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15741. Determinants of Korean Outward Foreign Direct Investment: How Do Korean Firms Respond to the Labor Costs of Host Countries?

Author:
Hanbyul Ryu and Young Sik Jeong
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Low cost of labor has been one of the major incentives that foreign firms invest in many developing countries. Yet, many developing countries including China and ASEAN have recently experienced a rapid increase in labor costs. Using the wage information provided by JETRO, this study examines how Korean FDI outflow is affected by the increase in labor costs of the manufacturing industry in host countries. The results indicate that the worker’s and engineer’s wages in Asian developing countries, who accumulated at least 3 and 5 years of work experience, have generally a negative impact on Korean FDI outflow. However, there exist positive relationships between the wages and FDI when the wages stay at very low levels. We do not find evidence that labor costs make a significant impact on Korean FDI outflow to European or Developed countries.
Topic:
Development, Foreign Direct Investment, and Labor Market
Political Geography:
China, Asia, and Korea

15742. Development of the Russian Far East in 20 Years of the Putin Era: Seeking New Directions for Deepening Cooperation between Korea and Russia

Author:
Joungho Park, Seok Hwan Kim, Boogyun Kang, Pavel A. Minakir, Artem G. Isaev, Anna B. Bardal, and Denis V. Suslov
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This study is the outcome of a joint research project commemorating the 15th anniversary of the establishment of the cooperative relationship between the Korea Institute for International Economic Policy (KIEP) and the Institute for Economic Research of the Far Eastern Branch of the Russian Academy of Sciences (ERI). As is well known, the year 2020 marks the 30th anniversary of diplomatic relations between Korea and Russia. Therefore, it is time for the two countries to prepare for the “2.0 Era of Korea-Russia Cooperation” while comprehensively evaluating existing achievements and tasks. In particular, in order to build a sustainable relationship between the two countries, it is necessary to establish a strategic contact point between Korea’s New Northern Policy and Russia’s New Eastern Policy, which can be realized through bilateral and multilateral cooperation in the Far East. In this regard, the main purpose of this study is to understand the main directions, key objectives, and political and economic implications of Russia’s policies in the Far East, which have been strategically pursued since the launch of Putin’s fourth term, and to explore new opportunities and possibilities for development cooperation in the Far East. We hope that this book will serve as a useful guide to open a new path for Far East development cooperation marking the 30th anniversary of Korea-Russia diplomatic relations.
Topic:
International Cooperation, Politics, Bilateral Relations, Economy, and Putin
Political Geography:
Russia, Asia, and Korea

15743. The Components of Free Trade Agreements and Their Effects on International Trade

Author:
Moonhee Cho, Young Gui Kim, Kyong Hyun Koo, Hyeri Park, and Hyeyoon Keum
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
We analyzes the effects that the components of FTA have on international trade. According to the empirical results, the more free trade agreements contain WTO+ and WTO-X provisions and the more legally enforceable these provisions are, the more bilateral trade increases. We also find that the effects of FTA's provisions on trade depend on the economic level of FTA partner countries.
Topic:
International Trade and Finance, Bilateral Relations, Free Trade, and WTO
Political Geography:
Global Focus

15744. Chinaʹs Startup Ecosystem Policy and Implications

Author:
Sangbaek Hyun, Hyojin Lee, Yunmi Oh, and Koun Cho
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The Chinese government is moving toward a qualitative growth model in the era of “New Normal,” transitioning from the existing quantitative growth model. In line with the transition, since 2015 the Chinese government has been implementing a strategy of “mass entrepreneurship and innovation,” which involves building a startup ecosystem in order to solve youth unemployment and create new growth engines. Thanks to the success story of China’s BAT (Baidu, Alibaba, Tencent) and these new policies by the Chinese government, the startup entrepreneurship boom in China has grown rapidly, together with an explosive expansion of infrastructure and platforms for startups. To determine whether China’s economy can be transformed into an innovative economy, we need to carefully examine and evaluate China’s strategy and status of developing the startup ecosystem.
Topic:
Entrepreneurship, Economic Growth, Unemployment, and Startup
Political Geography:
China and Asia

