The Impact of Migration on Donor and Host Countries

Advantages of migration for the host country Migrants fill jobs- If a country is facing a labour shortage, the economy may depend on migrant workers to keep certain industries going. Also as the population of a country ages there might not be enough people to fill the jobs that are available. eg In 2006 50% of food production jobs were filled by foreign nationals. Migrants pay taxes- They contribute to the economy by paying taxes like income tax and VAT. They can also create new businesses and products in the host country. eg. Polish shops and newspapers. Migrants create cultural diversity- As migrants settle into society, a greater understanding and tolerance towards other cultures and habits is developed.

Disadvantages of migration for the host country Pressure on the welfare system- When migrants first arrive they need jobs and housing. This usually created higher unemployment rates and puts pressure on the health, education ad transport systems. Low paid work- Lots of migrants do not have the language skills they need to improve their job prospects and end up doing unskilled work. This can lead to discrimination and exploitation. Racism- Integration of migrants into a community may cause racism and discrimination.

Advantages of migration for the donor country Remittance flows- The money migrants send home is very important for developing countries. It is the secondl argest source of outside funding for developing countries after foreign investment by private companies. Skills- Many migrants learn new skills when they work abroad. When they return home they bring these new skills with them and help the local economy. eg people might bring back skills in nursing and education.

Disadvantages of migration for the donor country Brain Drain- It is often the highly skilled workers that leave an area. This prevents the development of the donor countries economy. Many African countries are experiencing brain drain today. Decrease in revenue for the government- When these highly skilled workers leave they are no longer paying income tax and VAT to the donor country’s government and government spending may decrease.

By Cara McDonald