Can Immigration Policies Become More Open?

While immigrants and employers deal with the daily reality of overcoming immigration policies aimed at restricting, rather than promoting, migration, there are those who have called for liberalizing the world’s policies on the movement of people. In their book Exceptional People: How Migration Shaped Our World and Will Define our Future, authors Ian Goldin (Oxford), Geoffrey Cameron (Oxford) and Meera Balarajan (University of Cambridge) call for a fundamental change in immigration policies.

The authors argue that freeing up migration around the world would reap benefits. The authors note that according to the World Bank, “Increasing migration equal to 3 percent of the workforce in developed countries between 2005 and 2025 would generate global gains of $365 billion.” More radically: “Completely opening borders, some economists predict, would produce gains as high as $39 trillion for the world economy over 25 years.”

The authors are realistic enough to note that nothing like complete open borders is going to happen anytime soon. Their detailed history of migration around the world explains that until about 100 years ago, “open borders” was mostly the policy around the globe. The advent of World War I, nationalism, and the increase in modern transportation made such policies politically untenable.

Yet Goldin, Cameron and Balarajan explain that even if borders were not completely open, more migration, particularly if it was done in an orderly, legal way, can achieve positive results: “A small increase in migration would produce a much greater boon to the global economy and developing countries than free trade and development assistance combined.”

The authors call for an international body to help facilitate more open migration policies. Such calls are likely to fall on deaf ears. “So long as nationalism can legitimately trump more universal claims of international cooperation, world development, poverty alleviation, and human freedom, the project to advance an agenda for the liberalization of migration will be stalled,” the authors note.

Goldin, Cameron and Balarajan do not discuss the General Agreement on Trade in Services (GATS), which has provided a degree of openness on skilled migration through a multilateral body. The United States, for example, committed, in essence, to maintain its policies on H-1B and L-1 temporary visas in exchange for greater market access in other sectors. To date, no cases have been filed against the United States for failing to honor those commitments, although it’s possible that could change.

The immigration issue is not going away. Factors beyond the control of elected officials propel both the issue and individual migration decisions. “A growing supply of migrants will result from greater pressure and propensity for people to move,” the authors note. “The pressure to migrate arises from the push and pull factors (whether economic, social, or political) that make migration attractive, whereas the propensity to migrate is related to individuals’ ability and willingness to bear the costs of moving.”

Goldin, Cameron and Balarajan conclude by placing their call for more open immigration policies in historical perspective: “Genetic and other evidence has placed the old arguments for ethnic purity in the dustbin of history. The ethical justification for discriminating on the basis of nation-states is also becoming moribund. While the world may still hold tightly to its national categories, as an excuse for restricting human liberties, they are being eroded by the tides of history. We contend that the idea of freer movement . . . will end up like the other big ideas that emerged from the margins of impossibility into the realm of the self-evident.”

China’s Defence Policy Speak softly but carry a big stick

As part of its efforts to appear transparent about its intentions and to dispel its image of a reclusive regime shrouded in secrecy, the Chinese government has been issuing White Papers on national defence every two years since 1998. The latest in the series, China’s National Defence in 2010, was released recently.

The crux of China’s national defence policy is to ensure a stable security environment so as to permit the unrestricted development of its economy and the modernisation of its military. The defence policy relies on military power as a guarantor of China’s strategic autonomy and is designed to ensure that China continues to enjoy unfettered access to critical strategic resources like oil and natural gas. China has apparently decided that its interests lie in projecting a positive, balanced and cooperative image to the international community. China’s growing economic and military power is gradually giving it the leverage to turn the perceived instability in its security environment into a newfound strength through bilateral and multilateral strategic partnerships, mutually beneficial trade and a cooperative attitude towards regional security arrangements.

China stresses that its national defence policy is essentially defensive in nature and that it is subordinate to the higher goal of building a prosperous China. The White Papers emphasise that China launches only counter-attacks in self defence. This is contrary to China’s fairly aggressive military posture and incursions into India, Russia and Vietnam over the last few decades. A significant recent development is China’s pro-active regional posture in diplomatic, strategic, economic and cultural spheres in parallel with China’s increasingly global posture. This is contrary to China’s claim that it “plays an active part in maintaining global and regional peace and stability.” Recent posturing on the Spratly Islands has been criticised all across South East Asia.

