Why Migration Is an Opportunity for Development

Originally published in Forbes Argentina.

By Marianny Pacheco – General Coordinator of “Hola Argentina” for Ashoka Cono Sur

Contrary to how the phenomenon is often portrayed, numerous studies show that it can drive economic growth and competitiveness within the private sector.

Ugur Sahin was born in Turkey in 1965 and moved to Germany at the age of four. Along with his family, he migrated in search of a better life, work, progress, and above all, opportunity. Little did they know that, about five decades later, Ugur would be offering an opportunity to the entire world.

Together with his wife and colleague, Özlem Türeci—who shares Turkish roots—they founded BioNTech, the pharmaceutical company behind the Pfizer vaccine. The media quickly picked up on the couple’s background and sparked debate about the social role of migrants.

Migration has existed since the beginning of time. Today, it is estimated that there are over 280 million international migrants, accounting for around 3.5% of the world’s population. Without a doubt, migration is a challenge, but it is often stripped of its many nuances and reduced to a mere problem.

Latin America and the Caribbean are facing an unprecedented migration phenomenon. Of the nearly 15 million migrants in the region, more than half have left their countries in the last five years due to political, social, and economic instability, natural disasters, and more recently, COVID-19.

What does this movement mean?
The Innovation Lab (BID Lab) and the Migration Unit of the Inter-American Development Bank (IDB) assert that migration fuels growth and a country’s capacity for innovation. In their report MIGnnovation, they note how the old image of a migrant carrying their belongings in a cardboard suitcase is now outdated. “Today, their most valuable possession is the mobile phone they carry, which holds their past and present and helps them build their future,” the report states.

Although several governments in the region have shown significant commitment through policies that promote inclusion and opportunity, the reality is that this is not enough. The major challenges triggered by migration—such as the provision of public services, labor markets, and tax burdens—are making it increasingly clear that balanced collaboration between the private sector and civil society is essential. Together, they must work and innovate to address these challenges.

There is substantial documented evidence to support the claim that migration can indeed promote economic growth and competitiveness within the private sector and civil society of host countries. The latest United Nations global migration report offers important data in this regard.

Argentina is no stranger to the conversation; it has a long-standing and consistent history of migration and is one of the countries in the region with the highest flow of migrant populations, particularly from neighboring countries. Migrants make up 5.1% of Argentina’s population—about 2.2 million people. Of those, 53% are between 19 and 40 years old (part of the active workforce). Although the employment rate for migrants is higher than that of the native population, 50.9% of migrants are in informal or irregular employment, compared to 31.8% of Argentine citizens.

Projects like Hola Argentina, led by Ashoka Cono Sur, focus on understanding, analyzing, and taking initial steps to build a network of stakeholders around migration in the country. The aim is to “hack” the current narrative surrounding migration and introduce a new perspective—one that positions migrants as powerful drivers of innovation and changemakers who contribute to a nation’s development and progress by sparking transformation.

In their 2020 report Social Innovation for Migration, supported by the International Organization for Migration, Hola Argentina identified more than 40 innovative solutions aimed at labor integration, financial inclusion, education, healthcare, housing security, and legal status—among other crucial and urgent topics relevant to the integration of the migrant population in Argentina.

One of these solutions is Nippy, created by Diego Amondaray. Nippy is an ecosystem designed to create employment, growth, and business opportunities for migrants across various Latin American countries. Currently, it focuses on the 4.9 million Venezuelan migrants in the region. Through three business units, the initiative acts as a bridge between individuals, companies, and business opportunities across Latin America.

Given the accelerated growth of migration flows in recent years, Latin American companies have a tremendous opportunity to leverage the arrival of migrants to become more competitive, expand their markets, or create new businesses. Ashoka has doubled down on this commitment and, in June, launched Hola América, an initiative aimed at strengthening the ecosystem and accelerating innovative projects that address the challenges migrant communities face in Chile and Argentina.

Various studies show that migration can have positive economic effects. For example, the World Bank estimated that a 3% increase in migration to developed countries between 2005 and 2025 would result in global gains of USD 356 billion. In fact, migrants are often noted for their ability to start businesses (many choose entrepreneurship as a way to establish themselves in a new country), create jobs, and contribute new knowledge—bringing fiscal contributions and increased consumption in the process.

When properly harnessed, migration is a powerful force for change, embodied by people with diverse origins, ideas, and experiences—and these are the very ingredients that drive innovation.

You can read the article in Spanish, originally published on Forbes Argentina.