United States. Congress. House. Committee on the J.

Legal immigration reform proposals : hearing before the Subcommitee on Immigration and Claims of the Committee on the Judiciary, House of Representatives, One Hundred Fourth Congress, first session, May 17, 1995 online

. (page 28 of 30)
Online LibraryUnited States. Congress. House. Committee on the JLegal immigration reform proposals : hearing before the Subcommitee on Immigration and Claims of the Committee on the Judiciary, House of Representatives, One Hundred Fourth Congress, first session, May 17, 1995 → online text (page 28 of 30)
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"* Thai b. m Inv tumtu l net of other aeacti dut dc penoa aay have
aocets B and may iaveai at a later dnc, at well at af ay indlipliar
cflcctt retailing beai the original iuwtliiaM

'" Abou half of dial total came floai da goadt-pndaciBg lecaor.
flcquendy from tsdi low valocadded and (krliniiig acdvUiat at lexdlat.
This conccnoiiicn afr«wnn for die [ augi a i ui ue'i relatively aodts OW
pet capiu conoibotioo (when compared B die avenge far Cteada m a
whole) (Kanin (1991). ppJO-14).

"^ This figure docs not include the employneat of the caacpnaeatt
diontclvet. AhofCIhei. the average enoeprenear created aeaily five hO-
lime Jobs and one patt-time job. Non-peiforminot latts far
cntrepreneun (those who did not itan ap a hotinra) tBod at teat Aa
10 per oem (KeniB (1991). ppJO-M).

"* ndt It only aboal 60 per oeat of die avciage (a)P per capia far
Cinadun wotfcen.

Bt Then is bellei source.couniry £stributioo ia dial prognnne dan
atoally dioughl. Signiricani nuniben of hiinnrts migrants alto ooae
fltHB Taiwan. Rcpubbc of Korea. Malaysia, and Earape.


UtumOnaimlifiam^HK^Amaltm: lmmit,f,aitu,tmr»taaim

business immignntt,'" or have • net wonfa of STOO.OOO
and invest $500,000 of that for five yevi in any other
province. '"' The activity must have a significant economic
effect 00 a province and create a significant number of
jobs. The investment can go to a business, t commercial
venture, a provincially supported investment syndicate, or
a govenunenl-administered venture-capital fund directed at
business development Investors are offered cooditiooa]
visas for the first three years of residence to guard against
fraudulent applications and other abuses.

Total investment anributed to (his class has been
about SI billion (an average of more than $190,000 per
immigrant, with about 61 per cent invested in business
activities and (he icmaining in liquid assets held io
escrow). Employment creation is estimated at about
10,000 direct Aill-time jobs, or about 1.9 woricert per
investor. The programme has contributed about $450
million to the Canadian GDP (roughly $43,500 per
worter). About 57 per cent of the investment has been in
services but most of the programme's contribution to the
GDP (58 per cent) comes frtxn investment in goods

All told, the programme's $3 billion in investments
between 1986 and 1990 maJce it an unqualified success
story. Participants are credited with providing 10 per cent
of Canada's investment growth during that period.*" 6J
per cent of its net increase in fiill-time employment, and 3
per cent for itt total growth in the GDP'°* (Kunin (1991)).

(e) Summaj

The selected-worfcer system provides one of the
occasional stark contrasts between the Ca n a d ia n and US
immigration systems. There is a fundamental and growing
philosophical difference between the two countiies that has
little to do with immigration. Rather, it is a difference in
the belief in a government's ability not only to manage, but
also to change, its economy, and in the antecedent belief
that this is indeed an appropriate role for a govenunent.
Oearly, the Canadians believe these things and are not

"'ah bat ihrae Pnninaa bO iMo An cMcfonr. A SiSOJOOO
invesimeni U required ID like •dvaiiU(e of Ibc pngnnmt b Omio,
Quctec or Bhtith Cdanbu.

*" These nuiiten R^ntea lite hifha iavttontnl Mnm nqnred ■ of
1991. Uuil dm. die nns were $130,000 and $2SaCI00it)|iectncl)r.

