http://www.economist.com/node/21553458
The article talks about the remittance corridor between rich and poor countries. In recent years, the value of remittance to poor countries is enormous, and remittances are also growing in spite of the global economic crisis. Workers working abroad and send their wages back to their home countries will help the poor countries to increase investment in the economy. But in the rich world, many countries have closed their borders to protect home-grown workers. America has made its southern frontier harder to cross, which partly explains the slowdown in immigration from Mexico. Emigration has risen, too, since the economy stalled. But perhaps because they know it will be harder to come back, migrants are staying longer. According to the Pew Hispanic Centre, 27% of Mexicans deported from America in 2010 had been in the country for at least a year, up from 6% in 2005. That may help explain why remittances from America fell by only 5% in 2009, whereas in Britain, which has open borders with some of its biggest senders of immigrants, they fell by 27% (exchange rates played a part, too). Stricter border controls keep migrants in as well as out, and the remittances flowing.
1 comment:
With an increase in globalization and increased movement between countries, what is the likelihood that workers will continue to return from abroad? At a certain point, it may become more profitable for them to stay in the new area. Additionally, if the U.S. had less strict border controls it would bolster its domestic economy, as well as the economies of border cities in Mexico. It will be interesting to see how the remittances wax or wane in future years, based on current immigration laws being proposed in the U.S. and other countries such as Greece.
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