Topic the dual impact of elite migrants examining the positive and negative effects in host countries

NATIONAL ECONOMICS UNIVERSITY ASSIGNMENT ECONOMIC GEOGRAPHY TOPIC: “The dual impact of Elite migrants: Examining the Positive and Negative Effects in Host Countries.” Student’s name: Nguyễn Thu Nguyệt Minh Student’s ID : 11224273 Class : LSIC64 Ha Noi, September 2023 TABLE OF CONTENTS ABSTRACT ……………………… ……………………………………………………3 MAIN CONTENTS……………………… …………………………………………….4 I DEFINITION OF ELITE MIGRANTS …….…………… ………………4 What are elite migrants? .4 Why most of elite migrants choose United State ? II POSITIVE EFFECTS OF ELITE MIGRANTS IN CONTRIES … ……5 Economic Contribution and Stimulus ………………….………………….5 Innovation and Knowledge Transfer………………………………………7 Job Creation……………………………………………………… …….8 Culture Diversity and Enrichment……………………………… …… Philanthropy and Social Contributions ………………………… … ….9 III NEGATIVE EFFECTS OF ELITE MIGRANT IN CONTRIES……… 10 Wealth Inequality.…………… ………………… …… ……… … 10 Strain on Public Services…………………………………… … …… 10 Housing Market Pressures…………………………………………….….11 Brain Drain…………………………………………………………….…11 IV SOLUTIONS TO ELITE MIGRANTS’ NEGATIVE EFFECTS… 12 CONCLUSION……………………………………………………………………… 14 REFERENCE ……………………………………………………………… ………15 ABSTRACT Elite migration, characterized by the movement of wealthy individuals and high-networth individuals across borders, has become an increasingly relevant and complex phenomenon in today's globalized world The presence of elite migrants in a country can have both positive and negative effects on various aspects of the host nation's economy, society, and culture This exploration aims to examine the multifaceted impacts of elite migrants, shedding light on the potential benefits they bring as well as the challenges they may pose By analyzing real-world examples and drawing from existing research and literature, we seek to provide a balanced understanding of the topic The positive effects of elite migrants may include increased investment and entrepreneurship, job creation, knowledge and technology transfer, cultural diversity, and contributions to the arts and philanthropy Elite migrants often bring substantial financial resources and expertise, which can stimulate economic growth and innovation in their destination countries Their presence can also enhance cultural exchange and foster a cosmopolitan environment However, alongside these positive aspects, elite migration can also give rise to certain negative consequences These may include exacerbating wealth inequality, creating housing market pressures, straining public services and infrastructure, and potentially leading to social tensions Moreover, the phenomenon of elite migration raises ethical considerations regarding fairness, as it can be seen as privileging those with substantial wealth and resources over others It is essential to recognize that the impacts of elite migration can vary depending on the specific context and the policies in place to manage it The experiences and perspectives of different countries and communities will shape the overall outcomes associated with elite migration MAIN CONTENTS V DEFINITION OF ELITE MIGRANTS What are elite migrants? Elite migrants, also known as high-net-worth individuals or wealthy immigrants, refer to individuals who possess significant financial resources and choose to migrate or relocate to another country These individuals often bring substantial wealth, skills, and expertise that can contribute to the economy and society of their destination country Elite migrants can include entrepreneurs, investors, business executives, highly skilled professionals, and individuals from affluent backgrounds They may seek better business prospects, access to global markets, favorable tax regimes, superior educational opportunities for their children, or a higher standard of living In some cases, elite migrants may also be motivated by political or social factors, such as seeking safety or escaping unfavorable conditions in their home countries Countries often actively attract elite migrants through various programs, such as investor visa schemes or citizenship-by-investment programs These initiatives allow wealthy individuals to obtain residency or citizenship in exchange for making substantial investments in the host country's economy And elite migration can bring several benefits to the receiving country, including increased investment, job creation, knowledge transfer, cultural diversity, and innovation However, it can also pose challenges, such as potential strain on local resources, increased demand for housing, and the potential for wealth inequality Why most elite migrants choose other contries? Elite migrants choose to move to other countries for a variety of reasons, which can be broadly