Immigration is an emotive issue. The possibilities of a rational debate are constrained as many commentators have already adopted certain positions. The latest proposals are to expel non-EU immigrants after four years. The proponents of such policies are happy to collect taxes from non-EU immigrants, but do not wish to extend social rights to them. Yet politicians have shown remarkable unwillingness to address economic causes of legal and illegal immigration.

In a world of uneven economic development, many people are persuaded to leave their homes, families and friends in search of greener pastures, especially to the western world. Some immigration is encouraged as often the indigenous population is less willing to accept poorly paid jobs. Immigrants from the Mediterranean countries and Eastern Europe are increasingly providing cheap labour for the leisure, tourism and agriculture industry. Immigration helps to boost the reserve army of labour and enables some employers to make excessive profits by driving down wages and working conditions. Unsurprisingly, the Confederation of British Industry (CBI) opposes any cap and claims that immigration is essential for business growth. It is silent on the social rights of immigrants.

Immigrants often have dreams, energy and willingness to work long hours. They have revived the British textile industry and run the ubiquitous corner shop. Immigration also results in huge wealth transfer from developing countries to developed countries. The developing countries bear the cost of producing scientists, engineers, doctors and other professionals, but many then migrate to developed countries.

The main reason for migration to the western world is that it has comparatively good education, healthcare, economic and social infrastructure. Developing countries, often rich in natural and human resources, can also develop such infrastructure but are hampered by local corruption, export of capital and organised tax avoidance.

Due to historical legacies, developing countries are estimated to have an external debt of some US$2.85 trillion. A large part of this is due to theft by many dictators and deposited in western banks. A report by the UK Africa All Party Parliament Group (pdf) noted that “£220 bn was stolen or misused by [Nigeria’s] past rulers between 1960 and 1999 and much of this was held overseas”. Developing countries paid developed countries more than US$540 billion in debt service in 2005. Low-income countries continue to pay out $100 million each day to creditors.

Developing countries are estimated to be losing an additional $350bn-$500bn a year through organised tax avoidance (pdf), often by western multinational corporations. This is more than three times the total of all foreign aid and assistance. Christian Aid reported that tax avoidance prevents investment in social infrastructure and will lead to some 5.6m deaths of young children.

A recent report by Greenpeace e.org/raw/content/international/press/reports/conning-the-congo.pdf noted that logging companies in Congo are avoiding taxes of at least $12m a year. The main tool for this is ‘transfer pricing’, a technique used by companies to shift costs and profits. The sums are not trivial by local standards. In terms of 2000 prices, they are over 50 times the country’s environmental operating budget. Some $12m is equivalent to 80% of the country’s public healthcare budget and could help to vaccinate some 700,000 children under five years of age against deadly diseases.

Altogether, developing countries are exporting nearly a trillion dollars each year to developed countries, leaving precious little for investment in education, healthcare, public administration and jobs. Is it any wonder that those who are mobile migrate to developed countries, either legally or illegally? Curbing the export of capital from developing to developed countries and greater investment in local infrastructure will go a long way towards reducing pressures for immigration. Developed countries have been slow to write off debts, or repatriate the funds looted by foreign dictators. They have done nothing to investigate and prosecute companies that avoid taxes in developing countries.

While some immigration is a feature of the neoliberal global economy, pressures can be significantly reduced by curbing tax avoidance and creating geopolitical structures that promote more equitable share of wealth and power. Without addressing the economic inequities, there is little prospect of curbing the pressures for legal and illegal immigration.