International Migration and Its Downturn, Assessing the Impact of the Global Financial...

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POLICY ARENA

INTERNATIONAL MIGRATION AND THEDOWNTURN ASSESSING THE IMPACTS OFTHE GLOBAL FINANCIAL DOWNTURN ON

MIGRATION POVERTY AND HUMANWELL‐BEING

KATIE WRIGHT 1 and RICHARD BLACK 2

1School of Humanities and Social Sciences University of East London London UK

2Sussex Centre for Migration Research University of Sussex Brighton UK

Abstract This paper provides a conceptual overview of the impacts of the 2008 global 1047297nancialdownturn in the context of international migration and presents some initial evidence from the wider

development literature A human well‐being approach is proposed as a lens for analysing the impacts

of the crisis on poverty and migration outcomes This approach offers greater holism in analysis by

considering the interaction between material and psychosocial dimensions This analysis suggests

that existing policy framed within lsquoimmigrationrsquo discourses is insuf 1047297cient to manage the complexities

of a postcrisis world and argues for greater adoption of developmental approaches in shaping migration

policy Copyright copy 2011 John Wiley amp Sons Ltd

Keywords global financial crisis migration poverty development well‐being

1 INTRODUCTION

This paper reviews recent literature on the implications of the global1047297nancial crisis for policy

debates on migration and development and assesses the nature of current policy responses to

the crisis within the 1047297eld of migration policy The implications of the global downturn on

international migration processes and the related consequences for development are

complex and unpredictable Despite signi1047297cant moves towards a migration and development

perspective it is less clear that this has been accompanied by concrete shifts in migrationpolicy and that the 1047297nancial crisis has revealed considerable shortcomings In this context

Correspondence to Katie Wright School of Humanities and Social Sciences University of East LondonDocklands Campus University Way London E16 2RD UK E‐mail KEWrightuelacuk

Copyright copy 2011 John Wiley amp Sons Ltd

Journal of International Development

J Int Dev 23 555ndash564 (2011)

Published online in Wiley Online Library

(wileyonlinelibrarycom) DOI 101002jid1792



this paper argues for a more concrete policy shift from lsquomigration regulationrsquo towards a

recasting of policies around migration poverty and human well‐being

Policy responses to the global 1047297nancial downturn in turn affect how different sets of

migrants experience the crisis Despite attention to the migration and development nexus over

the last decade traditional policy responses to migration include measures to curtail migrationvia for example policies designed to stimulate return of migrants policies to promote

development in countries of origin to reduce the incentive to migrate and policies of border

control This paper argues that these measures typically fail because of lack of understanding

of how human well‐being is constructed across spatial boundaries in the context of increased

global interconnectedness In particular we argue for an approach that focuses attention on

the linkages between material and psychosocial domains of migrant well‐being as a way of

offering more integrated policy thinking in areas such as migration governance

The 2008 global 1047297nancial crisis is widely understood as having been triggered by the

collapse of a housing and1047297nancial bubble in the USA associated with the subprime mortgage

market in late 2007 However interpretations as to the wider causes of the crisis differ (Copestake 2010) Whereas some authors have argued that antecedents to the crisis relate

also to wider changes in the world economy such as global imbalances and particularly

China rsquos trade surplus with North America (Fischer 2010) others have interpreted the crisis

in the context of long waves of global development (Gore 2010) Reinhart and Rogoff

(2008) made the speci1047297c observation that the 2007 collapse of the US subprime mortgage

market had much in common with a number of other previous crises in that it was preceded

by a period of 1047297nancial liberalisation and was associated with the recycling of surplus petro‐

dollars into lending to a group that could ill‐afford to borrow Either way it is clear that the

effects of the crisis on world markets and on growth have been substantial and that its effects

continue to be felt around the world 3 years on from the initial triggerNonetheless the 2008 crisis has had multiple impacts which have been felt differently

in different parts of the world An immediate impact was of course felt by those in the

USA and elsewhere who had borrowed money based on subprime or equivalent mortgages

and found themselves homeless as property prices collapsed and loans were foreclosed

However the initial 1047297nancial crisis was also accompanied by sharp food price increases in

2007 (Oxfam International 2008) and food price hikes in mid‐2008 spreading the impact

to low‐income groups around the world In turn although the analysis of the current