categorized into economic, social, political, and personal factors The first reason is economic opportunities Elite migrants often seek better economic prospects in their destination countries They may be attracted by favorable business environments, access to global markets, lower taxes, or investment opportunities that can yield higher returns Moving to countries with robust economies or emerging markets can provide them with new business ventures, expansion opportunities, or access to lucrative industries Another reason for elite migrants to move is political stability and security in a country Elite migrants may choose to relocate to countries that offer political stability, personal safety, and rule of law Political instability, corruption, or social unrest in their home countries can drive them to seek a more secure environment for themselves and their families Changes in political or economic policies in their home countries can influence elite migrants' decisions to move Especially, elite migrants often pursue a higher quality of life for themselves and their families This includes factors such as better healthcare systems, educational opportunities, cultural amenities, environmental quality, and overall standards of living They may prioritize access to top-tier schools and universities, healthcare facilities, and a safe and clean-living environment The fourth reason for the moving of elite migrants is networking and connections from their industries or area of expertise And the last factor is their personal and lifestyle considerations, such as a desire for a cosmopolitan lifestyle, exposure to diverse cultures, or access to specific amenities and recreational opportunities They may be attracted to vibrant cities with rich cultural scenes, entertainment options, or natural beauty II POSITIVE EFFECTS OF ELITE MIGRANTS IN CONTRIES Economic Contribution and Stimulus Elite migrants often bring substantial financial resources, investments, and entrepreneurial skills to their destination countries This influx of capital can stimulate economic growth, create jobs, and contribute to the development of industries and sectors Elite migrants could increased economic output and living standards of a country Net elite migration will lead to a growth in the size of the labour force and an increase in the productive capacity of the economy They leads to higher economic growth with a corresponding rise in tax revenues and potential for government spending Some elite migrants live as ‘global citizens’ and have multiple homes in different countries Many skilled and affluent Americans and Russian oligarchs live or work in the UK, even though these countries are not a part of the EU For an example, London, the capital of the United Kingdom, has long been a magnet for elite migrants, particularly those from high-net-worth backgrounds Many wealthy individuals from countries like Russia, China, and the Middle East choose to invest in London's real estate market, financial institutions, and businesses Their investments provide capital infusion, support economic growth, and create employment opportunities These elite migrants often bring global connections, financial expertise, and a willingness to take risks, which can contribute to London's reputation as a global financial center Migration, especially elite migration should lead to an increase in real GDP The impact on real GDP per capita is less certain In fact, net migration can make economic growth look stronger than it is In the period 2005-2015, UK real GDP has increased significantly faster than GDP per head: Real GDP (ABMI) increased by 8.4%, Real GDP per capita (IHXW) increased by 2.18% and Real disposable income per head (IHXZ) increased from £4,414 to £4,468 (1.2%) @IMFNews's World Economic Outlook forecasts that the United Kingdom will have the fastest growth of all G7 countries in 2022 Among G7 countries, the United Kingdom recorded the highest annual growth in 2022 (3.6%), followed by Canada (3.3%) and Italy (3.2%), while France recorded lower growth (2.5%), and Germany recorded lowest growth is 1.5% Another example is Silicon Valley, located in the San Francisco Bay Area of California, Document continues below Discover more from: Economics Geography GEOG103 238 documents Go to course TL chinh sach tien te - Chính sách tài khóa 28 Economics Geography 100% (11) Quantitative Methods Course Taster 46 24 Economics Geography 100% (4) 100 Idioms HAY ĐƯỢC SỬ DỤNG Trong TIẾNG ANH - ielts fighter Economics Geography 100% (3) Chapter 12 Clusters 16 Economics Geography 100% (2) Tại-Mỹ Economics Geography GEOG103- Edit Economics Geography 100% (1) VM - ZV ZD ZC 22 Economics Geography 100% (1) is a global hub for technology and innovation Elite migrants in this region include successful tech