Topic the dual impact of elite migrants examining the positive and negative effects in host countries

The presence of elite migrants in a country can have both positive and negative effects on various aspects of the host nation's economy, society, and culture.. The positive effects of el

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NATIONAL ECONOMICS UNIVERSITY

ASSIGNMENT ECONOMIC GEOGRAPHY

TOPIC: “The dual impact of Elite migrants: Examining the Positive and Negative Effects in Host Countries.”

Student’s name: Nguyễn Thu Nguyệt Minh

Student’s ID : 11224273

Class : LSIC64

Ha Noi, September 2023

TABLE OF CONTENTS

ABSTRACT ……… ………3

MAIN CONTENTS……… ……… 4

I DEFINITION OF ELITE MIGRANTS …….……… ………4

1 What are elite migrants? 4

2 Why do most of elite migrants choose United State ? 4

II POSITIVE EFFECTS OF ELITE MIGRANTS IN CONTRIES … ……5

1 Economic Contribution and Stimulus ……….………… …… 5 …

2 Innovation and Knowledge Transfer………7

3 Job Creation……… …….8

4 Culture Diversity and Enrichment……… …… 9

5 Philanthropy and Social Contributions ……… … ….9

III NEGATIVE EFFECTS OF ELITE MIGRANT IN CONTRIES……… 10

1 Wealth Inequality.……… ……… …… ……… … 10

2 Strain on Public Services……… … …… 10

3 Housing Market Pressures……….….11

4 Brain Drain……….…11

IV SOLUTIONS TO ELITE MIGRANTS’ NEGATIVE EFFECTS… 12

CONCLUSION ……… 14

REFERENCE ……… ………15

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ABSTRACT

Elite migration, characterized by the movement of wealthy individuals and high-net-worth individuals across borders, has become an increasingly relevant and complex phenomenon in today's globalized world The presence of elite migrants in a country can have both positive and negative effects on various aspects of the host nation's economy, society, and culture

This exploration aims to examine the multifaceted impacts of elite migrants, shedding light on the potential benefits they bring as well as the challenges they may pose By analyzing real-world examples and drawing from existing research and literature, we seek

to provide a balanced understanding of the topic The positive effects of elite migrants may include increased investment and entrepreneurship, job creation, knowledge and technology transfer, cultural diversity, and contributions to the arts and philanthropy Elite migrants often bring substantial financial resources and expertise, which can stimulate economic growth and innovation in their destination countries Their presence can also enhance cultural exchange and foster a cosmopolitan environment

However, alongside these positive aspects, elite migration can also give rise to certain negative consequences These may include exacerbating wealth inequality, creating housing market pressures, straining public services and infrastructure, and potentially leading to social tensions Moreover, the phenomenon of elite migration raises ethical considerations regarding fairness, as it can be seen as privileging those with substantial wealth and resources over others It is essential to recognize that the impacts of elite migration can vary depending on the specific context and the policies in place to manage

it The experiences and perspectives of different countries and communities will shape the overall outcomes associated with elite migration

MAIN CONTENTS

1 What are elite migrants?

Elite migrants, also known as high-net-worth individuals or wealthy immigrants, refer

to individuals who possess significant financial resources and choose to migrate or relocate

to another country These individuals often bring substantial wealth, skills, and expertise that can contribute to the economy and society of their destination country

Elite migrants can include entrepreneurs, investors, business executives, highly skilled professionals, and individuals from affluent backgrounds They may seek better business prospects, access to global markets, favorable tax regimes, superior educational opportunities for their children, or a higher standard of living In some cases, elite migrants may also be motivated by political or social factors, such as seeking safety or escaping unfavorable conditions in their home countries

Countries often actively attract elite migrants through various programs, such as investor visa schemes or citizenship-by-investment programs These initiatives allow wealthy individuals to obtain residency or citizenship in exchange for making substantial investments in the host country's economy And elite migration can bring several benefits

to the receiving country, including increased investment, job creation, knowledge transfer, cultural diversity, and innovation However, it can also pose challenges, such as potential strain on local resources, increased demand for housing, and the potential for wealth inequality