1047297nancial crisis has centred particularly on macroeconomic impacts including impacts on

trade credit private capital 1047298ows remittances and aid these impacts are likely to be

differentiated as particular developing counties are more reliant on these 1047298ows than others

(McCulloch and Sumner 2009) For example in the speci1047297c case of migrant remittances

according to the World Bank low‐income countries in Latin America and Eastern Europe

are those most dependent on remittances whereas their importance as a percentage of gross

domestic product (GDP) in Asia and sub‐Saharan Africa is lower (IMF 2009)

When assessing the broader poverty impacts of the global1047297nancial crisis it is important to

consider aspects such as the socialndasheconomic situation prior to the crisis including the kinds

of policies in place As indicated earlier the policy response to the crisis may also affect the

ways that migrants and their households are able to respond For example it may be possible

to adapt economic and social policy to strengthen and extend existing measures aimed at fostering greater social protection (via cash transfers for example)mdashalthough another route

may be to scale back or even withdraw such entitlements In terms of the microlevel

household strategies adaptations may include the diversi1047297cation of existing income streams

as well as drawing on savings or credit and the sale of assets (Gottschalk 2004) Household

556 K Wright and R Black

Copyright copy 2011 John Wiley amp Sons Ltd J Int Dev 23 555ndash564 (2011)

DOI 101002jid



expenditure may also be reduced by implementing dietary changes and reducing expenditure

on childrenrsquos educationmdashboth of which are likely to re1047298ect or reinforce existing gender

biases (Hossain and Eyben 2009 Hossain et al 2010)

The impacts of the crisis on migration outcomes are explored here at both macrolevel and

microlevel Macrolevel impacts include how the current 1047297

nancial crisis is affecting globaltrends in international migration whereas microlevel impacts concern the strategies

employed by migrants to enhance their well‐being and that of those lsquoleft behindrsquo Yet these

macrolevel and microlevel impacts cross‐cut material and psychosocial domains of human

well‐being Although the broader emergence of human well‐being theory is explored in the

editorial to this policy arena it is argued that the particular conceptualisation of human

well‐being used here (McGregor 2007 White 2008 McGregor and Sumner 2010) offers

a framework that captures the interplay between material aspects of poverty and inequality

(concerned with welfare and standards of living) and psychosocial aspects including

perceptual dimensions (relating to how people think and feel about what they can do)

and the relational dimension (concerned with personal and social relations includingrelationships with the state) Rather than material and psychosocial domains operating

separately the most interesting aspect of how migration is affected by crisis arguably lies in

their dynamic interaction Whereas the impacts of the crisis are complex and vary according

to regional context adoption of a human well‐being approach offers the possibility of

tracking direct material impacts but going beyond these to consider indirect relational and

perceptual impacts which are summarised in Table 1

Table 1 Identifying material and nonmaterial impacts using a human well‐being approach

Direct material impact Indirect relational impact Indirect perceptual impact

Labour market contractionmdash

unemployment higher levels

of personal debt (host country)

Exacerbation of conflict in the

home marital breakdown

High levels of anxiety and depression

Gendered dietary changes in the

household as poverty more likely

to affect women

Male partners laid off women under

increasing pressure to provide and

send remittances

Yet some evidence of male migrants

entering areas typically reserved for

women (eg care of the elderly)

where demand is still high eg

Spain leading to potential shifts in

gender relations

Increasing exports and numbers

of people employed in particular

unprotected sectors eg rise in

informal sweatshops in textile

industry in Bangladesh (sending

country)

Workersrsquo rights eroded Women and men prepared to accept

work on more adverse terms

Reduced welfare spending and

toughening of international

migration policy (host country)

Heightening of anti‐immigration

discourse greater hostility

marginalisation and discrimination

against migrant populations

Migrants feeling more curtailed in

ability to return to home countries

because of fear of inability to

re‐enter host country

Rise in social tensions conflict

and xenophobia eg Zimbabwe

Less scope for influencing state

and enhancing migrant rights

International Migration and the Downturn 557


DOI 101002jid



Thus material impacts encompass areas such as economic growth and labour markets

For example the evidence suggests that there has been an increase in unemployment