15745. The Networking Strategy of Contemporary Chinese Diplomacy

Author:
Jai Chul Heo
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
China is actively building Network Power in economic and traditional security and non-traditional security areas, while in some cases maximizing its own interests by using the Network Power already formed. In particular, China is building Collective Power at a rapid pace in significant areas. China also actively participated in existing networks and established Positional Power by preoccupying important positions. However, China’s Network Power still seems to have a long way to go in terms of Programming Power to build new systems, unlike Collective or Positional Power. What is notable in the process of analyzing China’s Network Power is that competition between the U.S. and China is fierce over Network Power.
Topic:
Security, Diplomacy, Economics, and Power Politics
Political Geography:
China, Asia, and United States of America

15746. Approaches to Labor Demand Forecast in Developing Economies and Their Implications for Korea's ODA

Author:
Young Ho Park, Yejin Kim, and Minji Jeong
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This study aims to develop systematic labor forecast methods, thereby contributing to increasing the efficiency of TVET ODA. This study suggests a new labor demand forecast methodology that combines quantitative and qualitative analyses and applies it to Vietnam, estimating labor demand by occupations in the country’s wireless communication equipment industry. This methodology starts with a statistical projection of Vietnam’s future labor market and industry. Subsequently, this study uses an enterprise survey and stakeholder interviews to complement missing information, as Vietnam's statistical system, like that of many other emerging economies, lacks some detailed data. Currently, the “element occupations” group takes the largest portion in the labor demand by industry and occupation. According to our results, however, the “plant and machine operators and assemblers” group is expected to gradually increase, thus becoming the largest occupation group in the wireless communication equipment industry in the near future. Given the various circumstances surrounding the labor market in developing countries, other alternatives in addition to our hybrid method of combining quantitative and qualitative analysis can also produce well-founded labor force projections. This study suggests analytical methodologies using global value chain (GVC) and big data as innovative alternatives, which can complement the shortcomings of traditional evaluation methods. ODA implementing agencies would benefit from paying attention to the labor forecasting methods presented in this research, and devising policies supporting these methods in order to properly apply them in reality.
Topic:
Communications, Labor Issues, and Economy
Political Geography:
Asia, Vietnam, and Korea

15747. Integrating Climate Change into Development Cooperation – Korea's Experience

Author:
Jione Jung and Jihei Song
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Korea has reached milestones in development cooperation over the past two decades. At the same time, it has sought for various measures to better incorporate climate consideration in its cooperation activities. However, a number of challenges remain and further action is required in improving the system and practices to better integrate climate change into Korea’s development cooperation. We aim at providing an overview of Korea’s progress in integrating climate change into its development cooperation to share the experiences and to highlight some achievements. In doing so, we first review how other developed countries have promoted climate change integration. Through comparison with Germany, the United States, and Switzerland, we summarized several achievements made by Korea in the area of development cooperation. In addition, we identified areas for further improvement to better integrate climate change into development cooperation, as well as projections for the next phase of Korea’s development cooperation to begin in 2021.
Topic:
Climate Change, Development, and International Cooperation
Political Geography:
Asia and Korea

15748. Foreign Aid to Fragile States: How Effective Does It Work?

Author:
Yul Kwon, Jisun Jeong, Yoon Sun Hur, Jihei Song, Aila Yoo, and Mi Lim Kim
Publication Date:
09-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Korea has put much effort into providing aid for fragile states in efficient and effective ways. As a part of such efforts, Korea established the Fragile States Assistance Strategy in 2017. However, there is still room for improvement in terms of the effectiveness of Korea’s Official Development Assistance (ODA) implementation under fragile and conflict-affected situations. Accordingly, the study aims to suggest policy suggestions for Korea’s development cooperation in fragile states by comparing and analyzing the current status, policies, and characteristics of aid to fragile states in major donor countries, including Germany, Australia, Denmark, and Japan. In addition, we review Korea’s case and draw following policy implications to tackle the remaining challenges. First, it is requisite for Korea to consolidate the whole-of-government approach and reciprocal coordination mechanisms to support for fragile states for overcoming fundamental causes of fragilites. Second, Korea should choose proper types of aid and sectoral aid allocation suitable for overcoming vulnerabilities and development challenges efficiently and effectively in fragile and conflict-affected states. Lastly, the Korean government should conduct a fragility analysis and manage projects systematically.
Topic:
Development, Foreign Aid, Fragile States, and Donors
Political Geography:
Asia and Korea

