Since the introduction of the Freedom of Movement Agreement (AFMP) with the EU/EFTA in 2002, the Swiss population has grown by 1.5 million people. Two thirds of the immigrants came under the AFMP, and this immigration was largely determined by economic demand. Our overview study revolves around this labor migration (Labor migration to Switzerland: A classification of current findings. – IWP) – asylum migration, on the other hand, is not the focus.
Economic theory states that labor market-driven immigration can increase economic output and productivity. Immigration goes beyond the economy and also impacts the state and society. For example, workers often come accompanied by family members. New immigrants participate in financing the welfare state and public infrastructure. At the same time, they claim benefits from the welfare state, use public infrastructure and contribute to overcrowding in some places. These effects are only partially taken into account by employees and employers when recruiting staff abroad.
It goes without saying that the benefits of immigration for recruiting companies and recruited immigrants outweigh the costs. However, it remains to be seen whether this also applies to the state and society as a whole. However, the answer to this question is central to an assessment of Switzerland’s current immigration regime. In this overview study, the IWP compiles and classifies the current literature on the subject of labor migration. Where there are research gaps, the IWP addresses these within the framework of this overview study and future research.
findings
1. The free movement of people increases value creation in Switzerland, but is accompanied by a small increase in individual prosperity.
Swiss GDP per capita has increased by 23% since 2000, adjusted for inflation. This puts Switzerland in the middle of the European field. Other countries such as Germany achieved similarly high GDP per capita growth with significantly lower immigration over the same period. According to studies, only a small part of the GDP per capita growth in the 2000s can be attributed to immigration. Immigration contributed an average of 0.09 to 0.15 percentage points to annual GDP per capita growth. However, the estimates are subject to a lot of uncertainty. There are currently no studies for the period after 2013. GDP is inadequate as an indicator of prosperity. While immigration-related construction activity increases GDP, for example, negative effects on the landscape, external effects on the environment, the quality of infrastructure and quality of life are not recorded by GDP.
2. The high level of immigration brings many skilled workers to Switzerland, but has not eliminated the shortage of skilled workers.
The number of companies having recruiting difficulties is at its highest level since measurements began in 2004. Immigrant workers in turn create demand for workers. Studies show that for every job created for an immigrant skilled worker at an export-oriented company, 0.6 to 1.4 jobs are created in the local industry. Family reunification is numerically significant: 40% of the foreign resident population who have entered the country since 2002 and are still present in 2017 arrived as part of family reunification. In contrast to work-motivated immigration, skilled workers are not specifically recruited as part of family reunification.
3. Immigration is currently alleviating the structural problems of the AHV, but is not a permanent solution.
For Swiss people, there are 4 pensioners for every 10 people of working age. For foreigners, this ratio is currently 10 to 1 due to the comparatively low average age of immigrants. However, this is a snapshot, as immigrants will increasingly reach retirement age in the future. Over the entire life cycle, most people receive more benefits from the AHV than they themselves have contributed to financing it: EU/EFTA citizens receive 1.76 francs per franc in wage contributions, other immigrants receive 2 francs and Swiss citizens receive 1.83 francs in pension. Given the current contribution rates, the long-term financing of the AHV is dependent on more and more net immigration – which violates sustainability. Only then will the currently advantageous ratio of employed people to pensioners continue to exist in the future.
Research gaps
1. Crowding effects
To what extent immigration contributes to the overcrowding of the state infrastructure (public transport, roads, school buildings) or causes its expansion, or the relationship between the additional costs and tax revenues caused by immigrants, is not known today. Overcrowding effects can also occur outside of the state infrastructure (housing shortage, increase in settlement area, decreasing self-sufficiency in electricity and food, negative effects on the local environment). The associated (non-)monetary costs are hardly quantified today.
2. Magnetic effects
The magnet effect refers to the attraction that a country with a generous social system has on immigrants. Empirical studies indicate the existence of the magnetic effect in some countries, including Switzerland. However, the magnetic effect has not been researched enough in Switzerland.
3. Impact of migration on political culture
As the proportion of foreigners increases, the proportion of the population eligible to vote decreases. In addition, voter turnout among naturalized citizens of the 1st and 2nd generation is comparatively low. The consequences for the direct democratic system have also hardly been researched yet.
4. Control systems
It is currently unknown what the overall balance of immigration will be when the effects on the economy, but also the costs and benefits in the government and society are taken into account. In the event that the costs exceed their benefits, the question arises as to which reforms can bring the economy’s needs for workers more in line with social requirements.
Blog posts in the series: Free movement of people
Klaus F. Zimmermann (GLO, 2023): EU free movement of people in danger. Is mobility, the growth engine, stuttering?
