Economics admin Economics admin

New Report: Migration and Development

The best international development policy would be to let in more workers from the third world in to work in Britain, according to a new paper from the Adam Smith Institute. Politicians should stop trying to save entire countries with foreign aid programmes and instead help their inhabitants by letting them move to developed countries, it says. The report Migration and Development argues that doling out billions in foreign aid risks propping up corrupt kleptocratic governments and having little impact on development; letting people move to where they can be most productive is a reform that really works.

The paper, authored by Swedish policy analyst Fredrik Segerfeldt, suggests an immigration target, modelled on the 0.7% of GDP foreign aid target, in order to boost the welfare of the global poor.

Not only would this help the migrants themselves, but it would even help their source countries to develop, Segerfeldt says. Migrants send around three times as much home in remittances as governments send in foreign aid, and this private development aid is far better targeted, going directly to those in need and not through flawed institutions. The money is often used by developing country citizens to educate themselves and raise their human capital, helping to create a virtuous development cycle.

To assuage worries that migrants will empty the state’s coffers as a fiscal burden on the state, Segerfeldt advocates both that migrant work permits be temporary, and that the full suite of benefits would only be available to natives.

-2To access the full press release, click here.

To download the report for free, click here.

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Miscellaneous Nick Partington Miscellaneous Nick Partington

They must be mad, literally mad: to be lucky in one's opponents

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It is easy to take the view that we British defenders of immigration have never had a tougher time being heard over the omnipresent calls for restrictions, policy changes, and–most frequently–an “open and honest debate” on the subject. Issues of immigration and race relations have indeed increased in salience, but I remain bemused by (and somewhat thankful for) the sterility of the debate as it exists today. Opponents have got to the absurd point of having to pretend that it isn't immigration that they care about, but migration. To this end, they speak about net migration rather than immigration statistics, and give their pressure groups names like Migration Watch. In my view, this is quite transparently a PR move and nothing else. Migration Watch claim that their goal is ‘balanced migration’, though I doubt they would be delighted if tens of millions of Brits were replaced with immigrants each year. I am entirely willing to be convinced otherwise when the soi-disant migration sceptics urge the government to do everything it can to reduce net migration – including using state power to increase emigration (perhaps subsidies for yet more Brits to move to sunnier climes).

When one's opponents have to contort themselves in this way, resorting to the specious economics of the so-called lump of labour fallacy (which most good evidence seems to refute), one should be grateful. They are hobbled by their partial adherence to ideas of acceptable discourse set out by those who would see them silenced. They are less likely to be accused of racism while talking about pressure on wages or queues at the GP surgery than about the merits of multiculturalism.

Various arguments against immigration are unheard beneath this cacophony of mistaken economics. Speaking to the sense of insecurity–alienation, even–that some feel in response to the changing character of their communities, these points can be troubling when made with passion. Enoch Powell wasn't citing the fluctuation of net migration statistics in his Rivers of Blood speech. Neither was Robert Putnam (though not an opponent of immigration per se) in Bowling Alone when he reflected that the more diverse the community

…the less people vote, the less they volunteer, and the less they give to charity and work on community projects. In the most diverse communities, neighbors trust one another about half as much as they do in the most homogenous settings.

The observation that these arguments aren’t being made is less cause for optimism and more for wariness. For the moment, while our opponents for the most part refrain from basing their arguments on normative claims about the cultural effects of immigration, and focus on claims about economics, we can rebut, present evidence and, I hope, convince some people that they are mistaken. Indeed, when surveyed, people report that they are most concerned about immigrants’ effects on jobs, public services, and wages, rather than culture, so it might follow that they can be convinced otherwise by contradictory evidence.

However, if the point comes when those opposed to liberal immigration policy realise they are abiding by standards which restrict their side and weaken their argument, and stop doing so, those of us who want immigration (and lots of it) should be worried. The other day, Nigel Farage spoke about protecting our ‘Judeo-Christian’ culture, and yesterday of the moral cowardice of Europe: a taste of what we've avoided, or of something yet to come?

