Migration in the Age of Globalization

(As prepared for delivery)

Thank you, Katharina. I’m pleased to participate in this program organized by the Swiss Foundation and SAIS.

The United Nations estimates that around 175 million persons currently reside outside the country of their birth. This represents about 3% of the world’s population. Put another way, this is as if approximately half of the population of the United States was to pick up and move outside of our borders. This figure is approximately double what it was in 1975, and the trend continues upward. As migration, and especially illegal migration, grows, so do the challenges. For the United States, of course, one of the greatest concerns we have is national security and preventing terrorists from entering the United States. Trafficking in persons and migrant smuggling are criminal activities that jeopardize national security and exploit and abuse individuals. On the economic front, you have the debate over whether migrants are net contributors or economic burdens to society, possibly receiving education and health from a system to which they do not contribute.

While there are challenges in effectively managing migration, the key is to maximize the benefits of migration, for both the countries of origin and destination, and, of course, for the migrants themselves. I believe that legal, orderly and humane migration benefits the United States in many ways, from providing labor to adding more diversity in the American melting pot. Increased migration can also mean the spreading of democracy worldwide. Migrants in the United States learn about the democratic ways of the U.S. and the West and can then take those values to their home countries. For migrants, a job in the U.S. or Europe may be the sole source of income for a family back home. Migration occurring through legal and regular channels, if managed effectively, can contribute to the prosperity and security of all countries.

The economic impact of migration on sending countries is hard to overstate. Remittances are a major source of foreign exchange earnings and are an important addition to the gross domestic product (GDP) of many countries. For example, in 2001, remittances from abroad represented over 10% of GDP of El Salvador, Haiti Jamaica, Jordan, and Nicaragua. The Inter-America Development Back estimates that in 2002, Latin Americans living in the United States sent remittances that surpassed $32 billion, approximately one third of the total worldwide remittances. Remittances to Mexico topped $16.6 billion in 2004, the majority of which came from the U.S. After oil, this is the second largest-contributor to the Mexican economy.

A World Bank study in 2003 concluded that international migration --­ defined as the share of a country's population living abroad ­-- has a strong, statistical impact on reducing poverty. On average, a 10% increase in the share of international migrants in a country's population will lead to a 1.9% decline in the share of people living in poverty.

Remittances are used in a variety of ways, including for charity, infrastructure, such as parks and roads, human development, such as scholarships and libraries, and for income-generating projects. Remittances can be used to import capital goods and provide investment funds for entrepreneurs. Remittances also add to household income and savings and can be used for the purchase of consumer products and services.

The U.S. government encourages voluntary efforts to channel remittances toward the economic development of migrants’ countries of origin. A recent event in channeling remittances for development is the creation of hometown associations, which are groups of immigrants from particular communities. Hometown associations have created opportunities to match remittance money with funds and expertise from the governments of countries of origin, and, at times, from the private sector, for economic development projects in their hometowns. Mexicans have created an estimated 600 hometown associations in the United States alone.

The costs of transferring remittances, however, remain too high. Remittance costs have gone down over the past two years, but still range from $15 to $26 for a typical $200 remittance. The rate can often exceed 20%, when transmission fees and exchange rate cost are both factored in. U.S. policy goals regarding remittances include lowering the costs of sending remittances and providing opportunities for sending and investing remittances in the financial sector. The U.S. is taking a leadership role in helping achieve these goals. Key steps include expanding competition among remittance providers, eliminating regulatory obstacles to sending remittances, promoting effective financial oversight, and increasing financial literacy.

The Partnership for Prosperity, announced by Presidents Bush and Fox in 2001, is a public-private partnership to bring development to Mexico and to address some of the root causes of migration by creating new economic opportunities. Since 2001, the partnership has helped reduce the cost of remittances by up to 50% by bringing and encouraging new competitors to the market, and developed new financial products that assist migrants with transforming remittances into community development.

