Migration case Essay
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Migration is regarded to be the transfer of people from one place to another - Migration case Essay introduction. Migration takes place on a wide scale globally. Certain circumstances prompt migration such as war and partition more than others. For instance, large number of people migrated from and to India and the Pakistan during the partition of Indian sub-continent in 1947.
There are many causes and motivators of the migration. People are forced to migrate to upgrade their social mobility, to flee from situations of conflict and distress and to seek refuge in other countries.
Migration often looks more widespread to us because of the destinations migrants are choosing. “There has emerged a hierarchy of important cities around the world that are networked together, the so-called world or global cities,” says Pratt. “These play an important role as command-and-control cities in the global economy.” At the rely least, the list includes the global financial centers: London, New York and Tokyo. They aren’t always the largest cities, which are rarely the most powerful. The global cities are networked together, he says, so resources flow between them and don’t necessarily flow to their hinterland. “In fact, the nation-states behind them don’t always benefit,” he says. (Winners and Losers, 2003)
There are numerous economic implications of the migration between countries. These are both negative and positive in nature.
There is actually a risk involved with migration. Sometimes the situation might prove downhill in the short-run but yield fruits in the longer run. This will happen if they utilized their skills and generated income and beneficial results for their host country. However, they might prove irksome and an encroacher on the host country’s resources if they eat more than they could produce. Another aspect of the debacle is the fact that the migrants are often said to be relying on the social welfare programs.
“While every mouth brings a pair of hands, these hands sometimes make more than they eat and sometimes less,” a writer in the financial times stated. (Path Finder Science)
However there is a consensus of major economists and financial and monetary analysts that the economic effects and consequences of the migration are in major part, positive.
Some have even gone to the extent of saying that the free flow of labour and workers between various countries would make trade easier and economic conditions will be set on a better part for the world. The countries from which the workers have migrated receive immense benefits from this kind of an approach.
They receive great sums of foreign exchange in remittances. The leading economic magazine that is the Financial Times said that the remittances worldwide are estimated at $60-70 billion annually. This amount is greater than the aid given to developing countries for development purposes. For example, “Somaliland, a breakaway region of conflict-devastated Somalia, receives an estimated $500 million a year in money sent home from abroad, four times more than the income from the main export, livestock, according to a study by the researcher Ismail Ahmed reported in the Financial Times” (Economic Effects of Migration)
In countries such as Pakistan and Mexico, the main sources of foreign exchange are considered to be the remittances sent by the employees from abroad. Mexico, for instance, gains its foreign exchange chiefly through the remittances after the oil exports.
The Mexicans abroad yielded so much influence through the remittances they send from abroad, that they gained and won the right to vote through their money power. The government gives greater importance to the workers residing abroad because they increase the foreign exchange reserves of the country.
The host countries also do not lag behind as far as the benefits are concerned. They are able to enjoy a diversity of labour. The labour is equipped with different skills and qualification and has their own variety of skills and knowledge to add to their diversity of the labour market that benefits the host country.
Immigrant workers also bring with them the advantage of low cots. Coming from the developing countries mostly they are fascinated by the economic returns some of the developed nations have to offer and on are ready to give off their services at rates that are highly competitive and seem lucrative to the hosts.
This is because they would never have people in their own countries work at such wage rates and that gives businesses hiring the immigrant workers an edge over the rest and translates into increased profits.
The individuals who had migrated to various other countries also receive their due benefits. Firstly they receive an adequate monetary compensation and perks with their jobs. Although these might be lesser than what the workers from the host countries themselves would receive, they are still better than the minor pittance these workers would have got back home. The money they send back to their families adds up to the foreign exchange as well as bringing economic prosperity to the households.
There are several negative effects, nonetheless.
The economy of the host country is in a phase of stagnation or depression with high unemployment, as was the case in many developed countries after the oil crisis in 1973. Accepting more immigrants under this condition or even keeping a large number of unemployed economic immigrants offers no benefits and may also cause serious social reactions. Helping the sending countries to create new employment opportunities for their people may be a better policy to follow. (Fakiolas, n.d.)
The Center of Immigration Studies which is also known as the CIS is based in the United States of America. It has studied extensively and conducted research on the effects of immigration to a great degree. It has surveyed and come to the conclusion that migration does not have many positive effects. It has chosen Mexico as the case study and says that they have had wrought poor effects on the economy and the whole culture of the United States of America. They have caused a five percent (5%) decrease in the wage rates and salaries for the poorest and the most deprived ten percent (10%) of the American workforce that works in menial jobs and are unskilled.
This is because the immigrants that is, in this case, Mexican take jobs that are extremely low-paying and thus, cause wage rates in general to drop. This in turn makes all those unavailable for work who would like to work at a better wage rate and thus do not work at all and wish to remain unemployed.
