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

David McKenzie, Charlotte Müller and Pablo Ariel Acosta

No 11141, Policy Research Working Paper Series from The World Bank

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.

Date: 2025-06-09
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