entrepreneurs who have founded or led major companies such as Google of Sergey Brin (Russia), WhatsApp from Jan Koum (Ukraine), eBay of Pierre Omidyar (France), and Tesla from Elon Musk (South Africa) These individuals often have a track record of creating innovative products or services, securing significant venture capital funding, and driving technological advancements Their migration to Silicon Valley contributes to the region's entrepreneurial ecosystem, attracting talent, investment, and fostering collaboration and knowledge-sharing Beside is a table of regional share in the California's economic drivers It can be clearly seen that the Silicon Valley area accounts for almost more than the entire economic engine of San Francisco, especially in the proportion of jobs, IPOs, office development, patent registration, or it’s the hotel development Including the total average GDP in this area is 2.2 times higher than the GDP in the whole of San Francisco This is largely thanks to elite migrants! Innovation and Knowledge Transfer Elite migrants often possess specialized knowledge, expertise, and knowledge in various field They can contribute to research and development, introduce innovative ideas, technologies, and management practices, fostering creativity, productivity, which can benefit local industries and institutions For constant, Cambridge, located in the United Kingdom, is renowned for its prestigious university and academic institutions, including the University of Cambridge Elite migrants often include academic researchers and scientists from various fields, such as science, medicine, and technology They are attracted to Cambridge's intellectual and research environment, collaboration opportunities, and access to cutting-edge facilities These individuals contribute to scientific advancements, publish influential research, attract funding, and mentor the next generation of scholars, enhancing Cambridge's reputation as a global center for research and innovation Job Creation Elite migrants who establish or invest in businesses can generate employment opportunities for the local population They may directly create jobs through their ventures or indirectly contribute to job growth by supporting related industries and supply chains Take a look at Dubai, Elite migrants who establish or invest in businesses can generate employment opportunities for the local population They may directly create jobs through their ventures or indirectly contribute to job growth by supporting related industries and supply chains In the past, Dubai was oil and gas, which were the original foundations of the emirate’s wealth, but they now account for a very small proportion of its economy From a place with only wind and sand, Dubai has attracted a lot of investment to develop the tourism and service industry, basic infrastructure for tourism began to be built in Dubai such as motels, international airports, shops for foreign tourists Dubai government aims to turn tourism into a source of foreign revenue main currency for the budget besides trade Its shopping malls, hotels, and resorts to a high‐end market Dubai, it seems, has become synonymous with wealth and luxury In 2013, Dubai ranked 7th in the world in terms of the most tourists visiting and shopping This city is even known as the shopping center of the Middle East with 70 large shopping complexes, including the world's largest shopping center Dubai Mall In 2015, tourists in the UAE spent up to 26 billion USD on shopping and using services in this country According to the above table, The service industry in Dubai has grown remarkably from investment to arrivals In 2016, the World Tourism Council (WTTC) selected the tourism industry in Dubai to contribute 64 billion USD to the economy, equivalent to 11.2% of GDP and 4.4% higher than in 2015 In addition, being the main source of foreign exchange revenue for the government, this economy is also experiencing an investment crisis for tourism with 7.46 billion USD in 2015 and WTTC predicts this number will increase to 14, 81 billion USD by 2026 Since then, many jobs have been created for people in Dubai, helping Dubai develop, GDP to increase and the economy to grow continuously Culture Diversity and Enrichment Elite migrants bring diverse cultural backgrounds, experiences, and perspectives to their host countries This cultural exchange can enrich local communities, promote tolerance, and enhance creativity and artistic expression It can also contribute to a more cosmopolitan and globally connected society All countries with immigration have absorbed some aspect of foreign culture into their country – be it cuisine, music, literature or political influences There is an example in New York City New York City, located in the United States, has a rich cultural