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Investor's Business Daily
Modern Chattel
INVESTOR'S BUSINESS DAILY
Posted 9/15/2006
Immigration: In its latest jab at America, the United Nations is
touting the supposed economic benefits of immigration. It needs to
start looking at why people are leaving their home countries in the
first place.
United Nations Secretary-General Kofi Annan paid some lip service to
the ill effects of immigration, but concluded "governments are now
beginning to see international migration through the prism of
opportunity, rather than fear," Reuters said.
That's just ducky. And in a way, Annan's right. Some governments do
benefit from immigration. Just not the ones he thinks.
Some 200 million people, or 3% of the world population, have fled
their countries, sending $250 billion in remittances in 2005,
according to World Bank estimates.
That doesn't particularly benefit the Western nations they live
in. But it's a great deal for lousy Third World governments.
"Remittances are the largest source of external financing for
developing countries," said Dilip Ratha, a World Bank official, as
quoted in the San Francisco Chronicle. "They tend to be more stable
than other types of external financing."
In other words, emigration substitutes for economic opportunity, and
bad governments enjoy the incoming cash as a reward for irresponsible
governance. Remittances beef up their foreign reserves, giving the
effect of export and tourism earnings, or foreign investment. It also
lets them spend freely.
That's why in places like Mexico remittances have reached record
highs, often exceeding foreign investment, and siphoned off the best
and brightest from their countries.
In both Mexico and the Philippines, governments hail overseas workers
as "heroes."
Alone, Mexico is on course to take in $24 billion in remittances in
2006, a 20% increase from 2005, from about 5 million immigrants
sending cash back.
That's great, as far as the Mexican government's concerned. "We're
going to live with these increases for the next few years because for
many Mexicans it's very attractive to emigrate to the U.S.," said
Foreign Minister Ernesto Derbez.
The Philippines is expected to take in almost $12 billion in
remittances from 8 million emigres, 11% higher than last
year. Congratulating itself, the central bank attributed the rise to
better-educated workers leaving the country and sending their earnings
back - something known as brain drain. A survey showed one in three
Filipinos want to emigrate, and 21% consider their government "totally
hopeless."
The failures don't stop there. Indeed, they're found around the world.
In the Dominican Republic, the $2.4 billion in remittances it receives
are 50% larger than total exports, distorting the nation's economy.
"This is so significant that many consider remittances as one of the
fundamental pillars of the Dominican economy," gushed U.N. Development
Program resident representative Niky Fabiancic.
Meanwhile, Annan's home of Ghana expects $8 billion in remittances
this year. The nation's president cordially thanked Ghana's overseas
workers for their largess.
Armenia also is seeing a big jump in cash from workers abroad this
year - so much that Armenia's currency, the dram, has been driven up
in value, hurting Armenian exports.
"According to the central bank, the country has a trade deficit of $1
billion, but gets $1.3 billion in remittances," said ex-Prime Minister
Hrant Bagration. The country fears that all that extra cash sloshing
around in its banking system could turn into inflation.
Zimbabwe has 80% unemployment, 1,200% inflation and as many as 90% of
its college graduates working abroad. Remittances are the only thing
keeping the odious Marxist regime of Robert Mugabe afloat. Half the
population depends on remittances, and Zimbabweans have told the local
press that without them, they would die.
As the report shows, the U.N. seems to think the West has a duty to
provide jobs for every citizen in a failing country that refuses to
develop itself in wealth-creating ways. This is essentially a wealth
transfer from the West that props up failing states with little regard
for economic development or human rights.
The only real beneficiaries of Annan's endorsement of this new global
slave trade are the worst governments on earth.
Related Resources:
Continue your investing education at the IBD Learning Center.
For a wealth of detailed investment insights and successful investor
profiles, go to Investor Education.
Modern Chattel
INVESTOR'S BUSINESS DAILY
Posted 9/15/2006
Immigration: In its latest jab at America, the United Nations is
touting the supposed economic benefits of immigration. It needs to
start looking at why people are leaving their home countries in the
first place.
United Nations Secretary-General Kofi Annan paid some lip service to
the ill effects of immigration, but concluded "governments are now
beginning to see international migration through the prism of
opportunity, rather than fear," Reuters said.
That's just ducky. And in a way, Annan's right. Some governments do
benefit from immigration. Just not the ones he thinks.
Some 200 million people, or 3% of the world population, have fled
their countries, sending $250 billion in remittances in 2005,
according to World Bank estimates.
That doesn't particularly benefit the Western nations they live
in. But it's a great deal for lousy Third World governments.
"Remittances are the largest source of external financing for
developing countries," said Dilip Ratha, a World Bank official, as
quoted in the San Francisco Chronicle. "They tend to be more stable
than other types of external financing."
In other words, emigration substitutes for economic opportunity, and
bad governments enjoy the incoming cash as a reward for irresponsible
governance. Remittances beef up their foreign reserves, giving the
effect of export and tourism earnings, or foreign investment. It also
lets them spend freely.
That's why in places like Mexico remittances have reached record
highs, often exceeding foreign investment, and siphoned off the best
and brightest from their countries.
In both Mexico and the Philippines, governments hail overseas workers
as "heroes."
Alone, Mexico is on course to take in $24 billion in remittances in
2006, a 20% increase from 2005, from about 5 million immigrants
sending cash back.
That's great, as far as the Mexican government's concerned. "We're
going to live with these increases for the next few years because for
many Mexicans it's very attractive to emigrate to the U.S.," said
Foreign Minister Ernesto Derbez.
The Philippines is expected to take in almost $12 billion in
remittances from 8 million emigres, 11% higher than last
year. Congratulating itself, the central bank attributed the rise to
better-educated workers leaving the country and sending their earnings
back - something known as brain drain. A survey showed one in three
Filipinos want to emigrate, and 21% consider their government "totally
hopeless."
The failures don't stop there. Indeed, they're found around the world.
In the Dominican Republic, the $2.4 billion in remittances it receives
are 50% larger than total exports, distorting the nation's economy.
"This is so significant that many consider remittances as one of the
fundamental pillars of the Dominican economy," gushed U.N. Development
Program resident representative Niky Fabiancic.
Meanwhile, Annan's home of Ghana expects $8 billion in remittances
this year. The nation's president cordially thanked Ghana's overseas
workers for their largess.
Armenia also is seeing a big jump in cash from workers abroad this
year - so much that Armenia's currency, the dram, has been driven up
in value, hurting Armenian exports.
"According to the central bank, the country has a trade deficit of $1
billion, but gets $1.3 billion in remittances," said ex-Prime Minister
Hrant Bagration. The country fears that all that extra cash sloshing
around in its banking system could turn into inflation.
Zimbabwe has 80% unemployment, 1,200% inflation and as many as 90% of
its college graduates working abroad. Remittances are the only thing
keeping the odious Marxist regime of Robert Mugabe afloat. Half the
population depends on remittances, and Zimbabweans have told the local
press that without them, they would die.
As the report shows, the U.N. seems to think the West has a duty to
provide jobs for every citizen in a failing country that refuses to
develop itself in wealth-creating ways. This is essentially a wealth
transfer from the West that props up failing states with little regard
for economic development or human rights.
The only real beneficiaries of Annan's endorsement of this new global
slave trade are the worst governments on earth.
Related Resources:
Continue your investing education at the IBD Learning Center.
For a wealth of detailed investment insights and successful investor
profiles, go to Investor Education.