Thursday, March 30, 2006

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While there's a debate over immigration....

I've beeen jamming on a paper I need to finish within the week, which means I haven't been able to cover the whole immigration debate as thoroughly as Mickey Kaus.

[So what's your position?--ed. I think guest worker programs make little economic or political sense. I'd rather vastly expand the legal flows of immigrants who want U.S. citizenship, while simultaneously investing more in border security schemes -- though I'm pessimistic about the latter working terrbly well.]

That said, I can link to this interesting Financial Times story by Richard Lapper on the extent to which Latin America relies on worker remittances as a source of capital inflows:

Migrant workers from Latin America and the Caribbean sent home $53.6bn to their families last year, an increase of 17 per cent on 2004.

The rise – documented in a survey to be announced on Thursday by the Inter-American Development Bank – confirms Latin America’s position as the biggest market in the world for remittances.

For the third consecutive year, remittances to the region exceeded the combined flows of direct foreign investment and overseas economic aid....

An estimated 25m-27m Latin Americans are living and working abroad, 22m of them in the developed markets of North America, Eur-ope and Japan. Mr Terry said migrant workers from the region now made up more than 20 per cent of the labour force in Madrid, Spain’s capital. In the US, Latin American and Caribbean workers constitute an average of 12 per cent of the labour force. “Family by family, worker by worker, migrants are redrawing the map of global labour markets,” Mr Terry said.

Improvements in techniques used to monitor the flows of remittances in part accounted for the sharp rise last year. Many migrants continue to use informal channels, and the total could be more than $59bn.

Countries nearest the US have seen the biggest flows, with Mexico drawing some $20bn of foreign exchange earnings from remittances. The five countries of Central America and the Dominican Republic received $11bn.

Brazil got $6bn, Colombia $4bn and the four other Andean economies a total of $9bn.

Here's a link to the actual IADB report.

posted by Dan on 03.30.06 at 10:23 PM




Comments:

That's a lot of dollars in those economies. My first thought would be that maybe they should dollarize. However, it may also be to those countries advantage to NOT dollarize, because right now a dollar goes a long way in those countries, and that buying power might erode if they dollarize.

posted by: Elambend on 03.30.06 at 10:23 PM [permalink]



" I'd rather vastly expand the legal flows of immigrants who want U.S. citizenship, while simultaneously investing more in border security schemes -- though I'm pessimistic about the latter working terrbly well."

Serious question on the border security schemes: Why would you invest more in a policy that you don't think will be effective? Other than the obvious politics, why would a conservative want to do this? (Why would liberal, or anyone else, for that matter?)

I'm genuinely curious why someone who can look at policy without the attendant political distractions (in theory, at least) would recommend spending on something that isn't likely to work. As a matter of course, what odds for success do you require to make committing to a certain policy a responsible decision? Again, I'm not trying to be snarky, that statement just doesn't make sense to me nor sound much like a conservative position.

posted by: pblsh on 03.30.06 at 10:23 PM [permalink]



The link to the IADB paper in question seems to be inaccurate.

posted by: JB on 03.30.06 at 10:23 PM [permalink]



Whoops!! Fixed now.

posted by: Dan Drezner on 03.30.06 at 10:23 PM [permalink]



So let me get this straight: Mexicans can become American citizens, but Americans cannot become Mexican citizens. Mexicans can buy property in the United States, but Americans cannot buy property in Mexico. Mexicans can openly influence political debate in the United States, but Americans are prohibited from doing the same in Mexico. Mexico can strictly enforce its southern border, but the United States cannot do the same.

I think the discussion needs to be shifted. The real problem is the endemic corruption of Mexican political institutions that impoverishes an entire country to keep a few fat cats in the good life. We are doing a great disservice to the Mexican people by allowing them to come across in such numbers (nearly 10 percent of their population). Doing so skirts the issue of the root case of Mexican poverty - endemic corruption of its institutions.

How many illegal immigrants are too many? If 10 million is acceptable, what about 50 million?

