Immigration reform, an alternative to official aid?

Posted on March 22, 2010 by


President Obama promises to double Official aid to developing countries: Official aid has failed! Let’s look for policy alternatives…

I am currently investigating the effects of remittances on capital formation and fertility in the country of origin.  As my research began, I came across a very interesting study that deserves a closer look, and maybe even the attention of policymakers and ODA proponents.

Oded Stark and Yong Wang (2001) : Inducing human capital formation: migration as a substitute for subsidies

In a previous post, I made a very valid argument why official aid has been ineffective and even worse detrimental to development and the eradication of poverty.  If the migration of skilled workers from developing countries to developed ones, often referred to as the brain drain, has a positive effect on growth in the country of origin, why not encourage high skilled migrants to immigrate to the US by reforming our immigration policy rather than waste resources on foreign aid?

To be continued as this study deserves further investigation.