I" About 40 pel c«« ns in die goodt-prodociiii leaor. Anani te
moit favoured investrKtf activities, in ofder of irapoftaaoe, voe
accommodaiiom. food, and bevera|es C2I-3 pa can); ii»iBifae»ra(
(19 J per cent, predominaatly io clodanf and lextilci, Ibilovad bjr food
ptastie pcoductt. and electrical and electnok pradoco); ictd (lU per
cent); coostnictica (I6J per cent); and wholeaak (II per cat). (Karia
(1 99 IX able 4.)

'** b b dne kinda of data that led Ibe US Io adopt hmiiim-
iminitration tyitem (or la 1990 IimnipitioB AcL Tbe US baa had an
'^vestor" vita tinn die 1965 amendmena Io to Im mitra li o o and
Nationality Act However, die vita catefory tacked d odite«d via*
oumben and, m a result of high vita demand in other catcfociea. none
had been availrf>lc e invtsion tinoe 1971. The 1990 Ad coneaed dot
■wnaly by dedicaiinf 10,000 vitas Io die proframne. The new US
invcsior vita is an axnaJgam of the C a nadi a n systoD's niuuipml
entrepreneur and investor classes.

ictioeat about managing - even oiicro-fflanaging - their
immigration system. Americans are much more conflicted
about die government's proper role in lelatioa to the
ecoBomy and skeptical about ihe govemmenrs ability lo
bring about positive ecooomjc change.

Another difference ia the two systems is that
Canadian federal immigration officials are lequired to
consult wiih the provinces on provincial demographic
economic and labour market needs before making policy
and programme decisions on immigration. It is a
mandatrd lesponsibility which they discharge with
increasing care. In addition, federal immigratioo officials
may, and do. routinely and systematically consult with
representatives of such secton of r«n«Hi«n society m
employer and employee grt)ups, ethnic and religious
groiqis, advocacy groups, the Bar. and voluntary agencies.
In ihe US, there is no provision for formal or informal
consultations with state and local officials, and, until
recently."* virtually aD "coosuhations" with special
interests ou-ui ied at the level of Congress.

Remarkably, these rather significant differences do
not result in fiindamentaliy different policies - again widi
die exception of the selected-worker category, where the
persistent contrasts between the two systems may have ai
much to do with different experiences and traditions than
widi true disagreement about the basic premises behind
independent immigration. For the United Slates, employer
nominations and case-by-case determinations ""inuin the
"proper^ optics about employment-based immigration -
that is. that foreign workers neither compete widi nor
di^arf US woiken. For Canada, aAer a quarter ceatuy
of selecting workers, a ievd of comibtt'has been' reached '
about a'sysiem that adjusts access to occupations so as to
direct the flow of immigrants to the appropriate jobs -
while simultaneously nunipulating total selected-worker
immigration and avoiding troublesome applicant

" The 1990 Inuniiniioa Act witneaed t t yneniaiic '' "-*"''i of
ioieresi groBp activity to include the eseciitive bfiach it all lei«ls. Sach
iavolveiiieat iaeatified further durio( Ihe Riuladon-issuint phaoe igt
dK 1990 Act

"* Timeiy dec iti o m and the liiifiiy id offa visas B diose who qoalify
are critical B manafint smxtsAiDy an ifflnii{nticii lysaem. Sooched.
out pnicessiag times create a pubbc-ielatioiis probkin and fbioe a
irallorarion of lesouras B aotvcr complaints abool delays. If aot
checked Ihey can Ifaieaies kxs of cuuuul over the entiR munifntioa
pnxcsa. In die Unicd States, backlo(i of lorae IS bbIUoo penoas
duealea B overwhelm die system. Canadam do not bee die suae
piedcameas. That is becaose diere ate lew lestrictiaas B tt
iTunifiraTTTm of inuue^fiase families of dtitftis and imnsfrints. becaaie
doe SIC sipiifkaiit oppomuiities lor die iiiuni(nbca of mote £staat
■dadvca dumth die telected-woikcr c a fcgotiea fu 1990, for instance.
'assisted relatives' added more dian 25,000 bnnly mtm b ei s B tt
neatly T7,000 bmily-clats vitasX and because die tia of die appbcsM
pool can be cootroncd by nunipulaiiog the onii-asiestrecni system tod
other ^rainistxadve measures. As a resale the main concern is wiA
delays cieaied in die coone of oonnal applicani pcocetnnt. rather AM
backlop. If such delays become prooicted. dxy would indicaie dul tt
visa-delivcty system could no lonfer muet demand, h woaid be
necessary B make ^ministralive a^ustmeats B the telectkn formola 9
B commh adiSdona! lesourcea. The major potential direa it tt
ovenhootio( of larjett - paniciilatly as die demand for relecled-woiM