(and underemployment) of migrant populations working in particular industries (such as

in construction) that are particularly dependent on investment or exposed to the global

economy Given high levels of poverty and adversity experienced by migrant groups andthe barriers that many already face in constructing well‐being through the strategy of

international migration (Wright 2010 2011) there is a concern that the impacts on migrant

workers (who are more likely to be employed on short ‐term 1047298exible contracts) are likely to

be more severe than for native groups (Gibb 2009 OECD 2009a 2009b)

With that said impacts have been mixed even in export ‐processing zones In parts of

China for example migrant export sector workers faced abrupt job losses in 2008 (Sward

and Skeldon 20093) This affected ruralndashurban migration processes with reports of

10 million migrants returning to rural areas because of lay‐offs in the manufacturing sector

in urban areas following sharp falls in export demand (IOM 20093) By contrast in

other contexts employment even increased in certain market niches For example inBangladesh the export of textiles increased in 2008 albeit via unlicenced sweatshops that

lsquosub‐contract work pay little and irregularly and in general treat workers poorlyrsquo (Hossain

and Eyben 200910) as this sector was able to respond quickly to the changing market

demand for cheaper products Meanwhile other countries have largely weathered the

effects of the 1047297nancial crisis whereas others have been more severely impacted For

example in South East Asia whereas GDP growth fell dramatically in Thailand in 2008

and both Thailand and Malaysia experienced negative growth rates in 2009 both Vietnam

and Indonesia have witnessed relatively high rates of GDP growth continuing into 2009

This relates to the buoyancy of China that has production networks throughout the region

leading to positive knock ‐on effectsThe gendered impacts of these labour market changes also need exploration as poverty

impacts are likely to be hardest felt by women (Elson 2009 Gibb 2009) Yet in some

cases areas that are traditionally reserved for women (such as domestic service and care of

the elderly) may be more buffered from the recession than areas where men typically

predominate such as construction (Koehler et al 2010) Indeed migration itself has a

number of gendered impacts both on migrants themselves and on host populations which

vary signi1047297cantly from one country to another In this context it appears that the gendered

impacts of the 2008 crisis are highly differentiated and need to be better understood

Other areas in the material domain that warrant investigation include the impacts of the

crisis on global remittance 1047298ows and particularly how these are changing in response to

the crisis the impacts of the 1047297nancial downturn on state budgets which are likely to have

indirect effects in terms of restrictions on entitlements for migrants (including decreases in

social protection policies) and the likelihood of broader 1047298uctuations in terms of exchange

rates prices and asset values (including food and fuel volatility) affecting both migrants

and those lsquoleft behindrsquo Also of interest is how the crisis is affecting migrant economic

behaviour more generally including savings activities acquisition of assets and levels of

personal debt

In contrast an assessment of impacts in the psychosocial domain requires attention to

perceptual impacts (including behaviours practices beliefs values and lifestyles of migrants themselves and those lsquoleft behindrsquo) and how these are changing in response to the

global 1047297nancial downturn This includes changing perceptions surrounding the decision to

return ranging from the extent to which populations are deciding to return in greater

numbers as a result of the crisis to whether they have become more constrained in



DOI 101002jid



their ability to return and the challenges and opportunities that this poses Assessing

psychosocial impacts also requires examination of changes in social relationships at a

range of scales This includes relationships at the household level (such as exacerbation

of con1047298ict in the home) as well as how relationships between migrants and the wider

community are changing as a result of the global 1047297

nancial downturn Beyond this it is alsoimportant to consider wider social treatment of migrants This may include a rise in social

tensions con1047298ict and xenophobia and the toughening of immigration policies norms and

practices These trends are also re1047298ected in the heightening of anti‐immigration discourse

that leads to greater marginalisation and discrimination against migrant populations (who

are already vulnerable to increased risk of poverty and adversity)

