1) Is large-scale labour migration good or bad for global economic welfare? Discuss with suitable examples

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Topic: Population and associated issues,

1) Is large-scale labour migration good or bad for global economic welfare? Discuss with suitable examples. (200 Words)

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  • Fazil Mohd

    Large-scale labour migration is a phenomenon which is
    happening on a large scale and in all parts of the world these days. It has
    both good and bad effects;

    Good;

    1-
    It promotes development of industrial clusters
    in various parts of the worlds. Examples are Shenzen in China and Mumbai in
    India.

    2-
    Large scale migration helps fuel infrastructural
    development due to cheap availability of labour. Construction boom in Dubai is
    a prime example

    3-
    It also helps boost trade as migrant workers are
    absorbed into the economy in the industrial clusters and production invariably
    increases. All of China’s SEZs are thriving on this principle.

    4-
    Migrant workers also remit much needed hard
    currency back home, either locally of internationally and that becomes a
    valuable economic transaction. Indian workers in the Gulf are main examples of
    this.

    But, large scale labour migration also has a flip-side;

    1-
    Large-scale migration could induce tensions
    amongst the local populace and may lead to agitations. Like the migration of
    eastern European labourers into Britain is causing issues.

    2-
    It could lead to lowering of working wage and
    have an adverse effect on the standard of living of the people. Nepalese
    labourers willing to work for lesser than the Indian labourers.

    3-
    Also, migration of labourers could put an undue
    strain on the infrastructure of the cities and could lead to slum-creation and related
    spike in diseases. Slums of any major urban city

    Large-scale labour migration is both a good and a bad thing,
    and a dispassionate study should be done before any policy regarding it is
    framed. (260) PLEASE REVIEW.

    • AR

      V Good Points

    • gautam singh

      well covered!! it would hv been better if u would hv highlighted sm issues related ito india

    • Fazil Mohd

      thanks guys. and the examples are global, but in an Indian context yeah. Was trying to link both 🙂

      • gautam singh

        Its ok question demanded global point of view!!

    • Sumit

      how migration results in “lowering of working wage” ?

      isn;t it incorrect to include infra in both + and -ve points?

      • missionias

        increase in supply of labour would pull down the wage rate due to cheap available options with employers

    • speedy_1234

      Best answer that could be 🙂

    • santhi

      The question is how it is bad for global ECONOMY. But u hav given social point of view. Whether it should b understood in a way that these pts indirectly affect economy gloally?

      R we should give directly economy affecting pts, if any, in exam?.. pls clarify

      • Fazil Mohd

        Pls read the Q. It is asked weather it is good or bad for the global economy. To that effect we need to paint a balanced picture and draw a conclusion which would appeal to the majority of the audience.

        • PS

          Am k with ur positive part. Agitations, standard of living n health.
          My question is
          Is there no need to link these terms with economy explicitly in exam…

    • G. Pankaj

      Good & balanced answer.

    • Pooja

      u have a good number of eg!

    • anonymous

      nice ans. can you plz review ans guide me 🙂

    • Sridhar

      Well written but I think u haven’t discuss migration with international economic welfare.please review mine.

    • Salman Aralikatti

      nice one…

    • Anjaneesh pratap singh

      balanced ans..

    • Virat

      A lot of learning from your answer. Kindly review my answer as well 🙂

    • blueoxygen

      Very good analysis for migration pros and cons but i have a doubt.
      Qu says large scale migration …i feel this should have negative connotation as large scale migration is often linked to exodus or crisis like conditions. So i guess we need to focus more on -ve aspect.

      ur views pls!!

      • Fazil Mohd

        yes it does say large scale migration. It also says interpret it in the global economic context. So too much of a reference to exodus and all would be deviating from the point

      • jrjk

        Agree with you…

    • Atmaja

      migration of labour from developing economies to advanced economies in order to avail of the material benefits available in those countries will help in global reduction of inequalities.
      it will also help in better international relations as a wide diaspora of one country is living in the other country.
      it also helps the host country to get valuable talent and brain power from the migrants that flow into it. egs is the Indian community in USA

    • samsud

      1st pt of demerit nt linked to economy…rest all superb….perfect….review mine…

    • Dean

      Generally a country with huge labour force already present wud suffer on large scale inmigration eg india ,bangladesh or most of the south asian countries,areas less workforce can benefit from migration ,like gulf countries,

    • Ashwani

      good answer!!

    • saran

      good answering

  • mausam

    gm ..everyone

  • VD

    Labor migration at global level also is result of various push and pull factors. Migration could occur due to economic factors such as demand & supply mismatch and non economic factors such as hostile environment, unstable government etc.

    Good for global economic welfare:
    1. Labor migration at global level provide skill specific opportunities to workers enabling optimum utilization of human resource. The BPO industry set up by MNCs in developing countries is a case in point.
    2. Demographic dividend of one country could offset the demographic ageing of another. Average age of workers in USA, China & japan is quite high whereas of India is comparatively low.
    3. With Globalisation of economic market opening of labor market is imperative to ensure trickle down of growth. Singapore growth model is based on an open and service oriented economy.
    4. Social cohesion arising out of changing composition of workforce will lead to economic gains too.

    Bad for global economic welfare:
    1. Urbanisation and environmental damage occured due to skewed migration is a cost on society. Cities like Delhi and Beijing are one of the most urbanised and worst polluted cities due to excessive in-migration.
    2. Drain of talent from source countries to neighboring or developed nation could lead to regional inequality. Recent claims of Indian B school graduates moving to west for better opportunities.

    Thus, in present scenario the positives of labor migration are more than its negatives. Countries need to have policies on exchange of workforce at bilateral and global level to deliver maximum economic welfare to the working class.

  • Shreya

    Labor migration includes all kinds of movements of individuals, including temporary movements with various periodicity, purpose, direction and distances. The reasons can be socio cultural, political or economic.
    Economic migration of labor is mainly promoted by economic interests. for example labor moving for purpose of production – due to differences in wages and opportunities.

    An individual’s decision to migrate depends on his benefits ( higher wages, lower taxes) and costs ( costs of relocation, psychological costs).

    -Welfare effects of labor migration are different for the “origin” and the “destination” countries. Suppose, the labor moves out from a labor abundant country India with lower wages , to a labor scarce country France, with higher wages. After migration, the wages in India will increase, where as wages in France will fall. The existing labor in France will suffer on account of lower wages, as cheaper Indian labor drives down the minimum wage rate.

    -The over all welfare effects on the world are positive, as labor moves from where its value is low to where its value is higher.

    -If the case is of skilled migration, destination country benefits from highly trained workers without bearing any cost of education. Employers benefit from a wider range of employees to choose from .

    -However the destination state has to bear increased fiscal burden for carrying an increased population of immigrants along with increased criminal activity , high risk of unemployment, increased pressure on welfare state.

    -The origin country incurs the cost of training and educating high quality manpower but receives little benefit- consider an Indian Doctor migrating to the United States.

    The global economic welfare is increased if the positive effects are able to compensate for the negative effects of migration. A very well designed public policy and immigration policy can regulate the negative effects.

    • gautam singh

      well thought out!!

    • Minion

      Your answer is clearly reflecting you have eco optional 😉 😉 I think u can keep simple the 1st & 3rd pt. It would be easy to read & get whether you have answered the whole question, if u can segregate the answer in positives and negatives. Just felt like pointin this out, i may not be fully correct. Keep writing & reviewing.

      • Shreya

        Haha 🙂 Thanks for reviewing !
        And yes i thought so after i wrote it, i could have structured it in a much better manner.

  • Mr.RedPanda

    Large-scale labour migration balances the world between regions of demographic dividend and demographic deficit in one or other way.

    Good:

    1. Currently, about 400 million workers are living in extreme poverty and cannot meet their basic needs. Full employment to these in immigration countries would boost global trade in food, health and education. That itself can change the face of the global economy.

    Eg: Sahel Region and South Asian poverty solution is global economic growth.

    2. In USA and EU, the large-scale migration from West-Asia and South-East Asia of highly skilled workforce turned into the net-contributors to taxes of the host country boosting public finance.

    3. The technological progress of the world: The dotcom boom from West spread to India and China in 1990s. The copy rights and patents pumped the global economy with innovation and trade.

    4. The changed consumption patterns of the newly employed and their families in China (receiving remittances) contributed to global trade and can lead to sustainable economic growth too.

    Bad:

    1. The increased population pressure in Indonesia and Thailand often outweighs the economic benefits if the migration is of unskilled/low-skilled labour.

    2. Shortage of skilled workforce in India and Latin America that has been hampering their development aspirations and lets them contribute less to global economic growth.

    3. Unequally distributed labour and capital made the global economy more vulnerable to economic crisis 2008 creating severe economic costs to the world.

    4. The civil unrest between locals and migrants in EU countries like Romania often disturbs the fragile balance of the economy

    While the benefits of migration are many, the local employment generation is long-term solution to sustainable economic growth and development.

    • gautam singh

      good ans!! i dont agree with ur no. 4 good point ie changing consumption pattern is leading to sustainable growth, on the other hand consumerist habit is highly unsustainable!! if iam wrong plz correct me

    • rajan

      Good answer; great examples
      kindly review mine

    • rahulbose0204

      good ans…
      can u tell source of reading…

      • Mr.RedPanda

        No particular source friend. I thought about it and presented here.

    • Rohit

      Good answer dude.keep writing and reviewing.

    • ammu

      hey panda.. can we also give example of bangladesh migrants in india with illegal substances like drugs tobacco medicines and fake currency as all these too have negative impacts on indian and bangladeshi economy..?

      • Mr.RedPanda

        I don’t think so. It is not direct. It is a long shot, I think.

        • ammu

          and it is the case of illegal migrants and “large scale labour migration” is not involved here.. thanx , i gave it a second thought and i got this conclusion.. 🙂

    • anonymous

      Nice ans . plz review my ans and guide me

    • vikram rk

      couldnt link ur points no 3 & 4 of good & pts no.1 of bad.How are they linked to labour migration??Kindly elaborate

    • Virat

      your answer is inceasing my learning curve 🙂 Can you please review mine?

    • jyoti

      Superb answer,Mr.Red Panda. Like always , full of relevant examples. Keep writing.. Will you make effort to review mine. I will see for your review..

      • jyoti

        Thank you,Mr. Panda for suggestions..yes , I just missed 2nd part of the answer.Will be careful in future. Keep reviewing!

    • Rohit Kulkarni

      frankly brother i felt most of your points irrelevant to the question i can give u 1 mark for 10 only.

      ex: 3. The technological progress of the world: The dotcom boom from West spread to India and China in 1990s. The copy rights and patents pumped the global economy with innovation and trade.

      with respect to what ? how ? are u talking of technological transfer or due to liberalisation of economies in India and china what is patent right issue to do with labour migration?

      another like

      3. Unequally distributed labour and capital made the global economy more vulnerable to economic crisis 2008 creating severe economic costs to the world.

