Migration & Development

BITS Pilani, K K Birla Goa Campus

Focus Areas : Case Studies Working Definition Types of Migration Why Migration Occurs Patterns of Migration Facts & Figures Lost, Found & Reinvented Theoretical Approach
BITS Pilani, K K Birla Goa Campus

Understanding Migration
1992- 500 Years of Discovery of New World Case of Central American Weavers & USA Apparel Market Brazilian Economist vs. LAC Economic Collapse & the case of Mexican Revenge Formation of NAFTA / TATAs Land Rovers Case Chinese Population Replacement in Siberia
BITS Pilani, K K Birla Goa Campus

Growth of Shanti Towns in Urban locations Movement of Bihar/UP/Madras Presidency People to Caribbean Island & Plantation Drive Student Migration to Developed Countries

BITS Pilani, K K Birla Goa Campus

Political prosecution have also caused large scale migration both within the borders and beyond borders. Jews Migration Goans have migrated down south, Pundits have fled their home land in Jammu and Kashmir, Tamilians have also moved away from Sri Lanka and many more such examples. In the 1960s, Pakistan used population replacement in Chittagong Hill Tract (CHT) region to tamper and control the erstwhile East Pakistan.
BITS Pilani, K K Birla Goa Campus

Migration is more and more visible in coming times as more and more barrier free trade negotiations are to dominate the international economics. Migration or free movement of work force from their place of birth to newer destinations of opportunity there fore, is more an economic model and is directly linked to market dynamics and development models.
BITS Pilani, K K Birla Goa Campus

Who is Migrant / Immigrant?

Countries may differ for the minimum length of stay required to qualify as an immigrant rather than as a visitor three months in Belgium and Italy, for example. 12 months in Ireland. Moreover, some countries classify asylum seekers as immigrants while others do not. Data for Germany, for example, include some asylum seekers, but not all.
BITS Pilani, K K Birla Goa Campus

The movement can be within the nation or outside the national boundaries. The United Nations protocol on migration, considers it a case of migration when there is movement to a new place for more than a calendar year. Going by this standard, the United Nations estimated 191 million migrants world wide in 2005 which is 3% of worlds 6.4 billion population.

BITS Pilani, K K Birla Goa Campus

Migrants vs. Labour Market

As per the United Nations estimate, half of the worlds residents as well as half of the worlds migrants are in the labour force, either employed or aspiring for employment. Largest chunk of migrants there fore are in the global labour market. The global labour force distribution profile indicates that 40% labour force is employed in agriculture, 20% in industry and remaining 40% are in service sector.
BITS Pilani, K K Birla Goa Campus

 In contrast to sector distribution of global labour force, approximately 60% of the global migrants are located in developed or industrial countries indicative of the linkage between migration and scope and scale of economic development. Migrant work force distribution is also markedly different from that of native born work force. Approximately 10% migrants into the industrial countries labour force is engaged in agriculture sector, 40% in industry and remaining 50% is absorbed in service sector.
BITS Pilani, K K Birla Goa Campus

Migration Patterns

BITS Pilani, K K Birla Goa Campus

Types of Migrants
Migrants can be divided into five main categories: Settlers, contract workers, professionals, unauthorized workers & asylum seekers and refugees.

Settlers - These are people who intend to live

permanently in their new country. Most head for the main countries of settlement, notably the United States, Canada and Australia. Around one million travel a year, the majority of whom are joining close family members.
BITS Pilani, K K Birla Goa Campus

 Contract workers - They are admitted to other countries on the understanding that they will stay only for a specific period: the length of their contract. Some are seasonal workers. Others will be on longer-term contracts, of a year or more. Most are to be found in the Gulf countries.
BITS Pilani, K K Birla Goa Campus

 Professionals - These include employees of transnational

corporations who are moved around from one country to another.

These tend to involve fairly small numbers, typically fewer than 1% of people employed in local affiliates are expatriates.

Irregular workers - Sometimes called undocumented or illegal

immigrants.

There are significant numbers in most immigration countries. Some have been smuggled in, others are overstaying their visas, or are working on tourist visas.
BITS Pilani, K K Birla Goa Campus

 Asylum seekers and refugees - Asylum seekers have left their homes to escape danger; if their claims for asylum have been accepted they are then classified as 'refugees'. In some cases of mass flight, however, when thousands of people escape across a border they are accepted as refugees without going through this individual process. These are the main categories but there are many other possibilities.
BITS Pilani, K K Birla Goa Campus

Why People Migrate ? Wage Gap The Need for Workers Development Disruption
BITS Pilani, K K Birla Goa Campus

Fundamentals of Migration
Recruitment
Labor Wage Disparity

Migration Triggers

Remittances Incentivizes

Returns Triggers Policy

BITS Pilani, K K Birla Goa Campus

Why people migrate?

