The huge importance of remittances to Central Asian economies is brought home by a new report authored by the World Bank, but at the same time the analysis urges the countries of the region to work on transforming "brain drain" into "brain gain" by making migration an explicit development policy based on bringing home migrants who have picked up skills abroad.

It recommends: “Origin-country governments can monitor labor market needs, implement educational cost-sharing systems to align with demand, foster public-private cooperation through Global Skill Partnerships, and incentivize the return of high-skilled migrants through labor market reforms and supportive policies.”

The World Bank released the study—The Journey Ahead: Supporting Successful Migration in Europe and Central Asia—at a presentation attended by government officials responsible for regulating external migration and experts from Uzbekistan, Kazakhstan, Kyrgyzstan and Tajikistan.  

The study analyses current migration trends, challenges, and opportunities in the Europe and Central Asia (ECA) region.

Migration, notes the report, remains an ongoing development challenge in ECA, currently home to 100mn migrants, accounting for one-third of the world’s migrant population. “Driven by income gaps, demographic shifts, climate change, and conflicts, migration patterns are expected to continue rising globally,” says the development and finance institution.

As of 2024, remittances accounted for 45% of Tajikistan’s GDP—the highest share in the world in relative terms—24% of Kyrgyzstan’s GDP and 14% of Uzbekistan’s GDP, the report states.

It adds: “As of 2023, over 80% of migration flows from Tajikistan and Kyrgyzstan were directed toward Russia. Migration from Uzbekistan is slightly more diversified, with 57% of Uzbek migrants residing in Russia, 15% in Kazakhstan, and 10% in Ukraine.”

Migrants from these countries, says the study, can expect to double or even triple their earnings by working abroad, generating significant welfare gains for households across the region.

For example, the report shows that the poverty rate among Kyrgyz households with an international migrant, currently below 10%, would exceed 50% in the absence of remittances. In Uzbekistan, estimates suggest that the poverty rate would rise from 9.6% to 16.8% without remittances.

The World Bank said: “By identifying both the challenges and opportunities associated with migration, the report aims to foster a more nuanced and evidence-based debate on the costs and benefits of cross-border mobility.

“If managed effectively, migration can be a powerful and increasingly necessary tool for addressing the sociodemographic imbalances in the ECA region. However, the report notes that the full economic potential of migration remains untapped.”