      Labour migration will nullify the the unequal distribution as capital surplus markets which have less labour will be benifitted by labour migration and capital less market with labour surplus will be benifitted by remittence.. most of your

      points I feel irrilavent.

      Sorry If i have over pointed insted of saying its good 🙂

    • samsud

      pt.4 of good…doubt…rest all pts r superb…..review mine…

  • Intekhab Hassan

    Migration is not a new phenomenon. Civil war, Partition of the country or Natural disasters is major cause for large scale migration. However with the advent of globalization and free market economy, a large scale labour migration has been witnessed across the globe. It has both good and bad effect:

    GOOD EFFECT

    -Migration helps address labour market imbalances : Labour Migration helps in filling the gap of demand of cheap and affordable
    unskilled labours. E.g large scale Indian labours in gulf region.

    Migrants arrive with skills and abilities, and so supplement the stock of human capital of the host country. E.g large scale skilled Indian labour migrants in Dubai, Silicon Valley etc.

    Migrants contribute in Taxes : Though their proportion is very less as compared to local labours but still they contribute in economy.

    Remittances: the parent country is benefitted by large scale of remittances send by its large scale labour migrants across the world. E.g share of remittances in India’s economy especially from Gulf nations.

    NEGATIVE EFFECT

    Fear of unemployment in Host Country: lack of jobs for locals’ labours creates apprehension among local labour class.
    Recently Saudi Arabia brought NITAQAT LAW in order to give compulsory job for locals. This made many Indian labour classes un-employed.

    Social Tension in Host Country: fear of invasion of culture and tradition some times leads to ethnic and racial
    violence against migrant workers. E.x recent racial attacks in Australia, Europe.

    BRAIN DRAIN: migration of highly skilled labour, sometimes, creates Brain Drain in Mother Land. This happened
    with India in 60’s and 70’s. Though, same brain drain has become Brain Gain for India now.

    • rahulbose0204

      good ans…

  • pink

    large scale labour migration has both good and bad effect are as follows;

    GOOD

    1-migration accounted 47%increase in workforce in us and 70% in europe over past 10 year.
    2-It fill important niches both in fast growing and declining sector of economy.
    3-It contribute to labour market flexibility,notably in europe.
    4-It contribute to more in taxes and social contribution than they receive in benefits.
    5-It has positive impact on public purse.
    6-It also contribute to technological progress.
    7-contribute to human capital development of receiving country.
    8-Itspur innovation and economic growth and alsolabour market imbalance

    BAD

    1-Increase welfare cost as increase in number of people.
    2-possible displacement effect on domestic worker.
    3-many migrant find hard to get work.
    4-rising demand of housing.therfore increase in house and rent prices
    5-poverty risk-migration may have effect of worsen level of relative poverty in society.
    6-social tension arises from problem of integrting thousands of worker into local area.

    therefore any migration has both side of effect good as well as bad. PL REVIEW

    • gautam singh

      points need to be elaborated bit, else it is good

      • pink

        i will take care of it .thanks to pt it out

  • rajan

    Labour migration refers to the movement of people from one place to another, in pursuit of better emplyoment opportunities. It can be intra-national or inter-national

    Benefits
    1. The immigrants often end up with better jobs and more financial security, for themseves
    2. The remmitances that the immigrants send, also improves the economic prosperity of their home nations. Eg The remittances sent to India aggreagate to about a 100 bilion$, which is as large as the annual contribution
    by the fabled Indian IT industry
    3. Migration helps to spread new ideas and promote technology flow that helps in growth in both the
    countries.
    4. Economic theory says that labour migration corrects disequilibrium of labour in both the places. Hence, if free labour movement were permitted to go to the crisis laden Greece, more production could take place,
    and its GDP would rise. Also, in the source countries unemployment and disguised unemploymet will fall

    Challenges
    1. It is seen that migration is unidirectional from poorer to rich countries
    2. Also, it comprises mostly of the experts in the field. This leads to ‘brain drain’ from home countries perspective
    3. Migration also puts enormous pressure on the infrastructure leading rise to slums, diseases, violence, congestion, each of which brakes economic growth.
    4. Qualitatively, migration is accused to cause joblessness of the local population. That is one reason why
    emmigrants to USA from India, China, Mexico are loathed.

    On a whole, migration is beneficial for the world as a whole. However in order, to ensure that the benefits accrue to all, steps are needed such as : free flow of remittances, accepting of less skilled migration and coordination between nations to equally distribute the migrantion burden

    • gautam singh

      plz focus on the word ‘LARGE SCALE’. else attempted well

    • Akshay Gholve

      questions asks global economy….not only economy….do correct if i m wrong….so we have to talk about broader level na

    • Mr.RedPanda

      Good attempt, rajan. Can add bilateral and multilateral agreements and local employment generation for sustainable growth of global economy.

    • Rohit

      Good answer dude.

    • savreet heer

      good one…..review mine

  • blueoxygen

    Inputs pls

  • Ank2016

    The phenomena of migration is mainly caused by two factors i.e. push and pull factors. The push factors are mainly responsible for people to become refugees and pull factors for migrants. The recent mass migration from regions of West Asia and Africa to Europe is due to push factors of the source i.e. poverty, insecurity etc and pull factors i.e. prosperity and stability.
    Advantages of labour migration-
    1. Availability of labour and Skills- This would be beneficial for both owing to ageing population of Europe and economic prosperity of migrants
    2. Diversification of population- This will also decrease the Islamophobia prevalent in the West.
    3. Remittances sent to source would help many more inhabitants of the region
    4. Security of the migrants
    Disadvantages of labour migration-
    1. Fear of being sidelined by the migrating population
    2. Competition from the migrants in labour market
    3. Economic stress on State exchequer
    The labour migration is a positive phenomenon provided it is not under distress as distress migration may be coupled by violence and reluctance. The need of the hour is to first address the root causes of any migration coupled. Then only true benefits of migration could be ripped in.

    • rahulbose0204

      covered well……but examples missing.

      • Ank2016

        yes i realised after reading other ans.. I interpreted it wrt European crisis.

  • Debula

    Large-scale labor migration has a multitude of positive and negative effects that lead to social and more importantly economic affects. However in terms of benefiting global welfare, this phenomenon needs to be examined.

    Issues:
    Decisions regarding migration are done after considerable thought, given factors of lifestyle, representation in community, links with other clans/groups. Therefore, global economics is decidedly affected by migration, but it may not necessarily lead to welfare, but greater imbalances. –
    1. For example, a certain niche is created in the labor market regarding this promoting certain stereotypes. In the U.S. the blue collar community is largely composed of a migrant group that is indispensable in providing certain services, but the resulting scrutiny by academicians, planners alike points to sustained poverty within these groups.
    2. The European Union has seen an influx of migration to countries such as France that have been forced to create banlieues(ghettos) for these groups. These ghettos are incidentally unaffected by welfare in France, and conduct a lifestyle that is considered wrong by the mainstream.

    Benefits:
    It is hard to deny benefits by the influx of migration. A large workforce entering a country can easily provide for struggling factors of production such as shortage of labour. Such migrants can be employed in various government departments starting with sanitation to construction to carry out important tasks. The issue of fiction between job seekers within the community is bound to arise, but if the govt creates enough opportunities both communities would be equally represented.
    1.An alternative market is created for cheap and daily usage of products that can avail of the large workforce. Companies that are smaller can greatly benefit by catering to these communities. The cash spent on this ultimately is used in the economy to spur further job creation.
    2.On another level the cash remittances sent back home contribute a certain GDP to the economy as well. India has ranked the highest in remittances especially from West Asian NRI communities. This cash ultimately adds on to the spending capacity of the families back home.
    3.Certain migrant states in India have registered women becoming the heads of households in times of migration as their husbands are not home.

    Migration influences communities back home as it provides an incentive to seek work, but creates a gap in human capital and imbalanced sex ratio as well. However, it also provides challenges to migrant communities in foreign locations. This can lead to positive and negative effects in terms of gender representation, economic welfare and social change. The advent of globalization has contributed to migration greatly, however issues remain that need to take the form of cooperative action between countries.

    • ammu

      i just loved your 3rd point of benefits and conclusion.. 🙂 your answers always have something different to learn. thanx..

      • Debula

        Thank you all I. Your encouragement is appreciated as always. Keep reviewing. ?

        • ammu

          i again need your help bhai..i have answered the 2nd question ie on dengue.. I need to know my mistakes as m confused about what exactly we need to write in critical assessment. please help me whenevr you have time..

    • manalika

      your points under Benefits are very good!

    • savreet heer

      well crafted……plzzz review mine and give ur feedback….thanks in advance

  • kartik1701

    The world is facing a continuous problem of migration. This migration is either due to push factors like humanitarian crisis, wars, natural disasters or due to pull factors like employment, standard of living etc. labour migration is a specific type of migration that involves large scale movement of labour from one place to another like from kerala to UAE or Saudi Arabia. Labour migration has both its pros and cons for the global economic welfare:
    Pros to economic welfare:
    1. Skill recognition/development: The skills of individuals get recognized across the globe and develop further. Labour developing infrastructure in Dubai/UAE are expert developers who can serve in india as well.
    2. Cheap labour: Its availability increases efficiency and profits leading to economic welfare. Eg: indian IT professionals in US/Europe.
    3. Increased income: the labour manages to get a stable income which helps it in improving its standard of living, leading to global welfare.
    Cons to economic welfare:
    1. Slum development: due to shortage of resources, large scale labour migration leads to slum development which breed crime and ethical degradation.eg: labour from sri lanka, Myanmar, Bangladesh live in ghettos creating health problems.
    2. Exploitation: The labour is physically/economically and sexually exploited.Eg: in gulf, labour cant leave without permit of their employers leading to unending exploitation.
    3. Xenophobia: Labour migration increases racism, ethnic conflicts, xenophobia leading to violence and unrest. Eg: labour from eastern Europe like Romania etc face discrimination in western European countries.
    Thus labor migration has both its pros and cons and thus needs to be regulated to ensure that resources are not burdened disproportionately leading to unrest but at the same time it can change the economic outlook of a country making it one of the most developed across the world.

  • ViVi

    Labour migration has become a well stated fact of modern industrial societies. The nature of migration is both intra national and international. It includes low and semi skilled labours as well as high end tech professionals.
    The reasons associated with migration vary starkly across class.