Wage Gaps: Neo Classical & NELM Theory
Most people migrate, either temporarily or permanently, to take advantage of opportunities in richer countries to earn more money and widen their horizons. The most tempting gaps in income are between industrial and developing countries. The largest wage gap between two neighboring countries is between the US and Mexico.
BITS Pilani, K K Birla Goa Campus

Hourly earnings for US workers are around $15, and range from a low of $10 in retail trade to $19 in construction. An average factory worker in the US earns around four times more than one working in Mexico, and 30 times more than a Mexican agricultural worker. On average in the US foreign-born men earned 71% as much as native born men in 2000, primarily because they were concentrated in lower-paid occupations.
BITS Pilani, K K Birla Goa Campus

Within Europe one of the widest cross-border wage gaps is between Germany and Poland. Polish factory workers earning $250 per month often therefore choose to spend their holidays in Germany where they can harvest asparagus for wages of $900 a month. Similar gaps are evident all over the world: between Burma and Thailand, for example, or between Mozambique and South Africa.
BITS Pilani, K K Birla Goa Campus

Does this mean that wages everywhere would have to be equal to stop migration? Probably not. In Europe in the 1960s and 1970s, for example, there was large-scale migration from Spain and Italy to France and Germany. But as the wage ratios gradually fell fewer people chose to leave even though significant gaps remained. This was probably because people were thinking not just about the present but about the future. When prospects brighten most people prefer to stay at home.
BITS Pilani, K K Birla Goa Campus

The Need for workers

Another reason why people migrate is that many richer countries have jobs available for immigrant workers. To some extent the demand for immigrants fluctuates according to economic cycles. During the period of rapid growth from the 1950s to the mid-1970s, many European countries had a huge demand for workers, and brought in immigrants to fill the gaps. Asian tiger' economies have also relied on immigrants at times of rapid growth.
BITS Pilani, K K Birla Goa Campus

South Korea, for example, used to export millions of its own workers, but by the early 1990s was facing severe labour shortages, particularly for construction, and drew in people from neighboring countries. The same situation is still evident in countries such as the United Kingdom which are desperately short of workers in many areas particularly in the health and education services. But the need for immigrants persists even during economic downturns.
BITS Pilani, K K Birla Goa Campus

This is partly because once these flows start, they are difficult to stop; workers put down roots and want their families to join them. But more fundamentally the 'dual labour market', mentioned in the section on migration theory, persists and ensures there is an irreducible demand for immigrants to do the less popular work that local workers reject. This was highlighted during the economic crisis in Asia from 1997. The first instincts of the governments of Thailand and Malaysia was to halt employment of immigrants.
BITS Pilani, K K Birla Goa Campus

But when farmers and factories complained that they now had no-one to do the work, their governments had to relent and remove the restrictions. Nevertheless long-term immigrants are also more likely to be unemployed: in most European countries, unemployment rates for foreigners are twice as high as for native workers. This is partly because they often work in more unstable jobs, but also because of discrimination, unofficial and official.
BITS Pilani, K K Birla Goa Campus

Development disruption
Another factor influencing emigration is the disruption caused by economic and social development. Development & modernization break up many of the relationships that hold communities together. Large-scale commercial agriculture in Latin America and the Caribbean Basin, for example, has displaced millions of small producers. Mexico is one of the clearest examples. From 1989 onwards, the government started to dismantle the system of communally held 'ejido' land(Collective Land Ownership System) and reduced subsidies to farmers. Since then hundreds of thousands of Mexicans have left the land. Most of those farmers had to leave the countryside and flock to the towns and cities.
BITS Pilani, K K Birla Goa Campus

But the cities generally cannot offer the jobs the immigrants need. So the millions of people who crowd the slums and squatter settlements may also ultimately be tempted - or forced - to look further afield. This is similar to the processes which European countries went through during the industrial revolution. Added to this, there have been profound demographic changes, largely as a result of falling death rates, that have resulted in rapid increases in population size. Nevertheless the underlying principle is similar that the disruption caused by economic and social development makes people more mobile and creates the conditions for emigration.
BITS Pilani, K K Birla Goa Campus

A world on the move / The Development Dilemma

Fundamental Question of Cost of MigrationSocial Cost of Migration Culture Interface vs. Culture Shock Factor Movement & Do immigrants steal the jobs of local workers? Do immigrants sponge off welfare states? Do emigrants drain skills from their home countries?