While China stresses the “purely defensive” nature of its defence policy, perceptive observers have noted the power projection capabilities that are inherent in China’s growing strategic reach and the increasing role that military power is paying in enhancing China’s comprehensive national power. Roy Kamphausen is of the view that the PLA is currently projecting military power throughout Asia by responding to crises, contributing to deterrence and enhancing regional stability using current capabilities. These efforts derive from and contribute to the building of comprehensive Chinese national power, which, in turn, serves to increase China’s stature in Asia, advance China’s foreign policy goals and even check U.S. influence.”

China continues to proclaim that it follows a “no first use” nuclear doctrine. However, the improvements in the quality of its nuclear-tipped missiles and the progressive increase in their quantity are conferring new options and spurring new thoughts among China’s national security analysts about the efficacy of its nuclear doctrine. Several of them have expressed the view that “under certain circumstances – such as an all-out attack against the country by conventional forces – China should use nuclear weapons.” As more sophisticated ICBMs like DF-31A and SLBMs like JL-2 enter service in larger numbers, China may be emboldened to review its no first use policy. Any Chinese move to discard the no first use policy will be inherently destabilising.

There are still many gaps in what is known about China’s defence policy and military power. There is much more that needs to be learnt about China’s ideas of statecraft, its approaches to the use of force, its perceived vulnerabilities and its preferred operational methods, as well as about the political and military organisations that work on military assessments and plans. Not enough is known about China’s actual military doctrine, command and control and capabilities such as logistics. Although China’s growing interest in coercion and pre-emption strategies and emerging methods of warfare – particularly the employment of missiles and information warfare – are now better understood, it is difficult to accurately assess how these developments will shape China’s overall military capability.

Immigrant-Founded Companies on the Fortune 500

A new study from the Partnership for a New American Economy shows immigrants and their children have played a significant role in starting key companies in the United States. The study found more than 40 percent of current companies listed on the Fortune 500 were founded by either immigrants or their children. (The study can be found here )

The Partnership for a New American Economy was started by New York Mayor Michael Bloomberg, along with the mayors of Philadelphia, Los Angeles, San Antonio and Phoenix, and the CEOs of Microsoft, Walt Disney, Marriott, Boeing and News Corporation. The study’s conclusion advocates changes to America’s immigration laws: “To compete, we must modernize our own immigration system so that it welcomes, rather than discourages, the Fortune 500 entrepreneurs of the 21st century global economy. We must create a visa designed to draw aspiring entrepreneurs to build new businesses and create jobs here. We must give existing American companies access to hire and keep the highly skilled workers from around the world whom they need to compete. And we must stem the loss of highly skilled foreign students trained in our universities, allowing them to stay and contribute to our economy the talent in which we’ve invested.”

Table 1 and Table 2 give a sample of the more than 200 companies in the Fortune 500 started by immigrants or their children. Some on the list may make you smile, such as Alexander Graham Bell, an immigrant from Scotland, the inventor of the telephone credited with founding AT&T, or Thomas Edison, a son of immigrants, who invented the light bulb and started General Electric.

There was only one Indian immigrant or child of immigrants on the list (Vinod Khosla, Sun Microsystems) for a simple reason: The Fortune 500 are the largest companies in America and it normally takes many years for a business to grow that large. The exceptions are some recent technology juggernauts, such as Google and eBay. Indian immigration to the United States remains relatively new, essentially post-1965. In another decade or two it would not be surprising to see a number of companies on the Fortune 500 that were started by Indian immigrants or their children.

Table 1

Immigrant-Founded Companies on the Fortune 500

Company Immigrant Founder Country of Origin
AT&T Alexander Graham Bell Scotland
Pfizer Charles Pfizer, Charles, Erhart Germany
Kraft Foods James L. Kraft Canada
Fluor John Simon Fluor, Sr. Switzerland
Kohl’s Maxwell Kohl Poland
Colgate-Palmolive William Colgate England
Sun Microsystems Vinod Khosla, Andy Bechtolsheim India, Germany
BJ’S Wholesale Club Max and Morris Feldberg Russia
EBay Pierre Omidyar France
Google Sergey Brin Russia

Source: Partnership for a New American Economy; companies had at least one immigrant founder.

