Monday 23 August 2021

The Political Economy of Tourism

Tourism accounts for perhaps 10% of global GDP and 300 million jobs (source), though obviously much less at present due to Covid. Yet tourism has an awkward unloved place in most societies. Tourists are widely resented by many locals in the places they visit, not only because their behaviour is sometimes obnoxious but also because they are accompanied by businesses catering to their interests and tastes, like Airbnb rentals and expensive cafes. Jobs in tourism tend to be low-level, often seasonal hospitality services that don't feel very meaningful or prestigious (unlike manufacturing or finance).

I think some of this resentment is entirely misplaced, and other parts are misdirected. The central problem is a failure to recognise that tourism is an export industry. Your country exports things like cars or T-shirts or coffee beans to people in other countries in exchange for tokens (dollars, Euros, etc) that you can use to buy things they make. Tourism is where you sell foreigners things that can't be moved around the world; things that they have to come to your country to consume, like views of your beautiful coastline, authentic cuisine, and the famous paintings in your museums. The fact that cars and T-shirts tend to get made inside large ugly buildings on the outside of town while tourism exports are produced in the prettiest parts of the centre is irrelevant. The things that tourists buy are still exports. 

Thursday 19 August 2021

If our governments won’t help refugees, they should let us sponsor them ourselves

Guest post by Brecht Weerheijm

As of 2020, over 80 million people are on the run from war and persecution. Of this group, over 26 million are refugees looking for a safe haven outside of their home country. Most of these are from countries torn by civil war or governed by authoritarians, to whom human lives seem not to matter. The burden of caring for these million falls squarely upon the shoulders of developing nations; 86% of all refugees are hosted by developing countries, with the UN’s 46 least-developed countries taking in more than a quarter of all refugees. Millions are living in inhumane conditions in refugee camps across the globe, in nations that lack resources to take proper care of these refugees. Even if there are means to stay alive in these camps, there is often no access to public services or a path to citizenship. Refugees are neither politically represented nor provided with education, and this status is often inherited by their children and grandchildren.

Wednesday 18 August 2021

The Moral Case for Guest Worker Programmes

The United Arab Emirates is a small but rich rich country with a million or so citizens and nearly 9 times as many foreign migrants, mostly from poor Asian and Arab countries. In 2019 remittances home from these guest workers amounted to $45 billion (12% of GDP). In comparison, total overseas aid from rich countries in 2019 was $145 billion (an average of 0.3% of donors' national income). 

Another way of putting this is that one small country's entirely self-interested transactional relationship with the poor world is responsible for transferring 30% as much wealth as all the high minded moral principles of the whole world turn out to be worth. The lesson I draw from this astonishing statistic is that anyone who really cares about reducing global poverty should be looking at how to make more countries like the UAE, not vice versa.