Preface
It is commonly believed that migrant workers generate net economic benefits in receiving countries, including
filling vacant jobs and reducing inflationary pressure. Migrants add to output and income, and their employment
in export sectors can increase foreign exchange. While a major concern has been that in some countries
migrant workers become a burden in terms of public services and welfare payments, the fiscal impact of
foreign workers depends on a number of factors, including the participation of migrants in host country social
assistance systems. Given the large flows of migrant workers across national boundaries in recent years,
these issues are prompting debate around the world. Thailand is no exception.
Although the burden and risks of migrants are often put forward in discussions about employing foreign workers,
there is relatively little mention in reports and consultations of their economic contribution to the Thai economy.
While this is only one dimension of the labour migration, it should be part of a public debate on policy development
for managing labour migration and protecting migrant workers. It is apparent that one has to look at empirical
evidence rather than rely on preconceived notions about migrant workers. It is also clear that fair treatment of
migrant workers offering labour services in a foreign country should be viewed as a sound long-term policy
and not as a form of charity.
The ILO views labour migration as a positive force in the global economy. As part of its broader commitment to
promoting decent work, the ILO and its constituents agree on the desirability of maximizing the benefits that
can flow from: (i) introducing policies that give priority to economic growth and development; and (ii) encouraging
regular labour migration. The International Labour Conference of the ILO held in June 2004 representing
governments, employers and workers called for a non-binding multilateral framework for managing migration
comprising principles and best practices.
In November 2006 the ILO launched a research project on “Economic Contributions of Migrant Workers to
Thailand: Policy Development.” The ILO realised that the resources at hand were not adequate to request a
revision of the Consolidated General Equilibrium (CGE) estimates that were produced by the Thailand
Development Research Institute in 1995. This would mean restructuring the model and updating the data to
reflect the many changes in the Thai economy since the financial crisis. Another solution would be to rely on
international experience to piece together the information we have from other sources. For this approach the
ILO asked the support of Professor Philip Martin who had worked alongside the TDRI, Chulalongkorn University
and Mahidol University on an earlier project dealing with labour migration in Thailand with support from the
ILO and IOM.
The ILO consultant for the study was Professor Philip L. Martin from the University of California-Davis who is
a well-known authority on labour migration. He has studied labour migration issues in Thailand for a number
of years. Professor Martin visited Thailand again in February 2007 to interview Thai experts in a number of
research institutes, academic institutions, government agencies and other stakeholders. The research looks
into macroeconomic impacts and labour market outcomes in assessing the net contributions of migrant workers
to the Thai economy. It aims to make a contribution to developing policies for labour migration management.
The report was discussed at a Workshop on the Economic Contribution of Migrant Worker to Thailand: Towards
Policy Development held in Bangkok on 22 May 2007 attended by a broad range of stakeholders including representatives of government, employers, workers, academic institutions, research institutes, human rights
organizations and non-governmental organizations. The author then incorporated the findings in the report.
While the study raises questions as well as poses solutions, it is clear that the net impact of migrant workers
on the Thai economy is a positive one. It is the hope of the ILO that this first step will lead to new studies that
will shed more light on the labour migration to Thailand in the region.