BITS Pilani, K K Birla Goa Campus

USA Migration Profile

Immigration to the US, 1820-2005, thousands

The United States receives more immigrants than any country indeed almost more than all other countries put together. Despite efforts at restriction, the numbers have been rising steadily, primarily because of the demand for labour.

BITS Pilani, K K Birla Goa Campus

 Arrivals in 2005 - 12,22,400 Foreign-born total -38 million (12.9% of population) Sources of legal arrivals India, 7.5%; China, 6.2%; Philippines 5.4%; Cuba 3.2% Immigration to the United States has been rising steadily and has now reached levels similar to those of the early 1900s. In 1914 arrivals of 1.2 million were 1.5% of the population, whereas in 2005 they were around 0.3%. Note that this is just arrivals. In fact, around one-third of permanent settlers return home.
BITS Pilani, K K Birla Goa Campus

Migration Country Analysis: India Europeanization of South Asia & Indianization of Europe

BITS Pilani, K K Birla Goa Campus

How Does India Connect Historical Neglect & Lost Era Three Decades of Found & Reinvented Focus as Investors Development Collaboration Focus Goa migration Reference

BITS Pilani, K K Birla Goa Campus

Goa Migration Sample Facts

Goan migration is spread over 43 countries of the world. The state annually receives over Rs.7billion as foreign remittances. Remittances constitute nearly 6.3% of the States GDP & 33% of revenue receipt of the state and covers nearly 6% of the revenue expenditure of the provincial government
BITS Pilani, K K Birla Goa Campus

 12% of local households have at least one emigrant currently living abroad and 4% households have one return migrant. The average migration is in the age group of 20-39 years. 56% of Goan migrants work in Middle East who are potential return migrants and return much before ideal retirement age and look forward to another two or three decades of active life
BITS Pilani, K K Birla Goa Campus

India Migration Profile

27 Million People Matching the population of Malaysia & Saudi Arab 2nd to Chinese Diaspora of 35 Million People Four Major concentrations - South East Asia - 5.5Million - Middle East - 5.3Million - Developed Economies - 5.3Million (USA-22.45Lac / UK-15 L / Canada-11L / Australia-4.48Lac)
BITS Pilani, K K Birla Goa Campus

Indias Financial Connect

Four Financial Modes 1- Remittances 2- Occasional Hard Currency Development Fund like India Development Bond -1991 Resurgent India Bond- 1998 Millennium Development Deposits-2000 3- Banking / Tax Exemption / Insurance etc. 4- Incentivized Investment Options Like: FDI / EXIM Policy Schemes
BITS Pilani, K K Birla Goa Campus

Global Remittances Profile US$ billion

1990-2010
Sr. 1 2 3 4 5 6 7 8 9 10

Country India China Mexico Philippines Bangladesh Nigeria Pakistan Lebanon Vietnam Egypt

1990 2.384 0.175 3.098 1.465 0.779 0.010 2.006 1.818 0 4.284

1995 5.2 2.0 4.0 5.5 1.2 0.075 1.8 1.2 0 3.15

2000 12.883 5.237 7.525 6.961 1.968 1.392 1.075 1.582 0 2.852

2005 22.125 24.102 23.062 13.566 4.315 3.329 4.280 4.934 4.0 5.017

2010 53.131 51.300 21.997 21.373 10.804 10.045 9.683 8.406 8.0 7.725

Source: Remittance Fact Book, MPI

Remittances Growth Trajectory

Two Decade Top Ten Remittance Receiving Countries Comparative Profile US$ Billions

BITS Pilani, K K Birla Goa Campus

Top Ten Remittance Receiving Countries 2010 US$ Billion % Share

Sr. No Country Year 2010 % of GDP % of FDI % of % of Merchandise Commercial Export Services Export 30% 4% 10% 51% 70% 18% 49% 181% 12% 31% 57% 38% 142% 196% 1125% 542% 361% 38% 121% 34%

1 India 53.131 4% 2 China 51.300 1% 3 Mexico 21.997 3% 4 Philippines 21.373 12% 5 Bangladesh 10.804 12% 6 Nigeria 10.045 6% 7 Pakistan 9.683 5% 8 Lebanon 8.406 22% 9 Vietnam 8.0 7% 10 Egypt 7.725 4% Source: Remittances Fact Book, MPI

143% 62% 157% 1015% 1561% 166% 365% 157% 90% 107%

Result Analysis Comparative Inward FDI Stock

BITS Pilani, K K Birla Goa Campus

BITS Pilani, K K Birla Goa Campus

Remittance Driving Incentives

Remittance of assets by NRI and PIO:
May remit up to Rs.1Lac per year out of NRO A/C from the sale proceeds of assets. May remit sales proceeds of immovable property sold by him out of rupee funds provided that he owned the property for a period of 10 years.