2 OVERVIEW OF MIGRATION AND THE CRISIS WHAT DO WE KNOW

SO FAR

The impacts of the current 1047297nancial crisis on migration outcomes are potentially far ‐

reaching For example in the material domain poverty may be intensi1047297ed as migrants

become more vulnerable to unemployment in the receiving country and need to cut back

on consumption and are forced to accept work on more adverse terms in order to continue

to save and support relatives lsquoback homersquo This might be expected to be felt in two

principal areasmdashin terms of reduced opportunities for migration and also in terms of

reduced remittances

In relation to migration trends some evidence of a slowdown of migration in some

regions in the period immediately following the onset of the crisis is emerging For

example applications for H1B visas issued for temporary entry to the USA slowed in 2008whereas it is estimated that unauthorised immigration to the USA has fallen by 8 per cent

since 2007 with Mexican migration levelling off and sharper declines in migration from

countries further south (Passel 2010) Many Mexican and other Latin American migrants

lost their jobs in the construction industry that collapsed after the housing bubble burst

(Mccabe and Meissner 2010) However although it is logical that the crisis would have led

to falling levels of migration this has not universally been the case Notably amongst some

of the more recent destinations of migrants from poorer countries such as the Gulf and

emerging Asian economies migration appears to have held up since the end of 2007 Thus

in Singapore an additional 79 000 new permanent residents were recorded in 2008 with a

net increase in the non‐Singaporean population of the country in the region of 57 000

people Similarly despite a deep 1047297nancial crisis as its own property bubble burst Dubai

continued to attract foreign workers with 1047297gures from the National Bureau of Statistics

demonstrating its population growing by nearly 7 per cent in the 1047297rst 9 months of 2010 and

reaching 187 million (UAE 2010) Even in the USA although applications for H1B visas

have fallen other signi1047297cant contributors to overall migration including intercompany

transfers and the arrival of family members and relatives as new permanent residents rose in

aggregate terms in 2008

As regards remittances data from the World Bank show that of 1047297cially recorded

remittance 1047298

ows to developing countries reached $338 billion in 2008 According to DilipRatha et al (2008 2009a 2009b 2009c) Ratha and Mohapatra (2009) we are likely to see

a recovery in migration and remittance 1047298ows in 2011 but it is likely to be shallower with

the result that remittance 1047298ows in the next 2 years are unlikely to reach the level reached in

2008 World Bank sources suggest that in terms of the macrolevel impacts of the current



DOI 101002jid



downturn countries with close US ties have seen global remittances decrease whereas in

South Asia where countries send a large number of workers to the Persian Gulf and

surrounding areas countries are showing signs of resilience A similar pattern is observed in

Europe by Koehler et al (2010) who note a signi1047297cant reduction in remittances from the UK

to Poland for example but parallel increases in 1047298

ows from the UK to parts of South AsiaThis 1047297ts with a work by Martin (2009) who suggests that some origin countries are

making efforts to ensure their migrant populations stay abroad to guarantee remittance1047298ows Interestingly remittance 1047298ows to South Asia grew strongly in 2008 despite the

global 1047297nancial crisis although risks remain that they may slow down in a lagged

response to a weak global economy (Ratha et al 2009c) East Asia and sub‐Saharan

Africa also face similar prospects Remittance 1047298ows to Latin America and the Caribbean

and Middle East and North Africa were weaker than expected in 2009 yet they appear to

have bottomed out already suggesting a possible recovery in 2011

In terms of psychosocial impacts a number of changes appear to have been experienced

by migrants both in relation to attitudes towards migration and return and in terms of intrahousehold relationships Thus some evidence is starting to emerge that in the face of

the crisismdashand in particular in the face of increased restrictions on the part of some host

statesmdashmigrants have become more reluctant to consider returning to their home countries

with the result that returns have actually fallen as a proportion of total migration In

addition in terms of gendered impacts there is some evidence of greater strain placed on

marital relations within households and increased domestic violence linked to the stresses

of coping with high prices and the threat of unemployment including increases in

arguments between husbands and wives (Turk 2009) Similarly the work of Green et al

(2010) highlighted the interaction between material and psychosocial impacts of the crisis

on women working in the garment industry in Indonesia as suggested in the followingextract that was reported by union of 1047297cials

Nuning worked in a garment factory in North Jakarta and her wage supported her

extended family as her husband was unemployed When she was laid off he got

very angry and started to beat her In this case our union tried to mediate by meeting

with the family and explaining that the dismissal was the impact of the crisis not the

fault of the wife and that the violence had to stop We are hearing many cases like

this (Green et al 201021)

Where male partners are laid off material and psychological pressure on women to

provide is often intensi1047297ed whereas their ability to save is reduced These additional

