Tales from the Classroom: A cursory discussion on the impact of refugee migration to local economies and cultural diversity

The discussion on refugees and migration is a discussion of the allocation of resources. The most significant source of tension in the discourse about migration and asylum is that migrants and refugees are seen as competitions of the host nation’s resources.

The difference with refugees and legal migrants is that the latter move to their host countries with some assets and often with an economic and social integration plan, while many refugees, because of their circumstances, often arrive with no plan and only the clothes on their backs.

For most host countries, the immediate need in the initial period when refugees arrive is to deliver short-term basic needs: food, temporary shelter, and clothing. These efforts require large amounts of resources. However, they also need to provide for their long-term needs and preparing them to integrate into society, which requires an even more massive effort. When you receive refugees, you are essentially managing the nation’s resources, making sure to balance the needs of the citizens of the nation and the needs of refugees.

When war broke out in Syria and through the Ukraine war, many refugees started flocking to Greece. Between 2016-2020, Greece received 3.38 billion euro in an EU support package. Yet, despite support, there are still claims of poor access to resources. Even with overhauls, Greece continues to keep asylum-seekers in refugee camps that struggle to provide accommodations and healthcare (Emmanouilidou et al, 2023).

Refugee movement in Greece is limited, which means they are not integrated into society. From an economic perspective, refugees represent a pool of untapped human resources. There are labor shortages in the European Union, United States, Canada, and Australia. Typically, the short-term solution is to increase the intake of migrants to take up the labor gaps. There’s a reason why economies see migration as one of the drivers for growth—migrants are human resources.

In the long-term, immigration policies shape the cultural fabric of a nation. For example, the United States is a nation built by immigrants. Discrimination and racism typically exist because of concerns that migrants take away resources and opportunities away from citizens, including access to schools and jobs. However, Americans also recognize the value of migration because migrants take on work that many citizens won’t do. Most migrants, however, integrate into American society, accepting dual identities and identify as Asian-American, Filipino-American, etc.

In Japan, a nation known for its cohesive culture, non-Japanese are seen as guests and are treated as so. Should economic conditions worsen, the sentiment is that Japanese should be prioritized in the access to much needed resources. Foreigners are not entitled to Japanese sources. There are also many barriers to integration, language being one of the most significant barriers.

France follows similarly to Japan, although they are more open to migrants than the Japanese. The key difference is that the French expect migrants to fully integrate into French society. They are no longer Algerians, Moroccans, or Tunisians—they are French. Integration often implies leaving behind their home country cultural identity in favor of the French cultural identity (Safi, 2008).

What do the examples of cultural integration in the United States, Japan, and France tell us? There is a diversity of opinion on what it means to integrate into society. Some societies celebrate diversity, which is seen more predominantly in the United States. Some societies are not as welcoming to cultural diversity, such as France and Japan. Is it necessarily bad if a society is not as open to cultural diversity?

If we compare the United States with Japan, they have contradicting sentiments on cultural diversity. Yet they are both innovative economies. It begs the question, is it cultural diversity that leads to innovation, or is it a specific aspect of culture that leads to innovation?

Perhaps the better question is, what does a society give up when they close themselves off from cultural diversity? A study on cultural diversity in London found that cultural diversity was an economic strength for the city, leading businesses to enjoy improved processes and products (Lee and Nathan, 2010).

Furthermore, it’s a basic human right to participate in cultural life, especially one that ties into a person’s identity. Policymakers need to take into consideration that culture is a basic human right, and that policies need to take this into account. There are economic and political advantages to culture diversity, and we can only take advantage of these if we recognize diversity.

Sources:

Constant, A. F., & Zimmermann, K. F. (2016). Diaspora economics: new perspectives. International Journal of Manpower, 37(7), 1110-1135.

ECRE (2022, January 21). Greece: Huge Discrepancy Between Reported Rescues and Arrivals Suggests Massive Pushbacks, Billions Spent Do Little for Violations and Mismanagement. European Council of Refugees and Exiles. https://ecre.org/greece-huge-discrepancy-between-reported-rescues-and-arrivals-suggests-massive-pushbacks-billions-spent-do-little-for-violations-and-mismanagement/

Emmanouilidou, L., Stavinoha,  L., &  Fotiadis, A. (2023, May 11). EU details violations at Greece’s ‘model’ refugee camps. Aljazeera. https://www.aljazeera.com/features/2023/5/11/eu-details-alleged-violations-at-greeces-model-refugee-camps

Lee, N., & Nathan, M. (2010). Knowledge workers, cultural diversity and innovation: evidence from London. International Journal of Knowledge-Based Development, 1(1-2), 53-78. https://doi.org/10.1504/IJKBD.2010.032586

Otake, T. (2021, June 16). Prejudice against immigrants explained in numbers. The University of Tokyo. https://www.u-tokyo.ac.jp/focus/en/features/z0508_00213.html

Safi, M. (2008). The immigrant integration process in France: Inequalities and segmentation. Revue française de sociologie, 49(5), 3-44. https://doi.org/10.3917/rfs.495.0003

Tales from the classroom is a special blog series where I share research and articles I produce in my DBA (Doctorate in Business Administration) program.

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