Migration
Migration and poverty reduction in Moldova
What role does migration play for Moldova?
Authors:
R. Black; M.C. Pantiru; R. Sabates-Wheeler
Publisher:
Development Research Centre on Migration, Globalisation and Poverty, University of Sussex, 2007
This paper provides an overview of migration and poverty in Moldova. It explores the context of poverty and development and general migration trends, before focusing on policies orientated towards migration management, and the broader impact of migration on poverty. The authors find that Moldova is a country with significant levels of poverty, and a recent history of substantial international migration, which is probably still increasing in volume. There appears some hope and emphasis within the country’s Economic Growth and Poverty Reduction Strategy Paper that further youth migration can be limited by creating jobs internally, as well as by inducing return by creating positive incentives within the country. However, this is a policy line that is relatively unlikely to be successful in the short or medium term without massive financial support, as well as a substantial, coordinated and well-targeted campaign to existing and potential migrants that their best interests are served by remaining in, or returning to the country.
Policy recommendations suggested by the authors include:
- migration has both positive and negative effects; interim social protection policies aimed at vulnerable groups who might be negatively affected in the short term (e.g. the elderly) should be considered
- remittances hold considerable potential for Moldova, but steps need to be taken to increase the proportion of funds flowing through the banking sector, in order to maximise their positive impact both on development and on the banking sector itself; useful lessons might be sought in this area from DFID’s broader work on remittances and development
- encouragement of the use of formal remittance channels is best done through banking reform and encouragement to the development of financial products better targeted at migrants, rather than through government regulation; given widespread (and sometimes justified) mistrust of banks, it is not sufficient simply to encourage more use of banks
- lenders should be encouraged to view remittances as a form of income that is taken into account when assessing individuals for a loan; this might encourage the matching of capital from migrants with investment funds to promote small businesses and investment in agriculture
This paper is part of a review conducted by the Sussex Centre for Migration Research on migration and poverty in three regions of Eastern Europe and Central
Asia in 2006.