BITS Pilani, K K Birla Goa Campus

Repatriation of sale proceeds of residential property purchased by NRIs /PIOs out of the foreign exchange:

Can repatriate sales proceeds up to two residential properties purchased by them. Can remit funds of application/earnest money with interest on account of non-allotment provided that the original payment was made out of NRE (Non External Rupee) or FCNR (Foreign Currency Nonresident) account.
BITS Pilani, K K Birla Goa Campus

Remittance of current income: NRIs/PIOs permitted to remit current income like rent, dividend, pension, interest etc. provided that they do not maintain NRO Accounts. Subject to simple certification by a CA with that applicable taxes have been paid for. NRIs/PIOs can credit the current income to their Non-Resident (External) Rupee account.
BITS Pilani, K K Birla Goa Campus

Remittance of Rent: NRIs / PIOs can freely rent out their immovable property in India without the prior permission of the RBI. If financed by housing loans, rental income has to be adjusted towards the repayment of the loan. If rental income is less than the installment, the borrower should remit the outstanding loan amount from abroad or from his NRE, FCNR or NRO A/C in India. International Credit Cards permitted for NRI / PIOs without RBI permission
BITS Pilani, K K Birla Goa Campus

Hard Currency Development Fund

1991 - India Development Bond (IDB) 1998 Resurgent India Bond (RIB) 2000 - Millennium Development Deposits In three occasions they have been floated. Received strong Response. Generated over US$ 11billion

BITS Pilani, K K Birla Goa Campus

 1912- Japanese Patriotic Bonds sold through the

Japanese Patriotic Bond Subscription Society.

1930s- China Liberty Bonds sold through Chinese

Benevolent Associations in the United.

1951-Israel Independence Issues- floated by

Development Corporation for Israel (DCI). Ben. Gurion lunched it in USA and generated US$ 52.6Million.

Israel so far has generated over US$25billion

BITS Pilani, K K Birla Goa Campus

 2001- Sri Lanka Development Bonds (SLDB) sold to multiple investor categories including nonresident Sri Lankans. Has generated more than US$ 580million. 1970s- Egypt in late 1970s reportedly issued bonds to Egyptian workers throughout the Middle East. South African Reconciliation and Development (R&D) Bonds to domestic as well as expatriates are a project mission for South Africa.

BITS Pilani, K K Birla Goa Campus

 2008- Ethiopia Millennium Corporate Bond - a single issue bond, to raise capital for the state owned Ethiopian Electric Power Corporation (EEPCO). Lebanon also seems to have banked on the Lebanese diaspora financial strength.

BITS Pilani, K K Birla Goa Campus

Latin America & Caribbean

1998- Mexico through Banco Nacional de Mexico issued a $300-million remittance backed certificate. 1999- El Salvador issued remittance-backed certificates through Banco Cuscatlan of El Salvador. 2001- Brazil through Banco do Brasil issued $300 million worth of bonds.

BITS Pilani, K K Birla Goa Campus

 2001- Peru also through Perus Banco de Crdito Del Per raised $100 million. Grenada with a total diaspora constituency of only 230,000 people largely confined to four countries neighboring USA, Canada, and Trinidad & Tobago and finally UK - analyzing prospect of diaspora funding

BITS Pilani, K K Birla Goa Campus

Europe

Now Ireland, Greece, Spain and Portugal are mulling over the idea of diaspora funding to help rescue their economies from their current crisis.

BITS Pilani, K K Birla Goa Campus

Tax & Insurance Sector Incentives

Income Tax Totally Exempted Under following bank A/Cs NRE A/C Shall cease if NRI/PIO becomes the resident of India. FCNR A/C - Interest on FCNR will continue to be tax free till the NRI continues to be Resident not an Ordinarily Resident. UTI/Mutual Funds/ Bonds/ Securities/ Saving Certificates (as per Income-tax laws and regulations). Dividends declared by Indian companies. Long term capital gains from transfer of equity shares
BITS Pilani, K K Birla Goa Campus

Wealth Tax Exemptions

Finance Act 1992 considerably reduced wealth tax on NRIs PIOs. w.e.f. 1st April, 1993. Charged only on non-productive assets like urban land, buildings (except one house property), jewelry, bullion, vehicles, and cash over 50,000/- etc. The current rate of wealth tax is 1% on the cumulative market value of taxable assets as on 31st March every year in excess of Rs.1.5 million.
BITS Pilani, K K Birla Goa Campus

