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11/19/18

EU: Migration Into Europe: A Long-Term Solution? - by Branko Milanovic

Why has migration become such a big problem? Many reasons can be adduced: the war in Syria, the integration of Eastern Europe, lack of new jobs in many Western countries following the Global Financial Crisis etc. But listing individual reasons is insufficient to understand it and think what to do about it.

The origin of the problem, in most general terms, is twofold: (1) globalization that has made the knowledge of differences in income between countries much better known and has reduced the cost of transportation, and (2) large gaps in real incomes between the European Union (especially its more prosperous North) and the Middle East and Africa.

The first point is well known. Many studies show that the more people know about the rest of the world (especially if that rest of the world is richer than their country) the more they compare their own standard of living with that of presumed peers in the richer countries, and the more likely they are to do something about it: namely, to migrate.

The second point has to do with the fact that the gap in GDP per capita between the original EU-15 and sub-Saharan Africa has risen from seven to one in 1980 to 11 to one today. (This is the gap obtained after factoring in the lower price level in Africa; without it, the gap would be even greater.)

At the same time as real incomes have become so unbalanced, population growth rates have become even more so. In 1980, the EU-15 had more people than sub-Saharan Africa; today, sub-Saharan Africa has twice-and-a-half as many people.

Within the next two generations, sub-Saharan Africa should reach 2.5 billion people, five times more than Western Europe. It is totally unrealistic to think that such large income gaps (in one direction) and population gaps (in the other) can persist without generating a very strong migration pressure.

Thus, Europe faces a long-term issue and the following dilemma. As we just saw, if there is globalization and countries involved in globalization have highly uneven incomes, there must be migration. You can stop migration only if you give up on globalization by closing off national borders, or help emitting countries get as rich as Western Europe. The latter would obviously take, under the best of circumstances, at least a century. So, it is not a feasible solution. What then remains is to shut down globalization, at least when it comes to the movement of people.

Read more: Migration Into Europe: A Long-Term Solution? • Social Europe

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