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Sunday, October 05, 2003

Migration Sans Frontieres 

I have been meaning to post this old-ish Foreign Affairs essay for some time now. In it, Jagdish Bhagwati outlines the pointlessness of trying to stem the flow of international migration. I agree strongly with that idea; in fact I think some of these immigration barriers are nothing but non-tariff trade barriers.

The reality is that borders are beyond control and little can be done to really cut down on immigration. The societies of developed countries will simply not allow it. The less developed countries also seem overwhelmed by forces propelling emigration. Thus, there must be a seismic shift in the way migration is addressed: governments must reorient their policies from attempting to curtail migration to coping and working with it to seek benefits for all.

Prof Bhagwati quotes some statistics -- These asymmetries of opportunity reveal themselves not just through cinema and television, but through the immediacy of experience. Increasingly, emigration occurs after study abroad. The number of foreign students at U.S. universities, for example, has grown dramatically; so has the number who stay on. In 1990, 62 percent of engineering doctorates in the United States were given to foreign-born students, mainly Asians. The figures are almost as high in mathematics, computer science, and the physical sciences. In economics, which at the graduate level is a fairly math-intensive subject, 54 percent of the Ph.D.'s awarded went to foreign students, according to a 1990 report of the American Economic Association.

Many of these students come from India, China, and South Korea. For example, India produces about 25,000 engineers annually. Of these, about 2,000 come from the Indian Institutes of Technology (IITS), which are modeled on MIT and the California Institute of Technology. Graduates of IITS accounted for 78 percent of U.S. engineering Ph.D.'s granted to Indians in 1990. And almost half of all Taiwanese awarded similar Ph.D.'s had previously attended two prestigious institutions: the National Taiwan University and the National Cheng Kung University. Even more telling, 65 percent of the Korean students who received science and engineering Ph.D.'s in the United States were graduates of Seoul National University. The numbers were almost as high for Beijing University and Tsinghua University, elite schools of the People's Republic of China.


He adds -- A realistic response requires abandoning the "brain drain" approach of trying to keep the highly skilled at home. More likely to succeed is a "diaspora" model, which integrates present and past citizens into a web of rights and obligations in the extended community defined with the home country as the center. The diaspora approach is superior from a human rights viewpoint because it builds on the right to emigrate, rather than trying to restrict it. And dual loyalty is increasingly judged to be acceptable rather than reprehensible. This option is also increasingly feasible. Nearly 30 countries now offer dual citizenship. Others are inching their way to similar options. Many less developed countries, such as Mexico and India, are in the process of granting citizens living abroad hitherto denied benefits such as the right to hold property and to vote via absentee ballot.

The problem, as I see it, with Prof Bhagwati's thesis is that I am not sure his idea of "external" taxation will work. In fact, as I understand it,there are calls for even the U.S. to review its policy on taxation.

...the taxation of citizens living abroad. The United States already employs this practice. This author first recommended this approach for developing countries during the 1960s, and the proposal has been revived today. Estimates made by the scholars Mihir Desai, Devesh Kapur, and John McHale demonstrate that even a slight tax on Indian nationals abroad would substantially raise Indian government revenues. The revenue potential is vast because the aggregate income of Indian-born residents in the United States is 10 percent of India's national income, even though such residents account for just 0.1 percent of the American population.