No Gift Tax from 1st October, 1998 However, Gifts by NRI/PIO to spouse, minor children or sons wife shall involve clubbing of income and wealth in the hands of the donor. Gifts to Minor Children- Income clubbing shall cease after children become 18 years. NRl/PlO Gifts- subject to the tax authorities scrutiny. Gifts for marriage of the individual, irrespective of any limit, (but within reasonable limits) would not constitute income. Under FEMA 1999- No RBI approval needed for the resident donee to hold gifted immovable property outside India provided the said property is gifted by a person resident outside India.
BITS Pilani, K K Birla Goa Campus

Investment Incentives
Immovable Property Incentive under FEMA Foreign citizen who is a resident of India can purchase immovable property (IP) in India without any approval from the RBI. Citizens Prohibited - Pakistan/Bangladesh/Sri Lanka/China/ Afghanistan /Iran/Nepal/Bhutan Acquiring / Transferring IP without RBI approval. Investments in agricultural property/plantation/ farmhouse / prohibited for all classes
BITS Pilani, K K Birla Goa Campus

Insurance Sector Opportunity

Pravasi Bharatiya Bima Yojna 2006 Insurance cover of Rs.5.00lakhs (minimum) to the nominee / legal heir in the event of death or permanent disability of any Indian emigrant who goes abroad for employment purpose. Subject to emigration clearance from the concerned Protector of Emigrants (POE).

BITS Pilani, K K Birla Goa Campus

FDI / EXIM Policy Incentives

Investment under Automatic Route with repatriation benefits: Investments in shares/debentures of Indian companies without obtaining RBI / Govt. Approval. Investment with Government approval: Select sectors require FIPB permission with repatriation option for NRIs and OCBs. Other investments with repatriation benefits: Domestic Mutual Funds/ Bonds /shares issued by PSUs, government securities and shares.
BITS Pilani, K K Birla Goa Campus

Investments up to 100% equity without repatriation benefits : Except Agricultural/plantation/ Real Estate /Print Media NRIs can invest by way of capital contribution in proprietary or partnership concern in India subject to certain conditions. Other investments by NRIs/OCBs without repatriation benefits : Investment in Non-Convertible Debentures Money Market Mutual Funds Deposits with Companies Commercial Papers (OCBs are presently not permitted)
BITS Pilani, K K Birla Goa Campus

FDI Incentives
Air Transport Sector Up to 49% & 74% FDIs permitted in scheduled and nonscheduled air transport services. NRIs can invest up to 100%. FDI cap in the domestic airlines sector has been enhanced from 40% to 49%. NRI investment is permitted up to100% with no direct or indirect equity participation by the foreign airlines.
BITS Pilani, K K Birla Goa Campus

SEZ Projects NRI investments in SEZ projects, hotels, hospitals are comparatively more liberal than others. Township Development 100% FDI allowed under the automatic route for development of township, housing, built up infrastructure and construction development projects. The minimum area requirement has been reduced to 10 hectares for serviced housing plots and 50,000 square meters built up area for construction-development projects. For investment by NRIs, the conditions are not applicable.
BITS Pilani, K K Birla Goa Campus

Telecom Sector FDI cap increased from 49% to 74% in basic and cellular telecom services. The revised cap includes both FDI and portfolio investment. FDI has been permitted in FM Radio Broadcasting up to a maximum of 20% (which is inclusive of FDI, NRI, PIO and FII). Activities on general permission route of RBI Simplification of the existing procedures in FDI, Transfer of shares in an existing Indian company from residents to nonresidents and vice-versa (except in the financial sector and where SEBI takeover code is attracted); Conversion of ECB/loan into equity, provided the activity is covered under the automatic route and the foreign equity after such conversion falls within the sectoral cap;
BITS Pilani, K K Birla Goa Campus

BITS Pilani, K K Birla Goa Campus

BITS Pilani, K K Birla Goa Campus

Migration & Development: Theoretical Perspective

BITS Pilani, K K Birla Goa Campus

 Phenomenal Increase in Migration Studies in the recent years. Largely due to financial facet of the issue. Remittances in Particular triggered the shift in focus. Striking increase in remittance flows. Remittances sent back to developing countries rose from $31.1 billion in 1990 to $76.8 billion in 2000 to $167.0 billion in 2005. Prospect of all round Collaboration increases the focus
BITS Pilani, K K Birla Goa Campus

 There is a growing belief that remittances are a more effective instrument for income redistribution, poverty reduction and economic growth than large, bureaucratic development programmes or development aid (Kapur 2003). After decades of pessimism and concerns on brain drain, governments of migrant sending countries have put renewed hopes on transnationally oriented migrants and Diasporas as potential investors and actors of development (De Haas & Plug 2006; Gamlen 2006).
BITS Pilani, K K Birla Goa Campus

