Reimagining Migration: Bosnia and Herzegovina's Strategic Approach to Diaspora

Bosnia and Herzegovina's high emigration rate, driven by better opportunities abroad, presents both challenges and untapped potential for economic development through diaspora engagement. Improved migration policies and leveraging diaspora investments could significantly boost the country's growth and development.

Bosnia and Herzegovina, with a long history of emigration, has about 1.7 million of its citizens living abroad, making it the country with the highest emigration rate in Europe and Central Asia. This significant diaspora predominantly resides in former Yugoslavian countries and high-income nations like Germany and Austria. Recent migration trends show increasing movement to Germany, Slovenia, and Croatia, driven largely by economic opportunities. The nature of Bosnian emigration has evolved from forced displacement due to conflict in the 1990s to economic migration in recent decades. While the Bosnian labor market has improved, it still offers fewer opportunities compared to other European countries. High unemployment rates, low wages, and better economic prospects abroad are significant drivers of this migration. The average wages in Bosnia are substantially lower than those in countries like Germany and Austria, creating a strong incentive for Bosnians to seek employment elsewhere. These findings are detailed in the World Bank's recent report, researched by institutions including the Ministry of Human Rights and Refugees (MoHRR), the Ministry of Foreign Affairs (MoFA), the Ministry of Security (MoS), and various international donors and civil society organizations.

Bosnia’s Emigrants: Prime Workforce with Better Prospects

Migrants from Bosnia and Herzegovina tend to be of prime working age and enjoy better employment outcomes abroad than their non-migrant counterparts. In OECD countries, Bosnian migrants have higher employment rates and are often employed in low to middle-skilled occupations, although many face occupational downgrade. Despite their better employment prospects, migrants often work in jobs below their skill levels, with significant gender job segregation.

Economic Impact: Remittances and Untapped Potential

The impact of emigration on Bosnia and Herzegovina is multifaceted. While remittances from the diaspora account for 10% of the country's GDP and help reduce poverty, the potential for economic development through diaspora engagement remains underutilized. Investments from the diaspora are significantly lower than remittances, and many migrants willing to invest in their home country face challenges. The country's migration system has seen improvements, with successful programs to support the diaspora and returnees. Donor-funded programs like the USAID Diaspora Investment Program have incentivized diaspora investments and provided technical assistance, showcasing the developmental impact of diaspora engagement.

Room for Improvement in Migration Framework

However, the legal and institutional framework for migration in Bosnia and Herzegovina still has room for improvement. The country lacks a national diaspora law or strategy, and there is a need for better coordination among institutions working on migration and increased financial and staff capacity. Bosnia and Herzegovina can learn from global best practices to better leverage its diaspora. Successful diaspora engagement requires a long-term and holistic vision, a conducive legal and business environment, comprehensive mapping and outreach efforts, and well-designed diaspora programs. The country can strengthen its engagement with the diaspora by creating consultative bodies, improving the business environment, and building trust with its diaspora.

Enhancing Support for Return Migrants

Despite some successful programs, there is still much to be done. The institutional infrastructure supporting return migrants, based on the Strategy for Reintegration of Returnees under Readmission Agreements and the Action Plan for the Period 2019-2022, needs to be strengthened. Bosnia and Herzegovina recognizes the importance of managing returnee flows effectively and providing services to facilitate their reintegration. Municipalities play a crucial role in receiving and providing services to returnees. The current system includes support throughout the different return phases, from facilitating a safe return to placement in temporary readmission centers and integration into local communities.

Leveraging the Diaspora for Economic Growth

However, there is room for improvement in developing a comprehensive migration strategy with clear objectives aligned with national development strategies, action plans, and regular monitoring and evaluation. More coordination between institutions at different administrative levels central, entity, and local is essential. Additionally, increasing the number and depth of agreements with third countries can support formal migration and improve the quality of human capital in Bosnia and Herzegovina. Exploring the development of global skills partnerships with key destination countries could mitigate potential losses of human capital due to outmigration. These programs include training workers in the home country with skills needed in both sending and receiving countries, increasing the labor supply with demanded skills in key sectors. To better manage migration, improving data collection systems is crucial. More detailed data on migrants and returnees is needed for monitoring and evaluation to understand what works and what doesn't in specific contexts, and to adjust and adapt programs accordingly. This includes improving questions on censuses, administrative data, and survey data to better capture current migrants and returnees. Bosnia and Herzegovina’s large diaspora presents a significant opportunity for economic development. By improving its migration system and effectively engaging with its diaspora, the country can better harness the potential of its emigrant population to drive local economic growth and development. Developing a comprehensive diaspora engagement strategy, improving the institutional and business environment, and strengthening the service provision to its global workforce can make a substantial difference. The country must act quickly to leverage its large diaspora and address the challenges associated with migration to support holistic improvements in its migration system.