    Cadres of low skilled workers are migrating to industrial townships for search of livelihood. Their migration points to stark regional disparity between different pockets of one geographical region. The migration may indicates caste discrimination which may have prevented them to take up suitable livelhiood in their own towns or village. It may indicate absence of basic infrastructure like road , electricity etc which has forced the small manufactures to migrate to large urban centers.e.g rural migrants from Bihar
    Besides it may even point towards the collapse of govrnance and political turmoil in the region which has uprooted people from their locallities. E.g Syria, Iraq etc

    Thus the nature of these migration are involuntary where the migrants are coerced to shift bases because of prevalant socio-economic scarcity. Such migration are problematic because:-
    1. It indicates disparity, unequal development, scarcity.
    2. There is wide room for exploitation of migrants as they do not posess added skills required to survive in region they are migrating to. Its because the migration is not planned but a knee jerk reaction to the existing plight.
    3. The region witnessing influx of migrants has to bear additional liablity.This may create social tensions. e.g migrants from north india to mumbai

    On contrary there is class of migrants who have are skilled labours and have migrated to new areas based upon choice and opportunities. Their migration is useful to both the place they are migrating from and the place place they are migrating to.Their migration is not a burden to local administration as they belong to mid or high income category and thus are capabl of paying taxes. . E.g are the tech companies like Google , Facebook etc. Many people from India migrate to work for these companies US. Some may eventually settle there , some may bring back their knowledge and skills to help drive the growth of national economy.

    India has witnessed large scale internal migration in last decade or two. To negate the bad effects of kigration govt. pf India has launched SP Mukharjee RURBAN mission. The mission i=envisgae to create rural cluster to build up eco system for nututring rural economy. The objective of the scheme is to ensure equitable growth and prevent distress migration to cities.

  • Batman

    Large scale labor migration is triggered by a number of voluntary or forced causes and can impact the global economic welfare in a positive and negative way.

    Positive:
    1)Fast growing and declining sectors in the host country are occupied e.g. in US the growing sectors like healthcare and STEM
    (Science, Technology, Engineering and Mathematics) as well as the declining sectors like machine installation are filled by immigrants
    2)Migrants contribute in the form of taxes in the host country. E.g. in countries like Switzerland and Luxembourg, immigrants provide tax benefits amounting upto 2% of country’s GDP
    3)Remittances are sent back home that can result in spillover effects in the form of business creation and higher savings. E.g. Kerala receives remittance from labor working in Gulf countries
    4)Immigrants provide the host country new sources of income e.g. Mexicans have enriched USA with food, language and music
    5)Home countries experience an increase in wages and reduced underemployment because of reduction in number of laborers

    Negatives:
    1)People in host countries experience a shortfall in domestic wages e.g. in case of US
    2)The human capital and economic growth is lost for the home country because of brain drain. E.g. Africans are largely employed
    in US and there is loss of growth in Africa because of the non-availability of those workers
    3)Infrastructure in host countries is not able to handle the large influx of migrants
    4)Conflicts between local population and migrants e.g. conflicts in state of Assam because of illegal Bangladeshi migrants

    Thus, the result is a mixed one. Further, the final impacts of migration will depend on a number of factors like skill of labor, boom or bane in economy and deficit or surplus in labor markets.

    • Namrata

      thorough coverage .. nice points .. while concluding i think u can give a balanced view as to what can be done to convert the cons to pros so that there is long term global welfare .. rest is great attempt !! 🙂

      Kindly review mine 😛

  • MSI

    Ans: Migration is an spontaneous process to achieve better balance between population and resources. Large scale labour migration has its own set of boons and banes.

    BOONS

    (a) It solves the labour supply problem of the host country. For e.g. large scale labour migration from the Eastern Europe to North West Europe helped in its rapid industrialisation during industrial revolution.

    (b) Host country evolves technologically from the technical competence of skilled labour migration. For e.g. NASA global leadership is partly contributed from 30% of the Indian scientist.

    (c) Labour migration reduces the financial burden on home country to meet the basic amenities of the labour. For e.g. India exchequers were eased post independence due migration to gulf.

    (d) Home country have substantial economic gains in terms of remittances. For e.g. South Asian nations especially India meet substantial chunk of Current account deficit through remittances.

    (e) Better population resource balance achieved post migration leads to efficient and optimum utilisation of resources in both home
    and host country, which is win-win situation for both countries.

    BANES

    (a) Labour shortage in home country will obstruct its economic development. For e.g. Low economic development of 2nd world countries can be partly assigned to this.

    (b) This also leads to brain drain for home country. For e.g. IIT and IIM student moving to developed nation. Expenses incurred on their subsidised studies is thus lost.

    (c) Abundant labour supply in host country increases unemployment among their local. Thus per capita income reduces and economic turbulence increases. For e.g. USA decision to reduce business outsourcing.

    (d) Remittances is equivalent to drain of wealth for host country, a situation similar to one faced by India during colonial rule.

    Hence these boons and banes need to be properly balanced by regulating labour migration to achieve net economic welfare for both home and host countries.

    • markande katju

      Can you explain what are 1st world countries, 2nd world countries and 2rd world countries???

      • MSI

        1st world countries are western europe, USA, CANADA, NZ,Australia
        2nd world countries are eastern europe, Russia, China,Singapore, Japan etc
        3rd world countries are other developing nations like India

    • markande katju

      You can also include hatred and incitement between two diff religion/ideology communities.

      Extra pressure on basic infrastructure like drinking water sanitation health housing livelihood etc due to huge influx of refugees/migrants

      • MSI

        Thanks

    • santhi

      U have been adhering to the question thru out..
      i have nt seen d same in many of ans in this forum. gud ans.

      Can we include factors that indirectly effect economy? Like health, infra, conflicts..

      In that way every thing eventually leads to effecting economy..

      Pls clarify..

      • MSI

        yes we can provided you can relate it with economy and that too within word limit. Otherwise rank the points and write the best one first

        • PS

          K.. thank u..

    • anonymous

      hey nice ans can you plz help to improve myself by reviewing my ans 🙂

    • Virat

      Too good! I copied many points in my notes. Kindly review mine 🙂

    • Rohit Kulkarni

      I was reading the answer then I scrolled again to see if its MSI who as written this answer well written.

      Try concentrating on content consolidation just throw two or three key points so that examiner can relate you dont need to to expand much the examples

      ex: IIT and IIM student moving to developed nation. Expenses incurred on their subsidised studies is thus lost. —> just write Students of IIT’s(subsidised education) migration a . so that you can write more points..:) rest all good.

      • MSI

        thanks dear for the valuable inputs 🙂

    • blueoxygen

      Very good analysis for migration pros and cons but i have a doubt.

      Qu says large scale migration …i feel this should have negative connotation as large scale migration is often linked to exodus or crisis like conditions. So i guess we need to focus more on -ve aspect.(In ur positive points also only 1st point qualify for large scale migration)

      ur views pls!!

      • MSI

        its large scale labour migration not just large scale migration, so we talk about patterns of migration in labour. I feel that migrant crises is not asked but you can take your interpretation. any way UPSC question will be direct so we should not worry that much. 🙂

    • zeeshan ahmed

      I find your answer in more perspective in international context , as question suggest. Very nice and balanced ,but just wanted a clarification.Where as i know ,major reason for the lack of rapid development in eastern Europe was Technological know how and capital instead of labour . Could you please explain?

      • MSI

        both technical knowhow and capital was poured by the developed western europe to contain communism. for the stages of development do read Gunnar Myrdal Cumulative causation theory and see how he differentiate the development process in developed and developing regions.

    • samsud

      boon…pt b & e…excellent…..keep writing…review mine…

  • Raj

    Migration is the voluntary movement of the people with intention of settling temporarily or permanently in other location for their economic and social betterment.

    Good:

    1. The large scale young skilled migration to the US and Europe will strengthen the global economy by contributing the taxes and social contributions. Because these are the world guided economies.

    2. Skilled migrants contribute to human
    capital development and technological progress of receiving countries thus new innovation will emerge.

    Eg: Australia, Canada is absorbing the most tertiary skilled workers from the developing nations like India.

    3. India and china’s consumption patterns have changed due to the remittance received by the people. This changed the global trading pattern. Eg: Indians at the Gulf countries.

    Bad:

    1. Over the period of the time demographic characteristics have been changed. This will lead to the shortage of the resources and result in to the unrest. Eg: recent physical attacks on the migrants in USA.

    2. Unskilled labour migration will outweigh the migration benefits and will hamper the development.
    Eg: Thailand, Malaysia.

    3. The large scale illegal migration from Mexico to US created huge black money market because of the drug trafficking and human trafficking.

    The migration should be in such a way that from demographic surplus to the demographic deficit countries for a balanced society.

    • Mr.RedPanda

      Hi Raj, the best thing about your answer is that you understood the question properly. You clearly established the link between large-scale migration and global economic welfare. I found this one crucial in presentation.
      Keep writing. Please keep reviewing.

    • MIP

      Nice answer Raj..but in intro line I think u could add voluntary and sometimes forcefully movement..in both cases reason is same-social and economic betterment..keep writing…

  • RRV

    The recent migration from war torn countries like Syria and many other to Europe has erupted many question about the vitality of this migrating population.

    Factors beneficial for economic welfare are:

    1. Factor of production: with the immigrants entering into the country, there is huge rise in working population which will give rise to industrial sector of the nation.
    2. Increase in demand: increasing population will result in increasing demands which will increase economic growth further.
    3. Exchange of expertise: there is a variety of expertise that comes with these people which can be used judiciously by integrating it with the work of the nation.
    4. Human resource: with proper educational intervention these people can become valuable human resources for the nation.

    Factors acting against economic welfare of the countries:

    1. Competition to natural citizens: with the increasing immigrants there will be increase of competitions to the citizens in jobs, wages and others. This can create huge unrest.
    2. Clashes due to different cultures: many times it is difficult to absorb new culture and practices of the immigrants which poses threat of violence.

    On a whole, large scale labour migration can be boon to the host nation if these people are infused into the nation’s economy through well balanced policy interventions and institutional changes.

  • PS2016

    Labour migration is a result of combination of push and pull factors. If the push factors dominate the cause then that is termed as distress migration which means that the conditions at the native place are not conducive for the upliftment of the residents. The pull factors at the destination include better living conditions, job security, money among others.

    Benefits of migration-

    1. It provides a freedom of choice to the people to reside where they could use their skills to the best

    2. The destination country economy can take advantage of this migrated demographic dividend and grow. Eg- the economy of USA and EU has grown with people migrating from countries like India

    3. The source country benefit from the remittances received

    But all this is easier said than done. The downturns are:-

    1. The reduction in helping hands in the source country effects its economy more so if it is a labour intensive one

    2. It is never easy to absorb new people in any place and that too accommodating those from different cultures is a mammoth task. It results in unstability and distance grow between the native population and migrated ones thus destroying the social and economic fabric of the country

    Thus labour migration though seem perfect in books but it has added dimensions to be looked after. The most important being accepting the new ones with open arms.

