Effects of Migration on Sending Countries : What Do We Know?

This report evaluates the evidence on how migration may promote or hinder development in countries of origin, and explores possible win-win solutions for both sending and receiving countries. The analysis of recent OECD data of foreign-born nationals into Europe documents the presence of multiple migration patterns and reveals that the EU lags significantly behind the United States in attracting highly-skilled migrants who originate mostly from Africa. Reviewing the analytical and empirical evidence on the economic and social costs and benefits of migration and remittances for sending countries reveals that migration can generate substantial direct and indirect gains for sending countries via employment generation, human capital accumulation, remittances, diaspora networks and return migration. Policy coherence across various policies including migration, trade, investment and development cooperation can augment these gains. Major challenges for EU policymaking to maximise the gains from migration for both sending and receiving countries could include better management of migration and human resources, smart visa policies to facilitate circular migration and greater synergies between migration and development assistance programmes in the context of poverty reduction strategy initiatives.