GLOBALIZATION AND ECONOMIC DEVELOPMENT

1. DR. PETROS KOSMAS LECTURER VARNA FREE UNIVERSITY ACADEMIC YEAR 2011 - 2012 LECTURE 3 GLOBALIZATIONAND ECONOMIC DEVELOPMENT

2. IMMIGRATION Immigration is the introduction of new people into a habitat or population. It is a biological concept and is important in population ecology, differentiated from emigration and migration.

3. IMMIGRATION Emigration is the act of leaving one's country or region to settle in another. It is the same as immigration but from the perspective of the country of origin. Human movement before the establishment of political boundaries or within one state, is termed migration. ECO-3004

4. Theories of ImmigrationRavestein’s Proposals • The following was a standard list after Ravestein’s proposals during the time frame of 1834 to 1913. • the majority of migrants move a short distance. • migrants who move longer distances tend to choose big-city destinations • urban residents are often less migratory than inhabitants of rural areas. • families are less likely to make international moves than young adults. • Migration stage by stage • Urban Rural difference • Migration and Technology • Economic condition

5. Theories of Immigration Lee's laws Many political or economic emigrants move together with their families toward new regions or new countries where they hope to find peace or job opportunities not available to them in their original location. Motives to migrate can be either incentives attracting people away, known as pull factors, or circumstances encouraging a person to leave, known as push factors. When the opportunity cost is lower, the immigration rates tend to be higher

6. MOTIVES TO MIGRATEPush Factors Push factors refer primarily to the motive for emigration from the country of origin. In the case of economic migration (usually labour migration), differentials in wage rates are prominent. If the value of wages in the new country surpasses the value of wages in one’s native country, he or she may choose to migrate as long as the costs are not too high. Poor individuals from less developed countries can have far higher standards of living in developed countries than in their originating countries. The cost of emigration, which includes both the explicit costs, the ticket price, and the implicit cost, lost work time and loss of community ties, also play a major role in the push of emigrants away from their native country. 

7. MOTIVES TO MIGRATEPush Factors • Not enough jobs • Few opportunities • Primitive conditions • Desertification • Famine or drought • Political fear or persecution • Slavery or forced labor • Poor medical care • Loss of wealth

8. MOTIVES TO MIGRATEPush Factors • Natural disasters • Death threats • Lack of political or religious freedom • Pollution • Poor housing • Landlord/tenant issues • Bullying • Discrimination • Poor chances of marrying • Condemned Housing (Radon Gas etc.) • War/Civil War ECO-3004

9. MOTIVES TO MIGRATEPull Factors • Escape from poverty (personal or for relatives staying behind) is a traditional push factor, the availability of jobs is the related pull factor. Natural disasters can amplify poverty-driven migration flows.  • Immigrants may be prompted by the desire to escape civil war or repression in the country of origin. 

10. MOTIVES TO MIGRATEPull Factors • Better opportunities for acquiring farms for self and children • Instant wealth • More job opportunities • Higher pay • Prepaid travel (from relatives) • Better welfare programmes • Better schools • Join friends and relatives who have already moved • Political freedom

11. Barriers to Immigration Barriers to immigration come not only in legal form; natural and social barriers to immigration can also be very powerful. They need to liquidate their assets often at a large loss, and incur the expense of moving. When they arrive in a new country this is often with many uncertainties including finding work, where to live, new laws, new cultural norms, language or accent issues, possible racism and other exclusionary behavior towards them and their family. These barriers act to limit international migration (scenarios where populations move en masse to other continents, creating huge population surges).

12. Modern Migrations Industrialization - Millions of agricultural workers left the countryside and moved to the cities causing unprecedented levels of urbanization. This phenomenon began in Britain in the late 18th century and spread around the world and continues to this day in many areas. World War I - Muslims moved from the Balkan to Turkey, while Christians moved the other way, during the collapse of the Ottoman Empire. World War II - The Jewish communities across Europe, the Mediterranean and the Middle East were formed from voluntary and involuntary migrants. There was increased migration to the British Mandate of Palestine, which became the modern state of Israel. 

13. Modern Migrations Decolonization - In 1947, upon the Partition of India as a result of the dissolution of the British Indian Empire, large populations moved from India to Pakistan and vice versa, depending on their religious beliefs.

14. Statistics The Intenational Organization for Migration (IOM) said there are more than 200 million migrants around the world today. Europe hosted the largest number of immigrants, with 70.6 million people in 2005, the latest year for which figures are available.  The UN estimates that there are 214 million migrants across the globe, an increase of about 37% in two decades. This represented a rise of 26 million since 1990. Sixty percent of these immigrants were now in developed countries, an increase on 1990. Contrast that to the average rate of globalization (the proportion of cross-border trade in all trade), which exceeds 20 percent. The numbers of people living outside their country of birth is expected to rise in the future. ECO-3004

15. Net Migration Rate World . Net Migration Rates for 2008: positive (blue),negative (orange),stable (green),and no data (grey).

