Migration: Impact and Challenges

This assignment examines the multifaceted impacts of migration on individuals, societies, and economies at both local and global levels. It delves into the positive contributions of migration, such as skill development and remittances, while also addressing the challenges faced by hosting countries and migrants themselves. The analysis considers the economic effects of remittances and their implications for both sending and receiving nations.

Contemporary Society in
Global World

Table of Contents
INTRODUCTION...........................................................................................................................1
1. OVERVIEW................................................................................................................................1
Migration in context of globalisation:.........................................................................................1
Impact of migration and remittance ...........................................................................................2
Key challenges and issued faced in migration by host country .................................................5
Key challenges and issued faced in remittance by host country ...............................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The contemporary society is refers to the setting characterized by technological. This
brings about changes such as increased life expectancy, literacy and gender equality, bringing
natural equilibrium. The globalisation is the global integration of international trade, investment,
information technology and cultures. Migration is the movement of people from one place to
another with the objective of settling permanently or for short span of time. As this may be
voluntary or forced. A remittance refers to the money transfer by the foreign worker to an
individual in their home country. As money sent home by migrants competes with international
aid as one of the largest financial inflows to developing countries. To better understand this
concept, the question is being selected from assessment one that is “Impact of impact of
migration and remittance to host/ country of origin” is being selected. The understanding of topic
and it applicability in context of globalisation is being explained in this report. To better
understand this there are different sources and information is being used. The ability to apply
globalisation theory in the chosen topic is being explained in this project. With the help of these
question, project is developed to the final output is being explained in this project.
1. OVERVIEW
This shows the literature to present the evidence on impact of remittances and migration
on migrant sending countries, communities and households.
 Migration in respect to globalisation.
 The main objective of this research is to understand impact of remittance and migration
in various aspects such as economic development, impact on household, investment and
labour allocation decisions.
 Long term impact on the remittances on growth perspective which involves effect on
labour force and participation.
Migration in context of globalisation:
Migration is a way to moving from one place to another in order to avail new
opportunities so that one can settle temporary or permanently. The moving from the home to
another place for specific work and job is known as migration. There are various reason for
migration such as to have better life, better education and globalisation etc. can be the causes for
migration. As the migration can be from one city to another city or one country to another
1

country. The people who migrate from one country to another is the part of globalisation. This
helps in the reducing of unemployment by developing better job opportunities. The migration
make impact on the directly both hosting and sending country (Faiste, 2013). As the sending
country will lost skills and talent of their country and similarly hosting country will get some
new talent which will be helpful in development of their country. For example. The person name
John is planning to migrant from United Kingdom to Turkey due to the job purpose as this will
aid in learning new skills and talent. This knowledge can be applied by person in their origin
country in various ways and it depends on various conditions which are as follows:
 The migrants have learnt new skills and knowledge abroad.
 These new skills are useful in their areas of origin.
 The migrants are willing and able to apply these new skills which learned at new place.
According to Collyer and et.al., 2013, the migrant will get to learn many new skills by
going global and one can use these skills at their home society when they return back from their
working place. The above condition can be not be met by the unskilled worker as because they
might not have learned many new skills. These skills may also not be useful in the rural areas.
The study shows that unskilled migrants doing some semi skilled work and acquired some of few
skills abroad. As migrant who did received some training are able to use these skills at their
home town. This study shows that on return migration to Armenia, Georgia and Morocco shows
that a considerable number of migrants have acquired some skill such as vocational skills,
technical skills, language skill, work organisation skills and ethics etc. are skills which learned
by migrants. The globalisation helps an individual to gain and acquire some new skills by
migrating from one place to another place.
Impact of migration and remittance
Migration refers to the moving of a person to intercity or international city. As this is
related with labour migration.
Remittances are defined as the monetary transfers which is sent from overseas migrants
to their family back home. The migration and remittance make impact on the host country which
can be positive from one author viewpoint while from other author it can be the negative. These
impact are discussed as below:
Household income / poverty:
2