  • sachin gupta

    Large scale labour migration will have positive as well as negative impacts:
    Positive:
    1) Better career oppurtunities
    2) Incrase overall production
    3) Balance high demographic dividend and low demographic dividend countries
    4) Better living standards and qualitative life as labor will be atracted only towards better oppurtunities
    5) Labor migration will make companies responsive to the demands of people
    6) Make govt. responsive and as govt cant run without factors of production. it will ultimately leads to participative and decentralized policy making and implementation

    Negative:
    1) It might create havoc in the shifting country if it was not able to consume additional labor
    2) Could create scarcity of resources like food, land, hospitals etc
    3) Could increase govt. expenditure on providing basic fascilities to people like health,education etc
    4) Might deteriorate the quality of services
    5) It will increase diffrential between different parts of the world as one part of the country will remain prosperity and other remain in poverty. Idea should be equality in the world

    Labor migration should be at managable levels.through International labor exchanges where labor could enter his skills and profficiency as well employer can search suitable employee. To solve the proble of huge migration idea should be to make governance of countries democratic and participative and developed them and make the self sufficient

  • cse

    In globalized world, large scale migration is common phenomenon and it effect global economic welfare in these ways:

    Positive:

    Availability of cheap labour in developed countries led to more qualitative production in effective ways, thus improve consumer pattern and wages in hands of labour. E.g. US’s technical sector supported by indian and Chinese labour migrants reliance of middle-east’s realty building on indian and Pakistani labour and Australian mining sector’s dependence on migrant labour.

    Migrant labour enriches their profession providing nation by taxes and remit savings to their families in home country.

    Asian labour is playing good role in providing services to European old-age population.

    Negatives:

    Influx of labour increase burden on the social welfare program of the supporting nation and increase competition for jobs results in exploitation of labourers. E.g. US, Canada and Australian society’s demand for anti-immigrant laws and discriminatory wage rates.

    It also increases ethnic and race based conflicts such as white-black and muslim-christian conflicts in developed world.

    Increase of ghettos and slums with lack of basic amenities.

    Thus, labour demands and migration need more humanized policies in order to eliminate conflicts.

  • DEVANAMPRIYA

    Land Capital and Labour are regarded as the trinities of the factors of production. Except land other two are assumed mobile in nature. As they can shift from one place to another(in the form of capital migration and labour migration). In recent times we have seen many examples of large scale labour migration in international arena there are many impacts of this migration on trade and balance of international economy

    Merits of large scale migration

    –Migration is often a product of an urge to earn more money outside from the home country as the high labour cost works as a pulling factor in this type of migration.

    –If the Movement of the people may became free across the world (Free trade in labour) we can effectively reduce our cost of production in every country around the world

    –This free migration in labour also encourage better engaegement of different countries with each other.

    — for Home country the migration offer economic benefits in terms like remittances while the host country enjoy the cheap labour In
    comparison to their own

    Demerits of Large scale migration

    –Large scale migration also result in the drain of the labour forces of particular country in practical senses

    –In host country it also increase unemployment

    –This arouses a feeling of xenophobic attitude among the local labour in the host country

    –It also reduce the labour wages

    While in theoretical senses it is true that large scale migration results as good for international economy but provided that all the countries around the globe must ensure the protection and betterment of these migrants.
    please review friends…

  • Abyss

    Large scale migrations are a common phenomenon in most countries with the figures moving to 23Mn for internally displaced people globally and another 9Mn for refugees outside their home country in search for a better livelihood or chance of survival. But with this volume of displacement, what are exactly the possible effects?

    Negatives:
    1. Refugee crisis like that in Europe from countries like Libya, Syria which is burgeoning the inhuman conditions they are subjected to due to insufficient aid, sea accidents with loss of lives
    2. Effect on native population with limited resources that face crunch like land, capital. Assam, Manipur are facing this crisis with rising demands for secession
    3. Rising menace of slums, pressure on city infrastructure, rising outbreaks of epidemics due to low hygiene and eventual pressure on medical resources.

    Positives
    1. Migrations provide a balancing factor for skewed comparative advantage to labor deficient countries. Trade advantage in labor intensive industries can be leveraged with availability of cheap labor
    2. Migrations lead to mixing of cultures, wider adaptations for people and enhance the richness of existing practices where India is a classic example of a mix of Hinduism, islam, Christianity across states
    3. Living conditions improve for migrant as well as home country through remittances like Kerala in India, china
    4. Promotion of industry due to labor availability esp for developing countries like India, China where low cost is a competitive advantage
    5. Better trade relations and effective soft diplomacy with countries where people migrate once they start contributing to their exchequer like India has with UAE, Oman and others.
    Though migrations have mixed effects, however they can be said with certainty to be adding value to the countries of migration, however, they do improve the quality and standard of living for the migrated individuals as they generally move from a low wage/ war torn area to a more stable economy.

  • Namrata

    Please Review!!!

    Large scale labour migration occurs when people are deprived of adequate income opportunities in their native places due to reasons like violent situations or ineffective economic policies. Such migration can be both a boon and bane for global economic welfare as discussed below:

    + Flow of remittances: Remittances can help declining poverty ratio by raising consumption expenditure of emigrants’ families back home. It can also contribute to support small businesses, giving a boost to employment opportunities. For instance, Kerala, receiving the highest percentage of remittances in India, has seen much faster economic growth than the national average.

    + Skills Transfer: With large scale migration, the best of global minds can come together resulting in innovation and technological developments, whose impacts are felt throughout the world because of increased globalization. For example, the migration of IT professionals from India to USA has gradually brought about an IT revolution in India today, enhancing employment opportunities in the service sector.

    – Wages: Increased labour supply may add to public welfare burden of receiving countries. Consequently, there are chances of lower wages for domestic workers or employment of immigrants at lower wages. The immigrants may also be paid less because of their ethnic inferiority. For instance, the Nepali migrants in India face difficulty in finding jobs and so compromise on their wages.

    – Welfare facilities: With less wage in hand, the immigrants are often deprived of basic facilities like health, education and shelter. For example, the Bangladeshi migrants in India are forced to live in slums, lacking education and healthcare facilities.

    The cons of large scale labour migration can be eliminated by effective implementation of economic and welfare policies, thereby improving overall global welfare.

    • Batman

      add more points to make it comprehensive and try to use less words to express your ideas.

      “.. the migration of IT professionals from India to USA has gradually brought about an IT revolution in India today..”
      i think there is some mistake in the above statement, check it 🙂

      • Namrata

        well i thought i covered most points in these main points itself :-/ the question was about economic welfare ..so to explain the impact of these points i used such explanations ..anyways will keep that in mind 🙂 and no in the statement what i am trying to say is that the results of innovation were not limited to USA alone ..it took time but gradually now came to India as well today .. does that make sense now ??

        • Batman

          yeah..it does, i think somewhere you are trying to correlate it with the BPO sector i.e. growth in US (due to migration from India) spurred growth in India

          • Namrata

            yeah can say .. pehle bpo ..abb IT mein same thing is happening .. exactly thats what i meant .. changed the line little bit ..does it now reflect what im trying to say?? 😛

            • Batman

              han samjh aa gya mje 😀

  • Rohit

    Nobel winning economist Samuelson and Hanson have showed that free movement of goods and services across borders provides equal incentives to factor of production if the latter movement is prohibited and vice versa.Further implying that unhindered movement of peoples or goods have an equalizing effect.

    The factors of production includes labour,land and capital.As land is immovable,hence labour and capital are the only mobile theoretically speaking when a country has abundance of labour and less of capital ,it would export labour and import capital and vice versa.In other words developed countries with huge capital would find it beneficial to produce and export high tech product where as countries with huge labour force would find importing capital and exporting labour intensive products beneficial.As has been explained earlier free and unhindered movement of labour would be beneficial to countries with high wages as well as migrating peoples.For example-it is considered that migration from syria is of young and educated population.As Europe demography is above 40,such migration’s to it would benefit economy with cheap and skilled labour. Moreover labour would benefit from marginal increase in wages and good standard of living.

    As world is moving towards the dream of Global village,where territorial boundary would non-exist and free movement of information and factors of production would take place.In such an interconnected and globalized world ,free movement would be ultimately benefit the completed humanity without affecting the economy.

  • Ayush Anant

    Labour migration can be divided into two groups – skilled labour and non-skilled labour. As both types of labour migration is necessary for an economy, influx of it can be boon or bane according to the environment of an economy.
    Skilled labour migration contribute to the host country in the form of taxes, human capital development, technological assistance, industrial growth as well as by providing consumption market of the product. USA is a paragon for this. The source country avail the profits in the form of remittances, return investments and strong diaspora. Developing country like India is a good example.

    But cheap skilled labour poses threat and tough competition to local
    population in employment. distortion of demographic character,
    changing in consumption habit lead to pressure on economic welfare in
    long run.
    Unskilled labour are absorbed in infrastructure development projects like
    manufacturing and construction. Saudi Arabia is getting huge labour from India who in returns get remittances. But in long run it outweigh the cheap labour benefits. Also illegal migration leads to demographic constraints, black money market, drug trafficking and human trafficking, putting pressure on the economy. Mexico, Colombia, Venezuela, India are all examples of it.

  • PK

    Labor migration is a manifestation of the wishes of the migrants to earn more wages and live a decent and better life. With this as the objective, it is very natural that the direction of migration would be from less developed and less opportunities bearing regions to more opportunities bearing regions.

    Generally, labor moves to industrial regions which are more capital intensive rather than labor intensive regions. Thus, this migration acts as an equalizing agent in the composition of economic activities. Ex: Economic hubs like Bombay, New York etc.

    The labourers generally earn more wages at the destination regions than they earn at their source regions. This improves their overall livelihood opportunities. Ex: Indian origin migrants in Middle East

    The source region also benefits as a result of increase in remittances received. Ex: Kerala.

    There are certian apprehensions about the large scale migrant movement but these are generally from the socio-cultural and political arenas. Economically, large scale migration benefits everyone. However care should be taken to deal with this migration else urban slums and humanitarian crisis would result.

  • big fan

    Sometimes in search of opportunities, people from the disadvantaged sections of the country move to other parts of the same country or may even move to a different country altogether. This migration may be good or bad for a particular country, but it definitely helps the migrants earn some money, at the cost of poor living condition, misbehaviour at the host country.