1047297nancial and emotional pressures and health problems can contribute to breakdowns in

marital relationships as suggested by Datta in this policy arena in the context of Bulgarian

migrants in the UK At the same time however emerging evidence by Bastia suggests that

the 1047297nancial downturn may lead to greater incorporation of men (who have lost their jobs

in the construction sector for example) into areas typically reserved for women which in

some cases may lead to broader shifts in gender relations

In terms of broader psychosocial impacts in the relational domain we have seen anescalation in con1047298ict and fuelling of racial tensions including protests by British nationals

in the UK against the employment of EU workers There have also been generalised

increases in crime substance abuse and antisocial behaviour reported in the context of

Kenya Bangladesh Zambia and Indonesia (Hossain 2009a 60ndash61) as well as increased



DOI 101002jid



social and racial tension For example in the context of migration attacks on Zimbabwean

refugees and migrant farm workers in South Africa in November 2009 were ostensibly

prompted by price rises in food and fuel and scarcity of jobs For example according to a

report by the BBC (3 November 2009) 3000 foreign nationals mostly Zimbabweans

were driven from their homes in a township outside Cape Townmdash

with their homes set alight and belongings destroyed

There is also evidence of migrantsrsquo scope for in1047298uence vis‐agrave ‐vis the state being reduced

with immigration policies becoming more restrictive in both developing and developed

countries (Green and Winters 2010) This includes restrictions on migrant in1047298ows

imposed by some countries including Australia Italy Russia and the UK as well as a

tightening of immigration policies in developing countries such as Kazakhstan Malaysia

Thailand and South Korea However it is also noteworthy that some of the more dramatic

measures used by host states during the Asian 1047297nancial crisis in 1997ndash1999 including

forcing the return of temporary and undocumented workers have generally not been

repeated since 2007 at least on a large scale

3 WHERE NEXT

The global 1047297nancial crisis and its aftermath provide an opportunity to encourage policy

makers to rethink current policy responses and shift the framing of policy towards a human

well‐being and developmental perspective that incorporates the views of poor people

themselves by using international migration as a strategy to exit poverty and improve their

livelihoods Despite signi1047297cant moves towards greater understandings of the migration and

development nexus the recent 1047297nancial crisis and its aftermath have revealed seriousshortcomings in translating this into policy The crisis may provide the opportunity to

trigger a more concrete shift in policy framing on the lsquomigration and povertyrsquo nexus to

incorporate analysis across material and psychosocial domains of human well‐being

Despite widespread recognition of the potential developmental impacts of migration

(including via remittances) policy change on lsquomigration and development rsquo internationally is

still arguably being driven by lsquoimmigrationrsquo interests rather than lsquodevelopment rsquo and

especially lsquopoverty reductionrsquo interests For example EU policy in this area has been led by

the European Commissionrsquos Directorate General for Justice Freedom and Security rather

than policy being formulated at global and sectoral levels by The Directorate General for

Development Similarly participants in the Global Forum on Migration and Development

have frequently come from interior and home affairs ministries rather than ministries

concerned centrally with economic development The International Organisation of

Migration discusses migration and development issues but again primarily from an

immigration‐based perspective with the participation of representatives of interior ministries

Similarly those writing in this area come predominantly from (im)migration studies

rather than from development studies It is argued that these discussions tend not to re1047298ect

migration from the point of view of poor people seeking to exit poverty but have tended to

emphasise instead a lsquocontrolrsquo lsquoregulationrsquo or lsquomanagement rsquo approach Yet stricter border

controls for example appear only to have encouraged migrants to stay on illegallyaccepting lower paid work

In this context this paper argues that migration policy should be refocused via greater

inclusion of development ministries However the types of policies that such ministries can

and should promote might vary between sending and destination countries Thus for



DOI 101002jid



example in destination countries perhaps the key issue as highlighted by Green and Winters

