The causes and consequences of migration are complex and go beyond economic factors. Contrary to widely held assumptions, for instance, economic growth may actually encourage immigration for a certain period of time, rather than slow it down, particularly when it is unequal, non-inclusive and the opportunities it creates are not well distributed geographically. Similarly, the actual and potential benefits of emigration for countries of origin are often underestimated: diasporas remit money or invest in businesses; many return with new human, social and financial capital, boosting local economies and creating new trade. The OECD analysis and policy recommendations aim to explain these links and help countries maximise the developmental benefits.
Migration and development
People migrate for different reasons. Some flee the aftermath of violence, persecution or natural disasters, others are in search of a better life, or economic opportunities to support communities at home. Despite their diverse motivations and needs, the men, women, and children on the move all play an inherent part in the economic and social development of both their host and origin countries. Those roles must be considered when setting policies and strategies for sustainable development. In partnership with UN organisations and other bodies, the OECD analyses the implications of migration and forced displacement for the development of low- and middle-income countries, in pursuit of the best human and development outcomes.
Key messages
About half of all international migration takes place between countries in the low- or middle-income categories. Migrants increasingly move across or between Africa, Asia, Latin America and the Caribbean for work, family, study, security and protection. Yet, mobility outside of OECD countries remains under-researched. To inform better policies for migration and development in countries of destination and origin, the OECD analyses the drivers and patterns of global migration, integration of migrants, flows of remittances, the engagement of diasporas and the return of migrants.
Better integration of migrants and forcibly displaced persons into host societies can bring about a range of developmental benefits, including new activity, business and trade, or increased tax revenue. With its data, analysis and advice, the OECD helps development co-operation providers and partners identify policies that can support such integration, for instance by helping migrants acquire relevant skills and knowledge, or by factoring the needs and potential contributions of migrants into development policy and planning.
Low- and middle-income countries host over 75% of the world’s refugee population. Donor support to help them cope with the administrative and fiscal consequences typically comes in the form of short-term, humanitarian aid, when the often-protracted situations also warrant longer-term development and peacebuilding support. By tracking and analysing these development finance flows, the OECD contributes to measuring the performance of the Global Compact on Refugees, which calls for sharing the burden and responsibility of managing forced displacement situations across the international community.
Context
Development finance for refugee situations
In 2020 and 2021, a total of USD 26.3 billion of official development assistance (ODA) was allocated to refugee situations in low- and middle-income countries (LICs and MICs). The bulk of country-allocable development finance (65%) was provided to only seven recipients, most of them upper middle-income countries (UMICs). ODA for refugee situations in LICs and MICs largely (73%) depended on four donors: the United States, European Union (EU) Institutions, Germany, and the World Bank. The finance for refugee situations is thus fragile. Over half (55%) of all ODA for refugee situations in LICs and MICs was provided for humanitarian purposes. This reflects the urgency of needs related to refugee situations, but also the tendency of donors to rely on short-term financing instruments. Only 17% of all country-allocable ODA for refugee situations in LICs and MICs was provided in the form of budget support to governments, despite evidence that including refugees in national systems generates multiple development benefits.