15749. The Way Forward for WTO Reform: Agricultural Subsidies and Special and Differential Treatments

Author:
Jin Kyo Suh, Ji Hyun Park, and Min-Sung Kim
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The multilateral trading system has been in crisis. The world economy has changed significantly since the WTO replaced the previous GATT system and new challenges are quickly piling on top of the old ones. The rising emerging countries and the relative decline of traditional economic members, together with the need to deal with complex new issues such as climate change and e-commerce and digital trade, are shaking the foundations on which the WTO was built some 25 years ago. There is also growing momentum among many WTO members to ‘modernize’ the WTO, including the Appellate Body although the details and feasibility of reform are unclear at this stage. In this perspective, we suggest some ideas on both trade-distorting farm subsidies and S&DT which are the two important issues in the WTO negotiations.
Topic:
Agriculture, Reform, Economy, Multilateralism, WTO, and Subsidies
Political Geography:
Global Focus

15750. How Chinese Local Governments are Expanding Foreign Economic Cooperation

Author:
Sanghun Lee, Hongwon Kim, Joohye Kim, Jiwon Choi, and Jaehee Choi
Publication Date:
10-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
As the Chinese economy becomes more advanced and the internal and external economic environment surrounding China changes, so too does China’s strategy for external openness and economic cooperation. Accordingly, specific policies are diversifying from the past focus on manufacturing and foreign direct investment to services, overseas investment, bilateral and multilateral FTAs, and bilateral investment treaties (BITs). As the central government’s policy stance changes, China’s local governments are also promoting external openness and cooperation based on regional development stages, industrial structure, and regional development policies, reflecting the central government’s strategy. In particular, after the 19th Party Congress, the central government showed a strategic stance expanding external openness. In response, local governments have moved away from the traditional method of cooperation in the manufacturing sector centered on industrial complexes, and in recent years various cooperative methods have been promoted, including regional economic integration, service and investment, the use of FTAs, and innovations in institutions to expand external openness. Along with the shift in China’s foreign economic strategy, the economic cooperation environment surrounding Korea and China is changing as well, including the strengthening of protectionism, structural changes in the Chinese economy, the Korea-China FTA coming into effect, and the launch of follow-up negotiations. Therefore Korea needs to find new strategies and measures for economic cooperation with China, making it time to find new ways to expand cooperation with China’s central and local governments. Against this backdrop, this study aims to analyze the strategies, detailed policies and major cases of China’s central and local governments’ external openness and economic cooperation, and to draw policy implications for strengthening economic cooperation between Korea and China in the future.
Topic:
Government, Foreign Direct Investment, Economy, and Economic Cooperation
Political Geography:
China and Asia

15751. Determinants of FDI in Transition Economies and Implications for North Korea

Author:
Cheol-won Lee, Hyung-gon Jeong, and Min-suk Park
Publication Date:
11-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
North Korean authorities have been seeking changes in North Korea’s economic policy since the Kim Jong Un regime took power. Along with decentralization, the government is trying to increase efficiency and productivity within the socialist economic system, and as part of this policy it has designated 27 economic development zones to attract foreign investment. Foreign direct investment plays a crucial role in economic growth for low-income countries such as North Korea, which lacks capital and technology. This study discusses North Korea's foreign investment policy and tasks ahead of its government to revitalize the economy, based on the premise that nuclear negotiations between North Korea and the US proceed smoothly. First of all, in order to derive policy tasks, we compared and analyzed the achievements and policies of transition countries in Asia and Eastern Europe in terms of attracting FDI, also analyzing the determinants of FDI inflows, after which we present policy tasks for North Korean authorities. As South Korea may very well become the largest investor in North Korea, our study also discusses tasks for the Korean government to pursue in order for Korean companies to successfully invest in North Korea.
Topic:
Foreign Direct Investment, Economy, and Transition
Political Geography:
Asia and North Korea