Norbert Berthold (JMU, 2024): Internal market, euro and migration. Europe needs more mobility, not less!
David Stadelmann (UBT, 2024): Free movement of people with immigration taxes?
Latest articles by Marco Portmann, Christoph A. Schaltegger and Joel Gysel (Show all)
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promises to help you earn your first million
Just a few habits and you are a millionaire
One of the most common categories of financial advice on the TikTok platform is investment rules to help you make your first million. Such advice is usually shared by entrepreneurs who have achieved financial freedom within several years. For example, US businessman Robert Croak’s video “Do you want to become the first millionaire in your family?” received almost 4 million views. positive reactions.
He revealed a few simple rules: start investing early and as often as possible, setting aside 50-100 dollars a week, change your thinking – after receiving money, think not about how to spend it, but where to invest it. Also, give up three useless activities, and use your free time to improve two new skills, which after 3-6 months. could bring an additional source of income. Rūta Ežerskienė, board member of Citadele bank, responsible for retail banking in the Baltic countries, agrees that it is not necessary to have tens of thousands of euros to start investing. However, not everyone can put aside 50-100 euros every week, so you should invest according to your capabilities.
“Content creators often hook users with intriguing promises. It is important to manage your expectations – regular investing can help you accumulate a significant amount of money, but becoming a millionaire may not be possible for everyone. In order to increase income, you can really use your free time to learn new skills. However, it is important to listen to your needs – after rest, we can be more motivated and work more efficiently”, comments the expert.
Monthly savings challenges
A challenge that will allow you to save up to 200 euros per month is becoming popular on the TikTok network. Users are encouraged to draw a monthly calendar on their notes and mark in different colors 4 days on which they will not allow themselves to have any expenses and 8 days on which they will not buy, for example, coffee or lunch in town.
According to the representative of “Citadele” bank, this is an interesting experiment, but in reality it can be difficult to apply effectively.
“Perhaps on the day you planned not to spend anything at the beginning of the month, something important will happen and unexpected expenses will be needed, and on the day you planned to spend money, you will not actually need to buy anything?” Being on a strict regimen can make you want to reward yourself later, and you can end up spending even more of your savings than you managed to save. The golden tip is to immediately set aside part of the money for necessary expenses and part for savings after receiving a salary. By seeing the remaining amount for daily expenses and leisure time, you will be able to manage your expenses more easily”, says R. Ežerskienė.
The piggy bank is replaced by binders
Another saving method that has gained interest among consumers is to buy or make binders with envelopes numbered from 1 to 100 and regularly put the amount of money in each envelope according to the number indicated on it. In the end, this challenge can save you 5050 euros.
According to the expert, the challenge is attractive in that it is not necessary to deposit money every day, so everyone can try it according to their capabilities. Also, the playful process of putting the cash in a beautiful binder makes it more engaging and motivating.
“It is always recommended to put money into savings when you make money or get unexpected extra income. We basically see this principle being applied here as well. However, we don’t always have cash, but this method can be used by setting aside savings in a bank account and noting it in notes, or by using savings apps that also have game functionality,” says the interviewer.
Detailed cost budgeting
Soc. In addition to following their financial advice, the network’s content creators encourage you to purchase their digital tools, such as spending planners. Telling them how they track their budget in detail every month and how it helps them manage their expenses more effectively gets users interested in not only listening to their advice, but also buying their planning templates.
“By planning the budget in this way, we can clearly track income and expenses, determine what part of the income goes to necessary, variable expenses, and which part goes to savings. As inflation rose, many felt that while they were not allowing more money for leisure, there was less money to put aside for savings. This way we can see the reasons. It is not necessary to buy exactly the advertised mobile app, you can find similar free versions or you can easily create such a budget planning table yourself on a computer, – comments the representative of the bank. – It is recommended to enter the amounts, even if it is unpleasant to do so. When we see that we’ve gone way over budget on non-essential items, we realize it wasn’t the best decision and we’ll likely be more responsible next time.”
50/30/20 and 70/20/10 rules
Two more rules are popular – 50/30/20, indicating that 50% of the budget should be income should be allocated to necessary expenses, 30 percent. – for variables and 20 percent. for savings. The 70/20/10 rule refers to the same ingredients, just in different proportions. Different content creators actively suggest users to use one of the rules, but do not provide reasons.
According to R. Ežerskienė, the choice of the rule should depend on the size and purpose of the income, how much and in what time you want to save. “Breaking down the budget into proportions helps you review your expenses, assess which ones are a necessity and which can be abandoned. After assessing your income and needs, you can set a specific part for yourself, which you will definitely set aside for savings and investment every month. This will help you develop the habit of saving and keep track of your budget. And with more money to spend, you’ll be able to put away more. On the other hand, as people’s life expectancy is getting longer, it is still recommended to aim for the portion allocated to savings and investment to be greater than 10%, so the 50/30/20 rule would more reflect the need to accumulate more in the future”, says the interviewer.