The Partnership for Prosperity is one element of the President’s approach to migration. The President’s larger immigration reform proposal, announced in January 2004, is based on the truth that America is a welcoming nation. The hard work and strength of immigrants has made this country prosperous. The key element of the plan is a new temporary worker program to match willing foreign workers with willing U.S. employers when no Americans can be found to fill the jobs. The program would be open to new foreign workers, and to undocumented men and women currently employed in the U.S. This new program would allow workers who currently hold jobs to come out of hiding and participate legally in America's economy while not encouraging further illegal behavior.

President Bush also asked Congress to work with him to achieve significant immigration reform that protects the United States by controlling the borders; serves America's economy by matching a willing worker with a willing employer; promotes compassion for unprotected workers; provides incentives for temporary workers to return to their home countries and families; and protects the rights of legal immigrants while not unfairly rewarding those who came here unlawfully or hope to do so. The United States continues to work on strategies that promote orderly, regular and humane migration.

Migration outside of legal channels presents many problems for the United States. Organized illegal migration -- migrant smuggling and trafficking in persons -- is particularly problematic and represents grave danger for the individuals involved and for national security.

Trafficking in persons is a modern-day form of slavery, involving victims who are typically forced, defrauded or coerced into sexual or labor exploitation. It is among the fastest growing criminal activities, occurring both across national borders and within individual countries. Annually, at least 600,000-800,000 people, mostly women and children, are trafficked across borders worldwide, including 14,500-17,500 persons brought into the United States. The State Department has committed almost $295 million since 2001 for programs to combat trafficking in persons, including support for organizations that are rescuing women and children from exploitation, and giving them shelter and medical treatment and the hope of a new life.

People are snared into trafficking by various means. Sometimes physical force is used, or false promises are made. Victims suffer physical and emotional abuse, rape, threats against self and family, passport theft, and physical restraint.

The Bureau of Population, Refugees, and Migration is part of the U.S. Government effort to combat trafficking in persons. We work with the International Organization for Migration, IOM, and other international organizations and non-governmental organizations to warn of the dangers of irregular migration, as well as to repatriate victims of trafficking to their countries of origin, and provide support for reintegration in their home communities. Over the past seven years, the Bureau has provided over $16 million in support of IOM programs for the prevention of trafficking in persons, and for return and reintegration assistance for victims. I hope for the day when we have become so successful at preventing trafficking that there is no need for return and reintegration assistance.

Human smuggling is another crime that we are committed to stopping. The vast majority of people who are assisted in illegally entering the United States are smuggled, rather than trafficked. Smuggling is a criminal commercial transaction between two willing parties. The person being smuggled cooperates in the illegal activity, and when the transaction is complete, the individuals go separate ways. Trafficking, in contrast, specifically targets the trafficked person as an object of criminal exploitation. Fraud, force, and coercion all play a major role in trafficking. The person trafficked is a victim.

In July 2004, the Departments of State, Justice, and Homeland Security, together with U.S. intelligence agencies, established the interagency Human Smuggling and Trafficking Center to support efforts against the linked national security threats of trafficking in persons, alien smuggling, and smuggler support of clandestine terrorist travel.

In order to prevent the victimization of persons through trafficking and to ensure the safety and security of all migrants, as well as of the nationals in host countries, migration management is critical. Effective migration management occurs at several levels -- national, bilateral, and regional. Comprehensive national migration policies involve supporting legal migration, including for work, education and family reunion. These policies also involve preventing entry to those that seek to do harm in their intending country of destination and reducing the incidence of irregular migration, which can make the migrant vulnerable to exploitation and harm. Effective migration policies requires not only having secure borders and clear immigration policies, but also having policies and action at the border to protect those who may be victims of trafficking, in need of international refugee protection, or otherwise vulnerable. It is important to realize, for example, that a refugee may utilize the services of a smuggler to gain entry into a country of refuge. This in no way reduces his or her need for international protection, but it does raise complicating law enforcement issues. Comprehensive migration policy also includes respect for the human rights and dignity of migrants, and creating a domestic environment that fosters the integration of migrants, including the opportunity for legal immigrants to become citizens in their new home.

