circular migration - the case for mauritius - world...

Circular Migration - The Case for Mauritius

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International Conference on Diaspora for Development,

July 13-14, 2009

World Bank

Washington

Mr. Joyker NayeckChargé D’Affaires

Mauritius Embassy, Washington D.CEmail: [email protected]

[email protected]

Location

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Key Economic Indicators

• Population(2008): 1.3 Million

• Languages: English, French and Asian Languages

• GDP growth: 5.3 % (2008)

• Sectoral Growth rates (2008)– Agriculture: 5.7%

– Manufacturing: 3.2%

– Tourism: 2.7%

– Financial Services: 10.1%

• Unemployment Rate (2008): 7.2%– Male: 4.1%

– Female: 12.7%

• Literacy rate (2004): 84.4%

• Inflation Rate (2008): 9.7%

• Investment (% of GDP) (2008): 24.6%

• Growth in Investment (2008): 3.9%

• Budget deficit (FY 2008/09): 3.9%

• FDI (2008): Rs 11.4 bn

– Tourism :Rs 4 bn

– Banking: Rs 4.6 bn

– Real Estate: Rs 1.9 bn

• Per Capita GNP – 2005: US$ 5000

– 2007: US$ 7000

• Welfare State: – Free Education (pre-primary to tertiary)

– Free Health

– Free Social Security System

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Diaspora

• The Mauritian population is mainly constituted of European, African, Indian and Chinese origins.

• After Independence in 1968, Mauritius witnessed some emigration to Europe, Canada, Australia, Italy and South Africa amongst others, mainly for political and economic reasons.

• They are now the Mauritian Diaspora, estimated at around 200,000.

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Economy in brief

• Before independence - 1968: Mauritius was a monocropeconomy relying mainly on Sugar

• After independence, Mauritius diversified its economic base

– Setting up of EPZ (focusing mainly on Textile) and Tourism sectors

• As from the 1990’s: The Financial Services and ICT sectors emerged as a new poles of growth.

• From 2000 onwards, Mauritius broadened its economic base further with new poles of growth: Seafood hub, Aquaculture, Medical Hub, Pharmaceutical Hub, Knowledge hub and Land Based Oceanic Industry.

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Economic in brief • The New Economic Challenges – Globalisation

– dismantling of the Multi-Fibre Agreement in 2005 – sharp cuts in the guaranteed sugar prices (-36 %) as from

2009– high rate of unemployment (increased from 6.7% in 2000

to an estimated forecast of 8% in 2009) – mismatch of skills (37,000 foreign workers)

• Areas of Concern 2006 2007 2008 2009

Unemployment Rate 9.1 8.5 7.2 8.0

Female Unemployment Rate 15.5 14.4 12.7 13.9

University Graduates(%) 5.0 7.0 6.5 5.6

Higher School Certificate (%) 4.7 4.4 7.7 6.1

School Certificate (%) 20.0 20.0 22.4 20.3

• New threat: World Recession has further aggravated the situation with unemployment expected to increase further. 6

Economic Reform Programme

– To address the challenges of globalization and put the economy back on a sustainable growth path, Government embarked on a 10-year Economic Reform Programme in 2005.

• One of the focus of this reform programme has been to create a conducive environment for the promotion of business opportunities and development of the Small and Medium Enterprises (SMEs).

– Business Facilitation Act 2007

• The Small Enterprises and Handicrafts Development Agency (SEHDA) and the Board of Investment (BOI) as well as the Enterprise Mauritius (EM) have been restructured

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Economic Reform Programme

• Concrete outcome– Foreign Direct Investment: Rs 2.8 bn in 2005 and in Rs

11.4 bn in 2008 – Increase in number of SMEs from 75,000 in 2002 to reach

92,000 in 2007.– In the Doing Business Survey (DBS) 2009, Mauritius

occupies the 24th spot (compared to 29th in DBS 2008) and ranked 1st in Africa.

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Circular Migration

• Mauritius’ initiative to develop Circular Migration aims at widening the scope of opportunities for our workers to work abroad, save money and come back to start a small business or invest in other economic activities.

• Benefits of Circular Migration: The Triple Win

It helps to overcome brain drain and attempts to curb both inward and outward illegal migration.

