Albania: Migration and Development' Exiting from vulnerability in Global Migration System

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Albania Migration and Development.Exiting from
vulnerability in Global Migration System

• Prof. Kosta Barjaba, PhD, MPA
• Ministry of Labor, Social Affairs and Equal
  Opportunities of Albania

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• I. 12 top symptoms of Albanian migration in the
  global context

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1.1. The number of emigrants is reaching record
levels Albania the highest migration flow
European country

• 1 million emigrants out of a population of 3.4
  million
• 22-25 of the population
• 35 of active population
• 50 in Greece
• 25 in Italy
• 25 in the rest of EU countries (UK, Germany,
  Switzerland), US and Canada.
• The average migration flow in developing
  countrues approximately 5-6 of the active
  population.
• Albanian immigration flow 5-6 times greater than
  the average flow of developing countries.

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1.2. The skills and economic performance of
Albanian immigrants is declining

• The limited capacities of receiving countrys
  labor market due to structural reforms to meet
  the EU standards
• The labor market standards are more demanding
• Ageing factor the first generation of emigrants
  is reaching the pension age
• The second generation is still in school or in
  the periphery of labor market

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1.3. Immigrants earning continue to be lower
than natives

• The worsening of economic performance
• The gap between immigrants and natives is
  narrowing slowly historical experience shows
  that the immigrants-natives gap narrows only 10
  in the first two decades of migration. In 15
  years of Albanian migration the gap is narrowed
  only 7.5

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1.4. Ethnic origin does matter

• Albanian immigrants the majority of immigrant
  community in Greece and the second in Italy
• The so-called phenomena of victimization,
  incrimination and demonization of Albanian
  immigrants
• The public perception of Albanian immigrants
  mostly created by press and media
• They expected to be closer, but they feel the
  distance the cultural neighborhood sometimes
  doesnt matter.
• Ethnic ghettos slow the integration of immigrants
  in the host societies, but this affects only
  slightly the Albanian immigrants, as they do not
  intend to concentrate in ethnic ghettos.

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1.5. Albanian immigrants harm the economic and
employment opportunities of least skilled natives

• Most of immigrants have a poor level of skill and
  education
• Higher skilled and qualified immigrants are
  installed into least skilled jobs and employment
  sectors

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1.6. Albanian immigrants have a severe fiscal
impact on the receiving countries economy and
welfare system

• The least skilled the immigrants, the more heavy
  the fiscal burden and fiscal effect
• The surveys show that for the first 15 years of
  migration experience immigrants consist of a
  burden on welfare system
• The main receiving countries, Greece and Italy,
  are reforming their welfare system and the
  immigrants burden causes serious implications

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1.7. Net economic gains from immigration in
European receiving countries are significant

• As Albanians enter the labor market in Greece and
  Italy, the wage of native workers falls. Workers
  lose because immigrants drug wages down
• But the native-owned firms gains, as they are
  able to hire workers at lower wages. Employers
  gain because immigrants drug wages down
• Native consumers gain because the lower labor
  market costs lead to cheaper goods and services
  offered to population

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1.7. Net economic gains from immigration in
European receiving countries are significant

• Immigration induces a substantial redistribution
  of wealth, away from workers who compete with
  immigrants, and toward employers and other users
  of immigrants services. In this perspective,
  immigration can be viewed as an income
  redistribution program, a transfer of wealth from
  those who compete with immigrants toward those
  who use immigrant labor, products and services
• Immigration may benefit or harm the receiving
  countries even through externalities products
  and services born by immigrants cuisine,
  cultural products etc. But in this perspective
  the impact of Albanian immigrants is
  insignificant, as Albanian cuisine and other
  products and services are not expanding in
  receiving countries
• In the US the immigration net gain is less than
  0.1 of GDP.

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1.8. Illegality versus legality Migration of
Albanians started as illegal and is transformed
into a legal migration

• Albania was unprepared to manage the flow
• The neighbor receiving countries were unprepared
  to manage the flow
• Agreement with Greece in 1996Agreement with
  Italy in 1997
• Domination of legal versus illegal immigrants
  started in 1998
• During 1998-2005 around 70 0000 Albanian illegal
  immigrants per year were legalized in both
  countries, Greece and Italy
• During 2003-2006 the rate legal-illegal was 1.5-1
  in Greece and 3-1 in Italy

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1.9. Active versus passive immigrants passive
immigrants anormal rate

• High level of family migration, conditioned and
  favored by cultural, linguistic and geographic
  vicinity, as well as by the low cost of migrating
  in neighbor countries
• High level of migration of minors, accompanied
  and non accompanied
• High level of females migration, conditioned and
  favored by the easiness of entering the labor
  market, especially in domestic activities no
  white widows as in the case of migration form
  other countries, but sometimes white widowers
• High level of unemployment among immigrants

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1.10. High level of brain drain brain gain
versus brain loss or brain waste

• High level of migration of qualified people
• Most of qualified people installed in the labor
  market sectors other from those which fit to
  their profession and qualification
• Brain drain recognized symbolically as the
  Canada phenomena. Because of the Canada
  migratory policies favoring migration of
  qualified people
• Severe consequences in the domestic labor market,
  economic, social and political life