More and more countries are realizing that managed migration is essential. Every country has, to some extent, become a country of origin, transit and destination for migrants. Many countries that were once mainly countries of origin have become countries of transit or destination, such as those in Central America. This has increased the awareness that well-established national migration policies are essential.

Because migration does not occur in a vacuum, dialogue and diplomacy with other countries is critical. The United States has close relationships with both Canada and Mexico on migration issues. Initiatives such as Partnership for Prosperity with Mexico and the Smart Border Declaration and the Shared Border Accord with Canada and other cooperative mechanisms illustrate this.

Regional dialogues also play an important role in managing migration effectively. The United States continues to prioritize regional dialogues as the most effective way to advance international cooperation on migration, focusing on practical and pragmatic approaches. Discussions at the regional or even sub-regional level require participating countries to focus on the particular migration issues that affect them, rather than engage in the politicking and posturing that often occurs when an attempt is made to address these issues on a global level. Countries that participate in these dialogues have been able to identify best practices and implement concrete activities to increase cooperation among members, and between regions, with the goal of producing more orderly and humane migrant policies.

The Regional Conference on Migration, RCM, a forum of 11 countries in North and Central America and the Caribbean, held its 10^th Vice-Ministerial meeting in early March in Vancouver, Canada, with a theme of "Integration and Citizenship." Over the past nine years, the RCM has tackled issues ranging from the human rights of migrants, to combating migrant smuggling and trafficking in persons, as well as passport issuance standards, and migration and health. Essential to the continued success and relevance of the RCM is that it takes on concrete activities on migration topics of regional interest.

The RCM is the most mature of the regional dialogues. Many other regional dialogues are taking hold around the world, including the South American Conference on Migration, the Bali Conference in Asia, and the Migration Dialogue for Southern Africa. It is important to note that migration flows from developing countries to other developing countries are increasing. In this context, these processes can provide an excellent forum for dialogue and discussion. The United States believes that these regional dialogues allow productive exchange between states with similar migration challenges, which can learn from each other to develop best practices for managing migration.

We believe that regional efforts are the broadest level on which migration can be discussed productively in a positive, concrete manner. There have been many new international migration initiatives, including the Berne Initiative and the independent Global Commission for International Migration, in recent years. We have also observed increased interest in establishing UN frameworks, standards, and guidelines for international migration. The United States is skeptical about the ability of the United Nations to address the migration issue effectively at the global level and is concerned about efforts to develop a rights-based migration regime. We believe a global "guiding framework" for migration is neither desirable nor achievable. I would contrast this movement to the way in which the international community has agreed to manage refugee issues. The 1951 Refugee Convention, of course, has been the bedrock for international cooperation in the protection of and assistance to refugees. The Convention stemmed from an international consensus that those individuals persecuted on the basis of race, religion, nationality, political opinion, or membership of a particular social group are entitled to international protection. In contrast, there is no international consensus regarding migration.

I understand that among the recommendations of the Global Commission for International Migration there may be a call for institutional reform within the United Nations to address international migration. The United States would not support the creation of any UN agency on international migration. The United States continues to believe that the International Organization for Migration’s Council Session is the appropriate forum to discuss general international migration issues. IOM is best placed to handle these issues, given its policy and programmatic expertise in the matter. This said, an informal coordination mechanism on migration that met at the working level could be useful in coordinating activities between IOM and UN agencies that deal with these issues.

Globalization and the ease of travel have made international migration a growing phenomenon. Regular and orderly migration can benefit all countries, including through the exchange of cultures and ideas, the ability of labor migration to relieve workforce shortages, and sending of remittance to countries of origin. The goal must be to maximize the benefits of migration, while reducing the possible harm that can come about when migrants travel in an irregular status and find themselves in danger. Migration policies must also properly secure borders against those that mean harm to others. Effective migration management at the national, bilateral and regional levels are key to ensuring that migration remains, on balance, a positive phenomenon in the generations to come.