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Is Labour Mobility Bring Sustainable Economic Development
- 1. Is Labor Mobility Bringing Sustainable Economic Development? 2016 PACIFIC UPDATE CONFERENCE 18-19 JULY SUVA, FIJI
- 2. Objectives of the RSE and SWP New Zealand “The earnings they send home will support families, help pay for education and health, and sometimes provide capital for those wanting to start a small business” Winston Peters, Former Minister for Foreign Affairs (2006) Australia The remittances sent home will significantly help the development of their villages and communities. Stephen Smith, Former Minister for Foreign Affairs (2008)
- 3. The RSE So Far (2007/2016) Source: Department of Labour RSE Season 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 Vanuatu 1698 2342 2137 2352 2412 2829 3070 3435 3727 Tonga 805 1355 1142 1411 1398 1573 1538 1750 1750 Samoa 647 1228 1021 1219 1162 1137 1169 1238 1522 Solomon Islands 238 311 256 252 407 423 491 511 616 Kiribati 69 38 48 149 142 138 127 136 143 Tuvalu 99 49 54 51 88 56 71 70 64 Papua New Guinea - - - 6 6 31 58 96 63 Fiji - - - - - - - 30 84 Nauru - - - - - - - 20 20 Others 930 1498 1558 1651 1394 1269 1331 1197 1263 Grand Total 4486 6821 6216 7091 7009 7456 7855 8483 9252
- 4. The SWP in Figures Financial Year of Visa Grant Fiji Kiribati Nauru Papua New Guinea Samoa Solomon Islands Timor- Leste Tonga Tuvalu Vanuatu Total 2012-13 0 34 10 26 22 42 21 1,199 0 119 1,473 2013-14 0 14 0 26 162 9 74 1,497 20 212 2,014 2014-15 < 5 11 0 35 185 21 168 2,179 7 567 3,177 2015-16 to 31/03/16 154 20 17 38 74 20 125 1,509 < 5 1,038 2,999
- 5. Remittances From Both Schemes US$ millions (April 2016) Australia New Zealand World Fiji 74 56 222/59.1% Kiribati 3 5 16/50% Papua New Guinea 8 10/80% Samoa 29 69 154/63.6% Solomon Islands 14 18/77.8% Tonga 22 44 118/55.9% Tuvalu 2 4/50% Vanuatu 5 28/50% Source: World Bank Bilateral Remittance Matrix (2015)
- 6. Are the right Skills Being Taught? Add on Skills Training (Australia) English literacy and numeracy Basic information technology First aid
- 7. Filling the Skills Gap (Vanuatu) Most tradesmen business are owned by foreigners (Australia and New Zealand) Caused by an acute shortage of trained locals able to fill the roll Australia and New Zealand should seriously consider expanding their skills training If done correctly the SWP and RSE could help produce Pacific workers who have skills in demand in their home countries.
- 8. Conclusion The SWP and RSE have thus far greatly benefited the participating countries but an expansion of both schemes’ training component needs to be expanded. Expansion will help produce skilled workers with in-demand skills back home Most importantly the expansion of the training components will ensure that economic development in the participating countries would be less reliant on remittances from abroad
- 9. Questions?
Editor's Notes
- It is clear from these statements from Australia and New Zealand that their goal is to advance the Pacific and Timor-Leste’s economic development through remittances.
- This table shows that from the RSE’s inception all countries have increased their share of workers with the exception on PNG.
- The SWP is more of a mixed-story but the majority countries are sending more and more workers. Even though there’s no cap compared to New Zealand’s RSE the SWP has fewer Pacific workers owing to various factors such as illegal labour, backpackers and costs.
- Samoa and Tonga like other PICs are highly dependent on remittances with remittances making up 20% and 24% respectively of GDP. This puts both countries in the top 10 recipients of recipients as a share of GDP. But is it wise for the PICs to rely on remittances from the SWP and RSE as drivers of sustainable economic development?
- Australia offers workers courses in basic IT literacy, basic English literacy and first aid. New Zealand offers them