Saturday, September 4, 2010

Immigration and Difficult Choices

With reference to Tony Barber’s article, “European countries cannot have it both ways on immigration” in FT on September 4, I feel that Europe’s predicament about immigration is self-invented and will only get worse as time goes by.

In an earlier letter to FT I had advocated for a careful immigration policy for UK. I think the same holds true for Europe. Either Europe officially promulgates that it is not open to people who are different from them or they live with the spectre of "open" immigration. Unfortunately, it is perhaps cheaper in terms of wages to get the people who are "unlike" them. Split wide open by contradictory economic and social considerations, sitting on the sharp wedge of human rights declaration with the sword of a dwindling, ageing population hanging over its head, Europe indeed finds itself in a very uncomfortable position.

What I understand is that EU countries wish to maintain a healthy proportion of young, working, tax-paying population so as it is able to finance its generous (and I dare say populist) welfare policies. Immigration is the only viable alternative if fertility rates do not improve (even that would take time and would have to be actively supplemented by immigration). The other unpalatable choice may be cutting benefits wholesale, raising minimum working age, reducing wages, cutting pensions and raising productivity per person. I don’t think that any politician who cares about his career and understands even an iota of economics will even dare to say or implement this, or, for that matter, even people will not accept it. There would be strikes, riots and the like. So, Europe is pretty much stuck with immigration whether it likes it or not. Try as it may, its demographics will change, its social structure will change, its politics will change; as is already happening. Whether the change is for better or worse will depend on the countries and their ability in successfully integrating the immigrant population.

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