Canada's New Diaspora: A Policy Challenge for Canada? Don J. DeVoretz Research Affiliate, Metropolis BC Senior Fellow, Asia Pacific Foundation Professor.

Canada's New Diaspora:A Policy Challenge for Canada?

Don J. DeVoretz

Research Affiliate, Metropolis BC Senior Fellow, Asia Pacific Foundation

Professor of Economics, SFU

CSPS Armchair DiscussionsOttawa

May 1st, 2008

Some Facts

Figure 1: National Diasporas in Relation to Resident National Populations

1.8%

2.5%

2.6%

3.3%

4.3%

8.3%

9.8%

9.9%

18.0%

21.9%

24.8%

65.0%

105.3%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0%

India (20 M)

US (7 M)

China (34.1 M)

France (2 M)

Australia (0.9 M)

Canada (2.7 M)

South Korea (6 M)

UK (5.5 M)

Mexico (18 M)

New Zealand (0.85 M)

Finland (1.3 M)

Greece (6.7 M)

Italy (60 M)

Some FactsFigure 2: Canadians around the World

Rest of the world:

380,000, 14%

Europe: 499,000, 18%

Asia: 644,000, 24%

US: 1,210,000,

44%

Sources of Growth in Canada’s Diaspora•Globalization

– Dual citizenship policies– Relaxation of exit controls: China, FSU– NAFTA visas

• Immigration Policies– Permanent: skills-related– Temporary: student visas

Public Policy and Diaspora

Economists- Pareto-improving: everyone- Welfare-improving: almost everyone- Canada first- National and Provincial Views

Political scientists - Canada’s place in the world

- Extension of voting rights

Survey Results: Professionals

Share of Foreign-Born in Canadians Abroad by Home Province before Leaving Canada

100.00%

33.60%

0.00%

14.29%

16.67%

20.69%

21.05%

22.73%

29.85%

44.44%

48.03%

0.00% 25.00% 50.00% 75.00% 100.00%

Never lived in Canada

Canada

New Brunswick

Saskatchewan

Newfoundland and Labrador

Quebec

Nova Scotia

Alberta

Ontario

Manitoba

British Columbia

N=503, Pr<0.001

Survey Results: ProfessionalsReasons of Living Abroad by Home Province

65.6%

56.5%

60.3%

66.2%

72.4%

18.3%

19.6%

31.0%

15.4%

16.4%

0.0% 25.0% 50.0% 75.0% 100.0%

Canada

Others

Quebec

Ontario

British Columbia

N=503, Pr<0.01

Job/Career Family/Personal

Survey Results: ProfessionalsFigure 23: Plan to Return to Canada to Establish Principal Residence?

11%

28%

13%

17%

31%

11%

28%

13% 14%

35%

11%

29%

12%

26%

22%

0%

10%

20%

30%

40%

Within the nextyear

Within the next2-5 years

Within the next6-9 years

In 10 or moreyears

No plans toreturn

N=525, Pr<0.01

Total

Canadian-Born

Foreign-Born

PositivePositive Economic Impacts:

- Brain circulation - Taste effect and trade creation - Network effects:

-- trade -- investment-- business creation

- Remittances- Technology transfer

NegativeNegative Economic Impacts

- Human capital transfer

- Lost productivity: innovations

- Social services: unfunded

“overhang”-- Education; second-generation children-- Old Age security-- Health

Political Impacts

Positive- Current Canadian view- Voting rights: -- simple voting -- Italian case- Conflict mediators

Negative- Security issues

- Intergenerational citizenship transfer

Policy IssuesPolitical realm: engaging the diaspora

- Voting : Italian or Canadian Model- Dual citizenship- Intergenerational transfer of citizenship- Access to public goods:

-- Education: differential fees and priority standing-- Use of passport-- Health care: funding issues

Policy Issues (cont’d)

Immigration:- Integration- Triangle

Economics:- “Brain drain” vs. “brain

circulation”- FDI and brain drain- World wide taxation of

- assets- income

Conclusions•Wide-ranging diaspora issues:

– Federal and provincial jurisdictions– Interministerial responsibilities

•Political, educational, economic, and security

•Unified or piecemeal approach ?

Canada first or globalization?

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