×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

The end of the party

The end of the party
Comment E-mail Print Share
First Published: Tue, Mar 17 2009. 12 14 AM IST
Updated: Tue, Mar 17 2009. 12 14 AM IST
Australia’s decision to cut intake of certain categories of migrants has exposed a weak link in globalization. India should take note of this.
Immigration minister Chris Evans has announced a 14% cut in intake of “skilled” workers. These include bricklayers, plumbers, carpenters and electricians. A large number of migrants from states such as Kerala, Punjab and Haryana among others have such profiles. The remittances of these workers have fuelled local consumption booms. That party may get over soon.
The Australian decision can be said to be the “dark” side of the globalization story.
Liberalization of trade in goods and services led to prosperity for many countries. The unsaid assumption of this story was that labour flows across economies were not required. The breaking down of tariff walls made that movement unnecessary.
But that was economics.
Host countries needed labour for local services and exports. Skilled migrants with few assets knew the money trail. A global recession is putting an end to that symbiotic relationship.
Comment E-mail Print Share
First Published: Tue, Mar 17 2009. 12 14 AM IST