” said Sudhir Shetty, World Bank chief economist for the East Asia and Pacific region.
In the Philippines, the World Bank noted that studies have found that households that were able to send a member abroad have a two-fold or three-fold greater odds of escaping poverty. This trend was also observed in Indonesia and Vietnam.
The World Bank cited international studies that found that a 10-percent increase in remittances is associated with a 3.5-percent reduction in the proportion of poor households. Approximately $62 billion in remittances were sent to Asean countries in 2015. Remittances account for 10 percent of GDP in the Philippines, 7 percent in Vietnam, 5 percent in Myanmar and 3 percent in Cambodia.
The World Bank said overall, migration procedures across Asean remain “restrictive”. These “restrictive policies” are partly influenced by the perception that an influx of migrants would have negative impacts on receiving economies. These barriers include costly and lengthy recruitment processes, restrictive quotas on the number of foreign workers allowed in a country and rigid employment policies. The World Bank said these constrain workers’ employment options and impact their welfare.
“In receiving countries, foreign workers can fill labor shortages and promote sustained economic growth, if migration policies are aligned with their economic needs. Inappropriate policies and ineffective institutions mean that the region is missing opportunities to gain fully from migration,” said Sudhir Shetty, World Bank chief economist for the East Asia and Pacific region.
In the Philippines, the World Bank noted that studies have found that households that were able to send a member abroad have a two-fold or three-fold greater odds of escaping poverty. This trend was also observed in Indonesia and Vietnam.
The World Bank cited international studies that found that a 10-percent increase in remittances is associated with a 3.5-percent reduction in the proportion of poor households. Approximately $62 billion in remittances were sent to Asean countries in 2015. Remittances account for 10 percent of GDP in the Philippines, 7 percent in Vietnam, 5 percent in Myanmar and 3 percent in Cambodia.
The World Bank said overall, migration procedures across Asean remain “restrictive”. These “restrictive policies” are partly influenced by the perception that an influx of migrants would have negative impacts on receiving economies. These barriers include costly and lengthy recruitment processes, restrictive quotas on the number of foreign workers allowed in a country and rigid employment policies. The World Bank said these constrain workers’ employment options and impact their welfare.
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