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International, Regulation & Industry Kate Andrews International, Regulation & Industry Kate Andrews

UK politicians' ignorance towards immigration gives Juncker credit he probably doesn't deserve

Jean-Claude-Juncker1.jpg

It’s a tough day when you have to agree with Jean-Claude Juncker. After all, I tend not to see eye-to-eye with those who think the European Commission needs “to be an even more political body.” But today, Juncker came out strong against Cameron’s proposed cap on EU migration to the UK; which is good, important even:

From The Telegraph:

Mr Juncker said: "I am not prepared to change [freedom of movement]. If we are destroying the freedom of movement other freedoms will fall. I am not willing to compromise."

He said that any attempts to address the issue of the amount of benefits being claimed by foreigners would have to be in line with current EU treaties.

“Member states are free to take the initiatives they want as long as these initiatives are line with the treaties," Mr Juncker said.

Here's the problem - I don't think I do agree with Juncker; in fact, I have a sneaking suspicion he and I hold the opinion that free movement in the EU should remain uncapped for fundamentally different reasons. I, for one, don’t think migration is complimented by mandates to ensure a universal ‘minimum social wage’ throughout the EU.

Rather, I see free movement as an integral and necessary component of UK economic prosperity, not to mention a huge benefit for communities that both migrants and natives come in inhabit.

Yet on this particular topic, Mr Juncker and I have the same end goal. And his commitment to protecting free movement—rejecting Cameron’s migration negotiations—has taken us another step towards a full-blown referendum in 2017. Such a referendum, described in the most positive light, would be an opportunity for Britons to discuss and debate the implications EU regulations have on the UK (the specifics of trade agreements and vacuum cleaner bans are two topics that immediately spring to mind…). But there is a deep worry on the part of pro-immigration advocates such as myself that many will use the referendum to lock migrants out of the UK as best they can.

The majority of Juncker’s policies fall short of promoting freedom and prosperity—but on migration, at least his end goals are right. And until UK politicians (all of them really, Conservatives and Labour across the board) stop trying to halt the overwhelming benefits migrants bring to the UK, I find myself in unfamiliar waters, with Mr Juncker as my ally.

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Economics, International, Philosophy Kate Andrews Economics, International, Philosophy Kate Andrews

Unsurprising: Migrants give back to new communities (often more so than natives)

Migrants in high-income economies are more inclined to give to charity than native-born citizens, this Gallup poll finds. Screen shot 2014-10-17 at 12.02.21

[High-income economies are referred to as "the North"/ middle- to low-income economies are referred to as "the South".]

 

From 2009-2011, 51% of migrants who moved to developed countries from other developed countries said they donated money to charity, whereas only 44% of native-born citizens claimed to donate. Even long-term immigrants (who had been in their country of residence for over five years) gave more money to charity than natives–an estimated 49%.

Even 34% of migrants moving from low-income countries to high-income countries said they gave money to charity in their new community – a lower percentage than long-term migrants and native-born citizens, but still a significant turn-out, given that most of these migrants will not have an immediate opportunity to earn large, disposable incomes. The poll also found that once migrants get settled, their giving only goes up.

Migrants seem to donate their time and money less when moving from one low-income country to another; though as Gallup points out, the traditional definitions of ‘charity’ cannot always be applied to developing countries, where aid and volunteerism often take place outside formal structures and appear as informal arrangements within communities instead.

It’s no surprise either that the Gallup concludes this:

Migrants' proclivity toward giving back to their communities can benefit their adopted communities. Policymakers would be wise to find out ways to maintain this inclination to give as long as migrants remain in the country.

This is yet another piece of evidence that illustrates the benefits of immigration for society as a whole. (It also highlights the insanity of Cameron's recent proposal to curb the number of Eurozone migrants coming to the UK). Not only does the UK need more immigrants “to avoid a massive debt crisis by 2050,” but apparently it needs them for a community morale boost as well.

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