lataiMltoml ntiTBtlcc: mtool prea— Md Wipe— i

Sytttms wUdi idy on onis of M i rtHnfni fcr
ctaMing labour marfcet-bound nnmignnb are comptei
■m) iBiource-mtensve, and io laite the portioD of selected
worfcen who win access to Canada because they have
Bgnificant numbers of bonus points.

A proper analysis of the cons and benefits of
Canadian selected-worker immigration, however, nuist go
beyond resources and mediodological "purity". In bet,
Qnada derives benefits from the point system which may
be less easily quantifiable yet in some respects are mote

• The point system inspires confidence because h
applies universal, ostensibly hard (data-based) and
objective aelection criteria'" to most of Canada's
independent-stream immigrants.

• The programme's appearance of impartiality
probably discourages frivolous attempts to challenge
h, while itt technical complexity and apparent
•ensitivity to labour-market conditions is reassuring
to many who are preoccupied with the possible
adverse effects of selected immigration on Canadian

• Similarly, the past'" expendability of the selected-
worker class duricg bad economic times had a kind
of across-the-board reassurance. It eased tfte
concerns of those worried about increased
competition from immigrant workers during periods
of high unemployment At the same time, it
reassured those with relatives abroad and those
advocating the primacy of social and humanitarian
motives in immigratioo that the social and
humanitarian streams would maintain (heir privileged
and protected place in the Canadian system. The
downside ->f the strategy was that it had become an
immigration flow manager's nightmare and was
based on faulty economic premises.

• Fmally, the point system's emphasis on specific
occupational preparation and experience (up to 33
points toward d>e needed pass mark of 70),
education, age, and language skills (table 3.7) clearly
reassures those who are always eager thai immigrants
are selected through criteria that give priority to the
country's economic needs in an increasingly
competitive world

prooessinj ban~X as veil as k««ls cootnl (sec table 3.7).

'" Dunns l^* crnnM Canadian fccession, the leleclod woriier daa
has cxmlinucd k> gpnt and continues Io be showcased In Canada's Sv*-
yut iffiiniirKiaa (taa. SeetafeleSA


Ifarougli the uidepeiident-inimi(mit ilreaiii - altbough
many of the foreign worken chosen by US businesses are
telated to the owners of the businesses. HnaHy, and in
counter-contrast, certain relatives are guaranteed direct
access to US visas through the current Fourth and Fifth
bmily preference categories (table 3.2). Extensive
backlogs for the Fifth Preference, however, make the
likelihood of immigration to the US highly unlikely for
those DOW being added to the waiting lists.

Finally, the two countries diverge somewhat oa the
attentioD Ihey pay to dK issue of optics - that is. lo the
elusive goal of assuaging, if not persuading, the public that
immigration policy promotes an orderly and btlnoffl
approach to the major priorities, goals, and cooccnis irf
society. Although both Canada and the US are stnigglii)g
here, in many ways Canada is much Cvther along in
appreciating the importance d public lelatioas than is its
neighbour to the south.

