In a globalized world, are there optimal limits to diversity in a society? What is the cost benefit analysis of migration? These were questions that Paul Collier tackled in his third and final lecture on migration policy, which was organized by CEU’s School of Public Policy on Thursday, May 29.
After outlining the central economic issues related to migration and host countries, including topics such as wages, long term labor market implications and the housing market, Collier stated that the social dimension of immigration was “much more important than the economic.”
“All political tension about immigration is not really about economics, which is used as window dressing by each side. A lot of the issues are about diversity. What is the relationship between immigration and diversity?” Collier asked.
To illustrate his point, he talked about how societies absorb diversity, whether through integration or multiculturalism. Integrationist societies tend to foster more trust, cooperation and generosity due to shared interests. Collier cited Japan as the most trusting society as an example due to its homogenous culture.
Multicultural or hyper diverse societies offer benefits such as choice and variety in different lifestyles, yet they often struggle with social cohesion and cooperation due to lack of a common identity. Collier, who is the Director of the Centre for the Study of African Economies at the University of Oxford, used Tanzania as an example of a highly diverse society with more than 120 ethnicities, which poses challenges for solidarity and in return economic development.
Another aspect of absorption strategy involves negotiating culture between the migrant and host country. Collier highlighted the difference between honor societies and justice societies where traditional cultures uphold honor of the family, whereas modern cultures transfer the rule of law to the state. “Transition is enormously important for a well functioning society, which some societies have not yet gone through. Absorption is crucial in cases like this,” said Collier. Having said this, he cited violence as a symptom of dysfunctional societies, which host societies would in turn have a right to be concerned about. At some stage there is a point of equilibrium, where the costs of diversity equal the benefits.
Collier admitted his agnosticism as to the level required for optimal diversity, although he said that countries like Australia, for example, had more capacity to host migration as opposed to the Netherlands for practical reasons concerning space.
Successful migration policy depends on reconciling the needs of a host society and those left behind in countries of origin. Collier emphasized the need for “policies that benefit both groups, or at least don’t produce a tension in which one group is benefitted and the other is not.”
In this concluding lecture, Collier focused on socioeconomic costs for the whole society, proposing a mix of policy options on how to best deal with migration. “His proposal was quite simple – that migration policy should be adjusted towards a specific rate of acceptance but should be determined by the rate of absorption, as well as by the desired degree of diversity,” said moderator, Luicy Pedroza, visiting professor at CEU’s departments of Public Policy and International Relations and European Studies.
Paul Collier is Professor of Economics and Director of the Centre for the Study of African Economies at Oxford University. He took a five-year Public Service leave, 1998-2003, during which he was Director of the Research Development Department of the World Bank. He is also a Distinguished Invited Professor at Sciences Po, Paris. His research covers fragile states, democratization, and the management of natural resources in low-income societies.
Collier is currently advisor to the Strategy and Policy Department of the IMF and advisor to the Africa Region of the World Bank. In 2008, he was appointed Commander of the Order of the British Empire (CBE) 'for services to scholarship and development'. In 2011 he was elected to the Council of the Royal Economic Society.