 Migration and development is anything but a new topic. However, the recent re-discovery of the migrationdevelopment nexus tends to go along with a striking level of amnesia of the insights that have emerged from decades of prior research and policy experience with the issue. Table below depicts these main phases in the post-WWII academic and policy debate on migration and development. It shows how the scholarly and policy debates on migration and development have tended to swing back and forth like a pendulum from sheer optimism to sheer pessimism, and back again to optimistic views in recent years.
BITS Pilani, K K Birla Goa Campus

Main phases in migration and development research &policies

BITS Pilani, K K Birla Goa Campus

Migration optimists Functionalist Neo-classical Modernisation Net North-South transfer Brain gain More equality Remittance investment Development Less migration

Migration pessimists Structuralist Neo-Marxist Disintegration Net South-North transfer Brain drain More inequality Consumption Dependency More migration

BITS Pilani, K K Birla Goa Campus

 Over the 20th century, several theoretical perspectives on migration have evolved. However, they have generally evolved in isolation from one another, and show important differences in their level of analysis as well as paradigmatic and thematic orientation. One of the possible reasons for this lack of coherence is that migration has never been the exclusive domain of one of the social sciences, but has been studied by most of them. Differences in disciplinary and paradigmatic orientation and level of analysis have led to widespread controversy on the nature, causes, and consequences of migration.
BITS Pilani, K K Birla Goa Campus

 In their seminal review article, Massey et al. (Massey et al 1993:432) stated that popular thinking on international migration remains mired in 19th century concepts, models, and assumptions . . . . a full understanding of contemporary migration processes will not be achieved by relying on the tools of one discipline alone, or by focusing on a single level of analysis. Rather, their complex, multifaceted nature requires a sophisticated theory that incorporates a variety of perspectives, levels, and assumptions
BITS Pilani, K K Birla Goa Campus

 Over the past decades, several migration researchers have bemoaned the absence of a comprehensive migration theory, and there have been numerous calls or attempts to develop just such a general migration theory (Lee 1966; Massey et al 1998; Zelinsky 1971). Among the main reasons explaining why it is so difficult to generalize about the causes and consequences of migration are the diversity and complexity of the phenomenon as well as the difficulty of separating migration from other socio-economic and political processes. Moreover, it is often difficult to combine macro- and micro-level theories of migration. This has led scholars to conclude that there will probably never be a general theory on migration (Salt 1987; Van Amersfoort 1998).
BITS Pilani, K K Birla Goa Campus

 Up to the early 1980s, the theoretical debate on migration tended to be rather polarized With neo-classical views on the one hand & historicalstructuralist views (neo-Marxist, dependency, world systems) on the other. Since then, however, under the influence of postmodernism, the debate has become less polarized and has been characterized by increasing synergy between migration theorists from different disciplines and paradigmatic backgrounds.
BITS Pilani, K K Birla Goa Campus

Laws of Migration by E. G. Ravenstein (1885)

Most migration is over a short distance. Migration occurs in steps. Long-range migrants usually move to urban areas. Each migration produces a movement in the opposite direction (although not necessarily of the same volume). Case of Goa Rural dwellers are more migratory than urban dwellers. Within their own country females are more migratory than males, but males are more migratory over long distances. Most migrants are adults. Large towns grow more by migration than by natural increase. Migration increases with economic development. Migration is mostly due to economic causes.

BITS Pilani, K K Birla Goa Campus

 Ravenstein's findings stimulated an enormous volume of work, and, although the laws have been adjusted by succeeding researchers, they have not been totally rejected. Observations of each law as applied to Britain in the 1980s, for example, show that with respect to point 1, over half the moves made annually in England and Wales were in the same local authority area; and to point 3, that the largest urban centers received the highest number of immigrants.
BITS Pilani, K K Birla Goa Campus

General migration theories The Neo-classical equilibrium perspective

At the macro-level, neo-classical economic theory explains migration by geographical differences in the supply and demand for labor. The resulting differentials in wages cause workers to move from low-wage, laborsurplus regions to high-wage, labor- scarce regions. Migration will cause labor to become less scarce at the destination and scarcer at the sending end. Capital is expected to move in the opposite direction. In a perfectly neo-classical world, this process of factor price equalization (the Heckscher-Ohlin model) will eventually result in growing convergence between wages at the sending and receiving end (Harris & Todaro 1970; Lewis 1954; Ranis & Fei 1961; Schiff 1994; Todaro & Maruszko 1987). In the long run, this process would remove the incentives for migrating.

