World Bank: Migration policies crucial for Europe's economic growth amid aging populations

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Ajay Banga 14th President of the World Bank Group | Official Website

A recent report by the World Bank emphasizes the growing importance of migration in fostering economic growth, enhancing competitiveness, and addressing inequalities in Europe and Central Asia. Titled "The Journey Ahead: Supporting Successful Migration in Europe and Central Asia," the report highlights demographic changes as an opportunity to improve migration policies for economic and societal benefits.

With aging populations in high- and middle-income countries worldwide, competition for workers is intensifying. Western Europe is projected to see a 14% decline in its working-age population from 2020 to 2050, necessitating foreign labor to sustain economic growth. In many countries within Europe and Central Asia (ECA), emigration contributes through remittances, investments, and skills transfers but also poses challenges such as brain drain. Thus, effective policymaking is essential.

“Managed well, migration can work for everyone involved—countries of origin, destination countries, and migrants themselves,” said Michal Rutkowski, World Bank Regional Director for Human Development, Europe and Central Asia. “Effective migration policies can help match workers’ skills with destination countries’ needs, strengthen refugee support, and relieve pressures that force people to migrate.”

The report identifies additional factors like rising income disparities, climate change, and conflict as drivers of global migration trends. It advises governments to differentiate between high-skilled migrants, low-skilled migrants, and refugees while tailoring solutions based on specific needs. Evidence-based policies promoting safe cross-border movements are crucial for maximizing migration's shared benefits.

Insights from the ECA region reveal that early policy interventions are vital for unlocking migrants' productive potential. This includes developing frameworks for refugees, conducting skills assessments, ensuring access to social protections like healthcare and education, and providing language training. Connecting migrants with local job markets improves outcomes and enhances social cohesion when extended to local communities.

International cooperation remains key to making migration a successful development driver. Bilateral efforts can align migrant skills with destination needs while multilateral approaches address forced migration complexities and share refugee hosting costs. The ongoing dialogue on migration should involve diverse perspectives including those of developing nations, the private sector as well as migrants themselves.

For more details on this topic or to download the full report visit www.worldbank.org/eca-migration