Migration and Development De Haas 2010 Migration Development

Migration and Development De Haas (2010)

Migration & Development: Optimist vs Pessimist The impact of migration on development has opposing views from the migrant optimists and the migrant pessimists The division comes from social theory, development theory and to a large extent ideological views The view on migration has swung back and forth from pessimism in early 70 s and the optimism in 90 s

Optimistic Views: Neoclassical theory Migration is about utility maximizing individuals Efficient allocation of production factors (labor) Leads to balanced growth Convergence in wages between rich and poor areas MIRAB Migration, remittances, aid, governmental bureaucracy Migrants bring not only money but also knowledge, ideas and entrepreneurial spirit.

Pessimistic Views: Cumulative Causation Brain Drain – High skille workers needed for development leave Remittances – Rarely invested productively, Consumption that drives inflation Consumption of imported goods –crowding out Invest unproductively – e. g. housing Rich countries encourage the most skilled and able workers to leave and drain investments

Critique of deterministic theories Pessimists leaves room for heterogeneity They don’t showcase positive effects that matches the negative Unlikely there is no counterbalance to the ‘vicious circle’ With more impoverishment, eventually no one can afford to migrate Basically, neither pessimists nor optimists are correct No automatic mechanism for either positive or negative effects Depends on economic, political, social structures at place

Pluralistic Views on Migration & Development Late 80 s and early 90 s acknowledged more heterogeneity NELM (New Economics of Labor Migration) Rejects neoclassical theory Households rather than individuals Migration as income risk sharing Remittances key motivator for some members of household to migrate

Conclusion Migration can have both positive and negative effects on economic development The pessimists and the optimists are do deterministic Lack of nuance (heterogeneity) NELM Migration is a transnational household strategy