BITS Pilani, K K Birla Goa Campus

 At the micro-level, neo-classical migration theory views migrants as individual, rational actors, who decide to move on the basis of a cost-benefit calculation. Assuming free choice and full access to information, they are expected to go where they can be the most productive, that is, are able to earn the highest wages. This capacity obviously depends on the specific skills a person possesses and the specific structure of labor markets. Neo-classical migration theory sees rural-urban migration as an constituent part of the whole development process, by which surplus labor in the rural sector supplies the workforce for the urban industrial economy (Lewis 1954).
BITS Pilani, K K Birla Goa Campus

 Neo-classical migration theory is firmly entrenched in developmentalist modernization theory based on development as a linear, universal process consisting of successive stages (cf. Rostow 1960). Todaro (1969) and Harris and Todaro (1970) elaborated the basic two-sector model of rural- to-urban labour migration. This influential Harris-Todaro model has remained the basis of neo-classical migration theory since then.
BITS Pilani, K K Birla Goa Campus

 The first scholarly contribution to migration consisted of two articles by the 19th century geographer E.G.Ravenstein (1885; 1889). In which he formulated his laws of migration. He saw migration as an inseparable part of development, and asserted that the major causes of migration were economic. Migration patterns were further assumed to be influenced by factors such as distance and population densities (Skeldon 1997:19).
BITS Pilani, K K Birla Goa Campus

 This perspective, in which people are expected to move from low income to high income areas, and from densely to sparsely populated areas, that is, the general notion that migration movements tend towards a certain spatial-economic equilibrium, has remained alive in the work of many demographers, geographers, and economists ever since (Castles & Miller 2003:22), and, as we will see, is also the underlying assumption of push-pull theories.

BITS Pilani, K K Birla Goa Campus

Historical-structural theory and asymmetric growth

A radically different interpretation of migration was provided as of the 1960s by the historical-structural paradigm on development, Has its intellectual roots in Marxist political economy and in world systems theory (Castles & Miller 2003:25). Contemporary historical-structural theory emerged in response to functionalist (neo-classical) and develop mentalist- modernization approaches towards development.
BITS Pilani, K K Birla Goa Campus

 Historical- structuralists postulate that

Economic and political power is unequally distributed among developed and underdeveloped countries. That people have unequal access to resources, and that capitalist expansion has the tendency to reinforce these inequalities. Instead of modernizing and gradually progressing towards economic development, underdeveloped countries are trapped by their disadvantaged position within the global geopolitical structure.
BITS Pilani, K K Birla Goa Campus

 As in most fields of social science, historicalstructuralism has dominated migration research in the 1970s and most of the 1980s. Historical structuralists have not developed a migration theory as such, but perceive migration as a natural outgrowth of disruptions and dislocations that are intrinsic to the process of capitalist accumulation. They interpret migration as one of the many manifestations of capitalist penetration and the increasingly unequal terms of trade between developed and underdeveloped countries (Massey et al 1998:36).
BITS Pilani, K K Birla Goa Campus

 Andre Gunder Frank the frontrunner of the dependency theory, which hypothesized that global capitalism (and migration as one of its manifestations) contributed to the development of underdevelopment. The dependency school views migration not just as detrimental to the economies of underdeveloped countries but also as one of the very causes of underdevelopment, rather than as a path towards development.

BITS Pilani, K K Birla Goa Campus

 According to this view, migration ruins stable peasant societies, undermines their economies and uproots their populations. Emmanuel Wallersteins world-systems theory classified countries according to their degree of dependency, and distinguished between the capitalist core nations, followed by the semi-peripheral, peripheral, and isolated nations in the external area, which were not (yet) included in the capitalist system.
BITS Pilani, K K Birla Goa Campus

 In this perspective, the incorporation of the peripheries into the capitalist economy is associated with putting a (migration) drain on them, exactly the opposite of factor price equalization presumed by neo-classical theory. Instead of flowing in the opposite direction of capital as predicted by neoclassical category, the idea is that labour follows where capital goes. Historical structuralists have criticized neo-classical migration theory, stating that individuals do not have a free choice, because they are fundamentally constrained by structural forces. Rather than a matter of free choice, people are forced to move because traditional economic structures have been undermined as a result of their incorporation into the global political- economic system.
BITS Pilani, K K Birla Goa Campus

Push Pull Model

Both neo-classical and historical-structural theories of migration generally fail to explain why some people in a certain country or region migrate and others do not (Massey et al 1993; Reniers 1999:680), and why people tend to migrate between particular places in a spatially clustered, concentrated, typically non-random fashion. It can therefore be useful to look at some of the spatial models developed by mainly geographers and demographers. Why some migrate and others do not?
BITS Pilani, K K Birla Goa Campus

 E.S. Lee (1966) revised Ravensteins 19th century laws on migration and proposed a new analytical framework for migration. In his view, the decision to migrate is determined by the following factors: factors associated with the area of origin; factors associated with the area of destination; so-called intervening obstacles (such as distance, physical barriers, immigration laws, and so on); and personal factors.
BITS Pilani, K K Birla Goa Campus

 Lee argued that migration tends to take place within well-defined streams, from specific places at the origin to specific places at the destination, not only because opportunities tend to be highly localized but also because the flow of knowledge back from destination facilitates the passage for later migrants.

