Facilitating Temporary Labour Mobility in African Least-Developed Countries

Addressing Mode 4 Supply-Side Constraints

Addressing Mode 4 Supply-Side Constraints

by Sabrina Varma

ICTSD Programme on Trade and Services and Sustainable Development Series • Issue Paper 10

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Least Developed Countries (LDCs) in Africa face significant levels of poverty and vulnerability and a high dependence on international trade. Moreover, they experience high levels of unemployment, low wages and labour productivity, and rapid population growth. The General Agreement on Trade in Services (GATS) and its provisions regarding the temporary movement of natural persons (Mode 4) could be extremely beneficial to address some of these countries’ supply-side constraints.
The following Issue Paper (No. 10) on “Facilitating Temporary Labour Mobility in African Least Developed Countries: Addressing Mode 4 Supply-Side Constraints” by Sabrima Varma, an International Consultant, argues that temporary labour mobility from LDCs should be embedded in a broader skills development strategy, which addresses skills formation and long-term development objectives in the context of national development plans and Poverty Reduction Strategies Papers (PRSPs) in LDCs.
Labour mobility can have important development implications for LDCs. Remittances represent a crucial source of national income. Of the top 10 remittance recipients in LDCs, five were in Africa (e.g. Sudan, Senegal, Uganda, Lesotho, and Togo). In these countries, resources from remittances have been directed to investment in infrastructure, education and health, among others. Moreover, labour mobility may be an important alternative to permanent as well as illegal migration and brain drain, which would be largely beneficial to both sending and host countries. Likewise, temporary labour mobility could provide an immediate strategy to stabilize the economies of LDCs.
However, in order to contribute to sustainable development temporary labour mobility should be properly and effectively planned and monitored in source and host countries. If not, it risks to contribute to brain drain, worsen existing skill and labour shortages in key areas of the economy, and thus undermine crucial economic and social development goals of LDCs. Currently, the costs and risks of temporary labour mobility are unequally shared by the public and the private sector. Source and host countries should address these costs and risks, and ensure issues relating to the duration of the stay in host countries, the enhancement of skills, and return and reintegration of workers in LDCs. Ultimately, though, temporary labour mobility should not be an end in itself, but an important element of human capital development through the provision of training, work experience, and upskilling for LDCs.
The purpose of this paper is thus to contribute to a knowledge-based discussion on how LDCs could capture the potential benefits and reduce the risks of temporary labour mobility while at the same time building their supply-side capacity. Moreover, this paper aims to show the importance of embedding temporary labour mobility schemes into sustainable development plans in LDCs.

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