The immigrants are also another burden on the national treasure because they claim too much by way of the social and welfare services such as health care and education as well as the unemployment benefits. The impoverished and deprived households that are immigrant and Mexican employ services more than the original and native-born American households. The rate of their utilizing the service is 31 percent (31%) for Mexicans versus fifteen percent (15%) for the Americans.
Another great negative effect is that of the brain drain. Brain drain refers to a situation where the high-ranking professionals and educated and qualifies cream of the country moves out or migrates to the developed countries in search of the better employment options. This situation is very rampant.
“At the same time, developing countries can suffer from “brain drain”—the loss of trained and educated individuals to emigration, an example of the possible negative effects of emigration for developing countries. For example, there are currently more African scientists and engineers working in the United States than there are in Africa, according to the International Organization for Migration (IOM), a worldwide agency that assists migrants. In Zambia, emigration has reduced the number of practicing doctors from 1,600 a few years ago, to a mere 400 today. The IOM estimates Africa’s brain drain has cost nearly $9 billion in lost human capital and growth potential since 1997. Nearby in India, 100,000 skilled technology workers are expected to leave in the next three years. Since it costs India about $20,000 per student to educate these individuals, India essentially will subsidize the rest of the world for $2 billion worth of technology education.”(Economic Effects of Migration)
The skilled workers that migrate are the doctors, engineers, lawyers, technicians, software developers, media professionals and other skilled and semi-skilled workers that may include the plumbers, technicians, make-up artists and machine repairers amongst a wide and diverse lot of the others.
Another instance is presented in the case of United States of America. More scientists and engineers and other such high-tech professionals belonging to Africa work in United States of America than in the Africa itself. This was found by the International Organization for Migration, that is, the IOM which is a global and an international agency that assists and helps the migrants. Zambia experienced a severe decrease in the number of practicing doctors that amounted 1,600 a quarter of a decade back to a small and paltry sum of 400 today. The reason was emigration.
The brain drain in Africa has cost the nation approximately $9 billion in the human capital and growth and development margin from 1997. A similar situation is present in India. There an approximately 100,000 workers employed in the technology sectors are predicted to leave in the coming and approaching three years. It cost India $20,000 per an individual student to educate and train these students. India is now basically, in effect, subsidizing the remaining of the world for a technology education valued at $2 billion.
This sort of situation is severely felt and experienced in countries such as India and Pakistan that have an acute shortage of the skilled workers and face a high demand for them if they are to prosper and advance financially, technologically and industrially as well as in the power politics and public arena.
But in these very countries the rate of emigration is very high especially of those that are highly educated and needed by their countries. Therefore, the government introduces various schemes and innumerable incentives to motivate the public and the professionals to stay, reside and work in their homeland and bring back the ones abroad.
There are both positive and negative economic and monetary implications of the migration. The best strategy would be to magnify the positive ones and mitigate the negative ones.
The governments should work out a strategy by which they are able to share and reap the fruits of their efforts collectively. The brain drain should be reduced by provision of benefits and perks to the people at par with the level they are offered in the developing nations. This shall clearly halt the increasing rates of emigration from developing countries. The cut-down in the costs is yet another factor of the trade that should be enjoyed by all through mutual trade and monetary and fiscal policies.
The myth that needs to be addressed is the fact and the fear that is experienced by the host countries and mainly their residents that immigrants are essentially parasites and encroachers on the country’s resources and that they just live of the social security schemes.
The people need to be educated that immigrants are also vital contributors towards the national incomes and add their skills. They might be rich in skills that are lacking in the people of the host country and they are unable to work in such areas. For example, numerous menial jobs in America are taken by workers from abroad that would otherwise be left unperformed or in other cases, underperformed by the locals themselves because of their reluctance. The sending countries should also realize the benefit they receive in terms of increase in foreign exchange and think that costs of remittances is far more and outweighs the income they generate abroad. They should get the idea that the emigrants might better be employed abroad than being unemployed in the homeland.
Economic Effects of Migration http://www.globalization101.org/index.php?file=issue&pass1=subs&id=176
Accessed, March 18, 2007
Globalization: Winners and Losers – Geographical, October, 2003
Migrations the debate in Finland
www.portal-stat.admin.ch/iaos2000/lankinen_final_paper.doc Accessed, March 18, 2007
PathFinder Science | Cultural Migration | Creating the Context | Background Info http://pathfinderscience.net/culmig/cbackground.cfm Accessed, March 18, 2007
Rossetos Fakiolas, (N.d.) the Economic Effects of Migration
http://www.emz-berlin.de/projekte_e/pj41_pdf/Fakiolas.pdf Accessed, March 18, 2007
The impact and the OECD
www.oecd.org/department/0,2688,en_2649_34591_1_1_1_1_1,00.html Accessed, March 18, 2007
The migration and effect on the origin country
www.taurillon.org/Migration-a-Barrier-for-Economic Accessed, March 18, 2007