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NewEconomicThinking
NewEconomicThinking·August 7, 2024

The Illusion of Migration as Development: An Exploitative Global Regime

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Summary

The podcast challenges the prevailing narrative that migration serves as a development strategy for countries in the Global South. Professor Emanuel Nes argues that, despite claims by international agencies like the United Nations, no country has genuinely developed as a consequence of migration. Instead, migration, particularly temporary labor programs, primarily functions as a new form of "foreign aid" designed by Global North financial institutions and countries, replacing earlier models of direct aid and debt-inducing loans. This system, rooted in 500 years of economic imperialism, perpetuates dependency rather than fostering true economic independence for the Global South.

Nes distinguishes between the survival benefits for individual migrant families, who receive remittances for basic necessities, and the lack of broader national development. He highlights that the vast majority of remittances and benefits accrue to highly skilled, affluent migrants from elite backgrounds, or to rich countries and their elites, not to the most vulnerable populations or countries in dire need. The system is characterized by cultural imperialism, where Western scholars promote the idea that migrants learn democracy and capitalism, and by an exploitative infrastructure involving recruiters, transporters, and brokers, leading to significant debt for many migrants. The non-tradeable goods purchased with remittances (food, housing additions, consumer electronics) do not stimulate productive economic growth but rather contribute to inflation and benefit local elites.

Practical insights include recognizing that temporary labor programs often leave migrants indebted due to high fees for services and insufficient earnings, compounded by exploitative working conditions (e.g., 60-72 hour weeks, no downtime). Being undocumented further exacerbates exploitation, as employers can threaten deportation to suppress organizing efforts. The current bilateral agreements are insufficient, and a global compact on migration, if truly enforced, could allow for freer movement based on skills and interests, while also upholding the "right to stay home" for those who do not wish to migrate.

The broader implications are that the current global migration regime is fundamentally exploitative, benefiting destination states (Global North) by providing cheap labor for vital sectors (care work, agriculture, construction, manufacturing, gig economy) and addressing demographic decline. It also benefits Global South elites who profit from the trade of imported goods. The podcast calls for confronting this regime and advancing new development policies originating from the Global South, which would empower countries to achieve genuine economic independence and allow individuals the freedom to choose whether to migrate or to thrive in their home countries, a privilege currently largely reserved for citizens of the Global North.

Key Quotes

I haven't seen and I don't think any International agency can say that there has been any country that has developed as a consequence of migration even the United Nations would admit that but they would say that migration is a factor in development
economic imperialism is something that has been in place throughout the last 500 years because countries of the global South now uh the imperialist countries had uh taken much of its land and so forth for the most part and had exploited that land and exploited the natural resources and agriculture uh for their own benefit
the major International financial institutions along with the major countries of the global North have decided that the new form of foreign aid would be migration
many come home indebted uh they're indebted because they have to pay back loans that they borrow to pay for these various Services Brokers and so forth uh and uh they don't earn enough
the vast majority of the remittances that are given to uh migrants go to highly skilled migrants so we're referring to to people who are in the stem sector of the economy people who are usually from affluent backgrounds
the close to trillion dollars every year in remittances that uh is a claim as being a very uh important uh factor in benefiting societies really goes mainly to rich countries and to rich people not to those countries that are in dire need of um Economic Development
these workers are working at typically lower far lower costs than any worker in the developed countries will work and they are a huge uh benefit to these economies in which you have a demographic decline generally speaking where populations are uh declining
being undocumented is always an advantage to the employer because the employer can always threaten the worker with uh identification to the government

Concepts

Themes

  • Critique of migration as a development strategy
  • Economic dependency and imperialism
  • Exploitation of labor
  • Inequality in global mobility
  • The role of international institutions
  • Cultural impacts of migration
  • Sovereignty and self-determination

Related to:

Economics Insights

Market Implications

  • Lower labor costs for destination countries, inflation in remittance-receiving countries, creation of non-tradeable goods markets.

Key Concepts

  • Economic imperialism
  • Debt trap
  • Remittances
  • Temporary labor programs
  • Global compact on migration
  • Right to stay home

Data Cited

  • ~200 million migrants globally
  • close to $1 trillion in annual remittances
  • 10-15% foreign population in destination countries (Europe/North America/Northeastern Asia)

Practical Applications

  • Advocating for a truly effective Global Compact on Migration, developing new development policies from the Global South, confronting exploitative migration regimes.

Risks Mentioned

  • Indebtedness for migrants
  • Exploitation by employers
  • Cultural imperialism
  • Exacerbation of social inequality in home countries
  • Inflation

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