2 Why do most elite migrants choose other contries?

Elite migrants choose to move to other countries for a variety of reasons, which can be broadly categorized into economic, social, political, and personal factors The first reason

is economic opportunities Elite migrants often seek better economic prospects in their destination countries They may be attracted by favorable business environments, access

to global markets, lower taxes, or investment opportunities that can yield higher returns Moving to countries with robust economies or emerging markets can provide them with new business ventures, expansion opportunities, or access to lucrative industries Another reason for elite migrants to move is political stability and security in a country Elite migrants may choose to relocate to countries that offer political stability, personal safety, and rule of law Political instability, corruption, or social unrest in their home countries can drive them to seek a more secure environment for themselves and their families Changes

in political or economic policies in their home countries can influence elite migrants'

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decisions to move Especially, elite migrants often pursue a higher quality of life for themselves and their families This includes factors such as better healthcare systems, educational opportunities, cultural amenities, environmental quality, and overall standards

of living They may prioritize access to top-tier schools and universities, healthcare facilities, and a safe and clean-living environment The fourth reason for the moving of elite migrants is networking and connections from their industries or area of expertise And the last factor is their personal and lifestyle considerations, such as a desire for a cosmopolitan lifestyle, exposure to diverse cultures, or access to specific amenities and recreational opportunities They may be attracted to vibrant cities with rich cultural scenes, entertainment options, or natural beauty

1 Economic Contribution and Stimulus

Elite migrants often bring substantial financial resources, investments, and entrepreneurial skills to their destination countries This influx of capital can stimulate economic growth, create jobs, and contribute to the development of industries and sectors Elite migrants could increased economic output and living standards of a country Net elite migration will lead to a growth in the size of the labour force and an increase in the productive capacity of the economy They leads to higher economic growth with a corresponding rise in tax revenues and potential for government spending

Some elite migrants live as ‘global citizens’ and have multiple homes in different countries Many skilled and affluent Americans and Russian oligarchs live or work in the

UK, even though these countries are not a part of the EU For an example, London, the capital of the United Kingdom, has long been a magnet for elite migrants, particularly those from high-net-worth backgrounds Many wealthy individuals from countries like Russia, China, and the Middle East choose to invest in London's real estate market, financial institutions, and businesses Their investments provide capital infusion, support economic growth, and create employment opportunities These elite migrants often bring global connections, financial expertise, and a willingness to take risks, which can contribute to London's reputation as a global financial center Migration, especially elite migration should lead to an increase in real GDP The impact on real GDP per capita is less certain

In fact, net migration can make economic growth look stronger than it is In the period 2005-2015, UK real GDP has increased significantly faster than GDP per head: Real GDP (ABMI) increased by 8.4%, Real GDP per capita (IHXW) increased by 2.18% and Real disposable income per head (IHXZ) increased from £4,414 to £4,468 (1.2%)

@IMFNews's World Economic Outlook forecasts that the United Kingdom will have the fastest growth of all G7 countries in 2022 Among G7 countries, the United Kingdom recorded the highest annual growth in 2022 (3.6%), followed by Canada (3.3%) and Italy (3.2%), while France recorded lower growth (2.5%), and Germany recorded lowest growth

is 1.5%

Another example is Silicon Valley, located in the San Francisco Bay Area of California,

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is a global hub for technology and innovation Elite migrants in this region include successful tech entrepreneurs who have founded or led major companies such as Google

of Sergey Brin (Russia), WhatsApp from Jan Koum (Ukraine), eBay of Pierre Omidyar (France), and Tesla from Elon Musk (South Africa) These individuals often have a track record of creating innovative products or services, securing significant venture capital funding, and driving technological advancements Their migration to Silicon Valley contributes to the region's entrepreneurial ecosystem, attracting talent, investment, and fostering collaboration and knowledge-sharing

Beside is a table of regional share in the California's economic drivers It can be clearly seen that the Silicon Valley area accounts for almost more than the entire economic engine of San Francisco, especially in the proportion of jobs, IPOs, office development, patent registration, or it’s the hotel development Including the total average GDP in this area is 2.2 times higher than the GDP in the whole of San Francisco This is largely thanks

to elite migrants!

