COUNTRY FOCUS
Another option is to accept the fact of declining and
graying population, increasing shortages of manpower and
its consequences in terms of slowing down of economy and
reduction in the standard of living of the people. This is not
an option because no society will accept its own decline and
eventual death without a determined fi ght.
Another viable option is to encourage immigration on a
selected basis in accordance with the needs of society. This
will alleviate the shortages of skilled manpower but will
increase cultural diversity and may increase the social cost.
This is the least painful and good option provided the impact
of resulting cultural diversity can be managed at an acceptable
economic and social cost.
Political and social opposition to immigration is
partly due to lack of awareness or due to lack of proper
understanding of the subject. Some objections are related
to some particular kinds of immigrants. Some objections
are related to emotional issues and are not based on actual
facts about the contributions of the immigrants to the
host society. Thus there is a need for a calm and rational
approach to immigration based on felt needs. Immigrants can
certainly renew, strengthen and supplement the population
of working age. This will ultimately lead to an increase of
workers, reduction of dependency ratio, expansion of pension
resources and acceleration of economic growth.
To the extent possible the social costs of immigration can
be reduced by importing skills and services in digital form.
Many of the perceived negative points of immigration can
be avoided or substantially reduced by a rigorous process of
selecting the immigrants in accordance with the needs of the
host country and imparting them technical skills and social
orientation in advance.
For all the political diffi culties immigrant can cause
Europe will need more of them if it wants to avoid shrinking
its economy. Without immigrants, Germany, Italy and the
Netherlands will face a signifi cant decline in the sizes of their
economies. Even sustaining migrants at current levels most
East European and Mediterranean countries are unlikely to
prevent the shrinking population.
Where can Europe fi nd such immigrants and or skilled
services in digital form?
India is an obvious choice for many reasons.
Globally India is uniquely placed in terms of the size of
its population (1.3 billion) and availability of working age
persons. About 65 percent of India’s population is under
35 years of age and a little over 70 percent of the country’s
population will be of working age by the year 2025. This will
give India a signifi cant competitive edge compared to the
aging societies in Europe, Japan, and to some extent in China.
At the same time, it poses a major challenge for India to fi nd
gainful employment for such a large number of persons. After
meeting the manpower needs of its rapidly growing economy,
India will have a large pool of persons who can be educated
and trained for global placement. Thus the availability of
young and educated manpower, willing to migrate and willing
to acquire necessary skills and undergo cultural orientation,
makes India a very attractive source of migrants.
India has facilities and institutes of higher learning for
imparting necessary skills and training with support from the
European countries which need this manpower.
Almost every major European country has a signifi cant
number of Indian knowledge workers and has a positive
experience with them. The Netherlands has more than ten
thousand Indian knowledge workers and their number is
steadily growing.
By and large Indian workers are law abiding, hard working
and competent workers.
Bringing skilled young workers from India to Europe
in accordance with the needs of European businesses and
societies is a win-win proposition for India and Europe. One
the one hand it will help in the solution of a critical structural
problem facing Europe. On the other hand, it will provide
employment opportunities, the experience of working in
developed countries and working with advanced technologies
and building global networks which can be very valuable in
promoting trade between India and Europe. This will further
enhance the remittances sent by the Indian Diaspora to India,
which at 79 billion U.S. dollars every year, is already the
highest in the world.
India is a substantial exporter of ICT enabled services to
Europe. This can be increased further to help alleviate long
term structural problem facing Europe.
Based on a pilot project which the Foundation for Critical
Choices for India (FCCI) is developing in the Netherlands
under my guidance, a circular ecosystem will be developed
by involving all the stakeholders for the smooth and seamless
mobility of skills between the Netherlands and India. This
will not only expand the supply of skilled manpower from
India to the Netherlands but also enhance the fl ow of Dutch
technologies in agriculture, horticulture, water management,
waste management and many other fi elds to India.
After the success of the pilot project in the Netherlands,
it will be expanded to other European countries.
*Author is the Founder & Chairman Emeritus of the
Netherlands India Chamber of Commerce & Trade (NICCT),
a founder and President Emeritus of the Foundation for
Critical Choices for India (FCCI), Pravasi Bharatiya
Samman Awardee and a Knight in the Royal Dutch Order of
Orange-Nassau. He can be contacted at [email protected]
Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 4 • April-May 2019, Noida • 19