Mexico will be the largest importer of yellow corn due to the drought and AMLO’s policies
The reality is that there will be lower production of white and yellow corn due to climate issues in 2024, says Juan Cortina Gallardo, president of the CNA.
A perfect storm will make Mexico the largest importer of yellow corn by the end of 2024. And that storm is driven by the drought and the agricultural policies of the government of Andrés Manuel López Obrador, such as the ban on glyphosate (or vitamins to increase the grain and food production).
“In this six-year term the only thing that has been happening is that we are increasingly dependent on imports from other countries, mainly the United States, Argentina and Brazil,” he declares. Luis Fernando Haro, director of the National Agricultural Council (CNA).
The reality is that there will be lower production of white and yellow corn due to climate issues in 2024, says Juan Cortina Gallardo, president of the CNA.
In Sinaloa, the water dams are at 20 percent of their capacity, which will not be enough to irrigate thousands and thousands of hectares of corn, says the sugar product.
Sinaloa is the main corn producing center in Mexico, so “there will be an impact on grain production,” comments the businessman.
Due to the lack of water, credit and glyphosate, Sinaloa will have a drop in production of 3 million 500 thousand tons of corn in 2024, compared to what was harvested in 2023, says the director of the CNA.
“This will make us the first importing country of (yellow) corn in the world, surpassing China and it is estimated that for this year (it will be purchased abroad) between 21 million tons and 22 million tons,” he says. Luis Fernando.
Mexico purchased more than 5,872 million dollars of corn in the United States, Brazil and Argentina, according to the Bank of Mexico.
At the end of 2023, meat producers and the Mexican industry made purchases of yellow corn abroad, despite the government of Andrés Manuel López Obrador issuing a couple of decrees to stop the consumption of the grain in Mexico.
According to figures from the Agri-Food and Fisheries Information Service (SIAP), corn production went from 26 million 553 thousand 239 tons in 2022, to 24 million 931 thousand 494 tons of that cereal last year, which meant a loss of 1 million 621 thousand 745 tons.
On February 5, 2024, the President of the Republic, Andrés Manuel López Obrador presented 18 constitutional and two legal reforms, which were delivered by Luisa María Alcalde, Secretary of the Interior (Segob), to the president of the Chamber of Deputies, Marcela Guerra Castillo.
In April 2020, the government of Andrés Manuel López Obrador published the Federal Law for the Promotion and Protection of Native Corn, which in its articles 3 and 4, legally recognizes the production, marketing, consumption and traditional constant diversification of corn as a manifestation national culture and as a guarantee of the human right to nutritious, sufficient and quality food.
Among the 20 reforms presented by the president of Mexico, Andrés Manuel López Obrador, there is one where he proposes to prohibit the planting and human consumption of transgenic (or yellow) corn, a government decision that opened a trade dispute with the United States and to date has not been resolved. been settled between the parties. In that document, there is also talk of stopping the consumption of glyphosate.
Víctor Villalobos Arámbula, Secretary of Agriculture and Rural Development (Sader), says that in 2023 a decrease was observed in the central-northern regions – places where corn is traditionally planted – this is offset by the increase reported in the southern states. southeast.
This increase in corn production in the south-southeast region was influenced by the implementation of the Fertilizers for Well-being program, with the free and direct delivery of inputs for basic crops, points out Víctor Villalobos.
Additionally, he said, the Sembrando Vida program has contributed approximately 600 thousand more tons of corn, an essential food in the diet of Mexican families.
The head of the Ministry of Agriculture comments that Mexico will continue to be self-sufficient in the production of white corn for human consumption, so supply is guaranteed.
He adds that our country will maintain the importation of yellow corn for livestock and industrial activity, since there is a deficit in its production because the planting of white corn has been privileged for years.
Luis Fernando Haro affirms that Mexico has not achieved food self-sufficiency in various grains and foods, including corn, despite the fact that the government of Andrés Manuel López Obrador promised that there would be a lack of food.
Much of the imported corn is yellow, which is used to feed birds, cattle and pigs, as well as sweeteners or raw materials for the soft drink and food industries.
The demand for white corn is covered by current production, despite the fact that imports of transgenic food were prohibited so that they are not used in the production of dough and tortillas, concludes the general director of the CNA.
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– 2024-05-04 20:32:00
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Mexico will be the largest importer of yellow corn due to the drought and AMLO’s policies