International Conference on Diaspora for Development,
July 13-14, 2009
World Bank
Washington
Circular Migration - The Case for Mauritius
Mr. Joyker Nayeck
Chargé D’Affaires
Mauritius Embassy, Washington D.C
Email: [email protected]
[email protected]
1
Location
2
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
3
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.
4
Economy in brief
• Before independence - 1968: Mauritius was a monocrop
•
•
•
economy 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.
5
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
Unemployment Rate
Female Unemployment Rate
University Graduates(%)
Higher School Certificate (%)
School Certificate (%)
2006 2007
9.1
8.5
15.5
14.4
5.0
7.0
4.7
4.4
20.0
20.0
2008 2009
7.2
8.0
12.7
13.9
6.5
5.6
7.7
6.1
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
7
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.
8
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
9
freely.
Circular Migration
Mauritius 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
10
France to be submitted.
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 employment
in 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 strong
political will from both France and Mauritius to implement the
Agreement successfully.
It offers opportunities for a wide range of participants to be
exposed to world of work in France
11
Bilateral Agreement on Circular
Migration with France
• 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 »
12
Bilateral Agreement on Circular
Migration with France
• 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
13
Bilateral Agreement on Circular
Migration with France
• Article 2: Admission au sejour
2.1
“Etudiants”/students
2.1.3
“Stagiares”/Trainees
2.2
“Immigration pour motifs professionels”
14
Bilateral Agreement on Circular
Migration with France
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
15
Bilateral Agreement on Circular
Migration with France
•
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.
16
Bilateral Agreement on Circular
Migration with France
• 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‖
17
Bilateral Agreement on Circular
Migration with France
• 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
18
Bilateral Agreement on Circular
Migration with France
• 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
19
France
Bilateral Agreement on Circular
Migration with France
• 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
20
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.
21
Bilateral Agreement on Circular
Migration with France
• 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.
22
Bilateral Agreement on Circular
Migration with France
• 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.
23
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
Circular Migration – on the move
• 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.
25
Circular Migration – on the move
• 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 Labour
Migration 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
26
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.
27
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 developing
instruments 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
29
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.
30