15752. U.S.-China Technological Rivalry and Its Implications for Korea

Author:
Wonho Yeon
Publication Date:
11-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Recent developments in advanced technology are changing the concept of hegemonic competition. The key feature of technologies in the 4th Industrial Revolution is dual-use. Emerging technologies such as 5G, AI, big data, robotics, aerospace, supercomputers, and quantum computer-related technologies can be used for both civilian and military purposes. The more you invest in the development of advanced technologies, the closer you will be to economic and military hegemony. Therefore, it is no wonder that the U.S. harbors great concerns facing the rise of China in these advanced technologies. To estimate and compare the innovation productivity of the U.S. and that of China, this study constructs a structural estimation model in which each country produces international patents using R&D expenditures and R&D researchers. Empirical results have presented novel findings indicating that China’s innovation productivity has surpassed that of the U.S. since 2015. At the same time we can observe that the U.S. has the world’s largest intellectual property surplus and keeps expanding it, while China’s intellectual property deficit has been growing every year. Given the two contradictory facts - China’s high innovation productivity and low intellectual property balance - we can conclude that China is strong at “innovation” but weak at “invention.” Knowing this, the U.S. eventually began to target this vulnerability. This is the U.S.’ Tech-Decoupling strategy. To achieve U.S.-China tech decoupling, the U.S. has been strengthening trade and investment sanctions against China. In specific, the U.S. has been utilizing the Export Control Reform Act (ECRA), Section 889 of the 2019 National Defense Authority Act, and the Foreign Investment Risk Review Modernization Act (FIRRMA). In return, China is responding to the U.S. sanctions with the new “Long March” strategy rather than a tit-for-tat strategy. In other words, China has been setting long-term aims and responding to the U.S. sanctions by improving institutional arrangements, refining industrial policies, and developing its own technologies such as “Dual-circulation strategy” and “New Infrastructure Plan.” Ironically, increasing pressure from the U.S. is expected to further strengthen China’s R&D capabilities in advanced technology and accelerate its competitiveness in emerging industries. With the onset of the 4th Industrial Revolution, China is rapidly closing the quality gap and technology gap in major industries where Korea has a comparative advantage. If Korea does not adequately respond to changes, it may be difficult to maintain a comparative advantage over China. Thus, now that U.S.-China tensions are intensifying, Korea is facing a pivotal moment in determining the future path of its economy.
Topic:
Science and Technology, Sanctions, Investment, Innovation, Trade, and Strategic Competition
Political Geography:
China, Asia, North America, Korea, and United States of America

15753. Belt and Road Initiatives: China and South Korea's Economic Ties with South Asia and Nepal

Author:
Bama Dev Sigdel
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The main objective of this article is to assess the effect of the Belt and Road Initiative (BRI) in terms of economic interrelations between Asian countries mainly China, Korea, India and Nepal. China’s Belt and Road Initiative (BRI) is one of the most ambitious economic strategies in modern times that alters the economic, political and social relationship between Eastern and Western societies. It not only improves transport networks and facilitates trade, but also raises GDP of many economies. For China, BRI manifests its intention to become the next global power through bigger market access and economic opportunities. Although South Asia is less developed economically, it has high strategic utility for the BRI, which has drawn attention from China to deepen its relations in the region. On the other hand, South Korea has also emerged as a soft power in Asia. It has been playing a significant role in Asia by contributing the majority of its aid, i.e., 35 per cent in Asian economies and a major share of its FDI, i.e., 34.1 per cent. With the rapidly increasing growth of South Korea, it also has a growing relationship with ASEAN and other South Asian economies such as India to reduce its dependence on traditional trade allies. Moreover, for least developed economies like Nepal, the BRI can bring improved infrastructure, needed technology, managerial talents and greater connectivity to the world. South Korea can yield higher benefits through its relation with South Asia and especially Nepal through expansion of export and market access, access to cheap workable manpower to cope with its rising aging population, and less dependence on traditional allies through its investment in South Asian region.
Topic:
International Relations, Economics, Economy, and Belt and Road Initiative (BRI)
Political Geography:
China, South Asia, Asia, South Korea, and Nepal

15754. The Value-added Creation Effect of Global Value Chain Participation: Industry-level Evidence from APEC Member Economies

Author:
Innwon Park and Soonchan Park
Publication Date:
12-2020
Content Type:
Special Report
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
We analyze the value-added creation effect of GVC participation by applying a standard fixed effects regression model analysis with economy-wide country-industry data. We use OECD Inter-country Input-Output Tables covering 64 countries (21 APEC members and 43 non-APEC members) and 35 industries (1 Agriculture, forestry and fishing, 3 Mining, 16 Manufacturing, and 15 Service) between 2005 and 2015. We find that APEC member economies’ participation in GVC activities is not distinct from non-APEC member economies but the causal relationship between GVC participation and created domestic value-added is much stronger in APEC member economies. More specifically, from the qualitative evaluation on statistical data, we find that backward linkage has been stronger than forward linkage and both have been recently decreasing. The APEC industries’ upstream positions in production line have been slightly more distinguished than non-APEC industries. From the econometric regression analysis, we find that forward participation in GVCs is more desirable than backward participation in terms of creating domestic value-added. We also find that the industry position in middle stages of production line in contrast to earlier and later stages creates higher domestic value-added per output unit. This implies that the firm-specific conventional U-shaped “Smile Curve Hypothesis” is not applicable at the economy-wide country-industry level, especially in APEC member economies. This finding supports that manufacturing industries are still a major driving force for less developed APEC member economies to move up the development ladder. Considering that gains from GVC participation are diversified across industries and upgrading country-industry positions in GVCs is competitive among the interconnected countries, we strongly recommend for APEC member economies to construct effective domestic value chains and coordinate with other members during their process of upgrading GVC participation.
Topic:
Economies, Global Value Chains, and APEC
Political Geography:
Global Focus