scene and is home to various creative industries Elite migrants in this context include artists, fashion designers, musicians, and other creative professionals from around the world They are drawn to New York City for its vibrant arts and entertainment industry, renowned museums, theaters, and fashion events Their migration enriches the city's cultural diversity, fosters collaboration and innovation, and contributes to its reputation as a global center for creativity and artistic expression such as JR, Joe DiMaggio, Lorenzo da Ponte,… Philanthropy and Social Contributions Elite migrants often engage in philanthropic activities, supporting charitable initiatives, educational institutions, and community development projects Their financial contributions and social involvement can have a positive impact on various social causes and public welfare programs George Soros, as the world's most famous hedge fund manager, left Hungary for England during the Cold War After that, he went to New York to start a career in the financial industry Since the 1970s, Soros has appeared as a philanthropist As founder, supporter, and chairman of the Open Society Foundations and the Soros Foundation, Soros helped black South African students study at the University of Cape Town and provided financial support to the Central European University By promoting the idea of "Open Society", Soros was referring to a concept of Karl Popper as of 2018, he has donated more than $32 billion to his charity, the Open Society Foundation III NEGATIVE EFFECTS OF ELITE MIGRANT IN CONTRIES Wealth Inequality Elite migrants, by virtue of their substantial wealth and resources, can contribute to widening income disparities within the host country Their presence may exacerbate existing inequalities and create social divisions, particularly if they cluster in exclusive enclaves or contribute to rising housing prices Higher wages for elite migrants compared to the local workforce widen income disparities Elite migrants' access to capital and entrepreneurial opportunities leads to wealth accumulation Real estate investments by elite migrants drive up property prices, making housing unaffordable for lower-income individuals Influence of elite migrants in the financial sector can result in policies that favor the wealthy Elite migrants' advantages in education and human capital hinder upward mobility for the local population Brain Drain In some cases, elite migrants may come from countries with limited economic opportunities or political instability Their departure can exacerbate brain drain, where highly skilled and educated individuals leave their home countries, depriving them of valuable human capital and talent One example of elite migrants exacerbating brain drain can be seen in the case of healthcare professionals from developing countries Many doctors, nurses, and other medical professionals from these countries migrate to developed nations in search of better professional opportunities, higher salaries, and improved working conditions For instance, countries like India, the Philippines, and Nigeria have experienced significant emigration of healthcare professionals to countries like the United States, the United Kingdom, Canada, and Australia These elite migrants often possess advanced medical degrees and specialized skills that are in high demand in their home countries The departure of these highly skilled healthcare professionals can have detrimental effects on the healthcare systems of their home countries It leads to a shortage of qualified medical personnel, especially in rural and underserved areas, where healthcare resources are already limited This brain drain exacerbates the challenges of providing adequate healthcare services, especially for the local population who may not have the means to seek medical treatment abroad What about in Vietnam? Yes, Vietnam has indeed experienced brain drain in the past, with many skilled individuals choosing to seek better opportunities overseas."The Road to Olympia Peak" program on VTV3, highlights the achievements of young Vietnamese champions who have excelled in academic and intellectual competitions on an international stage This leads Vietnam to loss of human capital and skills shortage, this loss can hinder economic development and innovation, as skilled professionals play a crucial role in 10 driving growth and productivity Futhermore, brain drain in Vietnam reduces innovations and research in the contry, results in economic impact such as loss of investment and opportunities, reduced tax revenue and so on Housing Market Pressures The arrival of elite migrants can drive up property prices in desirable areas, making housing less affordable for the local population This can lead to gentrification, displacement, and housing