    Impact of labour migration on the global economic welfare of the country-
    1. Generally migration takes place to a developed country which is way ahead of the home country in terms of technology and development. So the unskilled labour may acquire some technical skills. This will, in fact, help to increase the number of skilled labour in the country. So when the come back after some time then they will be equipped with latest skills and will certainly find employment in the home country.
    This way home country may not need to spend money to skill their labour. Thus, short-term labour migration can be seen as an internship.

    2. Migration also drains money from the developed countries to developing countries. But it also creates a shortage of labour in the home country. This problem may be solved if the migration is intended for learning and be made of short term nature. So that migrants come back after acquiring skills.

    3. For the host countries: they enjoy getting their work done at a relatively lower labour cost.

    *****
    Sorry friends, stopping here. As it was my first answer at Insights and I was not getting different points and examples. But I enjoyed the writing experience here. Others answers are written very well here. I read them and at least they helped me understand the topic in a much simpler way. I request them all to post their answers who write very good answers. TY!

  • Tigerbarb

    The large-scale labour migration on global economic welfare can have both positive and negative effects, depends on various factors.

    Positive benefits result when there exist complementarities.
    — Migration between surplus to deficit regions – From populous nations like India, Nigeria, China, to regions like EU, Australia, Scandinavian nations which have ageing population
    — Migration to low population density regions – From Bangladesh, Indonesia, Pakistan, India to Brazil, Canada, Russia
    — Migration of skilled labors to high demand service markets – Movement of software engineers from India, China to USA, EU

    Complementarity helps for overall development. It is good for the global economic welfare. Because all the regions benefit with such interactions in the way of improved cost efficiencies in production and service delivery to the local population and enhanced wages & living standards for immigrants.

    On the other hand, if migration is between surplus to surplus regions, increased competition create conflict over access to resources. Migration of unskilled labour to regions where there is no demand for unskilled labour can create pressure on the region. Government finances will be under stress to meet the demands of immigrants to provide basic amenities and social security. In extreme situations, conflicts can turn in the form of cultural xenophobia against immigrants due to perceived threats. This in turn leads to instability.

    Since there are both positive and negative effects of large-scale migration, it needs to be regulated. By empowering UN to take up such task in objective and rule based manner all nations benefit through migration leading to global economic welfare.

  • aashish 2000

    Large Scale labour migration is a phenomenon which happens on large scale. In recent times, its happening in major parts of the world. Its has both positive and negative impacts on global economic welfare.
    Positive side of coin:
    1. Movement of factors of productions like capital and land increases the viability of the global economy and creates employment.. Recent migration to EU results in employment and injecting the fresh capital.
    2. Fueling to infrastructural projects because of availability of labour and need of homes. Most of the central Asian countries like UAE, largely depends on labour.
    3. Helps to boost the foreign exchange. The majority of people from Kerala working in Central Asian countries like Abu dhabi, Quwait.
    4. Boosts the trade in the country because migrant people absorbs in clusters of manufacturing, almost major China SEZs based on this principle.
    5. Enhancement in Skill level due to fresh skilled people infused into the country. Majors positions in USA has been occupied by Indians, and global giants like Microsoft, Google run by Indians.
    Negative side of Coin:
    1. As large number moved results in drastic downfall in the economy due to shared resources, employment and national contribution. Such as Greece a debt country injecting by large number of migrants results bad to its economy.
    2. Communicable Diseases will rapidly increase due to huge migrants settles in undeveloped areas .
    Rather than positive and negative factors, government has to consider all the factors while making up of policies to tackle the problem and use it for enhancement of economy.

  • Arun

    Labour migration brings about several benefits and disadvantages.
    Advantages:
    1.Cheap labour ensures cheaper production of goods and services which ensures competitiveness in the international trade.
    2.Consumption demand of the labour force increases and thus growth growth of the nation.
    3.Labour force movement leads to innovation,creation and development of technology with quality education.
    4.Remittances to their respective countries thus improvement in the living standards.
    Disadvantages
    1. Infrastructure pressure due to increase of population.
    2.Quality of living standards of cheap labour is area of concern.
    3.Apprehension among the host countries for demographic changes and lost of jobs to outsiders.
    4.Wage level and salary comes down due to excessive labour flow.

  • Sumit

    Nature total absorbent capacity has remained same but it’s the population inhabiting it, is growing exponentially thereby making us insecure about future global prospects.

    Labor migration refers to migration to a prosperous location with various pull factors associated with it. Eg: secondary education, sanitation, water resources, land employment opportunities. With Europe and Greek refugee crises people migrating to prospective nations have created a worry among inhabitants about resource availability to secure them all.

    1. Economic welfare is feasible where beneficiaries are identified and means to reach them is available.

    2. influx of migrants, will not only distort existing systems of pension, social security, insurance but will also create structural demands like housing, better living conditions in already high density population cities. Thus distressing the social fabric and governance of the nation.

    3. Will breach the territorial sovereignty thus creating security crises.

    4. Adversely affect climate parameters by creating pressure through depletion of natural resources.

    5. Upcoming future generations will be marked with perceived social neglect and economic deprivations leading to extremism and hostile conditions with and outside national boundaries.

    Migration of people from Bangladesh in Assam and west Bengal have threatened their economic livelihood due to cheap labor and resulting in resource scarcity.

  • Wolverine

    The Labour Migration, whether internal or external has
    various Social, Economical, Political, Phychology etc. aspects. While it may be
    good from one perspective, it may be bad from another.

    –Political Aspects—The Large scale Migration of labor is
    usually from a low wage place to a high wage place. The increasing labor supply
    creates high competition for jobs and deprives the local people from jobs. This
    results in Political wobbling. However, in some developed countries with
    Wealthy local population, the migration fulfills the shortage of labor and
    helps stabilize the Political wobbling.

    Example—Gulf Nations.

    –Economical Aspects—The Large scale migration of labor can
    be both economically beneficial or harmful depending upon the skills they
    possess and the Age Structure they have. While the people with low skills and
    health and age structure in the dependent age may become an economic burden,
    the people with skills and health and in their working age may become the
    driver of a higher economic growth.
    Example—US takes skilled migrants every year and has taken only some
    hundreds of Syrian refugees.

    –Social Aspects—The migration of a large labor
    force may change the Ethnicity, Age Structure, Gender Ratio etc. in the host
    country. The large immigrants would practice their own culture and will help in
    generating a diverse society. Efforts can be made to assimilate or integrate
    them in the host country which may create conflicts among various sections of
    the society. Example—The Migration of Indians in UAE has generated some places
    for Indian gatherings like DERA in Dubai.

  • Sunil Kulyana

    Considering
    the current refugee crisis in Europe, the subject has again gained
    prominence whether global labour migration is good or bad. Considering
    some patterns where large scale migration is necessiated, we can say
    that migration is generally carried out for better opportunities or for
    avoiding a war like situaion in one’s own country. In both cases it
    benefits the migrants as they have better job opportunies and also
    better living conditons in the other country. As for the host country ,
    it depends on their requirements whether migrants benefit them or not.
    If there is a lack of young skilled cheap labour then migrants
    definitely fill the gap and help the host country. As for refugee crisis
    the host country can take in the refugees and showcase their worth in
    the global community for giving a helping hand to the world situation
    and thus gain Foreign policy upper hand. Also migration helps in
    intermingling of different cultures and hence work towards a global
    culture which is good for the global community as a whole.Also the
    developing countries gain by the remittances sent by the migrants back
    to their homes, thus the rich poor gap is also filled.For instance,
    Kerala, receiving the highest percentage of remittances in India, has
    seen much faster economic growth than the national average.

    But
    the negative side of large scale migration is that they create racial
    and ethnic tensions. The host country population feels that their jobs
    are being sidelined by the migrants and they become a symbol of hatred
    and violence is inflicted upon them as is evident from the killing of an
    Indian Techie in Sydney Australia. The insecurity and lack of identity
    is perpetuated amongst the migrants and their children who are required
    to follow culture of the host country and preserve their own culture at
    the same time. Also illegal migration leads to demographic
    constraints, black money market, drug trafficking and human trafficking,
    putting pressure on the economy. Mexico, Colombia, Venezuela, India are
    all examples of it.Thus large scale migration has its benefits and
    disadvantages and depending upon the situation , it must be carried out
    so that the benefits are magnified and the disadvantages are minimised.

  • Anit ifs

    Labour migration cannot be categorised into a neat set of gains or losses. The complex interplay of factors ensures that the net affect is determined by local, dynamic factors.

    The upshot of migration is equalisation for people across the borders. Also, the wages attract the best talent that is available in labor market. Further, there is cultural mixing and adaptation of best practices at both sides of the table. There is also a reduction of tensions and misunderstandings regarding the other cultures because of the intermixing.

    When US receives Mexican workers, the industries benefit as they now can produce at lower costs and thus US industries remain competitive, while the Mexican workers gain more money for they work. The intermixing of cultures like the influx of Tibetan culture in India or Chinese culture in US helped building understanding about each others culture and respect for them.

    There are some short term losses as well. The increased pressure on Social system of receiving coutnry, shortage of resources in poor country and dilution of voting rights etc. happened in the Indian North East states vis a vis Bangladesh. Also if the migrants areen’t skilled and large in numbers, then they end up as burden on host economy, especially if it suffers a labour glut.

    The net result of migration can be especially positive for capital rich countries, while poorer countries have equal amount of negatives to deal with.

  • untamed science

    Migration is the voluntary movement of the people from one country to another with an intention to settle permanently or temporarily for economic or social betterment.
    Generally higher wages is the key driver for migration ,other reasons include same ethnicity, complex social and psychological other than simple cost benefit trade off.
    Migration has some positive and some negative aspects:-
    positive points :
    – its actually can be understood as movement of factors of production rather than commodity.
    migrant workers send much needed remittances to the home country.that has increased the forex reserve of many countries.
    – if skilled workforce migrate it helps in capital formation, innovation by bringing new ideas.
    example IT Workers and doctors in usa.
    – availability of cheap work force that can helps a lot in construction industries. example south Asian workers in gulf countries.
    -development and promotion of industrial clusters example SEZ in china and india.
    negatives aspects:
    – influx of large migrants put pressure on the host country resources,
    make labour cheap lower the standard of living and create agitation and insecurity in the host country.
    – rapid urbanisation , skewed migration develop slums , increase pollution
    degrade environment.
    – sometimes the home country not readily absorb the foreign migrants creates agitation ,cultural differences.
    in this era of globalisation when migration is become more and more common,rather than creating barriers to the movement of people more efficient migration policies should be formed to utilize the human resources properly.