2 Innovation and Knowledge Transfer

Elite migrants often possess specialized knowledge, expertise, and knowledge in various field They can contribute to research and development, introduce innovative ideas, technologies, and management practices, fostering creativity, productivity, which can benefit local industries and institutions For constant, Cambridge, located in the United Kingdom, is renowned for its prestigious university and academic institutions, including the University of Cambridge Elite migrants often include academic researchers and scientists from various fields, such as science, medicine, and technology They are attracted

to Cambridge's intellectual and research environment, collaboration opportunities, and access to cutting-edge facilities These individuals contribute to scientific advancements, publish influential research, attract funding, and mentor the next generation of scholars, enhancing Cambridge's reputation as a global center for research and innovation

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3 Job Creation

Elite migrants who establish or invest in businesses can generate employment opportunities for the local population They may directly create jobs through their ventures

or indirectly contribute to job growth by supporting related industries and supply chains Take a look at Dubai, Elite migrants who establish or invest in businesses can generate employment opportunities for the local population They may directly create jobs through their ventures or indirectly contribute to job growth by supporting related industries and supply chains In the past, Dubai was oil and gas, which were the original foundations of the emirate’s wealth, but they now account for a very small proportion of its economy From a place with only wind and sand, Dubai has attracted a lot of investment to develop the tourism and service industry, basic infrastructure for tourism began to be built in Dubai such as motels, international airports, shops for foreign tourists Dubai government aims to turn tourism into a source of foreign revenue main currency for the budget besides trade Its shopping malls, hotels, and resorts to a high‐end market Dubai, it seems, has become synonymous with wealth and luxury In 2013, Dubai ranked 7th in the world in terms of the most tourists visiting and shopping This city is even known as the shopping center of the Middle East with 70 large shopping complexes, including the world's largest shopping center Dubai Mall In 2015, tourists in the UAE spent up to 26 billion USD on shopping and using services in this country

According to the above table, The service industry in Dubai has grown remarkably from investment to arrivals In 2016, the World Tourism Council (WTTC) selected the tourism

industry in Dubai to contribute 64 billion USD to the economy, equivalent to 11.2% of GDP and 4.4% higher than in 2015 In addition, being the main source of foreign exchange revenue for the government, this economy is also experiencing an investment crisis for tourism with 7.46 billion USD in 2015 and WTTC predicts this number will increase to 14,

81 billion USD by 2026 Since then, many jobs have been created for people in Dubai, helping Dubai develop, GDP to increase and the economy to grow continuously

4 Culture Diversity and Enrichment

Elite migrants bring diverse cultural backgrounds, experiences, and perspectives to their host countries This cultural exchange can enrich local communities, promote tolerance, and enhance creativity and artistic expression It can also contribute to a more cosmopolitan and globally connected society All countries with immigration have absorbed some aspect of foreign culture into their country – be it cuisine, music, literature

or political influences There is an example in New York City New York City, located in the United States, has a rich cultural scene and is home to various creative industries Elite migrants in this context include artists, fashion designers, musicians, and other creative professionals from around the world They are drawn to New York City for its vibrant arts and entertainment industry, renowned museums, theaters, and fashion events Their migration enriches the city's cultural diversity, fosters collaboration and innovation, and contributes to its reputation as a global center for creativity and artistic expression such as

JR, Joe DiMaggio, Lorenzo da Ponte,…

5 Philanthropy and Social Contributions

Elite migrants often engage in philanthropic activities, supporting charitable initiatives, educational institutions, and community development projects Their financial contributions and social involvement can have a positive impact on various social causes and public welfare programs George Soros, as the world's most famous hedge fund manager, left Hungary for England during the Cold War After that, he went to New York

to start a career in the financial industry Since the 1970s, Soros has appeared as a philanthropist As founder, supporter, and chairman of the Open Society Foundations and the Soros Foundation, Soros helped black South African students study at the University

of Cape Town and provided financial support to the Central European University By promoting the idea of "Open Society", Soros was referring to a concept of Karl Popper as

of 2018, he has donated more than $32 billion to his charity, the Open Society Foundation