According to Prabal and Ratha, 2012, this is expected and obvious that economic
migration should have positive effect on migrant sending households. The economic migrate
with the aim of sending remittances when they do so it will lead to an increase in the household
income and reduced in poverty. The various studies regarding to the migration and remittance
shows that remittance is helpful in increasing income of migrant households and eliminate
poverty to some extent. The migrant and remittance process helps in increasing the per capita
income of person and improve lifestyle of their relatives. This study indicated positive impact of
this process on household income.
In the counter view points, according to Bilgili, 2013, this is not important that all migrants are
able or willing to send the remittances to their family. As according to research, there are very
few household who receives the remittance. This means that there is some migrant who are not
sending money to their households so migration will no have always positive impact on level of
household.
Investment decisions:
The remittances are spent is very debatable question now-days as migrant households are
more or less spent on the consumption. On this, Adams and et.al, 2012, have presented three
different views which are as follows:
The neutral view:
The remittances are similarly to same other money and spent in same way as other
income sources. In this view, migrants are less likely to spend their money on the investment.
The pessimistic view:
Migration and remittances change household's spending behaviour in a manner which is
less beneficial for development. As they are likely to spend on consumption only and kind of
investment that they is not so productive to economy of host country.
The optimistic view:
The migrants households are more likely to invest in the productive investment such as
human capital.
Economic growth:
This is a part of macro economic level which shows the effects on economic growth. As
according to Irene Fensore, 2016, remittance have positive effect on the economic growth. The
aggregated demand can be helpful in the increased spending financed by remittances. The
3

remittance could better credit restraint when financial systems are weak. As migrant could maker
finance investment in education and health. So these investment made by the migrant can be
helpful in growth of economy.
According to Anghel, R. G., 2013, argues that studies and has their viewpoints. As this research
shows that labour supply responses of recipient households likely to find that remittance will
decrease the growth of economy. If migrant does not make investment in human capital and
physical capital then it would make directly impact on economy growth.
Labour market:
According to the Amuedo – Dorantes and Prozo, 2012, At the individual level, migration
and remittances may have on the household level. This can affect the labour force participation
and supply in various ways such by reducing supply of labour and increasing the reservation
wages for which individuals are willing to work. The migration can cut down the unemployment
level to certain extent as when unemployed worker leaves country than it result in increase the
wages of those who staying behind. International migration and remittances lean to cut down
household supply of labour and participation but these supply are effected by the gender. The
male and female labour supply decreases with higher level of remittances in Mexico. The
migration also make effect on the labour market and there will be more supply of labour in a
particular market. As labour market of host country will receive more resources and new talent
while the sending country will lost the talent and labour supply will be less in market. However
hosting country's economy gets grow substantially and sender country's economy can be weaken.
Inflations:
Inflation is also a part of macro economic variable of country. The big remittances
inflows may affect the inflation rate in countries of origin. Remittance can enhance the inflation
rates through direct or indirect impacts. The expenditure which incurred in remittances can affect
aggregate demand and also have indirect multiplier impacts (Giddens, 2015). As impact on the
economy as combined is some multiple of remittance income. However, this might results in rise
of price which is also known as inflation in some part of economy. Remittance increase inflation
when there is fixed exchange rate and it decreases inflation when there is flexible exchange rates.
According to study, the remittance increase the inflation during long run and there is no effect in
short time period. So the studies shows that some how it make impact on inflations of country.
The migration also make impact on the inflation rate of hosting country. As when large number
4

of people migrate to one country than however this will make impact on inflation rate of country.
By the migration, the inflation rate gets increases of a particular country.
These are the remittance and migration impact with the author viewpoints and counter
arguments which effect various sector of economy.
Positive and negative impact of migration:
The migration can have the different kind of impact and these can be positive or negative.
These are discussed as below:
Positive impact:
The positive impact of migration is that it is helpful in the reduction of unemployment
and people will get better opportunities in host country. With help of migration, one can improve
their quality of life of people as because they will learn new culture. The people will improve
their social life as by learning new culture, customs and languages. Apart from this, skilled
worker who migrate to new country leads to economic growth of hosting country (Herbert,
2017).
Negative impact:
The negative impact of migration is that it will make competitive environment for the
hosting country people and the sending country will also loss a talent which could contribute in
country's economy. The migration will increase the population of hosting country and somehow
this will make pressure on natural resources and amenities. Apart from this, the migration
increases the slum areas in city which increase some problems like unhygienic conditions and
crimes also.
Key challenges and issued faced in migration by host country
Migration can be refers to change a residence over national boundaries. It can be further
classified as legal and immigrants. In legal immigrants person can move place to another with
the legal permission of host country. Where as illegal immigrants are those where host nation
refuse to give permission to a person to enter in its country but individual wants to move in the
host nation. There is a third type of migration which is known as forced migration. It is that
migration when a person has moved against their slaves or will. There are various purpose of it
such as : for employment, for business purpose etc. There are various challenges and issues in
migration which can be faced by host country which are such as follows : immigrant integration
refers to process of economic mobility and social inclusion for newcomers and their children. It
5