BITS Pilani, K K Birla Goa Campus

BITS Pilani, K K Birla Goa Campus

 Lee also stated that migration is selective with respect to the individual characteristics of migrants because people respond differently to plus and minus factors at origins and destinations and have different abilities to cope with the intervening variables (Reniers 1999:681). Therefore, migrants are rarely representative of their community of origin. This is consistent with the neo-classical perspective which explains migration selectivity by individual differences in human capital endowments and the discriminating aspects of costs and risks associated with migration.
BITS Pilani, K K Birla Goa Campus

 Although Lee did not apparently invent or employ the term Push-Pull himself, his analytical framework is commonly referred to as the push-pull model (Passaris 1989). The push-pull model is basically an individual choice and equilibrium model, and is, therefore, largely analogous to neo-classical micro models. The push-pull model has gained enormous popularity in the migration literature & has become the dominant migration model.
BITS Pilani, K K Birla Goa Campus

 Most researchers who have applied the push-pull framework have assumed that various environmental, demographic, and economic factors determine migration decisions. Two main forces are typically distinguished to create the pushes and pulls: (1) rural population growth causing a Malthusian pressure on natural and agricultural resources, and pushing people out of marginal rural areas, and (2) economic conditions (higher wages) luring people into cities and industrialized countries. At first sight, the push-pull model seems attractive, as it is apparently able to incorporate all the factors that play a role in migration decision-making. Because of its apparent ability to integrate other theoretical insights, it has been frequently suggested that a general view of labour migration could best be achieved using a push-pull framework
BITS Pilani, K K Birla Goa Campus

Indias Development Dynamics with the Community

The government of India officially acknowledged the presence of her diaspora with the dawn of the new millennium and decided to formally engage them through various programs including the Pravasi Bharatiya Divas from 2003. Much before such an initiative by the Government of India, the dispersed Indian communities had already been networking by establishing several voluntary organizations. For instance, the Global Organization of People of Indian Origin had its first convention in 1989 to unite the entire Indian diaspora to safeguard and promote her interest.
BITS Pilani, K K Birla Goa Campus

 GOPIO has been gaining ground far and wide. Same is the case with Punjabi & Gujarati associations networking around the world. The Telugu diaspora initiated its global networks through launching of the World Telugu Conference in 1975 which subsequently emerged as World Telugu Federation (WTF) in 1992. The WTF held its Convention in Durban 1994, hosted by Andhra Maha Sabha of South Africa, bringing the Telugus world over to South Africa.
BITS Pilani, K K Birla Goa Campus

 Today we find transnational networking among the Indian diaspora based on multiple identities of religion, region and also of caste, especially among the new diaspora and the diaspora communities which have retained closer linkages with places of their origin. Indian Diaspora suggest that the Indian immigrants have crossed approximately the 27 million mark, dispersed around the globe in more than 70 countries (MEA, 2002). They number above 10,000 in 48 countries and half a million mark in 11 countries.
BITS Pilani, K K Birla Goa Campus

 People of Indian origin represent a significant proportion of the population of some of the countries such as They are a visible minority in countries like-

Mauritius- 60.35% Guyana -51.01% Trinidad & Tobago- 39.04% Surinam-35.00% Fiji- 41.34%

Malaysia-7.20% Hong Kong & Singapore- 5.40% South Africa-3.00% United Kingdom- 2.10% Canada -2.6% U.S.A- 1.60%

Almost all countries in West Asia and the Gulf have a substantial work force recruited from India though they return to the places of their origin after the termination of their contracts.
BITS Pilani, K K Birla Goa Campus

Conclusion
Country Perception largely owing to these paradigm shift, now looks at Migrants as important constituency for variety of development collaborations. Hence, Govt. of India has divided the MEA into two Ministries i.e. MEA & Overseas Indian Affairs Ministry. Number of local cells like NRI Cell are instituted in state levels. Programmes like Know India, Know Goa/ My Village Project etc. are periodically organized by Ministry to create a corridor of understanding. The approach is likely to increase in future
BITS Pilani, K K Birla Goa Campus