What’s a more effective development intervention when it comes to raising income: Microfinance? Deworming? Conditional cash transfer programs? None of them work as well as New Zealand’s new seasonal worker program, which John Gibson and David McKenzie evaluate in a new paper. The effects are substantial. “In addition to estimating per-capita income gains of 30-40%, we find that participating in the RSE leads to greater subjective well-being, more durable asset purchases, housing improvements, and in Tonga, a large increase in secondary schooling,” McKenzie writes. “Moreover, as a recent evaluation by New Zealand’s labor department found, these gains came with minimal displacement of native workers, and overstay rates of less than 1%.” (HT: Chris Blattman) [%comments]
Is Picking Kiwi Fruit the Answer?
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The greatest socioeconomic event of the 20th century was the lifting of 300 million Chinese in abject poverty into middle class stability.
In the 1960′s, China was overpopulated, ravaged by epidemics and cursed with natural disasters recurrently that made the 2010 Haiti Earthquake and Indonesian Tsunami look like an annual event.
China was compared disfavorably with Africa, which had all the natural resources, diamonds, minerals, and oil. And the Africans were open minded when it came to UN Initaitives and health programs. It recieved over 50% of all Peace Corps Volunteers. And it was THE UPCOMING AND RISING DEVELOPMENTAL POWER.
China refused all aid, NGO’s and UN Programs.
Fast forward 40 years and the Africans are stuck in a cycle of dependency, corruption, famine, disease and recurrent natural disasters such as drought. Constant civil war, rape, pillaging and slavery are no different than colonial times and are medieval in evilness.
We should study HOW the Chinese accomplished poverty reduction programs and implement similar programs. Non Governmental Agencies are the Problem, NOT the Solution.
Try Poverty Reduction through Free Trade and Sustainable Economic Policy. Donations are not bottomless.
Crisis is an Opportunity.
Recently, I read a history of Florida that mentioned how in the early days we imported workers from the Bahamas, Mexico, and the Caribbean in order to harvest crops, since we had more fertility and production than we did native workers (or at least workers willing to work under those conditions).
Today, we have significant areas in Florida that are descendants of those imported workers. As might be imagined, this at times has caused friction over “immigration.”
With New Zealand being even more stringent about such things than the U.S., (so I hear), they do need to balance their need of workers with their immigration concerns.
While we tend to welcome folks to our shores, there does come a critical mass, I suspect, in which the tide turns.
Growing up in post-war California, we were all aware of the Bracero Program for migrant workers – primarily from mexico. They worked California fields and orchards during harvest and planting and went home with cash to their families in between. We’ve done the same today in the hotel business under a limited stay program that imports, pays and houses workers who return home with significant savings. I suspect that all of the complaints abouit immigrant workers not joining the culture would go away if we let those who want to retain their culture return to it on a regular basis.
Without immigration we will approach western European population growth rates and be on our way to open-air musem status like them. We need to open the door but be rigorous in the prosecution and deportation of criminals. Housing them in U.S. jails for later release is not the answer.
The biggest difference between Africa and China is Africa has lots of wars going on.
The next biggest difference is that Africa has a bunch of states run by foreign corporations.
On the other hand, having a government owned by Big Business hasn’t destroyed the U.S. yet.
As a New Zealander, especially as one from Motueka (a small horticultural town) I can totally attest to the efficacy of the programs. When I was at high school I worked at the local hardware store, and often seasonal workers would come in and want to weigh drills or saws, in order to figure out if they could take them back home on a plane. From talking to them I figured that they were much cheaper in New Zealand, and would be a massive benefit to their people.
Another benefit is to the seasonal unemployment rate – having an economy centred around seasonal work previously lead to a high level of unemployment throughout the rest of the year. Having temporary migrant workers reduces that effect.
In Belle Glade and Pahokee, FL we used to have seasonal H-2A workers come in from Jamaica to harvest Sugarcane. They made a good bit of money and spent a good bit of money in the local stores. Now we pretty much have native workers that work through the season and collect unemployment in the off-season. H-2A is a somewhat problematic program in that it requires the employer to pay above average wages for a guarantied number of hours in addition to providing housing for the workers