– Receiving countries could fill labor shortages, increase revenue, and reduce social tensions related to undocumented and unmanaged migration;

– Sending countries would accumulate savings and human capital that might otherwise be lost; and

– Migrants could increase their income, build human capital and financial savings, maintain links with their families, pay lower remittance costs, create trade/investment linkages between countries and come and go freely. 9

Circular MigrationMauritius Participation at International Events to push forward Circular Migration

• Global Forum on Migration and Development, Brussels (9-11 Jul 2007)

– Mauritius presented a paper on Circular Migration

• International Workshop on Creating Development Benefits through Circular Migration (8-9 Sept 2008), Mauritius in collaboration with EC.

– Mauritius managed to secure a Bilateral Agreement on Circular Migration with France. The Agreement was signed on 23rd Sept 2008 in Paris.

• Global Forum on Migration and Development (27-30 Oct 2008), Manila, Philippines

– Mauritius reiterated for the support of development partners such as EC, IOM, OECD and World Bank. The Forum retained the Circular Migration Model and looked forward for concrete outcomes which will be reported at the next Global Forum to be held in Athens, Greece in 2009.

• Global Forum on Migration and Development, 4-5 Nov 2009, Athens, Greece

– A report on the outcome of the Bilateral Agreement on Circular Migration with France to be submitted. 10

Bilateral Agreement on Circular Migration with France

• The Bilateral Agreement was signed on 23rd September 2008 in Paris

• Under this Agreement, Mauritian workers will be allowed to go and work in France for a specific period, gain experience, save money, before returning to Mauritius to find employmentin new sectors of the economy or set up their own Small and Medium Enterprises (SMEs).

• This Agreement is unique in the sense that there is strongpolitical will from both France and Mauritius to implement the Agreement successfully.

• It offers opportunities for a wide range of participants to beexposed to world of work in France

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• The Agreement is made up of 4 main Articles; namely: -

• Article 1: « Circulation des personnes »

• Article 2: « Admission au séjour »

• Article 3: « Développement solidaire »

• Article 4: « Comité de suivi »

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• Article 1: “Circulation des personnes”

• A multiple entry visa would be issued for short stay to a wide range of persons who are actively involved in economic relations, commerce, professionals, university students, scientists, cultural and sport activities.

• Validity of visa: It is for a period not exceeding 3 months per semester for a duration of one to five years

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• Article 2: Admission au sejour

2.1 “Etudiants”/students

2.1.3 “Stagiares”/Trainees

2.2 “Immigration pour motifs professionels”

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Article 2 (continued)

• 2.1 “Etudiants” / Students

– ―Diplomes‖/ Degree holders: Mauritian students in France currently following university degree at a French University will have access to employment opportunities to gain work experience before returning to Mauritius.

– Visa is valid for 6 months and renewable for another 6 months.

– The student will be remunerated 1.5 times monthly minimum wage in France

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Article 2

• 2.1.3 “Stagiares” / Trainees

• Mauritian students currently following a university degree in Mauritius and willing to have an internship in France will need to enter into a tri-lateral agreement between their institutions in Mauritius, a French Enterprise/Company and themselves. This enables Mauritian graduates to have a placement in enterprises in France to build up experience.

• The visa will be for a maximum of 12 months.

• Mauritian workers working in French Enterprises in Mauritius that have collaborative agreement with France will also be able to benefit from a 12-month visa, which is non-renewable.

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• Article 2 (continued)

• 2.2 “Immigration pour motifs professionnelle ”

• This category is made up of 3 sub-categories:

– ―Migration et Développement ‖,

– ―Jeunes professionnels ―

– ―Compétence et Talents‖

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• Article 2 (continued)

• “Migration et Développement ”

• A list of 61 occupations in the following sectors has been identified :

Construction, tourism, agriculture, mechanical works, electricity, maintenance, processing industries, light engineering, amongst others.

No of workers: 500 (This could be revised upon exchange of correspondences between the two parties)

• Duration of Visa: 15 months

• Renewable for another 15 months once only

• Same salary and conditions of work as is presently being offered in France

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• Article 2

• “Jeunes professionnels”

This relates to an exchange of young professionals between the two countries. It includes a wide category of activities where workers will have the opportunity to gain work experience so as to improve their employability.

No of workers: 200 (same could be revised through the simple mechanism of exchange of correspondences between the two parties)

• Aged between 18 and 35 years

• Duration of Visa: 12 months

• Renewable for another 6 months once only

• Same Salary and conditions of work as is presently being offered in France 19


• Article 2

• “Compétence et Talents”

This relates to Mauritians who have excelled in the field of sports, scientific, intellectual, cultural and other fields to put their competencies at the disposal of France and indirectly Mauritius.

