The rich Western world faces difficult economic times. The USA's credit rating has been downgraded and the future of the Euro has been called into question. In these hard times, politicians often succumb to voter pressures. We have seen this with Angela Merkel in Germany - who perhaps does not take the required action to stem to Euro-zone crisis due to the hostility of German voters to any such expansion of the bailout fund or Eurozone wide bond guarantees.
Now, political pressures seem to be cursing our immigration policy. In tough times, voters rightly express their concerns about jobs in short supply. However, politicians too often pander to voters' fears rather than allaying them. People need to be reminded that immigration is counter-cyclical. In a recession, many would-be immigrants do not want to come. America has seen a sharp decline in Mexican immigrants and the same can be said for immigration generally in Europe. Despite this, rich countries have been taking steps to discourage immigration over the past year. The Danish, French and Italian have scrapped the Schengen passport-free zone and reintroduced border controls. Australia and Canada have cut back on work permits. The UK has imposed a migration cap for non-EU migrants. Many other countries including Spain and Japan have created a "pay as you go" scheme which pays migrants to go home.
These measures are squandering a blessing. Migrants are more flexible and willing to work than the current workforce and thus, can boost the country's productivity and encourage innovation. By imposing more and more limits of their arrival, migrants are increasingly going to the East. There is competition for migrants from China and the Middle East. The rich world's restrictive measures reacting to voter's fears are myopic - migrants are the harbingers of long-term economic growth.
Now, political pressures seem to be cursing our immigration policy. In tough times, voters rightly express their concerns about jobs in short supply. However, politicians too often pander to voters' fears rather than allaying them. People need to be reminded that immigration is counter-cyclical. In a recession, many would-be immigrants do not want to come. America has seen a sharp decline in Mexican immigrants and the same can be said for immigration generally in Europe. Despite this, rich countries have been taking steps to discourage immigration over the past year. The Danish, French and Italian have scrapped the Schengen passport-free zone and reintroduced border controls. Australia and Canada have cut back on work permits. The UK has imposed a migration cap for non-EU migrants. Many other countries including Spain and Japan have created a "pay as you go" scheme which pays migrants to go home.
These measures are squandering a blessing. Migrants are more flexible and willing to work than the current workforce and thus, can boost the country's productivity and encourage innovation. By imposing more and more limits of their arrival, migrants are increasingly going to the East. There is competition for migrants from China and the Middle East. The rich world's restrictive measures reacting to voter's fears are myopic - migrants are the harbingers of long-term economic growth.
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