Note by Global Action on Aging.
In the 1960s, European countries needed the labor from their former colonies to accomodate the boom of the economy. In the same manner, in order to finance the pension systems in the European Union, 13.5 million immigrants will be needed in upcoming years according to the Financial Times article.
Paradoxically, European countries develop "immigration zero" policies such as in France to limit immigration in the European Union. The European countries also assist immigrants return to their native country by elaborating projects which enable them to integrate economically in their country of origin.
Is this paradox explicable? It seems that an imaginary link has been created between massive unemployment and the presence of immigrants in European countries. When immigrants arrive in the host country, fears arise among the natives. In France, for instance, the notion that the "nation-state" may be in danger is threatening. This fear is mainly due to the difficulty of integrating immigrants with vast cultural differences.
However, now European concerns are more economic than cultural. The lack of skilled workers raises the need for more economic migrants. According to Der Spiegel, Germany will need 1.5 million migrants in the future. 20,000 workers, literate in computer science have already been allowed to work there for five years.
Nevertheless, because of the growing aging population in Europe, the needs are so immense for new immigrants, that lower-skilled workers will also be sought after the workplace. Therefore, natural-born citizens will continue to feel threatened by foreign workers.
For more than two decades, immigration has been a taboo subject for many liberal-minded politicians. Many borders have effectively closed for economic migrants. But there are some welcome, if highly tentative, signs of a change of heart, particularly in Europe.
In a speech next week, Barbara Roche, a Home Office minister, will signal a relaxation of Britain's immigration laws. She is expected to say that a limited number of skilled economic migrants will be permitted to seek work in Britain for the first time since 1971. After much debate, the German cabinet has approved its "green card" plan to attract highly qualified information technology workers. In the US, Alan Greenspan, the chairman of the Federal Reserve, has repeatedly stressed the need for immigration to ease the pressures of labour shortages.
The benefits of immigration are clear but too rarely repeated. Economic bottlenecks are eased, promoting non-inflationary growth. Skill shortages are mitigated. Society and businesses benefit from the best different cultures.
In Europe there is a further important plus. An ageing population threatens the viability of pensions. United Nations estimates suggest that the EU needs net migration of some 13.5m people a year to stop the proportion of working age people to pensioners falling.
So if immigration rules are eased, the focus should not be solely on the most skilled. Fears that under-qualified migrants will swamp national identities are exaggerated. History teaches us that economic migrants may have varying skills but almost invariably make up for any shortfalls with their dynamism.
Although countries tend to gain from immigration, there are inevitably some losers in the short-term. Competition for jobs might reduce wages for some and greater demand for housing can create pressures elsewhere. In the end, though, they too gain from faster economic growth.
Moderate politicians, though, have been too shy in emphasising the gains. They should be bold. In a recent state election in Germany's North Rhine-Westphalia, the Christian democratic candidate lost despite running with the openly xenophobic slogan of "Kinder statt Inder" (children not Indians)
European politicians now need to co-ordinate policy after their limited conversion to renewed immigration. At the very least, they must quickly agree how to treat migrants from eastern Europe when the applicant countries are admitted to the EU. Despite the fears, existing EU members stand to be greatest beneficiaries.
Global Action on Aging
PO Box 20022, New York, NY 10025
Phone: +1 (212) 557-3163 - Fax: +1 (212) 557-3164
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