15755. Measuring Convergences and Divergences in APEC RTAs/FTAs: a text-mining approach

Author:
Jeongmeen Suh
Publication Date:
12-2020
Content Type:
Special Report
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In this paper, I suggest that text mining analysis of regional trade agreements (RTAs) can be a suitable methodology to develop a tangible measure of convergence between RTAs. By utilizing well-established text similarity concepts in related literatures, I attempt to investigate how much RTAs in APEC are converging in terms of how much similar RTA texts are. Furthermore, which areas of RTA converge more or less will be examined. The main results of the study are as follows. The RTAs signed by APEC members are gradually converging over time, and they converged (in terms of 5-gram Jaccard similarity) at an annual average of 8% for all RTAs (both inter- and intra-regional) while 9.7% for intra-regional RTAs only. The areas that converged the most are service and transparency chapters, which show 2.2 times and 1.6 times higher level of convergence than the average, respectively. The objective and intuitive indicators of regional norm convergence are expected to provide a common understanding for setting goals and strategies for regional economic integration in the future.
Topic:
Treaties and Agreements, Regional Integration, Trade, Economic Integration, Regional Economy, and APEC
Political Geography:
Global Focus

15756. Financial Inclusion Through Fintech in the Digital Economy

Author:
Eunsook Seo and Kyeongwon Yoo
Publication Date:
12-2020
Content Type:
Special Report
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the 2008 global financial crisis, including the recent COVID 19 pandemic, low interest rates and low economic growth have continued around the world. In spite of this low interest rate trend, as the economic downturn prolongs, there is a situation of concern called the “new normal” of low interest rates and low economic growth, and low prices. In this new normal economic structure, the rapid progress of aging is increasing the necessity and desire for asset accumulation. In addition, digital finance such as Fin-tech with the evolution of the underlying technologies and the emergence of new technologies has replaced or improved many functions of existing finance in the advent of the 4th industrial revolution era. These changes are expected to bring benefits to the individual and corporate finance sectors, which have been subject to financial inclusion. On the other hand, digital finance, which is changing at such a rapid pace, may further isolate some individuals who were in the blind spot of finance, such as the elderly, and a support system for this is an issue that should be included in the policy of financial inclusion in each country. In this paper we find that Asian countries like other regions have achieved tangible results in financial inclusion while achieving financial deepening. When looking through various financial inclusion indicators such as holding accounts and loans, ATMs, and bank branches, the Asian region has achieved similar or superior performance to other regions. Compared to the income level, the growth of financial inclusion in Asia was found to be attributable to better performance in middle-income countries than in other similar regions. High-income countries in Asia are performing somewhat lower than similar peer groups in other regions, but this seems to be due to stagnation of growth. More seriously, financial inclusion in low-income countries in Asia is not appearing faster than in other income groups. In Asian countries there appears to be a wide variation in regional financial inclusion. However, Asian countries are expanding around the younger generation in the use of ICT technology that is helpful in spreading financial inclusion so if digital inclusive finance centered on Fintech is properly applied, Asian countries will become a new model for digital financial inclusion. However, since the gap in the use of Fintech in the region is large, how to fill this gap is being raised as an important policy task for each country as well as the whole region. We also tentatively examined the effects of financial inclusion and digital financial inclusion in the Asian region using the Asian country panel data collected from WDI and Global Findex data. Looking at the implications of the empirical analysis results even though it is very cautious to interpret the results of this analysis due to the lack of data of inclusive finance in Asia., first, the expansion of financial inclusion(such as ATM) in Asia seems to have some relationship with the reduction of poverty rates and income inequality which is measured with Gini coefficient. And the expansion of internet usage in Asia seems to have some relationship with the reduction of poverty rates and income inequality although we use it as the proxy variables instead of the digital financial inclusion variables. Lastly, the higher share of rural population which is used as a proxy for digital divide, which may occur due to the expansion of digital inclusive finance in Asia, has the potential to erode some of these achievements, but there is still a possibility that the expansion of inclusive finance will be effective. Despite the likelihood of success in digital inclusive finance in the future, digital divide spreads due to various gaps such as between urban and rural areas, between young and old, between low and high income, and between men and women, occurring in Asian countries and may worsen the performance of inclusive finance. Thus the governments in the region need to actively intervene to resolve these gaps. In addition, it is necessary to close the digital gaps that is occurring between countries through policy cooperation among APEC members. Considering the situation that the degree of development of Fintech in each member is expanding financial inclusion, it is necessary for Korean financial companies to set up an advancement strategy that focuses on the financially marginalized class based on the advanced system strategy of credit rating based on big data. Our analysis results will give some implications for the New Southern Policy. Personal and SME finance are very important business areas when financial companies currently enter the ASEAN region, and accurate analysis of each member' current status for Fintech or digital finance and financial inclusion should be given priority in terms of business expansion.
Topic:
Poverty, Financial Crisis, Finance, Income Inequality, COVID-19, Inclusion, and Digital Finance
Political Geography:
Asia and Global Focus