• No of individuals: 150

• Duration of Visa: 3 years

• Renewable for another 3 years once only

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Bilateral Agreement on Circular Migration with France Article 3: “Développement solidaire”

3.1 Réinsertion sociale et économique

• Under this Clause, both Mauritius and France will ensure that appropriate schemes would be devised for the economic and social integration of the workers back in Mauritius.

• The workers who upon return would set up a business that would lead to employment creation would receive appropriate assistance from the French Authorities in terms of training, equipment and financial assistance for the launching of their project and monitoring.

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• 3.2 Formation Professionnelle

• Both Mauritius and France will put in place appropriate training programmes.

• A provision of 1 Million Euros over a 3 year period has been placed at the disposal of Mauritius for:

– training of trainers,

– creation of a centre for training of professionals, and;

– upgrading existing training centers and facilities

• The Government of Mauritius will contribute an equivalent amount.

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• Article 4: Comité de suivi

• A Joint Committee will be set up to oversee the implementation of this Bilateral Agreement, to make evaluations and propose any improvements to be brought to this Agreement.

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Circular Migration – on the move

• Government has set up the National Empowerment Foundation

(NEF) involving a public and private sector partnership.

• The NEF is fully involved in the implementation of labour migration

programmes with Canada with the assistance of the International

Organisation for Migration (IOM).

• Given the successful experience acquired, the NEF will be the

implementation agency for the Circular Migration Programme with

France.

• Since, this is a Bilateral Agreement between two Governments, both

the French Embassy in Mauritius and the Mauritius Embassy in

France will be fully involved.24


• A Database Management System is being developed in

collaboration with IOM for online registration of participants

willing to embark on Circular Migration Programmes.

• The network of Employment Information Centres (EICs)

around the island will continue to be used to assist those who

cannot use the online system. The application forms will then

be input into the system.

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• Training– Basic ICT Training is being provided for both Canada and France

– Functional English is being provided for those going to Canada

– Meat processing courses for those going to Canada

– Functional literacy and numeracy for all workers joining LabourMigration Programmes

• Institutional Upgrading- Industrial Vocational Training Board, the institution responsible for

vocational training in Mauritius has signed an MOU with Monash University (Canada). This will enable Mauritian students to obtain Canadian certification, so as to easily integrate the world of work in Canada.

- New tertiary educational institutions from India as well as from other parts of the world have shown interest to set up medical schools in Mauritius. This will enable Mauritius to further establish itself as a Knowledge Hub

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Financial and Technical Assistance from Development partners

This could take the form of: -

1. Matching Savings Scheme

As an Incentive for return and reintegration

2. Development of Remittance Schemes

Schemes to attract remittance to SME development

3. Capacity Building

Training of all organisations involved in labour migration and institutional strengthening.

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Mauritius is seeking assistance from International Development partners to support the Circular Migration Programme along the following lines: -

1. EC, IOM, OECD and World Bank should set up a joint team to support the Circular Migration pilot projects:

– The World Bank could provide the framework for the pilot to fit into the overall reform effort including improving Governance and the Business Climate to promote incentives for return.

– EC could provide financing for training and preparation of return and for SME start ups (e.g. matching grants).

– IOM could support logistics including matching of demand and supply and organisational framework.

– OECD could provide framework for Monitoring and Evaluation and build consensus in high income countries

• Bilateral negotiations to increase length of stay with incentives to return (matched savings programme) and guarantee or bond so that after their temporary stay abroad as per the objective of the programme they return to Mauritius. 28

• In addition to identifying policy measures required, the process would come up with the outline of assistance required from external partners to set up the support services for encouraging return migrants to set up in business.

• Financial and Technical Assistance from EC and WB for:

– Capacity building in Key Ministries and Organisations

– The EC/WB and/or IFC/EIB could assist in developinginstruments under the NEF (or its equivalent in other pilot countries).

– Return and Re-integration of migrants

– Remittance schemes

– Matched Savings Programmes

– Unlocking Migration Mobility Parnerships with the EC to support the Circular Migration Pilot with France

– Social Security programmes payable in sending country

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Conclusion• The Circular Migration Model developed by Mauritius

is in fact a development programme that would help to: -

(i) enhance skills and promote human resource development

(ii) promote the development of SMEs

(iii) attract remittance flows for development purposes

• It reinforces the programmes for capacity building and labor market restructuring—integral to the development planning for both sending and receiving countries.

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