(2010) is for countries to resist the temptation to act preemptively to tighten immigration

controls particularly as the experience of the Asian1047297nancial crisis of 1997ndash1998 is that such

policies combined with large‐scale returns rapidly led to shortages of workers in key areas

and an eventual reversal of the policy (Skeldon 2004) In the same vein given themultidimensional nature of poverty and the interconnectedness between material and

psychosocial impacts countries such as the UK should also resist pressures to withdraw

social protection entitlements and other bene1047297ts for migrants experiencing greater 1047297nancial

insecurity and psychological pressure and should enhance support for grassroots migrant

associations that play a vital role in offering material and psychological support to enhance

migrant well‐being

Similarly policies focused on promoting return have often not worked as expected

with migrants largely rejecting economic incentives to return offered by governments in

destination countries (such as Spain) For example Black et al (2010) highlighted how

although there was a signi1047297cant rise in lsquononcoerciversquo returns from Europe in 2005 or 2006

since then numbers have declined This review also concludes that lsquoexisting evidence

indicates non‐coercive return programs do not receive large take up do not modify

behavior and do not result in major development gainsrsquo (Black et al 2010 4)

Meanwhile there is much policy development that sending countries could also be

promoting First clearly some migrants may return as a result of the global downturn with

the risk in certain circumstances of mass return should conditions become particularly

precarious Sending countries need to be alert to such returns and develop policies both to

stimulate the productive reintegration of those who trickle back and to be prepared for the

possibility of a mass return As Papademetriou and Terrazas (2009) pointed out such

returns are most likely to occur where there are facilitative policies towards circulationrather than barriers to circular mobility Second sending countries also need to be aware

of and responsive to changing levels of remittances especially in the Americas where it

appears that such transfers have suffered since the end of 2007

But perhaps most important for sending countries in the current 1047297nancial crisis context

is paying greater attention to the social protection needs and human rights of migrants

from their country living in other often still much richer parts of the world For example

taking only those countries with a population of more than one million in 2001 all of the

top 10 countries of emigration have themselves witnessed steep falls in GDP growth since

2001 sometimes alarmingly so (eg in Ireland which was on the brink of collapse at the

time of writing or Trinidad and Tobago which moved from double‐digit growth in 2004

to a fall in real GDP in 2009) Such a context surely reinforces the point that migrants

remain a signi1047297cant potential resource for development but one where their continued

presence abroad in the short term may be of more value for states in crisis than their early

return to countries bearing the full force of the crisis themselves

Despite signi1047297cant attention over the last decade to migration and development linkages it

has been less clear that these have been translated into concrete shifts in migration and

development policy and that the global 1047297nancial crisis has exposed signi1047297cant shortcomings

This is arguably the context in which a policy shift from regulation to a more concrete

framing of policy around the migration poverty and human well‐being nexus becomes most important For even though the liberalisation of 1047297nancial systems can be seen as part of the

cause of the most recent and perhaps past 1047297nancial crises there is also little doubt that the

continued connectedness of countries to a global economy where others are faring better and

where the seeds of recovery are to be found remains essential to otherwise embattled



DOI 101002jid



countries that are oftenmdashlike Ireland and Trinidad and Tobagomdashsmall and peripheral in a

global economic context

REFERENCES

Black R Collyer M Somerville W 2010 Non‐ coercive Return Is Scale Possible Migration Policy

Institute Washington DC

Copestake J 2010 Introduction the global 1047297nancial crisis of 2008ndash2009 an opportunity for

development studies Journal of International Development 22(6) 699ndash713

Elson D 2009 Gender equality and the economic crisis Presentation at the International

Development Research CentreSociety for International Development (IDRCSID) Meeting

Ottawa 27 November

Fischer A 2010 Is China turning Latin China rsquos balancing act between power and dependence in

the lead up to the global crisis Journal of International Development 22(6) 739ndash

757Gibb H 2009 Impacts of the economic crisis women migrant workers in Asia IWGGEM

Conference Gender and Global Economic Crisis The North‐South Institute 13ndash14 July

Gore C 2010 The global recession of 2009 in a long‐term development perspective big blip or end

of an era Journal of International Development 22(6) 714ndash738

Gottschalk R 2004 How Financial Crises Affect the Poor Department for International

Development London

Green T Winters LA 2010 Economic crises and migration learning from the past and the present

Paper presented at the World Bank Second lsquoMigration and Development Conferencersquo 10ndash11

September httpwwwmigrationdrcorgpublicationsworking_papersWP‐T31pdf [accessed 14

December 2010]Green D King R Miller ‐Dawkins M 2010 The global economic crisis and developing countries