15757. An Uneven Welcome: Latin American and Caribbean Responses to Venezuelan and Nicaraguan Migration

Author:
Andrew Selee and Jessica Bolter
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
The sudden mass movement of people fleeing political and economic crises in Venezuela and political unrest in Nicaragua has transformed the migration landscape in Latin America and the Caribbean. Approximately 4.8 million Venezuelans had emigrated by December 2019, the vast majority remaining in the region, and as many as 100,000 Nicaraguans have moved to neighboring Costa Rica since early 2018. This report examines how 11 countries—Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guyana, Mexico, Peru, Trinidad and Tobago, and Uruguay—are responding to the mass outflows. Drawing on extensive fieldwork and interviews with government officials and representatives of nongovernmental organizations, migrant-led groups, and international actors, the study analyzes efforts to provide newcomers with legal status and to integrate them into schools, health-care systems, and local labor markets—measures that are important for both migrants and the communities in which they are settling. Overall, receiving countries have shown openness and even creativity, providing legal status to many and access to basic education and emergency health care to most. But as the exodus continues and it becomes clear that large numbers of Venezuelans are likely to remain in their host countries in the mid- to long term, the initially warm welcome has begun to cool in places. Capacity constraints in many education and health-care systems, which existed prior to the arrival of large numbers of newcomers, have also become more acute. Looking ahead, the report sets out a range of recommendations for both receiving countries and the international community. Among them: balancing security and flexibility in entry requirements; strengthening asylum systems and other, more nimble legal pathways; and streamlining credential recognition so migrants’ skills can benefit local communities and economies.
Topic:
Education, Health, Immigration, Employment, Economy, Welfare, and Skills
Political Geography:
Latin America, Nicaragua, Caribbean, and Venezuela

15758. The Patchy Landscape of State English Learner Policies under ESSA

Author:
Leslie Villegas and Delia Pompa
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
When the Every Student Succeeds Act (ESSA) was signed into law in 2015, it was hailed as a significant step forward for English Learner (EL) students. The law aimed to raise the profile of accountability for ELs, including in terms of their progress towards English proficiency and their performance in academic subjects. More than four years on, all 50 states, the District of Columbia, and Puerto Rico have submitted plans to the U.S. Department of Education describing how they intend to meet their commitments under ESSA. But despite anticipation of a clear vision for the future of EL education policy, these plans offer a rather fractured picture and considerable variation. This report provides a detailed breakdown of key aspects of EL education outlined in these state plans. It examines policies governing how students are identified as ELs, assessed, and eventually exited from EL status once they reach proficiency; how their academic achievement is tracked; and the extent to which they are included in state accountability systems. On the whole, the authors conclude, ESSA has fostered more consistency within (though not between) states on matters such as EL identification and reclassification procedures. However, the law has significant shortcomings in other critical areas. For example, it provides no guidance to states on how to address cases involving ELs who do not reach proficiency within the state-determined timeline. The complexity of ESSA’s state accountability framework—with elements pertaining to ELs scattered across it—can also make it difficult to understand how and how much ELs’ performance counts in school accountability ratings. While it is too soon to understand the full impact of ESSA on EL students' academic outcomes and English acquisition, the report points to a number of key areas that merit careful attention from education policymakers and researchers in the coming years.
Topic:
Education, Immigration, Law, Language, and ESL
Political Geography:
North America and United States of America