    • Malgudi Days

      Good..
      Your points are also good….
      suggestion- use word ‘labour migration’ where it is applicable.
      overall good…..keep writing
      :))

  • Mukul

    Labour migration is a bi-faceted phenomenon. It has both advantages as well as disadvantages.
    Advantages
    1. Since the migration is for furthering the economic prospects, it leads to economic mobility and therefore he may have better standard of living.
    2. Nationally as well as internationally, it has been seen that remittances sent by workers often help other family members back home.
    3. Migration allows the person to gain new skills and enhance his economic prospects.

    Disadvantages
    1. Psychological costs
    2. Migration alters the demographics of an area as it has been seen males generally migrate resulting into feminisation of agriculture.
    3. Increased migration may induce social tensions.

    Therefore, priorities should be in providing employment in native areas so that distressed migration is minimised. However some form of migration has been ongoing since historic times and stopping that is neither desirable nor feasible.

  • AB

    Q1.

  • savreet heer

    Migration as such is considered as important for development and poverty reduction but distressed migration imposes heavy costs on human development in terms of poor labour arrangements, basic amenities.The recent Europe’s refugee crisis has questioned on the management of such large-scale migration.

    According to Secretary General Kofi Annan, “migration not only benefits the migrants but also benefits the countries that receive and those which send.”This is true as the labour migration satiates the scarcity of labour and skills of the receiving country.This also benefits the sending country through remittances.As per the UN organisation study,Bangladeshi migrants send 72% of their earnings home.These remittances help to pay the debt, ensure food security,diversify livelihood and reduce the vulnerabilities.Thus, helping the sending country in poverty reduction.

    But large-scale migration may not be able to sustain the similar benefits as it may endanger the employment prospects of the receiving country’s population.This large scale migration may also result in population growth.As migration in North America has led to population growth.This may affect the welfare economics.

    On the other hand migration may also reduce population growth.In Africa,Latin America and Carribean migration has reduced the population by 15%.Thus, the sending country may be benefitted by this.

    Thus, migration has its own positive and negative outcomes.But migration as such promotes development,urbanisation, equalising social status and poverty reduction.Therefore, labour migration should be encouraged.But this international migration should be managed as large scale migration without any concrete policy framework may harm both sides.

  • Prashanth

    Please review mine

    • Malgudi Days

      Good points..u have given good examples
      if possible,compress your answer….
      keep writing…

      • Prashanth

        Thank you for review, how about my hand writing

        • Malgudi Days

          Handwriting is nice…….but take care of direction ans size

  • anonymous

    Today world is witnessing a large number of migration for better opportunities .These people also seen as potent labour force which cause mixed impact global economy in various ways-
    A) Positive for global economy –
    _Most of the developed countries like Germany, Japan etc have important place in global economy. But these countries are getting old and struggling through labour shortage. So immigration of people in these countries can be utilized as workforce to solve this problem and boost the global economy

    _The migration of IT professionals , scientist ,etc of India into developed countries like United states can provide skilled human resources to US which further helps in advancement of Informational technology and other sector related to it. The innovation and technology in this globalized world further increase the pace of development

    _Emigration from developing countries which are dependent like India , China in other countries like USA, Saudi Arabia, Germany can help to get remittances which help to raise foreign exchange reserves. This reserve can be used in meeting demand of crude oil which increase the growth of international trade and growth of the countries

    _Large scale immigration is also seen at domestic level like in Mumbai, Banglore etc in India has increase the growth of BPO and IT sector which reflects in Indian GDP.Thus growth in emerging country like India will contribute in global economy

    B)Negative for global economy-
    _Illegal migration of large number of people in countries like Greece , Hungry , Italy which are already growing through economic crisis will worst the condition. This will add poverty, deprivation, struggle for resources , social crimes etc which are unfavourable environment for doing business , trade and commerce

    _Migration of unskilled force from least developed countries like nepal , bangladesh etc in India will further add beneficiaries and increase the competition for local workers. This creates unarrest ,miseries corruption etc which in bad for economy. This will further reflect at global level

    _shifting of skilled labour like doctors engineering scientists from developing countries like china , India etc into developed countries will further widen the gap of economic and social inequalities between the two

    • Malgudi Days

      Good answer
      if possible,compress your answer
      overall good points…..u have discussed positives and negatives….which is impressing.
      keep writing
      :))

      • anonymous

        Thank you. Yes you are right im also trying to write within word limits 🙂 plz keep reviewing and guide me 🙂

        • Malgudi Days

          The purpose of suggestion is that we didn’t get that much time to write in the exam.so it can be improved here only…….
          :))

    • skyhighambition

      nicely stuctured …juz to add 1) word limit crossed its arnd 290 ,i think upto 10-15 words doesnt matter but its huge. .2)conclusion missing- may b a single sentence …3) juz try 2 make it simple n understandable ..e.g in case of negative-Large-scale migration could induce tensions amongst the local populace and may lead to agitations. Like the migration of
      eastern European labourers into Britain is causing issues..although u covered d points if u cud add these it cn increase d face value of ans..

      • anonymous

        thank you yes nice points 🙂 i can frame it in this way. hmm yes i have to work on word limit, Its difficult but will do very soon .plz keep reviewing 🙂

    • MSI

      your writing style is verbose. try sticking to word limit. content is fine. Keep writing 🙂

      • anonymous

        yes you are right but im new in writing will soon overcome this issue thank you keep reviewing and guide me 🙂

  • Malgudi Days
  • Pranjal Saraswat

    Please review.

    • Malgudi Days

      Ur writing pattern/approach is good…..
      if possible,improve your handwriting……it is all about – understanding what we have written
      overall nice one
      keep writing
      🙂

  • Mrinal Mukherjee

    Large scale migration has its own pros and cons on the global economy and needs a careful analysis before one comes to something concrete :
    Cons :

    -Skill Shortage may arise in the sending country .Eg – China’s labor intensive manufacturing sector has witnessed a slowdown due to its high demand of cheap labor , leading to massive labor migrations
    – Constant influx of workers not only results in the depression of the wages for the domestic workers but also pressurizes the resources of the receiving country
    -The heavy dependence on intermediaries(dalals) have made migrants specially from Nepal , Bangladesh and Nigeria prone to human trafficking and sexual abuse which ultimately stakes the receiving country’s repute

    Pros :

    -Migrants in Switzerland and Luxembourg provide a net benefit of about 2% to the public kitty
    -More employment opportunities in the receiving country with better wages has resulted in a large inflow of skilled labor , making it a win-win situation for both the economy and the migrants
    -Improves bilateral relationships between the sending and the receiving economies.
    -Remittances from the migrants also constitutes a major part of the sending country’s financial inflow.

    Thus migration , specially to a developing country like India in particular may have a lot to gain in terms of growth, investment and human capital which would be only possible when there is a coherence between the govts developmental policies and migration.

    • Mrinal Mukherjee

      Pls review

    • MSI

      3rd point in cons not related to economic issues.
      pros part you didn’t quote any example.
      content is good. keep writing 🙂

      • Mrinal Mukherjee

        My patience paid off !
        I really look forward for yours and pandas reviews :p
        Thanks man !
        And yes .. I should have included examples in the pros .. But ,frankly speaking , those points are so generic that I couldnt think of any examples… How to deal with such questions then ?
        Thanks again ..
        Your review was a great booster !

  • SP

    Large scale migration is a phenomenon which can be seen around the globe. It can be due to many reason i.e. Political unrest, poor resource availability and many others which has both the shades on the countries involved.
    Positive Impact of Large scale migration on Economic welfare:
    1. Increase in income of sending country: Remittances from the emigrants will boost the income of the country. e.g. Workers in the gulf country send money to India and that money gets into circulation.
    2. Reduction in poverty: As people migrate for a better and secured future so that to get out of poverty which Reduces pressure on governments for subsidies. e.g. India and South Africa.
    3. Infrastructure development: In Qatar and Dubai, large scale migration from south Asian countries help them to build their infrastructure and promote their economy.
    Negative effects of large scale migration on economic welfare:
    1.Less availability of resources in receiving country: Competition for resources could lead to inflation and impact the economy of the county. e.g. Fight between European and British labours.
    2. Criminal activity: Illegal migrants will also involve in Criminal activity and Black money which will impact the economy of the country. e.g. Bangladeshis in India.
    3.Shortage of labour in the sending country as its own infrastructure development will be impacted. eg :INDIA.
    For a win- win situation in sender and receiver country ,a right balance of migration and retention has to be regularized otherwise pressure on both the countries will have farther consequences.

  • Lolwa

    Review Pls

    • Dilip Kumar

      nice ans.. expression is good

  • Johit

    Large scale labor migration has both advantages and disadvantages for both source and destination.

    Increase in global economic welfare may be seen in the following cases:

    1.) Source country has surplus labor for e.g. India and the destination country has employment opportunities e.g. Gulf countries. This may affect labor wage in the source country and may slow down economic activity there but overall, it leads to increased welfare because labor moves from low productive/paying job to more productive/paying job.

    2.) Source country is marred by political, economic or climatic instability e.g. conflict ridden countries like Syria, Yemen, drought-prone Sub Saharan nations like Somalia, climate-sensitive island countries like Maldives. From here, the labor moves to other countries for safety and work. This will increase the global economic welfare as people are able to access economic opportunities in other countries.

    However, large scale labor migration may have following disadvantages:

    1.) Source area may face underdevelopment due to shortage of labor and rise in labor wages. This results in imbalanced development of a region or a country.

    2.) Large scale migration may put pressure on urban infrastructure of destination which may result in inadequate provisioning of basic goods and services like housing thus leading to proliferation of slums e.g. Mumbai.

    3.) Large scale migration may also result in cultural backlash from the native community of destination area e.g. Biharis in Mumbai.

    Overall, large scale migration is a mixed bag that may lead to economic welfare of one area at the cost of other. But it may be said that global production benefits from global division of labor which forms the very backbone of economic globalization.

  • G. Pankaj

    We live in a globalized world. Apart from goods & services, labour is being transported within country & from one country to another. Its been an old phenomenon, but in recent years, its been happening at bigger scale.

    Labour moves from one place to another due to various reasons. Some educated minds leave for greener pastures while some moves due to distress & no employment opportunities in their local area. Some are privileged to luxurious lifestyle while some others are subject to harsh labour & exploitation. Such cheap labour work as a army for cheap economic production which helps organization & countries in competitive economic warfare.

    Countries such as India which has large population & big rural-urban & regional divide, people migrate to seek employment. As such labour is available in abundance, they are employed in lower price. Cheap labour is important for the profitability of business. Also at the same time migration of educated people enables organization to grow & remain competitive.

    Migration in the foreign land is also considered as “Brain drain”. Some of the bigger corporation hire the best minds throughout the world which help them in innovation that works for competitive advantage.

    So large scale labour migration is helping organization & countries in global economic warfare but we need to see that whether labour in particular is being rewarded accordingly or not.