helps to boost development in context to society which involves childhood care, post-secondary
and educational system, development workforce and health care facilities etc. There are key
challenges and issues that due to weak economically and less inclusive socially and culturally so
successful immigrant integration can not build among communities. Due to the educational
differentiation and age gape there is not easy to build successful immigrants as a result
challenges in migration has arises. Work force does not developed as per the need of an
organisation which can create barrier towards the migration. As a host country Turkey, it want
some distinct qualities in its labour so that they can perform their roles and duties as per the need
of company. But is an issue because employees can not perform their roles as per the desire of
host country and in globalisation, business and operational activities has been enhanced one
nation to another as a result all countries have different needs which suits the organisational
demands. It is challenge for host country to provide proper health care facilities and take care
about the health of persons who visit host county for the employment opportunities. In context to
migration there is key challenge to protect the health of staffs and provide the medical and
insurance facilities because it involves cost involvement and organisation does not want to make
expenses. So individuals hesitate to visit host nations for the job purpose and it creates barriers in
context to migration (Kaufmann, 2017).
There are various social services which are important for a host country to provide its
employees and their family members. It has included children's education, health and safety etc.
But it is key challenge in context to migration to provide social services to the employees
because there are lots of employees who work in company so it is not easy to take care about the
social services of all workers because it needs expenses to make social services. There is also
one more key challenge and issue which is competition of job among native workers and
immigrants. There are tough competition between persons because all individuals wants better
opportunities so that they can make their future successful and bright and achieve its targets. So
there is challenge in front of turkey to provide more job opportunity to its native workers or
immigrants and there are difference among them on the basis of following things such as : on the
basis of key skills, culture and working environment.
Differences in language is a key challenge and issue for a person who want to visit in
host country because there is differentiation on the basis of language among different countries.
So it is important for an individual to understand the language so that it can effectively perform
6

its roles and duties in an organisational at host nation. So that employees can know what
information has been communicated and how it have to perform its roles and duties to achieve
the organisational goals and objectives.
There is another challenge in context to migration that is culture differentiation and due
to it an individual faces the challenges to work in host country due to the organisational culture
and environment differentiation. As a result it is not easy for a person to perform as per the needs
and requirements of company. There is another challenge in context to migration that is an
attitude and behaviour which is required to perform in host country. All persons have distinct
working style, attitude and behaviour towards its work but it is challenge to perform roles and
duties as per the needs of organisation in host country. So it is essential to find the solutions for
key challenges and issues is important in context to host country so that persons can easily
survive in host nation (Noon, Blyton and Morrell, 2013).
Key challenges and issued faced in remittance by host country
Remittance refers to transfer of funds by an individual to its origin country via wire,
online transfer etc. Role of remittance is increasing in context to economies of small and
developing developing nations across the globe. A person can transfer funds from Turkey to its
origin nation so that it can transfer its savings to their family members. In globalisation context
remittance play a vital role for the growth and success of a country. Turkey is a major recipient
in terms of remittance and its shows approx 17 % of its exports of merchandise and far surpass
official development assistance and foreign direct investment. Country focuses to the importance
of remittance because it is a source of generating foreign exchange. There are various challenges
which can be arise such as : remittance is a key challenge for a host country because when
persons sends or transfer money from Turkey to their origin country than its currency can be
minimise. As a result host nations can face the issue in context to currency because it is transfer
to other nation so host country can not use that money for the development and growth of its
nation. Availability of cash can be reduce in the host nation when employees transfer money to
their origin country. According to Ratha, remittance could play a key role as a powerful anti-
poverty force because they tend to maximize the income of households in the developing world.
There is another challenge in context to remittance that is lack of proper information
which is associated to transfer the funds from one nation to another. An employees does not have
sufficient knowledge that what is the procedure of transfer of funds in host country and what are
7