Table 2

Fortune 500 Companies Started by the Children of Immigrants

Company Founder with Immigrant Parent(s) Country of Origin
General Electric Thomas Edison Canada
Ford Motor Henry Ford Ireland
IBM Herman Hollerith Germany
Boeing William E. Boeing Germany
Home Depot Bernie Marcus Russia
United Parcel Service James Casey Ireland
Apple Steve Jobs Syria
CBS William S. Paley Ukraine
Office Depot Jack Kopkin Russia
Harley-Davidson William S. Harley England

Source: Partnership for a New American Economy; companies had at least one founder who was a child of an immigrant parent or parents.

China is Preparing Tibet as a Future War Zone

China’s massive infrastructure build-up in Tibet far in excess of genuine civilian requirements is causing concern to the government of India. Defence minister A K Antony has spoken in parliament of the rapid development of rail, road, airfield and telecom infrastructure and military camps being undertaken by the Chinese authorities in Tibet. He assured the MPs that ‘necessary steps’ were being taken to counter these developments.

Antony acknowledged that a road network stretching across 58,000 km has been constructed and five operational airfields have come up at Gongar, Pangta, Linchi, Hoping and Gar Gunsa in Tibet. Extension of the Qinghai Tibet Railway (QTR) line to Xigaze and another line from Kashgar to Hotan in the Xinjiang Uighur Autonomous Region is also in progress.

Control over Tibet forms part of the larger concept of Chinese national integration under President Hu Jintao’s dictum of ‘going down the road of development with Chinese characteristics and a Tibetan flavour.’ In the wake of ethnic violence in Tibet in 2008, increased force levels of the paramilitary people’s armed police, Chinese frontier guards and the garrison duty forces have been stationed in the region.

China has chosen to upgrade the infrastructure and logistics system in Tibet to enhance the ability of the People’s Liberation Army (PLA) to become a more mobile and better-equipped fighting force that can be deployed faster and sustained over a longer period of time. The concentrated expansion of infrastructure in Tibet has improved the PLA’s capability to rapidly induct integrated forces.

The QTR railway line is being further extending westwards from Lhasa to Xigaze. Along with the rapid development of the lateral road network in Tibet, a large number of axial roads leading to passes bordering India are being constructed. The roads are being constructed to military specifications in order to be turned over to the PLA in the event of war or an internal disorder. The logistics build-up opposite India’s eastern theatre is a cause for concern since it augments the PLA’s ability to deploy rapidly from the mainland.

Construction of new airfields and the upgradation of advanced landing grounds (ALGs) and helipads in and around the TAR, coupled with the acquisition of new transport aircraft, will enhance China’s strategic airlift capability resulting in faster induction and concentration of field formations in comparatively shorter time-frames and, consequently, over shorter warning periods. It also boosts the striking range of PLA Air Force fighter aircraft and provides the ability to strike and engage targets in India on a broad front and in depth.

Another major infrastructure development is the construction of new missile bases in Tibet. China has placed advanced Dong Feng-21 medium-range ballistic missiles along the borders it shares with India. During a future conflict with India, the PLA could easily move 500 to 600 mobile ballistic missile launchers to bases close to the Indian border from their current deployment areas opposite Taiwan.

Complexities of the Tibetan terrain, vagaries of climate, and sustenance capacities of the thrust lines chosen, are all factors that influence the depth of operations that are planned to be undertaken. To address this aspect, the PLA is reportedly constructing Hyperbaric Chambers to facilitate the rapid acclimatisation of troops brought in from lower altitudes. It is also building the first batch of oxygen-enriched barracks using plants for troops in the TAR at the Nagchu Military Sub-Command at an altitude of 4,500 metres.

It is in the Indian interest to upgrade the logistics infrastructure in the states bordering Tibet so as to facilitate the rapid reinforcement of sectors threatened by the Chinese during any future conflict. Simultaneously, India should enhance its intelligence, surveillance and reconnaissance (ISR) capabilities to maintain all round vigil on the border. The army and the air force must also upgrade their firepower capabilities by an order of magnitude so as to engage and destroy PLA forces at a distance.

