5 minute read
Solidarity Saves Economy
How immigration has a beneficial impact on economy and society
by Vasiliki Konstantinidou
Migration is an inherently connected phenomenon in human history and has always functioned as a means of seeking a better life. It is a beneficial phenomenon for host societies while providing opportunities for personal development and happiness to individuals who are facing serious economic, social, and political problems. This article will attempt to capture the advantages of economic migration.
Research around the world, such as that by the Organization of Economic Co-operation and Development (OECD), has shown that migration has a positive impact on the development of local communities. High rates of immigration are associated with the introduction of new talents, skills, and innovations to the host country. The introduction of innovation in a country, regardless of its origin, helps create new job opportunities and increase wages across the economy. In addition to this, research conducted by Kerr and Kerr in 2020 in the United States shows that immigrants are associated with higher rates of entrepreneurship compared to native-born individuals. This can be explained by the fact that immigrants are generally more open to taking risks since they have already taken a significant risk in their decision to migrate to another country with the prospect of creating a better life.
Immigration as a way of inclusion
Generally, according to Cordis research results, multiculturalism is a beneficial phenomenon for society from various perspectives. Different nationalities bring different and diverse knowledge and productive skills, creating a competitive framework in the international economic environment. In addition to these advantages, the fact that large migration flows are associated with increased commercial activities of different cultural characters should be mentioned. Immigrants increase the demand for various products from their country of origin, thus creating a culture of inclusion and diverse choices in areas such as music, food, and entertainment. As a result, immigrants highlight the international orientation and extroversion of the economy, creating a favorable climate for attracting foreign investments, collaborations, and better prospects in the tourism sector.
Cultural diversity benefits work environments and the development of communication skills
As mentioned earlier, the exchange of different ideas fosters innovation, especially in already robust businesses that possess the know-how. The development of soft skills such as open-mindedness and communication skills constitutes some of the key advantages of multiculturalism that can create favorable conditions within businesses and promote their extroversion. Additionally, it enhances open dialogue and the rejection of stereotypes, thus creating an atmosphere of collaboration and understanding among employees, leading to better conflict management and increased opportunities for the development of local organizations.
Our global network is a very valuable asset; we inspire and learn from each other. Diversity is a high-performance fuel—and our strength
Forbes 2017
Germany and Australia are two countries with enviable immigration policies
There are many examples in modern history where large populations of immigrants have significantly influenced the development and local society of host countries. One of these examples is Germany, one of the largest economies globally, with the second-largest immigrant population after the United States, comprising approximately 17% of the total population, according to Statista. With the "Gastarbeiter" agreements in 1960, the reception of immigrants from countries such as Turkey, Morocco, Tunisia, and Yugoslavia was established. This led to the "Wirtschaftswunder" (economic miracle), also known as the German miracle, where the problem of low-skilled labor shortages was resolved. The German automobile industry, for instance, is an example of an industry that flourished thanks to these workers.
Another example of a country with successful migration management is Australia. The importance of economic migration is undisputed compared to other advanced economies. According to the website of the Australian Bureau of Statistics, it seems that over 25% of the country’s workforce was born outside its borders, and compared to other developed democracies, the high influx of economic migrants did not cause social instability, largely due to the prevalence of a relatively inclusive economic migration policy. Migration to Australia has contributed to offsetting population aging, increasing per capita GDP, and finding specialized workers in a short period of time.
The urgent need to support migrants and facilitate their integration
However, migration has always been a contentious issue, often leading to negative dialogue. Right-wing nationalist forces in countries frequently spread inaccuracies and catastrophize potential negative consequences that a large influx of migrants could bring, such as the distortion of national identity. However, these positions largely lack scientific evidence and aim to promote fanaticism and the development of xenophobic sentiments.
On the other hand, there are host countries for migrants and refugees, whether legal or illegal, with low incomes and education levels, making it challenging for them to smoothly integrate into advanced economies. In such cases, economic inequality and deprivation create disturbances and problems within society as a whole. Therefore, there is an urgent need for a comprehensive inclusive policy that ensures equal opportunities and education for all, allowing countries to fully utilize and develop the potential of people from diverse cultural backgrounds.