15759. Chasing Efficiency: Can Operational Changes Fix European Asylum Systems?

Author:
Hanne Beirens
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
With new EU leadership having taken office in late 2019, Brussels is hungry for fresh ideas that will either revive or reform the Common European Asylum System. The scale and pace of asylum-seeker arrivals on European shores in 2015–16 pushed many Member State systems to a breaking point and brought into glaring focus problems—such as incomplete registration of new arrivals and lengthy case processing backlogs—that existed even before the crisis. Several years on, proposals to address these and other issues through reforms to the EU legal framework for asylum have stalled. Yet, this has also been a period of intense innovation at the national level. Member States have tested new or revamped old ideas to improve the operation of their asylum systems—how they register those seeking protection, offer them reception and material assistance, investigate their protection claims, and then, if their cases are rejected, return them to their origin countries. This MPI Europe-Bertelsmann Stiftung report examines these Member State responses and the wealth of lessons, as well as some cautionary tales, they offer as European leaders contemplate future changes. Among the innovative approaches are the creation in Germany and France of “first-arrival centers” to swiftly register and secure accommodation for newcomers, Swiss “processing centers” that bring together all stakeholders involved in the asylum procedure to make high-quality decisions more quickly, and the Dutch and Swedish “triage” or “track” systems that assign incoming cases to tailored asylum procedures. Understanding this operational dimension—the nuts and bolts of EU asylum systems—is essential for efforts to secure durable improvements. As the author writes, “The era of using (purely) legislative reform to attempt to fix European asylum systems and preserve the integrity of protection regimes has come to an end; the future lies with policy-making approaches, such as a strategic roadmap, that mobilize the full set of tools available.” This is the final report for the Making Asylum Systems Work in Europe initiative, which aims to contribute to efforts to build the capacity of national asylum systems and improve cooperation between EU Member States.
Topic:
International Cooperation, Governance, European Union, Refugees, and Asylum
Political Geography:
Europe

15760. Immigration and U.S. National Security: The State of Play Since 9/11

Author:
Amy Pope
Publication Date:
04-2020
Content Type:
Special Report
Institution:
Migration Policy Institute (MPI)
Abstract:
The wide-ranging reforms that followed the September 11, 2001, attacks on the United States significantly strengthened the national security capabilities of immigration agencies. The U.S. Department of Homeland Security (DHS) was created to bridge gaps between the intelligence community and immigration functions. Yet, the restructuring was not comprehensive, and threats to national security continue to evolve. In addition, while the tendency to frame immigration policy through a security lens predates the Trump administration, this now routine practice clouds the picture of who and what pose a threat. This report takes a critical look at the increasingly complex security threats U.S. immigration policy must manage—from public-health emergencies, such as the coronavirus (COVID-19) pandemic, to the activities of transnational criminal organizations. It assesses the tools available to respond to these threats, and the successes and challenges to date in innovating as risks evolve. To do so, it traces the evolution of the country’s immigration and border control system, with a focus on how institutions and processes have developed since 9/11. While the U.S. government has made important progress in shoring up weaknesses in its defenses at the nexus of immigration processes and national security, this analysis identifies a number of critical gaps that remain—from a need to more clearly define mission space, to effectively sharing information and transitioning to electronic-based systems. Under the Trump administration, resources and political will have also been steered away from core DHS national security missions, including disaster response, cyber security, and general policy and planning in favor of immigration enforcement measures focused on low-risk unauthorized migrants and asylum seekers. The challenge ahead, the author writes, is to “rebuild the department’s credibility at home and with foreign partners, while recalibrating resource allocations and strengthening its capacity to respond to and manage the most pressing national security threats.” This report is part of MPI’s multiyear Rethinking U.S. Immigration Policy initiative, which aims to generate a big-picture, evidence-driven vision for the role immigration can and should play in America’s future. To learn more about the initiative and read related research, check out the initiative's home page.
Topic:
International Cooperation, National Security, Immigration, Infrastructure, Governance, Border Control, Refugees, Resettlement, and Asylum
Political Geography:
North America and United States of America