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Where and How is Money Spent on International Migration and Refugees by World Bank Operational Projects ?

Author

Listed:
  • McKenzie, David
  • Müller,Charlotte
  • Acosta, Pablo Ariel

Abstract

A strong evidence base has documented the many ways in which international migration can bring large development benefits for individuals and communities. Flagship reports and analytical work from international organizations like the World Bank have long argued for the need for countries to actively manage migration for development. How much is this evidence and rhetoric reflected in what money actually gets spent on? This paper analyzes the World Bank portfolio of projects financed between 2014 and 2024 to see how much money is being spent on activities related to international migration and refugees in developing countries, where it is being spent, and what it is being used for. It identifies 160 operational projects, totaling $15 billion for components related to migration, refugees and forced displacement. However, this funding is highly concentrated in a small number of countries, and over 70 percent of World Bank clients have not received a single dollar in financing for migration in a decade. Financing is almost entirely driven by projects to support refugees and displaced populations, with funding for facilitating or increasing benefits from economic (labor) migration averaging only $11 million per year. Funding on refugees goes well beyond immediate humanitarian support, with much of the focus on how to improve development outcomes for them through education, housing, and labor market inclusion. Examination of the small number of projects that do relate to economic migration show efforts to develop new migration corridors, reintegrate returnees, as well as a role for improving the technical and vocational training systems of sending countries to better align and certify skills with overseas demand. These cases also provide a demonstration effect of how money can be spent proactively to enhance the benefits of international mobility. The paper concludes by discussing the barriers to more project lending and potential opportunities.

Suggested Citation

  • McKenzie, David & Müller,Charlotte & Acosta, Pablo Ariel, 2025. "Where and How is Money Spent on International Migration and Refugees by World Bank Operational Projects ?," Policy Research Working Paper Series 11141, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11141
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    References listed on IDEAS

    as
    1. David McKenzie & Pilar Garcia Martinez & L. Alan Winters, 2008. "Who is coming from Vanuatu to New Zealand under the new Recognised Seasonal Employer (RSE) Program?," RFBerlin Discussion Paper Series 0806, ROCKWOOL Foundation Berlin (RFBerlin).
    2. Michael Clemens, 2015. "Global Skill Partnerships: a proposal for technical training in a mobile world," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-18, December.
    3. Christian Dustmann & Ian P. Preston, 2019. "Free Movement, Open Borders, and the Global Gains from Labor Mobility," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 783-808, August.
    4. McKenzie, David & Garcia Martinez, Pilar & Winters, L. Alan, 2008. "Who is coming from Vanuatu to New Zealand under the new recognized Seasonal employer program ?," Policy Research Working Paper Series 4699, The World Bank.
    5. Ahmed Mushfiq Mobarak & Iffath Sharif & Maheshwor Shrestha, 2023. "Returns to International Migration: Evidence from a Bangladesh-Malaysia Visa Lottery," American Economic Journal: Applied Economics, American Economic Association, vol. 15(4), pages 353-388, October.
    6. Michael Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk? - Working Paper 264," Working Papers 264, Center for Global Development.
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    8. Michael A. Clemens, 2011. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 83-106, Summer.
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