A Closer Look at H-1B Numbers

H-1B temporary visas for skilled professionals remain in the news as commentators note the relative decline in use of the visa as compared to previous years. According to U.S. Citizenship and Immigration Services, H-1B petitions filed for FY 2012 are indeed running below earlier years. (See Table 1.)

Table 1

FY 2012 H-1B Cap Count

Cap Type Cap Amount Cap Eligible Petitions Date of Last Count
H-1B Regular Cap 65,000 15,200 6/13/2011
H-1B Master’s Exemption 20,000 10,200 6/13/2011

Source: U.S. Citizenship and Immigration Services

Past Years: Which Companies Have Used the Most?

One source of controversy on H-1B visas has been the number of Indian companies featured among the top H-1B users. While the federal government has not released a complete list of H-1B employers for fiscal year 2010, some press outlets have obtained a top 12 list. Table 2 below shows that Infosys, an Indian company, was at the top of the list. Cognizant was second, Microsoft third, followed by Wipro, IBM India, Accenture, Larson & Toubro Infotech, Satyam, Mphasis and Deloitte. Google and Patni America were number 11 and 12 on the list.

Table 2

2010 H-1B Approved Petitions: Top Ten Employers

Company Petitions Approved in FY 2010
Infosys

3,792

Cognizant

3,388

Microsoft

1,618

Wipro

1,521

IBM India

882

Accenture

506

Larsen & Toubro

333

Satyam

224

Mphasis

197

Deloitte Consulting

196

Source: U.S. Citizenship and Immigration Services

Although the H-1B limit was reached in both FY 2009 and FY 2010, total approvals can differ each year. An application is generally counted in the fiscal year it is approved, rather than the fiscal year the H-1B professional starts working. In other words, a new H-1B approved on May 1, 2010 will be tabulated for data purposes in fiscal year 2010, even if the individual will not start working until October 1, 2010, which begins fiscal year 2011. That may explain why the FY 2010 numbers are higher than FY 2009 for petitions for new H-1Bs (rather than existing H-1B visa holders changing employers or having their status renewed).

Table 3 shows a list of the top 30 employers of new H-1B petitions approved in FY 2009. Wipro tops the list, followed by Microsoft, Intel, IBM India, Patni Americas, Larsen & Toubro, Ernst & Young, Infosys, UST Global and Deloitte Consulting. The list of the top 30 companies is more revealing than only a top 10 list, since one can see a wider variety of employers in the 11-30 range. For example, well-known U.S. companies such as Cisco Systems and Motorola were not in the top 10 but filed for a fair number of petitions for skilled foreign nationals in FY 2009. One also gains a view of the use of H-1Bs by educational institutions, with the Baltimore Public School System, University of Maryland and University of Michigan on the list.

Table 3

Top 30 Employers for New H-1B Petitions Approved in FY 2009 

EMPLOYER

NEW H-1B PETITIONS

Wipro Ltd.

1,964

Microsoft Corp.

1,318

Intel Corp.

723

IBM India Private Ltd.

695

Patni Americas Inc.

609

Larsen & Toubro Infotech Ltd.

602

Ernst & Young LLP

481

Infosys Technologies Ltd.

440

UST Global Inc. 

344

Deloitte Consulting LLP 

328

Qualcomm Inc.

320

Cisco Systems Inc.

308

Accenture LLP

287

KPMG LLP

287

Oracle USA Inc. 

272

Polaris Software Lab India Ltd. 

254

Rite Aid Corp. 

240

Goldman Sachs & Co. 

236

Deloitte & Touche LLP 

235

Cognizant Tech Solutions Corp.

233

Mphasis Corp.

229

Satyam Computer Services Ltd.

219

Bloomberg 

217

Motorola Inc. 

213

Google Inc. 

211

Baltimore Public School System 

187

University of Maryland 

185

University of Michigan 

183

Yahoo Inc. 

183

Amazon Global Resources Inc 

182

Source: USCIS. Petitions approved for initial beneficiaries in FY 2009

Conclusion

Although India-based companies have populated the top 10 list among largest users of H-1B visas, they do not use the majority of the visas each year. A tabulation of India-based companies has found their numbers have declined significantly since FY 2006. As often the only practical way to hire a skilled foreign national to work long-term in the United States, we can be sure employers of all types will continue to use H-1B visas.