Absorbing external shocks: the Gulf crisis, international migration linkages and the Indian economy, 1990 (with special reference to the impact on Kerala)
Saith, A.
Working Paper Series Institute of Social Studies, The Hague 107: 52pp.
1991
DOI: 10.1111/j.1467-7660.1992.tb00440.xDocument Number: 318581
The political crisis in the Gulf has had devastating effects on the large Asian community of migrant workers who inhabited Kuwait and Iraq. This paper focuses on four issues related to international migration effects of the Gulf crisis. It examines the financial and material losses suffered by Indians, particularly in Kerala, and the process and possibility of loss recovery and compensation. It conducts an appraisal of the prospects of migrants making a successful re-entry into the overseas labour market whether into Kuwait or other countries of the world. The measures required to improve the situation are evaluated, in the short-term context. Finally, longer-run policy interventions aimed at encouraging the reintegration of migrants into the home economy are assessed taking into account workers' endowments and aspirations. The economy-wide consequences of the Gulf crisis are also reviewed for the Indian economy. The Government of India is urged to adapt a laissez-faire attitude towards migration as it is likely to benefit both workers and the national economy (in the form of remittances).