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Introduction
Over the last several decades, the contemporary world has experienced and witnessed an extraordinary and unmatched level of intenrational migration. Debatably, the people in the present times are living in an ‘age of migration’ distinguised by widespread spatial mobility of human beings. It can be said that this trend is currently running parallel to cross-border tourism or home-work/work-home movements (Nijkamp, Poot & Sahin 2012). It is significant to mention that “such developments are caused by an open space economy, by modern ICT developments, by the introduction of cheap and efficient transport systems, and by a combination of competition and global linkages” (Nijkamp, Poot & Sahin 2012). As far as migration is concerned, it is a different megatrend with its distinctive features as compared to other trends of mobility. It can be defined as the movement of people from one place to another for a number of economic, social, and political reasons. In a broader sense, this phenomenon can be explained as a shift to other countries, fiscal systems, societies, institutions, and traditionas. It is widely acknowledged that immigration has turned out to be an outstanding feature in the modern-day social, political, and economic landscape of a number of countries throughout the world (Nijkamp, Poot & Sahin 2012).
As mentioned earlier, people migrate to other places (domestic and cross-border) due to various political, socio-cultural, environmental, and monetary factors. It is important to state that there are several types of migration. Voluntary migration is done when people yearn to fulfill their economic needs by relocating to a different place in order to seek better employment opportunities (Gold & Nawyn 2013). In other cases, people migrate voluntarily in order to acquire better education or reunite with family members. On the other hand, forced migration refers to the movement of people to seek asylum within the country or in other countries as internally displaced persons (IDPs) or refugees respectively. They may be forced to move to a different place as a consequence of a conflict, man-made disaster, natural catastrophe, warfare, epidemic, or developmental projects (Maimbo 2005).
Effects of Migration – Why Migration is Advantagesous?
Voluntary migration has several pros and cons for the migrants and the host and destination locations. Even though migration is considered to bring negative consequences in the social, cultural, and political setup of a region, the economic development associated with it outweighs the cons of this worldwide phenomenon. Migration has noteworthy and important repercussions for the economic development, expansion, and enhancement. Although migration is criticized for several reasons, it is reality that the remittances generated from migration have valuable consequences for the country of origin (sending country) (Ratha, Mohapatra & Scheja 2011).
It is acknowledged worldwide that remittances increase incomes, reduce poverty, improve health, enhance academic achievements, and encourage development and growth of economy. It is said that all such gains are possible after sacrificing one’s social life in his homeland. The opponents of migration also assert that this phenomenon creates certain challenges for both developing and developed countries (Gold & Nawyn 2013). They believe that it becomes difficult for the relevant governments to provide equal social services to all when there is a large influx of international migrants (Maimbo 2005). Yet again, migration has considerable advantages that mainly include improvement and escalation of countries’ economies. It significantly impacts development in both origin and host countries (Ratha, Mohapatra & Scheja 2011).
It is said that migration has negative impacts as crooked and devious employers and recruiters seldom exploit innocent and unknowledgable migrants. It is also criticized that migration separates household members making it a stressful and depressive experience for immigrants and their family members. However, migration reportedly implies certain developmental and welfare excellence for the origin countries in a positive and substantial manner. There are several channels with whose help migration results in poverty alleviation and developmental improvements. The consequences are often fruitful and productive as remittances increase family incomes. Moreover, nutrition, education, and health care are improved. The regions flooded by migrants are also able to even out their consumption levels. As a result, both countries and remittance-recipient households are enabled to access finance in better ways. In addition, origin countries are benefitted when they tap on the financial assets and knowledge of the emigrant Diaspora (Ratha, Mohapatra & Scheja 2011).
Facts and data from Africa, Latin America, South Asia and further areas evidently suggest that the profundity and rigorousness of poverty has been reduced through remittances. This positive impact has also contributed in stimulation of economic activity in these regions, but in an indirect manner. Remittances are additionally helpful in smoothening consumption. This is because they markedly get higher in turbulent times such as natural calamities, fiscal crises, and economic downturns (Lucas 2005). The best examples in this regard are Ethiopia, Ghana, and Mali as transfer of international funds from immigrated family members helped their households to lessen the consequences of monetary shocks on family interests. It is true that migration may initially elevate inequity as only the comparatively prosperous families possess enough resources to make workers migrate to international destinations. However, with the fall in migration costs, the mentioned effect weakens characteristically (Ratha, Mohapatra & Scheja 2011).
