1. Migration and Development: Recent Evidence and Some Lessons for Africa International Conference Sustainable Growth and Development in Africa Dakar, November 25, 2013 Christian Ebeke International Monetary Fund Washington, D.C., USA

2. International migration: What’s behind the ramp-up?

3. Upward trend in migration across destinations …

4. … with an important share within Sub-Saharan Africa.

5. Host countries’ immigration policies have tightened for migrants from the developing world …

6. Female emigration is relatively large

7. However, there is a large heterogeneity in emigration intensities in Sub-Saharan Africa.

8. Is Sub-Saharan Africa loosing its “Brain”?

9. Skilled emigration from Africa is not necessarily large compared to other regions …

10. … although in critical sectors such as health, the direct leakage seems important.

11. Some countries saw a rise in outflows …

12. … with young qualified physicians exiting Africa’s labor force.

13. Is the Sub-Saharan region benefiting from remittances?

14. Remittance inflows to Sub-Saharan Africa have fully recovered their pre-crisis levels …

15. … and represent an effective insurance mechanism against disasters events …

16. … and during political conflicts.

17. Remittance inflows also help mitigate food price shocks …

18. Remittance inflows are strongly associated with booms in the construction sector in SSA…

19. … thereby reducing the prevalence of working poverty.

20. Now, let’s discuss some new empirical evidences: Political and Institutional Effects of Migration

21. Migration and Transfers of Norms Return migration and: – Voter turnout rates in Mali: (Chauvet and Mercier, 2013) – Convergence in fertility choices in Egypt: (Bertoli and Marchetta, 2013) – Cross-country study of the convergence in fertility rates: Beine et al. (2013). Migration and governance back home – In Cape Verde: Batista and Vicente (2012) Emigration and democracy: – Cross-country work: Docquier et al. (2011)

22. Remittance inflows are associated with lower political accountability in Sub-Saharan Africa … Ebeke and Yogo (2013).

23. … therefore reducing the political business cycle. Combes, Ebeke and Maurel (2013).

24. How best to maximize the benefits of migration in Sub-Saharan Africa?

25. More dual-citizenship laws?

26. Remittances are significantly larger in countries allowing holding multiple-citizenships … Ebeke (2013).

27. … and so is the sensitivity of private investment to remittances. (Ebeke, 2013).

28. Barriers to people mobility exist, even in the sending countries! Look at passport costs …

29. Passport costs are especially high in Sub-Saharan Africa

30. How about remittance transaction costs?

31. Sending money to Africa is more costly …

32. … and more so when considering within-Africa corridors.

33. Sending money to Africa also takes much more time to arrive…

34. … and even more within Sub-Saharan Africa’s corridors.

35. Costs are too high across operators, …

36. …, and sending money to Sub-Saharan Africa is achieved from a less competitive market structure …

37. … especially in within-Africa corridors.

38. Unresolved issues in the migration-development literature I.Long-term growth and development? Despite strong evidence that migration and remittances lower poverty, no strong evidence that they promote long-term growth. Why? – Does the size matter? – Brain drain? – Remittances fully consumed rather than re-invested? – Are remittances an engine of informal sector growth? – Public moral hazard: Migration/Remittances increase corruption (Abdih et al., 2011; Ahmed, 2013), reduce public social spending (Ebeke, 2012). – Private sector’s moral hazard: reduce accountability and voter turnout (Ebeke and Yogo, 2013), remittances and lower labor force supply. II.Harnessing the diasporas: – How to maximize the re-investment of migrant remittances? – and how to fully internalize the benefits of returnees?

39. Thank you for your attention.