TCWD111

• Migration


  Crossing the boundary of a political or administrative unit for a certain minimum period
• Internal migration


  • Movement of people from one area like a province, a district, or municipality to another within one country
• International migration


  • Crossing the frontiers which separate one of the world's approximately 200 states from another
• Temporary labor migrants


  • Migrate for a limited period of time in order to work and send remittances to families in the country of origin
• Highly-skilled and business migrants

  • People with qualifications such as the managers, executive, professionals, technicians, and like, who move within the internal labor markets of transnational corporations and international organizations
• Irregular migrants


  • Also known as the undocumented or illegal migrants. They enter the country in search for employment with no necessary documents and permits
• Refugees


  • Those who are unable or unwilling to return to their country because of a 'well-founded fear or persecution on account of race, religion, nationality, membership in a particular social group or political opinion
• Asylum seekers


  • Those who move across borders in search of protection
• Forced migration/migrants


  • Includes not only refugees and asylum seekers but also people forced to move by environment catastrophes or development projects like new factories, roads or dams
• Family members


  • Also known as family reunion or family reunification migrants
• Return migrants


  • Those who return to their countries of origin after a period in another country
• Causes of migration


  • Disparity in levels of income
  • Employment
  • Social well-being
  • Differences in demographic patterns with regard to fertility, mortality, age-structure, and labor-force growth
• According to neo-classical economic theory, the main cause of migration is individual's efforts to maximize their income by moving from low-wage to high-wage economies
• Migration decisions are made not just by individuals-they often represent family strategies to maximize income and survival chances
• Demographics


  The study of a population based on factors such as age, race, and sex
• Ten largest countries in the world 2016


  • China
  • India
  • United States
  • Indonesia
  • Brazil
  • Pakistan
  • Nigeria
  • Bangladesh
  • Russia
  • Japan
• Top 10 smallest countries in the world (by population)


  • Vatican City
  • Nauru
  • Tuvalu
  • Palau
  • San Marino
  • Liechtenstein
  • Monaco
  • Saint Kitts and Nevis
  • Marshall Islands
  • Dominica
• Largest cities in the world


  • Shanghai
  • Karachi
  • Beijing
  • Delhi
  • Lagos
  • Tianjin
  • Istanbul
  • Tokyo
  • Guangzhou
  • Mumbai
• 1st decade of the 21st century

  • Collapsing financial markets
  • Rising unemployment rate
  • Shrinking middle class
  • Deeper inequalities
  • Extreme indebtedness
  • Inability of governments to force through reforms
  • Climate change
  • Scarcity (challenges to availability of resources)
• Risk society


  Coined by Beck (1986). The main reason for the current problems has been the inability of modern societies to produce enough stability and sustainability
• Stability


  Firmness in position, permanence, and resistance to change especially in disruptive way. Avoiding large swings in economic activity, high inflation, and excessive volatility in exchange rates and financial markets
• Economy is stable


  It just means that the system is in one of the calm phases of the business cycle. Within a few years, every economy moves through periods of rapid growth with rising demand, higher inflation, and dropping unemployment with reversal phenomena
• Before the 21st century


  • Challenge: Excessive highs and lows should be avoided
  • Fluctuations are unavoidable – but a clever stabilization policy could flatten and shorten them without changing significantly long-term trends of growth
  • Anti-cyclic policy
  • Government should interfere and raise spending – John Maynard Keynes
  • Monetarism – Milton Friedman
• Sustainability


  Considers the long-term capacities of a system to exist. Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
• Economics devotes more attention to the problem of what combination of resources could include growth
• Escape from Sustainability dilemma: technology, human capital, education
• Capitalists of yesterday had only to reach the resources before other competitors
• "Tragedy of the Commons" – Garret Hardin
• Areas of economic models that should be re-thought and redesigned

  • New clarification on what an efficient market is
  • There are many different institutional ways to efficient economic systems
  • What is economic growth and what kind of growth is compatible with the idea of sustainability
• Complexity approach to markets

  Difficulties with efficient economic policy and providing stability and sustainability
• Formal concept of markets which dominates modern economics: Market assumptions – like a rocking horse: no matter the reason, a horse with blinkers will move in an expected way. Kunt Wicksell
• Pluralism development models


  • How convergence failed: Convergence of national economic models
  • Rapid expansion of neo-liberal ideology – problems: Increased exposition of the world economic systems on crisis and contagion effects, Efficiency, Legitimacy of market-based solutions
• Liberal market economy


  • Dynamic access to resources, Capital from stock markets, Labor – hire & fire, Skills – worker's own investment
• Coordinated market economy


  • Transactions are more stable and long term oriented, Capital – from banks, Labor – long term contracts, Skills – produced in companies
• Approaches to growth


  • The roll-over effect: Domination of GDP index in measurements of performance of national economies
  • More growth: The more goods produced, the better for economies
  • Amended growth: GDP is just one important index. There are many more indexes such as HDI (Human Development Index)
  • End of growth: "There are no 'low hanging fruits'"
• Rational


  Economic agents are able to consider the outcome of their choices and recognise the net benefits of each one
• Economic models


  • Liberal market economy
  • Coordinated market economy
• Liberal market economy


  • Dynamic access to resources
  • Capital from stock markets
  • Labor - hire & fire
  • Skills - worker's own investment
• Coordinated market economy


  • Transactions are more stable and long term oriented
  • Capital - from banks
  • Labor - long term contracts
  • Skills - produced in companies
• Approaches to growth


  • The roll-over effect
  • More growth
  • Amended growth
  • End of growth