It is also believed that migration and amplified workers’ movements contribute in the spreading of transmissible and infectious diseases, especially HIV (Massey & Taylor 2004). Although this fact cannot be denied but migration also acts significantly to contribute in formation of human capital. This is because revenue from remittances is spent on health and education in a disproportionate way. Confirmations from rural Pakistan indicate that impermanent migration is linked with elevated enrolment in schools (for girls in particular). In addition, migration is also found to play an important role in increasing knowledge concerning health. As a consequence, infant mortality rates have lowered and birth weights have escalated in Mexico (Ratha, Mohapatra & Scheja 2011). Domestic savings are also increased due to migrant remittances. Furthermore, pecuniary intermediation has also brought improvements in the prospects of growth and development. Mexico, Philippines, and several other Latin American countries provide the best evidence in this regard. It is reported that remittance-receiving has increased the amassing of material goods in farm equipment in these countries. Remittances have also encouraged self-employment. Investments in small businesses have also increased in origin regions. The country that receives remittance may also bring improvements in the credit ranking and external sustainability of debt if it appropriately factors the inflows of remittance into macroeconomic scrutiny processes (Ratha, Mohapatra & Scheja 2011).
The Diasporas or migrant communities make use of generous monetary funds for reducing the migration expenses for new immigrants. This helps them to develop the former communities. Additionally, information accessibility through returning immigrants and the Diaspora also improves transfers of technology and trade linkages. Furthermore, it also reduces the preset expenditures and requirements of knowledge needed to set up a worldwide business (Ratha, Mohapatra & Scheja 2011). In the similar fashion, bonds backed up by remittance and Diaspora alternatively contribute by acting as helpful financial sources for the development of society and infrastructure. There are many examples whereby migrants have shown significant interest in giving out money to finance infrastructure, accommodation, education, recreational, and health projects (Massey & Taylor 2004). It is believed that the countries located in Sub-Saharan Africa have the potential of raising $5–10 billion annually only through the issuance of Diaspora bonds. In addition, remittances inflows in the future “can be used as collateral by governments and private sector entities to raise financing in international capital markets for infrastructure and social development projects” (Ratha, Mohapatra & Scheja 2011).
On the other hand, migration also causes noteworthy implications for politics and domestic institutions. When competent people immigrate, it may result in the trouncing of authoritative ability in countries that already have weak institutions. Moreover, mass departure of people from their homelands to new regions can also diminish political pressure (Maimbo 2005). Besides this, remittances may turn out to be gradually more critical to maintain socio-economic steadiness. In contrast, migrants may provide a way to channelize behaviors and attitudes concerning democracy in destination countries. This channelization ultimately spreads out in origin countries thereby improving accountability (Ratha, Mohapatra & Scheja 2011).
In destination countries, migration causes an increase in the labour supply thus increasing manpower. Consequently, there is always an increase in the employment rates that positively affects production levels of the country. In this way, migration proves to be a GDP earner for the destination countries (Massey & Taylor 2004). Immigrants that are not well-educated increase labor efficiency by complementing the local labor force. This is because domestic workforce is then enabled to dedicate itself to concentrate on more fruitful and dynamic corresponding tasks. Moreover, high-skilled immigrants help destination countries by boosting productivity with the employment of innovative and specialized skills (Ratha, Mohapatra & Scheja 2011).
Conclusion
References
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Lucas, R. E. B. (2005). International Migration and Economic Development: Lessons from Low-income Countries. 1st. ed. Northampton: Edward Elgar Publishing Limited.
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Ratha, D., Mohapatra, S., & Scheja, E. (2011). Impact of Migration on Economic and Social Development: A Review of Evidence and Emerging Issues. Policy Research working Paper ; no. WPS 5558. World Bank: Washington.
