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5/30/11

Europe needs immigration as population rapidly ages - by RM


The European Union needs substantial, but controlled immigration if it wants to survive. It will also require active labor market policies, reform of its public finances, including changes to its tax base, pensions and healthcare systems. But foremost it needs qualified immigrants to develop a more accelerated economic growth  to overcome the challenges caused by Europe's rapidly aging population.

Economic growth in Europe has been severely affected by a fall in the working-age population since 2010, with the labor work-force estimated to slump by 48 million or 16% by 2050. If no measures are taken to promote controlled immigration, the population aged 65 or more is expected to rise by 58 million or 77% during that time frame, leaving two instead of four workers for every pensioner. 

Contrary to what populist anti-immigration politicians like Geert Wilders in the Netherlands are saying, the reality is that people should be free to move and choose their own destiny.  Governments shouldn't interfere with the right to immigrate any more than is necessary and certainly not to satisfy the "nationalists"  or "populist" demands of unhappy citizens who feel threatened by the potential competition in the job market.

Obviously their demands are understandable in times of economic hardship, when it becomes very difficult for politicians to convince people that more competition for scarce jobs will eventually make their lives better. Here again it is clear that weak labour markets are the enemy of liberal immigration policies and  the strength of populist and nationalist nonsensical rhetoric, which might sound good but has never had any record of success.

When immigrants move to affluent countries, that not only increase their own welfare, but also boosts the productive potential of the countries they move to. This eventually is good for everyone. Historically, looking at countries which have had or still have open immigration policies, one will find  that this has been a source of national strength and economic well being .

Its time for the EU to "get on with the program" and not get diverted by the populist/nationalist  myopic viewpoints.

Without functional immigration policies and stronger cooperation between member countries, the EU will eventually self-destruct as a viable political and economic world power and individual countries will once again fall under the influence of the whims of remaining super-powers. The time to act  in unity is now.

EU-Digest

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