- Chi-Vinh Chiu
Migration, Trade and Development
International migrants have a share of about 5% of all migration flows, but they contribute much more to development countries GDP than international aid agency.
According to the World Bank ( http://data.worldbank.org/data-catalog/migration-and-remittances ) there are a couple of countries which GDP is heavily influenced by migrant remittances.
I think the nationalistic spatial perspective of migration is wrong, because migration happen within distinct geographic microregions, mesoregions or macroregion. The entire statistical agencies should re-work their data collections.
The co-development concept want to gain a triple-win for destination country ( more growth ), sending country ( remittance ) and the individual migrant ( better income). Unfortunately, the institutions for implementing the co-development is in the infancy. France and Spain have the first co-development programs and the development agencies are adopting the approach rapidly.
What can migrants do to enhance the leverage effect of migration on trade, development, growth and innovation ?
Migrants are in the majority low-wage earner and their big contribution to the economic growth in the residence country and their important role for the re-distribution of world income is not properly recognized.
The economic situation of self-employed ethnic small business owners is unfavorable. The entire situation should be change by adopting the financial system of Argentinia for migrants.
First step, we need community banks modelled after the model of the South Shore Bank. The South Shore Bank fails because of its tinyness.
Second step, we should protect the migrant community banks with the help of migrant-only, multinational pension funds.
Third step, we use structured finance to channel pension fund capital for SME Financing, housing finance and refinancing of venture capital plus specialized debt swaps e.g. debt-for-development swaps or GDP-linked bonds to restructure sovereign debts