28 May Report Oxfam International

Hossain N 2009a Crime and social cohesion in the time of crisis early evidence of wider impacts of

food fuel and 1047297nancial shocks IDS Bulletin 40(5) 59ndash66

Hossain N Eyben R 2009 Accounts of Crisis Poor Peoplersquos Experiences of the Food Fuel and

Financial Crises in Five Countries Institute of Development Studies Brighton

Hossain N Fillaili R Lubaale G Mulumbi M Rashid M Tadros M 2010 Social Impacts of Crisis

Findings from Community‐ level Research in Five Developing Countries Institute of

Development Studies Brighton

IMF 2009The Implications of the Global Financial Crisis for Low‐ income Countries International

Monetary Fund Washington DC

IOM 2009 The impact of the global 1047297nancial crisis on migrants and migration IOM Policy

Brief March

Koehler J Laczko F Aghazarm C Schad J 2010 Migration and the economic crisis

in the European Union implications for policy International Organisation for Migration

Geneva

Martin P 2009 The recession and migration alternative scenarios International Migration Institute

Working Paper 13 University of Oxford httpwwwimioxacukpdfswp13‐martin [accessed

14 December 2010]McCabe K Meissner D 2010 Immigration and the United States recession affects 1047298ows prospects

for reform Migration Information Source January

McCulloch N Sumner A 2009 Introduction the global 1047297nancial crisis developing countries and

policy responses IDS Bulletin 40(5) 1ndash13



DOI 101002jid



McGregor JA 2007 Researching wellbeing from concepts to methodology In Wellbeing in

developing countries Gough I McGregor JA (eds) Cambridge University Press Cambridge

316ndash350

McGregor JA Sumner A 2010 Beyond business as usual what might 3‐D wellbeing contribute to

MDG momentum IDS Bulletin 41

(1) 104ndash

112OECD 2009a International migration charting a course through the crisis OECD Policy

Brief June

OECD 2009b International migration and the economic Crisis understanding the links and shaping

policy responses International Migration Outlook

Oxfam International 2008 Credibility crunch food poverty and climate change an agenda for rich

country leaders Oxfam Brie1047297ng Paper 113 June

Papademetriou D Terrazas A 2009 Immigrants and the current economic crisis research

evidence policy challenges and implications Migration Policy Institute Washington DC

Passel JS 2010 US unauthorized immigration 1047298ows are sharply down since mid‐decade Pew

Hispanic Center httppewresearchorgpubs1714annual‐in1047298ow

‐unauthorized

‐immigrants

‐united

‐

states‐decline [accessed 14 December 2010]

Ratha D Mohapatra S 2009 Revised outlook for remittance 1047298ows 2009ndash2011 remittances

expected to fall by 5 to 8 percent in 2009 23 March Migration and Development Brief No 9

Migrant and Remittances Team Development Prospects Group The World Bank Washington

DC httpsiteresourcesworldbankorgINTPROSPECTSResourcesMD_Brief9_Mar2009pdf

[accessed 14 December 2010]

Ratha D Mohapatra S Silwal A 2008 Migration and Development Brief 8 11 November World Bank

Ratha D Mohapatra S Silwal A 2009a Migration and Development Brief 9 23 March World Bank

Ratha D Mohapatra S Silwal A 2009b Migration and Development Brief 10 13 July World Bank

Ratha D Mohapatra S Silwal A 2009c Migration and Development Brief 11 3 November WorldBank

Reinhart CM Rogoff KS 2008 Is the 2007 US Sub‐ prime Financial Crisis so Different An

International Historical Comparison Harvard University Cambridge MA

Skeldon R 2004 Migration the Asian 1047297nancial crisis and its aftermath In International Migration

in the New Millennium Joly D (ed) Ashgate Aldershot 57ndash74

Sward J Skeldon R 2009 Migration and the 1047297nancial crisis how will the economic downturn

affect migrants Brie1047297ng Paper 17 Development Research Centre on Migration Globalisation

and Poverty httpwwwmigrationdrcorgpublicationsbrie1047297ng_papersBP17pdf [accessed 24

December 2010]

Turk C 2009 Rapid Qualitative Assessments of the Impact of the Economic Crisis Overview of