    • G. Pankaj

      Read the question wrong. Read “warfare” instead of “welfare”. This makes the answer diverted from the point.

  • Dilip Kumar

    plz review

    • skyhighambition

      WELL WRITTEN, buddy … except dat u hv just missed out in giving examples as demanded by question.. u can giv example along vd gud n bad points lyk in case of bad -Large-scale migration could induce tensionsamongst the local populace and may lead to agitations. Like the migration of
      eastern European labourers into Britain is causing issues.

      • Dilip Kumar

        thanks …yes i missed example demanded by question ….thanks for suggestion …

  • Pooja

    With globalization it has become easier for labor to move across nations. Large scale labor migration has both pros and cons to the economy in the long run.

    Pros :

    1. Cheap labor- With the glut of migrants the cost of labor cuts down significantly reducing the cost and pushing up the profits.China has been able to excel and attract manufacturing with its cheap labor.
    2. Employment- When the production increases a large population gains employment. It helps the nations to reduce poverty.
    3. Increase in consumption- With gainful employment,the labors are have the purchasing power which enhances consumption within economy and encourage production.
    4. Social welfare- the growth and increasing GDP enables the govts to infuse capital in infrastructure, social security, health and education sectors.

    Cons-

    1. Large Migration-with large migration there is constant pressure on the land.
    2. native jobs are lost-natives of the nation often loose their jobs to low cost migrant labors causing unemployment.
    3. Lack of Skill- the migrant labor if not skilled can make the industries labor intensive which would be setback for the technological growth.
    4. Social Fabric disturbed-the migrants from various ethnic communities,religions can be a reason of grudge among the natives which leads to social tensions.
    5. Pressure on economies-Large scale migrant labor can cause pressure on the economy who may not be able to support them.

    Thus large scale migrant labor have both pros and cons. A balanced and fair migration policy an help the nations to grow simultaneously.

    pls review ..thanks

    • MSI

      pooja answer is good but you missed quoting suitable examples as the question has specifically demanded.

      • Pooja

        ya I m at a very nascent stage. Shall keep in mind to meet the demands of the question. Thanks a ton for reviewing:)

  • phoenix

    Labor migration occurs due to a mixture of pull and push factors.
    Better opputunities at the destination pulls labour where as scarcities and problems push them to migrate.
    Its impact is also a mixture of good and bad illustrated as below.

    1.The destination gets labour for industries, that too at a cheap rate, for example migration fro bihar benefits punjab agriculture.

    2.The migrants may bring their talent to the destination and add value to it, e.g.Steve jobs’s parents were syrian migrants

    3.Remittances back home help the the economy there, e.g.kerala migrants to gulf has brought prosperity to kerala villages and cities.

    on the other hand

    1.The migration leads to congestion, crowding at the destination leading to problems of all, .e.g. delhi

    2.Lack of labour back home for agriculture e.gin bihar

    3.Tensions in the destination due to jobs of local taken away by migrants, e.g.maharastra

    Large scale and uncontrolled migration may bring bigger challenges so the focus of the policy should be giving people jobs near their villages, cities of domicile.
    PURA, envisioned by former President APJ Abdul kalam should be achieved

  • ANAND JUSTIN

    Migration of labour is a landmark feature of globalisation.When controls were relaxed for labour supply,seminal changes happened in job generation and diversification of economy.Each country has its strengths and weaknesses in economic elements.Highly industrialised nations needed huge supply of labour which was not available from their developed economies while cheap labour came from developing nations.Large waves of people from east European countries and Asia to U.S.A and western Europe ,Indians and people of south Asian countries flowing to Gulf countries was iconic examples and was touted as success of global economy.But going along,new challenges are fast emerging.
    1.economic consequences:Huge loss of opportunities for native population.This led to stricter immigration laws in western Europe and U.S.A.and “Nitaaqath” like labour reducing measures were taken in Gulf countries.The saturation of opportunities in these countries had destabilising effect in remittance-dependent economies.
    2.social consequences:Huge foriegn populations created cultural shock among both native and emigrants.Anxiety on cultural identity led to violent social tensions.violence against Indians in Australia 2013 is an example.Exploitation and inequality faced by migrant labour population led to increased crimes and further contributed to social prejudices
    3.political consequences:Drain of wealth became a sensitive issue for several nations.Biased public opinion against migrant labour population led to the rise of several anti-immigration political parties in Europe.

    In today’s global and open market,labour migration is a reality and a necessity.But absence of regulations in host and sending countries will harm the system.Finally every nation should strive to generate opportunities for their citizens in their own countries.

  • Ejas Aslam

    Economic theory, particularly the factor proportions model, suggest that free movement of migrant labour may be beneficial for global economic welfare. However, this is a conclusion based on theoretical models not taking into account political, sociological, or prevailing maldistribution in the developed destination countries.

    The Positives:

    1. Free labour migration results in increased wages and remittances, improving human developement and fuelling consumption, boosting world economy.

    2. The remittances sent from destination countries serve to counter trade imbalances with developed countries. This improves macro economic stability globally.

    3. It also ensures adequate working age populations in ageing populations of developed countries.

    Negatives:

    1. Conventional economic models are chronically divorced from reality. Many developed countries have large unemployed youth populations and stagnant economies. Migrants are less likely to find jobs here and are more likely to be a burden on welfare states like Britain and Scandinavian countries.

    2. Political backlash will result in conflict or violence that can adversely affect economic stability. eg. Pegida and right wing movements across Europe.

    3. The usefullness of unskilled labour in developed mechanised industrial countries of Europe is questionable.

    Economic migration is a complex phenomenon and may benefit some countries like Japan or Germany, but may not be conducive to stability in countries like Italy, Spain or Hungary under adverse economic circumstances.

  • KuchhNahi

    Large scale labour migration has both positive and negative effects on economy of mother and host countries :

    Benefits
    :

    1. It increases labour supply in the host country. Hence solves the problem of labour shortage.
    2. It decreases dependency ratio for the host country as the migrant labour does not constitutes its population either during childhood or oldage however it contributes only during its working age.
    3. It increases remittances for mother country hence easing its Current account deficit.
    4. Generally the migrants are among well educated and trained people in mother country , hence host country benefits from a good talent pool even without investing in them.

    Harms for economy:
    1. Through remittances a good sum of money is drained from the host country.
    2. The money invested by mother country on subsidised training of the labour is lost. It faces huge brain drain and hence is not able to benefit from investment made by it in human capital.

  • hello world

    Historically we have seen many waves ofmigration world wide. plantation labour migration,slave trade in European nations being few.Presently we are witnessing a stream of migration to Europe from middle-east nations. While migration due to demand for labour force is seen as good for economic growth, present trend is due to unrest, violence and deprivation of basic amenities in nations like Syria, turkey etc due to threat of Islamic state.This has created an economic burden on the European nations as Ability of these nations to absorb this labour force is limited.

    In addition there are other dimensions of migration
    – Skilled labour adds value to the host economy and thus contributes to public purse and also to home country by means of remittances. They contribute to albour market and address labour market imbalances.
    – In case of unskilled and semi skilled labourmit Leads to social stratification. While
    these provide their services at cheaper rates,Experience shows that these are
    more prone to be exploited in host nations.Ex. UAE,Dubai migrants from India,racial
    discrimination.
    – Such migrations have political ramifications as nations consider large scale migration as a t threat to internal security and native jobs. In addition it demands provision of basic amenities to migrants. Therefore overall welfare remains questionable.
    – In absence of any international law on migrants, nations and states have their own
    laws suiting their countries needs. These are largely restrictive policies.
    – In addition it also leads to demographic changes in source and destination places.

    Thus while migration / free movement of workforce is a favourable feature in capitalism(growth),It is mired with challenges,which if overcome can contribute to economic welfare.

  • Virat

    Labour migration is an outcome of globalization which has both pros and cons.

    Pros
    a) It provide better job opportunities in destination country. For eg- teachers from India receive better remuneration in New Zealand as compared to India.
    b) It helps origin countries to earn income from remittances from abroad. Eg India tops among remittances from abroad.
    c) It helps destination countries to increase investment and economic growth. Eg in Gulf countries most of the oil fields employ engineers from India.
    d) If the skills of migrant labour complements the skills of present labour, then it leads to increased productivity of the destination country thereby increasing wages of labour.

    Cons
    a) It may decrease wages of labour in destination country if skills of migrants substitute skills of present labour. For eg due to labour from Bangladesh the daily wage earnings of bordering Indian states have come down.
    b) Migration of low skill labour force will lead to population increase without economic gains especially for advanced countries producing high-tech products like US and UK.
    c) Increase of long term migrant labours will increase government spending on welfare services like healthcare.

    Although labour migration has both positive and negative aspects but if migration occurs in a way to complement skills of destination country, it will be win-win situation for all.

    • MSI

      its fine. nothing special to rectify. keep writing 🙂

      • Virat

        Thanks 🙂

    • Mr.RedPanda

      Hi Virat, Imagine demographic dividend as water in your right hand and demographic deficit (less working people) ‘no water ‘in your left hand. When you transfer water from right to left hand, that is large-scale labour migration. This concept is missing in intro. Globalisation is new but not migration, I think. Better to explicitly mention the link between large-scale migration and “global economic welfare”. We need to link benefits and costs to the global economic welfare.

      In the conclusion, I feel like focusing more on local employment generation and sustainable economic growth to avoid adverse affects of large-scale migration.

      • Virat

        Noted and thanks 🙂

  • ziddigirl

    Hi this is Urvashi here.
    Large scale labour migration has taken place in India largely fue to push factors instead of pull factors. Despite the benefits, this has promoted largely unbslanced development characterized by inefficient industrialization.

    MERITS
    -Lead to development of industrial region. E.g. industrial clusters development
    -ensure increased availability of talent pool for employer
    -increased dupply of labour decreases cost of production and increases export competitiveness. E.g. cheap labour in Bangladesh decreases cost of jute vis a vis India
    -leverage on comparative advantsge of region and give competitive advantge
    -enable labour from less developed regions to benefit from well developed regions and thus helps yo overvome limitations of imbalanced regional growth. E.g. Migration of labour from Bihar, West Bengsl
    -increased remittsnces from migrants contribute to GDP. E.g. NRIs remittances highest sourcr if invome for Indis in thr world

    DEMERITS
    -lead to problems of overcrowding, gtowth of slums in the host country
    -Can exacerbate issues of environmentsl pollution
    -Aggravsted regionsl inequalities in view of unbalanced development across regions. E.g. “Polarized” districts where within a district large scal

  • Prerna Jaiswal

    Large-scale labour migration has both positive and negative impact.

    1) Large scale migration causes inflow of forex in the form of remittances but it is a highly volatile income.

    2) Movement of people leads to globalization.