shortages, reducing living standards and increasing housing poverty for both migrants and native-born population who experience high living costs In the UK, housing costs are a major problem – especially in areas like London and the south where it has been hard to find places to build new housing Studies such as the Migration Advisory Committee (2018) found that a 1% increase in the UK’s population due to migration increased house prices by 1% The Ministry of Housing, Communities and Local Government (MHCLG) found that between 1991 and 2015 immigration had contributed to a 20% rise in house prices Strain on Public Services Elite migrants often have high expectations for public services such as healthcare, education, and transportation The increased demand for these services from a wealthy population can strain public infrastructure and resources, potentially impacting access and quality for the broader community 11 - - - Healthcare: Elite migrants may expect and demand high-quality healthcare services that meet their specific needs This can result in increased pressure on healthcare facilities, longer wait times, and limited resources for the general population The focus on catering to the healthcare needs of the wealthy migrants may divert attention and resources away from addressing the healthcare needs of the broader community Education: Elite migrants often seek prestigious educational institutions for their children, putting additional strain on these institutions The increased demand for limited enrollment spots can make it more challenging for local students to access quality education Transportation: Elite migrants often have higher mobility needs and may require efficient and convenient transportation services This can add pressure to existing transportation infrastructure, leading to overcrowding, increased traffic congestion, and delays The focus on catering to the transportation needs of the wealthy migrants may result in inadequate investment in public transportation options that benefit the wider population IV SOLUTIONS TO ELITE MIGRANTS’ NEGATIVE EFFECTS Encourage Return Migration and Knowledge Transfer: Governments can implement policies that incentivize skilled individuals who have migrated abroad to return and contribute to their home country This can be done through programs that provide opportunities for professional growth, research collaborations, and knowledge-sharing platforms Inclusive Economic Policies: Governments can implement policies that promote inclusive economic growth and reduce wealth disparities This can include measures such as progressive taxation, ensuring fair wages, and providing equal opportunities for the local population to access high-paying jobs and entrepreneurial ventures Investment in Education and Skills Development: By investing in quality education and skills development programs, governments can enhance the capabilities of the local workforce This can help create a pool of skilled professionals who can compete with elite migrants and have better access to job opportunities Foster Entrepreneurship and Innovation: Governments can support local entrepreneurship and innovation by providing access to capital, business 12 incubators, and mentorship programs This can encourage the growth of local businesses and create opportunities for wealth creation within the host country Affordable Housing Policies: To mitigate rising housing prices driven by elite migrants, governments can implement policies that promote affordable housing options for lower-income individuals This can include initiatives such as rent control measures, subsidized housing programs, or incentives for developers to build affordable housing units Enhance Social Integration: Promoting social integration between elite migrants and the local population can help reduce social divisions and foster a sense of community This can be achieved through community engagement programs, cultural exchange initiatives, and efforts to break down barriers between different socioeconomic groups Strengthen Financial Regulations: Governments can enact and enforce financial regulations that prevent excessive concentration of wealth and ensure a more equitable distribution of resources This can include measures such as closing tax loopholes, implementing stricter regulations on financial institutions, and promoting transparency in financial transactions By implementing these solutions, host countries can mitigate the negative effects of elite migration and promote a more equitable and inclusive society that benefits both the local population and migrants 13 CONCLUSION In conclusion, elite migrants can have significant impacts, both positive and negative, on the countries they migrate to On the positive side, they often bring valuable skills, expertise, and