16. Immigration Immigration"without papers" describes people entering a country without formal permission. There are many views on illegal immigration, depending on political standpoint: illegal alien illegal immigrant clandestine workers sans papiers / "without papers" irregular immigrant/migrant/alien/worker/resident people "hiding/living/staying/working/ in the shadows" undocumented immigrant/migrant/alien/worker/resident unauthorized immigrant/migrant/alien/worker/resident paperless immigrant/migrant/alien/worker/resident immigrant "without immigration/legal status" out of status immigrant/migrant/alien/worker/resident unnaturalized immigrant/migrant/alien/worker/resident

17. Economics and Labor Markets The most common motivation for immigrants is the pursuit of greater economic opportunities and quality of life in the destination state. Under the basic cost/benefit argument for immigration, potential immigrants believe the probability and benefits of successfully migrating to the destination country are greater than the costs. These costs may include restrictions living as an illegal immigrant in the destination country, leaving family and ways of life behind, and the probability of being caught and resulting sanctions. Proposed economic models, based on a cost/benefit framework, have varying considerations and degrees of complexity.

18. Neoclassical Model The neoclassical economic model looks only at the probability of success in immigrating and finding employment, and the increase in real income an immigrant can expect. This explanation would account for the economies of the two states, including how much of a "pull" the destination country has in terms of better-paying jobs and improvements in quality of life. It also describes a "push" that comes from negative conditions in the home country like lack of employment or economic mobility.

19. Neoclassical Model However, immigration scholars such as Gordon Hanson and Douglas Massey have criticized the model for being oversimplified and not accounting for contradictory evidence, such as low net illegal immigration from Mexico to the US before the 1980s despite significant economic disparity.  Numerous refinements have been suggested to account for other factors, as seen below.

20. Neoclassical Model However, immigration scholars such as Gordon Hanson and Douglas Massey have criticized the model for being oversimplified and not accounting for contradictory evidence, such as low net illegal immigration from Mexico to the US before the 1980s despite significant economic disparity.  Numerous refinements have been suggested to account for other factors, as seen below.

21. Trade Liberalization In recent years, developing states are pursuing the benefits of globalization by joining decline to liberalize trade. But rapid opening of domestic markets may lead to displacement of large numbers of agricultural or unskilled workers, who are more likely to seek employment and a higher quality of life by emigration. 

22. Structural Demand in Developed States Douglas Massey argues that a bifurcating labor market in developed nations creates a structural demand for unskilled immigrant labor to fill undesirable jobs that native-born citizens do not take, regardless of wages.   This theory states that postindustrial economies have a widening gap between well-paying, white-collar jobs that require ever higher levels of education and "human capital", which native-born citizens and legal immigrants can qualify to take, and bottom-tier jobs that are stigmatized and require no education. These "underclass" jobs include harvesting crops, unskilled labor in landscaping and construction, house-cleaning, and maid and busboy work in hotels and restaurants, all of which have a disproportionate number of illegal workers.

23. Structural Demand in Developed States The structural demand theory posits that simple willingness to work undesirable jobs, rather than for unusually low wages, is what gives illegal immigrants their employment. Structural demand theory argues that cases like this show that there is no direct competition between unskilled illegal immigrants and native-born workers. This is the concept that illegal immigrants "take jobs that no one else wants". Massey argues that this has certain implications for policy, as it may refute claims that illegal immigrants are "lowering wages" or stealing jobs from native-born workers.

24. The new International Division of Labour This development follows the theories of segmentation of the labour market or dual market theory (Piore, 1979). Thus, all western countries now have within them a South and a North with labour being divided into primary and secondary markets. The primary labour market consists mainly of nationals and is characterized by adequate wages, job stability, social benefits and prospects for development. The secondary labor market is consists mainly of immigrants and is distinguished by low wages, unstable employment, an absence of social rights, low business growth and a high probability of unemployment.

25. The new International Division of Labour The choice of more neoliberal’s policies, designed to achieve the competitiveness of national economies of the European Union by increasing the informal labour, liberalization of the social context of work and shrinking social benefits, is increasing the demand for flexible labour (Mingione and Magatti, 1995; Tonkiss, 2008).

26. The new International Division of Labour The choice of more neoliberal’s policies, designed to achieve the competitiveness of national economies of the European Union by increasing the informal labour, liberalization of the social context of work and shrinking social benefits, is increasing the demand for flexible labour (Mingione and Magatti, 1995; Tonkiss, 2008). ECO-3004