rules and compliances a person have to follow. As a result an individual cannot transfer money
form one country to another without the proper guidance of regulatory authority and institutions
of host nation. International Bank Account Number is needed for transfer of money from one
country to another.
There is another key challenge and issue in context to remittance that is persons does not
aware that through which account they can transfer money from host country to origin country
because there is different account is needed to transfer the amount from one nation to another
nation. The large remittance flows could leads to currency appreciation, with negative
consequences on the exports, destabilisation of weak economies and rise in inflation. These
adverse situations can be develops in host nations which is a key challenge to control it. Other
key challenge and issue is associated with the aggravate regional inequalities among receiving
and non- receiving areas (RennieShort, 2013).
There is a key challenge and issue which can be face by host country that is to put
pressure on senders, leading to the deterioration of living conditions of individuals. Remittance
transfer market pose key issues not only in the market competition or consumer safety but also
within a wider set of regulatory frameworks. In today's global market complexity is increasing in
context to multilateral stakeholders from national to international levels in both recipient and
sending nations. So to address these challenges which are associated to barriers can impact the
remittance.
There is another key challenge and issue which is associated to remittance that is lack of
adequate information about host countries fund transfer organisations, banks or other channels.
Remittance service providers are money transfer operators which involves post offices, financial
institutions and banks. Inefficiency in work of these institutions and banks can create the
problem of fund transfer in host country as a result an individual can not transfer money to its
origin nation. Due to lack of knowledge about the use of mobile network operators is a challenge
for an employee because it can not transfer funds on time in effective manner. So to find the
solution of key challenges and issues are important because it provides help the host country to
earn foreign exchange. There are various types of issues are discussed above which are needed to
be eliminate so that host country does not face negative influences of it.
8

CONCLUSION
In the conclusion it can be said that migration plays an important role in the development
of country. As migration is helpful at global level and it also assist people to learn new skills and
enhance their capacities. There are various issues and challenges which is faced by the hosting
country at the time of migration. And similarly at the time of remittance, hosting country and
individual faces various issues which make impact on economy.
9

REFERENCES
Books and Journal
Adams and et.al., 2008 "The impact of remittances on poverty and inequality in Ghana”, World
Bank, Washington, DC.
Albrow, M., 2012. Global Age. The Wiley‐Blackwell Encyclopedia of Globalization.
Amin, S., 2014. Capitalism in the age of globalization: The management of contemporary
society. Zed Books Ltd..
Amuedo-Dorantes, Catalina and Susan Pozo, 2012 Remittance Income Volatility and Labor
Supply in Mexico. Southern Economic Journal: October 2012, Vol. 79, No. 2, pp. 257-
276.
Archibugi, D., Koenig-Archibugi, M. and Marchetti, R. eds., 2011. Global democracy:
Normative and empirical perspectives. Cambridge University Press.
Bilgili and Ozge, 2013, The links between economic integration and remittances behaviour of
migrants in the Netherlands, UNU-MERIT Working Paper 2013-037
Collyer and et.al., 2013 ‘Migration and skills in Armenia, Georgia and Morocco - Comparing the
survey results’, ETF Working Paper
De Swaan, A., 2013. Words of the world: The global language system. John Wiley & Sons.
Faist, T., 2013. The mobility turn: a new paradigm for the social sciences?. Ethnic and Racial
Studies, 36(11). pp.1637-1646.
Giddens, T., 2015. Introduction. In Graphic Justice (pp. 15-21). Routledge.
Herbert, D., 2017.Religion and civil society: Rethinking public religion in the contemporary
world. Routledge.
Kaufmann, V., 2017. Re-thinking mobility: contemporary sociology. Routledge.
Merchant, C., 2012. Radical ecology: The search for a livable world. Routledge.
Noon, M., Blyton, P. and Morrell, K., 2013. The realities of work: Experiencing work and
employment in contemporary society. Macmillan International Higher Education.
Prabal K. De and Dilip Ratha (2012) Impact of remittances on household income, asset and
human capital: evidence from Sri Lanka, Migration and Development, 1:1, 163-179
Rennie-Short, J., 2013. Global metropolitan: Globalizing cities in a capitalist world. Routledge.
10