Brazil could benefit from global migration waves, IMF says
Large-scale migration waves from poor to rich countries will be a permanent phenomenon in global economy in the upcoming decades, a report released this month by the International Monetary Fund (IMF) and the World Bank reveals. 
Large-scale migration waves from poor to rich countries will be a permanent phenomenon in global economy in the upcoming decades, a report released this month by the International Monetary Fund (IMF) and the World Bank reveals. Otaviano Canuto, IMF Executive Director for Brazil, points out that the country could take advantage of the trend.
According to Canuto, Brazil is missing out on a great development opportunity brought about by its own favorable demographic condition: most of its population are currently in an economically active age group (i.e.,15 to 64 years old). The reason behind it, he believes, is that Brazil failed to boost productivity or make changes to its social security system.
Brazil is missing out on a great development opportunity brought about by its own favorable demographic condition: most of its population are currently in an economically active age group
The 2014-2015 Global Monitoring Report, put together by the IMF and the World Bank, describes Brazil as a country in the latter phase of its demographic dividend, but the country could still benefit from the upcoming years. “In a couple of years from now, Brazil will start to experience a shortage in skilled labor force, and migration may come in quite handy,” Canuto said during a seminar held today (Oct. 16) at the Getúlio Vargas Foundation (FGV).
Social security reform
The executive director noted that, apart from the help of immigrants, Brazil will have to resort to making internal adjustments in a bid to take advantage of whatever the country can in the current demographic circumstances. “Brazil is among the world's most generous [countries] when it comes to social security. The space that was supposed to be used to increase saving was instead used for a cash transfer system that won't hold in the long run. That's why a reform in social security is so urgent,” Canuto argued.
Another measure the country should carry out, the executive director said, is to stimulate productivity. “There should be an agenda aimed at raising productivity, and doing whatever is necessary to improve the business environment and stop the squandering arising from the country's inadequate business environment.”
Translated by Fabrício Ferreira
Fonte: Brazil could benefit from global migration waves, IMF says
