WOR LD BANK
DEVELOPMENT COMMITTEE
(Joint Ministerial Committee
of the
Boards of Governors of the Bank and the Fund
on the
Transfer of Real Resources to Developing Countries)
ONE HUNDREDTH MEETING
WASHINGTON, DC - OCTOBER 19, 2019
DC/S/2019-0051
October 19, 2019
Statement by
Arturo Herrera Guti6rrez
Secretary of Finance and Public Credit
Mexico
On behalf of Costa Rica, El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Kingdom of Spain, and Repi6blica
Bolivariana de Venezuela


Statement by
Arturo Herrera Gutierrez
Secretary of Finance and Public Credit
Mexico
On behalf of Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Kingdom of
Spain, and Repfiblica Bolivariana de Venezuela
100th Meeting of the Development Committee
October 19, 2019
Washington, DC
Unleashing the Potential of Trade and Economic Migration
It is a great privilege to participate in the 100th meeting of the Development Committee. I stand at this
forum representing Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Spain, Bolivarian Republic
of Venezuela and my own country, Mexico. I would like to share the views of our constituency and concerns
we would like to see addressed moving forward.
Trade and Global Value Chains
We believe that this is the ideal moment to promote a change in the international trade narrative, and that
this can be done through the institutional strength and convening powers of the World Bank Group. There
is a subtle distinction between trade and global value chains (GVCs), which is crucial because it means
moving forward in rebuilding the narrative on free, fair, non-discriminatory, rules-based, transparent,
predictable and stable trade, as illustrated in the 2020 World Development Report (WDR 2020). GVCs
improve efficiency, strengthen lasting relationships between firms, and promote the dissemination of
technology and access to capital and inputs. Moving forward it is necessary to have a clear and thorough
understanding that the rise in trade and GVCs has accelerated economic growth and contributed to reducing
global poverty. Our following steps must be well thought and innovative to ensure that the gains from
participation are equitably distributed.
However, since the global financial crisis of 2008, trade growth and GVCs expansion have significantly
decreased. In addition, recent unpredictable changes in trade policies of major trading countries is
undermining the rules-based trade order and creating uncertainty. The uncertainty is producing an increase
in volatility and thus having a negative impact on economic growth and employment. Unfortunately
developing countries are those that suffer the most. For example, enduring a decrease in private investment.
Thus, we are concerned with the current state of affairs, now more than ever we encourage the World Bank
Group to promote and strengthen orderly trade between countries.
We concur with the proposed criteria for Bank action in this area. Along these lines, the World Bank
Group's engagement with these matters should be guided by its reputable knowledge.
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Mi2ration
Looking ahead, we would like to raise an issue of global concern. In the last decades we have devoted
attention and achieved progress in bringing down barriers to the trade of goods and services, as well as
financial flows. Now, it is imperative to draw attention to the orderly and safe mobility of human capital,
a global challenge of major importance. Swift, effective and efficient efforts are needed from all countries
to address migration. Notwithstanding, we would like to see a greater presence and enhanced role on behalf
of the World Bank Group, for example through its institutional commitments, its programs and its
resources. It also calls for a significant commitment and involvement from fellow members.
Migration is the missing link in the process of global economic integration. Migration has the potential of
playing a crucial role in improving the lives of communities in the countries of origin through the transfer
of financial capacities and resources, and simultaneously significant benefits to recipient countries in the
form of skills, increased workforce, cultural diversity, investment and bringing youth to countries with
aging population. However, if the mobility of human capital is not adequately managed it could have a
negative impact on development, endanger people, put communities under undesirable levels of social
tension, and reduce development benefits.
Migration is complex and must grapple with interests that may counter economic integration. For example,
protectionist practices reduce the opportunity of creating jobs and economic growth; or migration policies
may create an increasingly restrictive environment. Therefore, innovative solutions are necessary to find
that sweet spot where both, countries of origin and recipient countries, benefit from migration.
Migration flows are expected to increase in the coming years driven, among other things, by climate change.
Because the fight against climate change is a WBG concern, it is worth exploring in greater depth its
relationship to the migration phenomenon in a development perspective.
Taking the time to understand migration is only the first step to effectively address the issues that have
brought us all together today: GVCs, the Human Capital Project (HCP), Jobs and Economic Transformation
(JET); these initiatives also have the potential to generate crucial strategies to overcome the global
economic challenges.
We hope that our call will have resonance and achieve the support and attention it deserves. We are
convinced that looking forward the World Bank Group can provide a helpful framework to address the
relationship between orderly and safe migration, enhancing economic development. World Bank Group
resources have the potential to deepen the understanding of migration that will empower the international
community to foster economic development.
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