BTW - Anybody know where to find a reliable study of the cost of illegal immigration? (benefit to economy minus services)

posted by: Drew Teti on 03.30.06 at 10:23 PM [permalink]



Wouldn't the best approach be to combine all three, um, approaches? Expanded legal immigration to accommodate those people who want to come here and assimilate. A guest worker program for those people who want jobs but have no interest in becoming Americans instead of Mexicans. And tighter border security to keep out the minority of people who don't fit into either of those categories.

posted by: RangerDave on 03.30.06 at 10:23 PM [permalink]



The remittance phenomenon is by no means new. Robert E. Kennedy estimated that in 1847, at the peak of Ireland's famine migration, the amount of remittances sent back to Ireland from America was sufficient to have paid the passage of all the refugees. Tim Guinnane up at Yale has written extensively and brilliantly about the social and economic significance of Irish remittances in the nineteenth century. Kerby Miller sees remittances as a key element in the "embourgeoisment" of rural Ireland in the late nineteenth century. In my own work I see remittances as essential to the formation and maintenance of "geographically unbounded communities" linking emigrants with kin and townsmen in their homeland. Recent studies by migration economists have found that there is a multiplier effect in remittances to Mexico and Central America. Recipients frequently use the money as investment capital to increase their own and their family's productivity. At the village level the results can be quite dramatic. As Miller suggests, a similar process was going on in nineteenth century Ireland. It would be disastrous to Mexico's rural economy to have this source of income cut off.

posted by: D.B. Light on 03.30.06 at 10:23 PM [permalink]



Leo Szilard proposed a solution in the early 1950's, in his book The Voice of the Dolphin.

He suggested that -- what with national pride and all -- we offer mexicans a gradually increasing vote in the USA, and the mexicans in return offer americans a gradually increasing vote in their government.

The first round it's just observers. After 2 years or so, they get one vote in our House and we get one vote in their equivalent assembly. And then each representation increases little by little until they have voting districts the size of ours and full representation, and we get the same percentage of representation on their side.

At each step we could possibly slow down the process or slowly reverse it if it appears to be going badly.

Somewhere along the line we'd get an agreement that mexicans would pay US taxes and the mexican government would get a slice of that, kind of like a US state. We'd gradually get the legal systems to be compatible. And in less than 50 years Mexico and the USA would be the same country.

Mexico does better with votes in the US congress than they do as an outside nation. And we do better with an integrated mexico than we do with a foreign mexico next door.

It was a good idea. By now it might be too late, mexicans might see it as swimming out to board a sinking ship.

posted by: J Thomas on 03.30.06 at 10:23 PM [permalink]



A guest worker program might not make as much sense as pure economic policy as unlimited immigration, but we have to live in the real world where there is a controlling political dimention. We are simply not going to get the US electorate to go for unlimited immigration - they are much more likely to go for a punitive scheme which would ruin relations with Mexico for a generation.

The guest worker scheme or something like it might have slipped by at one point - and likely would have improved Mexican-American relations because it was theoretically politically palatable.

posted by: Don S on 03.30.06 at 10:23 PM [permalink]



A guest worker program might not make as much sense as pure economic policy as unlimited immigration, but we have to live in the real world where there is a controlling political dimention. We are simply not going to get the US electorate to go for unliminted immigration - they are much more likely to go for a punitive scheme which would ruin relations with Mexico for a generation.

The guest worker scheme or something like it might have slipped by at one point - and likely would have improved Mexican-American relations because it was theoretically politically palatable.

posted by: Don S on 03.30.06 at 10:23 PM [permalink]



A guest worker program might not make as much sense as pure economic policy as unlimited immigration, but we have to live in the real world where there is a controlling political dimention. We are simply not going to get the US electorate to go for unliminted immigration - they are much more likely to go for a punitive scheme which would ruin relations with Mexico for a generation.

The guest worker scheme or something like it might have slipped by at one point - and likely would have improved Mexican-American relations because it was theoretically politically palatable.

posted by: Don S on 03.30.06 at 10:23 PM [permalink]



This debate is not about economics or international relations. I seriously doubt that anybody's reading Rybczynski or studying the implications on remittances to latin america (although they are neat numbers to pull out at parties). This issue is likely about reshaping the make-up of the Republican party which is as good a reason as any for a political debate (which in America's current polarized environment is always funny to watch as long as nobody gets hurt).

posted by: TN on 03.30.06 at 10:23 PM [permalink]






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