financial resources that contribute to economic growth, innovation, and job creation They can enhance the cultural diversity of a country, enriching its arts, sciences, and intellectual landscape Elite migrants may also contribute to philanthropic causes and social development initiatives However, there are potential negative effects associated with elite migration Wealth inequality can be exacerbated, as the concentration of wealth and resources among elites may widen the gap between the rich and the rest of society The demand for luxury housing and high-end services driven by elite migrants can lead to increased costs of living and housing market pressures, making it more difficult for local residents to afford housing Public services, such as healthcare and education, may face strain due to increased demand from a growing population of affluent migrants To mitigate the negative effects and maximize the positive impacts of elite migrants, it is crucial for countries to implement balanced and inclusive policies This includes measures to address wealth inequality through progressive taxation and wealth redistribution, ensuring that the benefits of elite migration are shared more equitably Governments should prioritize affordable housing, urban planning, and social welfare programs that benefit both the local population and migrants In addition, investing in education and training programs can help develop the skills of the local workforce and enhance their competitiveness in the job market Furthermore, fostering social integration and dialogue between elite migrants and the local population is vital for creating a harmonious and cohesive society Encouraging cultural exchange, community engagement, and initiatives that promote understanding and respect can help build bridges and mitigate social tensions By recognizing and addressing the potential positive and negative effects of elite migration, countries can create an environment that maximizes the benefits of their presence while minimizing any adverse consequences 14 REFERENCE Pettinger, T (2022, July 11) Pros and cons of Immigration Economics Help https://www.economicshelp.org/blog/152453/economics/pros-and-cons-ofimmigration/#:~:text=Immigration%20can%20give%20substantial%20economic,e xtra%20pressure%20on%20public%20services Study Rocket (2019, July 8) Migration – A Level Geography Edexcel Revision – Study Rocket Study Rocket https://studyrocket.co.uk/revision/a-level-geographyedexcel/globalisation/migration#:~:text=Elite%20Migrants%3A&text=Some%20e lite%20migrants%20live%20as,a%20part%20of%20the%20EU.&text=High%2Ds killed%20professionals%20(surgeons%2C,lawyers%2C%20architects%2C%20etc ) Seth, S (2022) Why Is Silicon Valley A Startup Heaven? Investopedia https://www.investopedia.com/articles/personal-finance/061115/why-siliconvalley-startup-heaven.asp Pulkkinen, L (2019, May 1) If Silicon Valley were a country, it would be among the richest on Earth The Guardian https://www.theguardian.com/technology/2019/apr/30/silicon-valley-wealthsecond-richest-country-worldearth#:~:text=Cranking%20out%20%24128%2C308%20per%20capita,Analysis% 2C%20is%20higher%20than%20Finland's Migrants in the UK: an overview - Migration Observatory (2022, August 2) Migration Observatory https://migrationobservatory.ox.ac.uk/resources/briefings/migrants-in-the-uk-anoverview/ Pettinger, T (2022a, June 17) Impact of immigration on UK economy Economics Help https://www.economicshelp.org/blog/6399/economics/impactof-immigration-on-uk-economy/ Garcia, H (2023) The Dubai Economy: An In-Depth Look At Growth Potential For UAE Businesses Virtuzone https://www.vz.ae/blog/dubaieconomy/#:~:text=to%20%2484bn.,Diversification%3A%20The%20Key%20To%20The%20Success%20Of%20The %20Dubai%20Economy,supports%20import%20and%20export%20industries Tâm B (2018, June 14) Chỉ có gió cát, cách Dubai khiến giới đổ xô tới để du lịch, mua sắm Copyright (C) by https://cafebiz.vn https://cafebiz.vn/day-la-cach-dubai-kiem-tien-tu-du-lich-thay-vi-chi-tham-quanchi-ban-ve-va-ngu-20170327154326215.chn 15 Sự B T (2016, September 21) Chảy máu chất xám từ du học sinh Việt Nam BAO DIEN TU VTV https://vtv.vn/giao-duc/chay-mau-chat-xam-tu-du-hoc-sinh-vietnam-20160921183224006.htm 10 Misau, Y A., Al-Sadat, N., & Gerei, A B (2010) Brain-drain and health care delivery in developing countries Journal of Public Health in Africa, 1(1) https://doi.org/10.4081/jphia.2010.e6 11 UK GDP forecast 2023 | Statista (2023, August 29) Statista https://www.statista.com/statistics/375195/gdp-growth-forecastuk/#:~:text=During%202022%20the%20gross%20domestic,9.4%20percent%20co ntraction%20in%202020 12 Pettinger, T (2022a, October 7) UK House Price to income ratio and affordability Economics Help https://www.economicshelp.org/blog/5568/housing/uk-houseprice-affordability/ 16