    3) The impact of migration depends on the skills of the immigrants whether it complements or substitutes the existing labour. Closer the substitute, adverse will be the effect.

    4) Besides increasing labour supply, migration can lead to increase in demand of labour, by increasing demand base for goods and services and attracting investments.

    5) While creating competition for jobs, migration can lead to the generation of new jobs, but it depends on the response of the investors and labour demand.

    6) Immigration can also lead to change the mix of goods and service production in the country hence leading to change in the industrial structure of the economy. Eg. Immigration of low skilled labour will lead to increase in the production of goods which require low skilled labour.

    7) Immigration can also change the usage of technology used in the production based on the skill set of immigrant labour. Eg. Skilled labour will increase demand and adoption of skill intensive technology.

    8) Migration of labour and trade of goods and services are different sides of same coin. While capital rich economies like US will export high-tech manufactured goods and services while they will import low skilled labour, low tech manufactured goods, agricultural goods etc from labour rich economies like india and china.

    9) Labour migration leads to brain drain of the sending country

    10)Maintenance and welfare schemes for migrants are a huge economic burden for the receiving country.

  • jyoti

    Recently the European nations have been wary about economic impacts of massive labour influx on their shores.However the studies on past migration waves of late 19th century & late 20th century (post WW- 2) suggest that massive labour migration has contributed positively to overall global economic welfare.

    Benefits-

    1. Increased economic mobility-
    Helps people to move from labour-abundant places where they earn less to rich but labour -deficit places & earn more.

    2.Correction in demand- supply ratio of unskilled labour in both recipient as well as source country-
    It leads to global wage rate convergence & hence reduced international inequality.

    3.Boost to demand in economy -Fall in prices of some commodities in recipient country owing to reduced input costs, hence increased purchasing power of salaries.

    Obviously ,not all sectors of society benefit from the change. The already settled migrants & native workers are being hit the most as they have to compete with the new cheap labour.

    However ,empirical studies show that these contraction in wages are very short term & soon the economy absorbs them. Further, when seen from global perspective, increase in wages at home country counterbalance the net effect.

    World Bank studies in 2006 on the topic confirms –
    a)the gains for both host as well as home country, a little more for poorer one.(thats only a bit more good!)
    b)A boost of about $175 billion to global GDP in case of liberalised labour movement ; superior than the potential gain of $155 billion in case of trade liberalisation supported by Doha round.

    Hence, the real need is to move global opinion towards a more humanitarian & still globally beneficial approach towards the labour influx.

    • jyoti

      Hey friends,I hope for some review.please, do effort.

    • jyoti

      Friends, have I made blunder in guessing the question in totally wrong way? Feeling bad..

      • Rohit Kulkarni

        thats fine except the recent european labour migration example…its a refugee migration so wrong example..but well raised points

        • jyoti

          Yeah, that was a wrong example, infact I wrote the whole answer in that cotext. Well, thanks a lot for review..

    • Mr.RedPanda

      Hi Jyoti, Imagine demographic dividend as water in your right hand and demographic deficit (less working people) ‘no water ‘in your left hand. When you transfer water from right to left hand, that is large-scale labour migration. This concept is missing in intro. You covered benefits well but I feel second part needs more focus with equally strong points.

      In the conclusion, I feel like focusing more on local employment generation and sustainable economic growth to avoid adverse affects of large-scale migration.

  • disqus_sapna

    See attachments pls

  • SPIKE

    Large scale migration is not good for global economic welfare because :-
    1. promotes regional imbalances in development
    eg:- shift of people from himachal pradesh to delhi and other states in search of jobs may further reduce the development of h.p.
    2. rural to urban migration leaving none in villages is not only making rural areas into deserts but also putting pressure on basic resources in urban areas thus making unsustainable situation.
    3. led to poor utilisation of resources.
    if farmers left to urban areas for alternate living leaves their fields uncultivated.

    however there are some positivies too such as, many people left out of poverty and got good alternative sources of living.
    also migration to foreign nations is providing us remittences in much needed foreign currencies.
    migration introduces new culture and ideas in economic practices.

    so, it is clear that sustainable migration is good for global economic welfare.

    • Uday Kumar

      I think since the question says whether it is good or bad then you should mention both pros and cons of migration even though has mentioned the word Large Scale. The word has negative connotation but still both sides needs to be mentioned.

      • SPIKE

        i think i mentioned in 2nd para “however there are some positivies too such as, many people left out of poverty and got good alternative sources of living.”…

  • Migration has been the critical issue since ancient times and migration of the people occurs due to many reasons

    like education,employment,environmental or political crisis,civil wars,external wars,oppression by other states upon the poor states etc.Migration is bad when it is due to distress like wars/environmental/political crisis.
    Labor migration (employment related) has its own pros and cons.
    pros:
    1. when one region of the country or world requires skilled labor which is not available in the region the migration of the skilled labor is yielding high economic value to himself and the countries economy at the same time like the migration of heart specialist can treat thousands at the same time can train the doctors/medical practitioners which will resolve the issue of specialist shortage and bring more economic value to their labor.
    2.other case scenario is when employment of certain kind isn’t available in particular region but required in other parts of the world like the migration of Indian nurses to the middle east/gulf countries yields higher economical value, cause may be cause women cultural restrictions in those countries.
    cons:
    1. when large scale migration takes place to one region like it happens in case of the educated/uneducated labor force which comes to Mumbai like cities and extra stress will on the resources hence the space constants then happens is the slum are developed near and around the skyscraper.Health/epidemic crisis apart they wont raise from their poverty sicken condition.

    2. Economical balance in the region from where this migration is taking place and may cause the region to remain economically backward and the inclusiveness may be completely neglected.

  • samsud

    plz review friendz…

  • Mockingjay

    ..

  • Vikram

    Please Review !!

    International economic market is getting more and more integrated due to the effort by WTO and various agreements that takes place for economic cooperation. It helps in efficient allocation of labor resources and benefit distribution. Labor surplus countries can invest in labor scarce economy like Japan,

    Free movement of labor is good because of following reasons:

    1)It helps people to get better job, that will help them to come out of poverty, health and other problems,it can ensure better education for their children s and improve standard of life for the family.For example india working in Gulf countries.

    2)It help industrialist to get cost effective worker that will help them to expand business in other countries. it will help them to invest in poor countries where raw material and human resource is available. Thus it reduces the disparity across the globe.
    3)More people to people contacts.
    4)Reduces the cultural differences and reduces the prejudice against other cultures and customs.
    5)Promote global welfare.
    6)Reduces the burden of the overpopulated countries and provide human capital in low populated countries.
    7)Improve productivity and competitiveness across the globe, it reduces the monopoly of labour and increase equitable distribution of income for labor.

    So there are huge benefits of free labor movements but it posses some problems also, it helps endemic diseases to spread across. It lead problem of sanitation,health and congestion,It increase conflicts between the native and migrated labor thus it fuel hatred sometime.

  • saurabh

    Migration is not a new phenomenon. It has been part of our civilisation since very ancient times. However the reason for such migration may vary point to point. It may be on account of industrialisation accompanied by urbanisation or a forced migration on account of crisis as happening in Middle East or due to geo climatic factors. But one thing is sure that migration have restructured social as well as economic patterns of the society especially the one at large scale.
    Let us count on some de-merits what large scale migration of labour forces have on global economic environment:
    1. It puts undue pressure on existing natural resources which leads to unsustainable exploitation of these resources on account of larger no. of people dependency on them.
    2.Public facilities and welfare services prove to be ineffective as demands for these services soars up without commensurate increase in supply of services
    3.Large scale migration could be a possible cause for inequality in terms of wealth and income since it is not possible to quickly fix the redistribution of resources, hence leading to inequitable access to wealth resources.
    4.The nation which receives migrant labours may have lacunae in provisioning infrastructure to support them. Hence it can lead to development of slums as we find in most of the urban cities.
    5.Any country which is truly democratic strives to provide its people with basic amenities and a descent standard of life. But with large scale migration, it would be difficult even to assure rare basic minimum needs which could impact economy of the concerned nation.
    6.Large scale migration in country such as India may not be of much benefit, since India has the largest working force in world on account of demographic dividend. Problems such as unemployment may aggravate and could also lead to underemployment of actual labour force.
    Merits of large scale migration:
    1. For the countries which are missing the benefits of demographic dividend, it could be a source of huge labour force and hence can aid in rapid economic growth of the country.
    2.The huge influx of labour resource can provide competitive advantages since the labours will compete to work at minimum wages and can help in triggering output with greater efficiency and effectiveness
    3.The analogy of large scale migration can be understood as inter basin transfer of river waters. This suggests that both deficient and surplus region balances out the sharing of water resources. Similar inference can be drawn upon as the deficient area receiving surplus of labour resources which could provide economic advantage to both sharing nations.
    4.Labours have migrated from one region to other in search of employment leaving back their families at the place of residence. Now when labour migrate to some other country they send remittances to their family. These remittances become the source of earning for the receiving country in terms of foreign exchange.
    Conclusion: From above discussion, we can trace that large scale migration of labours have both the facets good as well as bad. Hence it is the context of the place, i.e its socio-economic situation, its political position, that is relevant in deciding the goodness or badness.It cannot be absolutely concluded, hence is a relative phenomenon in respect of space and time.

  • Amit

    Globalization,by its very nature has spurred movement of goods,services,people and capital across national boundaries.Labor migration ,manifested in its various forms has been both good and bad .

    1. From labor scarce countries to labor rich countries – India,Pakistan and Bangladesh have been major sources for labor for gulf -countries.This not only helps these countries (as they lack skilled work force ) but also is a major remittance source for Indian economy.However,unregulated migration has resulted in job losses for the native population and this has forced the Saudi govt to introduce Nitaqat law.

    2.Migration of Indian skilled professionals have not only helped U.S economy immensely but also have helped India in terms of remittances,investment and diaspora driven better relationship with the host (U.S).On the other hand,illegal migration from Bangladesh is not only resented but also has caused severe strain on the local economy in Assam and WB.

    3.The migration of labor force has helped the emergence of industrial hubs like Mumbai,Bangalore in India,Shenzen in China etc which has contributed immensely in their respective national economies.However,issues related to their human development index have been many. Dharavi in Mumbai iis one of the largest slums in Asia.

    4.Labor migration from labor surplus countries to labor scarce countries are win-win for both the countries like India ,China have a favorable demographic dividend,on the other hand,Japan and Germany are capital intensive yet ageing economies.However,at times,the migrant labor force is subject to discriminatory laws,racial and ethnic prejudices etc.

    Thus,what is required is while labor movement across the national boundaries should be encouraged,it should be regulated so as not to create social,demographic and economical imbalances in their host countries.