Findings from Eight Countries Draft Report World Bank Washington DC

United Arab Emirates (UAE) Interact Dubairsquos population up seven per cent in nine months 2010

httpwwwuaeinteractcomdocsDubairsquos_population_up_7_per_cent_in_nine_months43044htm

[accessed 24 October 2010]

White SC 2008 But What is Wellbeing A Framework for Analysis in Social and Development

Policy and Practice Bath University of Bath Wellbeing in Developing Countries ESRC Research

Group Working Paper Series httpwwwwbathacukcdsbut_what_is20_wellbeingpdf

Wright K 2010 ldquoIt rsquos a limited kind of happinessrdquo barriers to achieving human well‐being among

Peruvian migrants in London and Madrid Bulletin of Latin American Research 29(3) 367ndash

383Wright K 2011 Constructing human wellbeing across spatial boundaries negotiating meanings in

transnational migration Global Networks forthcoming



DOI 101002jid



this paper argues for a more concrete policy shift from lsquomigration regulationrsquo towards a

recasting of policies around migration poverty and human well‐being

Policy responses to the global 1047297nancial downturn in turn affect how different sets of

migrants experience the crisis Despite attention to the migration and development nexus over

the last decade traditional policy responses to migration include measures to curtail migrationvia for example policies designed to stimulate return of migrants policies to promote

development in countries of origin to reduce the incentive to migrate and policies of border

control This paper argues that these measures typically fail because of lack of understanding

of how human well‐being is constructed across spatial boundaries in the context of increased

global interconnectedness In particular we argue for an approach that focuses attention on

the linkages between material and psychosocial domains of migrant well‐being as a way of

offering more integrated policy thinking in areas such as migration governance

The 2008 global 1047297nancial crisis is widely understood as having been triggered by the

collapse of a housing and1047297nancial bubble in the USA associated with the subprime mortgage

market in late 2007 However interpretations as to the wider causes of the crisis differ (Copestake 2010) Whereas some authors have argued that antecedents to the crisis relate

also to wider changes in the world economy such as global imbalances and particularly

China rsquos trade surplus with North America (Fischer 2010) others have interpreted the crisis

in the context of long waves of global development (Gore 2010) Reinhart and Rogoff

(2008) made the speci1047297c observation that the 2007 collapse of the US subprime mortgage

market had much in common with a number of other previous crises in that it was preceded

by a period of 1047297nancial liberalisation and was associated with the recycling of surplus petro‐

dollars into lending to a group that could ill‐afford to borrow Either way it is clear that the

effects of the crisis on world markets and on growth have been substantial and that its effects

continue to be felt around the world 3 years on from the initial triggerNonetheless the 2008 crisis has had multiple impacts which have been felt differently

in different parts of the world An immediate impact was of course felt by those in the

USA and elsewhere who had borrowed money based on subprime or equivalent mortgages

and found themselves homeless as property prices collapsed and loans were foreclosed

However the initial 1047297nancial crisis was also accompanied by sharp food price increases in

2007 (Oxfam International 2008) and food price hikes in mid‐2008 spreading the impact

to low‐income groups around the world In turn although the analysis of the current

1047297nancial crisis has centred particularly on macroeconomic impacts including impacts on

trade credit private capital 1047298ows remittances and aid these impacts are likely to be

differentiated as particular developing counties are more reliant on these 1047298ows than others

(McCulloch and Sumner 2009) For example in the speci1047297c case of migrant remittances

according to the World Bank low‐income countries in Latin America and Eastern Europe

are those most dependent on remittances whereas their importance as a percentage of gross

domestic product (GDP) in Asia and sub‐Saharan Africa is lower (IMF 2009)

When assessing the broader poverty impacts of the global1047297nancial crisis it is important to

consider aspects such as the socialndasheconomic situation prior to the crisis including the kinds

of policies in place As indicated earlier the policy response to the crisis may also affect the

ways that migrants and their households are able to respond For example it may be possible

to adapt economic and social policy to strengthen and extend existing measures aimed at fostering greater social protection (via cash transfers for example)mdashalthough another route

may be to scale back or even withdraw such entitlements In terms of the microlevel

household strategies adaptations may include the diversi1047297cation of existing income streams

as well as drawing on savings or credit and the sale of assets (Gottschalk 2004) Household



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