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1.11. Long term versus short term migration
Migration is passing from a contemporary seasonal
migration into a long term permanent one, making
use of

• opportunities offered by migratory policies in
  the receiving countries
• geographic vicinity which favors periodical
  return returns in the country
• the synergy between economic and professional
  activities in the receiving country and in
  Albania

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1.12. Migration as survival and consumption
source versus migration as a factor of development

• For the first 15 years, migration has served as a
  source of economic survival and consumption
• Only recently there are efforts and actions to
  use migration as a factor of economic, social,
  cultural and political development
• Country Strategy of Migration Management (2005)
• Attention to voluntary and incentive return of
  the successful immigrants
• Attention to migration remittances

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II. Government of Albanias migration policies
and challenges2.1. Discouraging migration flow
through 

• Stabilisation of economy
• Sustainable development
• Creating new jobs 
• Incentives to return migration 
• Favoring the use of remittances in countrys
  economy 

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2.2. Extending and broadening the channels of
legal migration to qualified people, through

• Implementing bilateral agreements
• Promoting decentralized cross-border cooperation
  and migration
• Prioritizing the vocational and educational
  training to fit to foreign labor market
  standards
• Combating human beings trafficking and smuggling

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2.3. Supporting the installment in the labor
market and integration of Albanian immigrants,
through

• Negotiating with receiving countries
  governments
• Providing information, assistance and counseling
  to immigrants
• Endorsing the international labor migration
  conventions
• Promoting access to schooling and services to the
  second generation of immigrants
• A critical pending issue Reciprocal recognition
  and transfer of the social insurance fees and
  payments. Negotiations in progress with Italy,
  Greece, Canada, and other countries

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2.4. Promoting the voluntary and incentived
return migration of successful immigrants,
through

• Legal incentives
• Banking incentives
• Fiscal incentives
• Financial incentives
• Albania 1 EURO Initiative Albanian immigrants
  and Diaspora as beneficiaries

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2.5. The better use of financial, human and
social capital of migration as a factor of
development

• Financial capital or remittances from USD 152
  million in 1992 to USD 1 billion in 2006
• Human capital the most active, dynamic,
  qualified, and youngest population
• Social capital values gained through migration
  experience professional, cultural,
  organizational, managerial, discipline and work
  culture
• Remittances 15-20 of GDP
• Remittances finance about 60 of countrys trade
  deficit
• Remittances competing with foreign direct
  investments in the country

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2.6. The synergy and correlation between
migration, trade, and investment policies

• Migration remittances as a source of investment
• Immigrants target of economic and trade
  agreements

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2.7. Challenges for bilateral cooperation in the
field of migration

• Demilitarization of migration policies. Migration
  dichotomy an economic and social phenomena and
  not a public safety, public order and police
  issue
• Immigrants versus refugees and asylum-seekers
  shifting in priorities toward economic and labor
  immigrants
• Migration policies towards business oriented
  policies.

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III. Remittances a top priority and
challenge
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3.1. Promoting the participation of financial
institutions in Albania and receiving countries
in the transfer of remitances, through

• Cooperation with receiving countries for the use
  of formal channels of transfer of remittances
• Promoting immigrants access to financing SME and
  traditional economic activities

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3.1. (Continues)

• Strengthening financial and MTO and institutions
• Promoting the role of the Post Offices in
  financial services
• Transfers of remittances may generate bank loans
  for financing economic activities or other
  financial products

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3.2. Increasing the financial products for
immigrants and diversifying remittances generated
investments

• Immigrants demand for financial products is
  increasing
• Immigrants savings in 2004 USD 5 billion or 70
  of Albanias GDP
• Remittances can be used for financing
• housing,
• small infrastructure projects
• privatization of public strategic assets
• job creation

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3.3. Orienting and directing remittances for
productive investment purposes

• During the first 15 years of migration
  remittances uased for consumption purposes
• It led to increase of countrys trade deficit in
  2004 it reached 25 of GDP
• Collaboration and synergy with the privat sector
  to attract immigrants savings from the banks in
  receivinmg countries

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3.4. Increasing the access of Albanian
immigrants to bank and financial services in
receiving countries

• Promoting banks cooperation
• Public (immigrants) awareness compaigns
• Banks and MTOs building trust

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3.5. Coordination with receiving countries
governments to channel the aid to Albania through
incentiving succesful returned immigrants

• Developing new programmes
• Revisiting the existing agreeements, programmes,
  and projects

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3.6. Albanian banks to open new branhes in
receiving countries

• Actually, onlu ABA has opend 2 branches in Greece
  (Athens and Thessaloniki)
• Albanian banks will enable providing more
  services to immigrants in receiving countries and
  in Albania
• Online banking services
• Saving and investment products
• Business loans
• Prepaid cards
• Dedit cards
• Counseling and assistance

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3.7. Support to micro-finance institutions wich
enter and operate in the remittances market and
management

• Political support
• Legal support
• Institutional support

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• THANK YOU