(U) The Importance of opdcs and pobBcrdalloiisfiw
Immigration policy

No immigrant selection fionnula can survive public
scrutiny for very long without a constant efTcrt to explain it
and to show how it conforms with and advances (he
receiving society's values, principles, and interests. Failure
lo engage in and be somewhat successful at such an e£fatt
risks surrendering the initiative in influencing popular
perceptions about inunigration to private interests or to
demagogues. This is particularly risky with those
inmiigration programmes which so br, perhaps, are itot
part of a country's mythology about inmiigration and may
not enjoy the general support associated with the social or
humanitarian streams. '"

An example relevant to both countries demonstrates
this point Business immigiatioa is generally an economic
success. But unless its benefits to a nation's economy and
labour market are consistently highlighted (and unless it is
emphasized that this entry class does not compete for visas
with other immigrant streams), its acceptance and long-
term survival may become questionable.'" A self-imposed

'" This it not ID tugjen thai these Mhcr mams ■« not dianaifed.
However, as a rale, loverainents can dereod, bodi rt inr i ' ttif aTl y mi
inunalionaUy, liigh mcnl paaaF foaina aoK toMy diasi
positions based on sdr-inlBitst

'I'The receol problenia of the Aoslraliaa Business Inungrssioii
Protnni (BMP) demonstme this poim ocIL Asttnlia inmdoced the
precunor to the BMP in 1976 as the lenmpreneuha] migratioti
categny." The categocy required entrepRnenn to panicipaie actively ia
inanagenieni and set such explidl ptDgramme objectivca aa die
imroductioA of new technologies, teciuiques ajvS designs, and the
expansioo of trade. In 1981, die BMP rcquiied dial applicants have a
SDCcessful biuiness lecord abroad, a oomprehensive hminrss plan,
specified amounts for tnosliBr thai incnase »iA (he
investor's/enlnpreneui't age {bom $330,000 Auttralian for those iBder
40 to $830,000 Aosmlian for those over 58), higha amoants for
aetilemeiit in Australia's two largest cities (Melbourne and SyifaeyX aod
promise toward meeling such other less easily quantiliable prngia i a ii i e
objectives aa export proinolioa. import svbsbnitiaii. job
creadon/reientioQ, and technological imovalioiL Tlie progmnnc vaa
■nderstandsbly unable to deliver on mnjr of its cxplicil f r|io la ii i— ,

'^ndi-iii-immifratioa'* attitude can help a great deal. That
is. it helps to set and administer immigration policies
through a nure public process, explaining the system at
every step. That can go a long way toward preventing
citizens from developing Mse impressions and unrealistic

Nowhere is this more obvious - or necessary - than
in the case of independent immigration. Large-scale
iodqwndent immigration streams may not be sustainable in
the long run unless proper care is taken to emphasize:

(a) that these immigrants create, rather than cost jobs;

(b) that they mhancf the global economic posture dl the
country and thus are good for all Canadiaits/Americans:
and (c) that they do not take visas away from bmilies and
re f iig ee*.

(HI) The need for ieadcrdilp In ImmlgralioB

Conveying clear messages about inunigratioa is a
sperity. If leaders are going to lead, they
should embrace the issue and attempt to shape public
opinion along the lines just suggested. That includes
aggressively repudiating those who sow divisiveness. And
if governments are going to govern, they should adopt and
punue immigtatioo .^polides that are transparent and

Innally, and most significandy, members of the
academic world, intellectuals, opinion-influeoceis/shapers.
and policy makers are equally responsible ia challenginf
and actively denying demagogues a monopoly in setting
the public mood. Neither Canada nor the United Slates
can afford to have its image tarnished by the irresponsible
rhetoric of snull bands of opportunists who seek poUtical
advantage from fiieling the public's insecurities and
anxielies about immigrants.

and paniciilaily oa the one implicii fspcnatioo: tlisl il would aitmcl
significant partidpatioo from E ur op eans . (Of 9.1 18 investors bctweea
I9S3 and 1990, only about one-eighth came from Europe and NorA
America, and in 1989-90, more tlian 88 per cen were Asian.) At a
lesnll. die programme was suspended pending irview. Oearty, among
the manen to be stwfied arc the ceasons why Australia is onanractive b
large munben of '^uitipean'* investors. In a broader sense, betka
thought-om and more leaEstic prograimne aims may have to be set, snrf
the Govemmcm may have to accept that participants win initially hed^
their bets by continuing to be involved in businesses in ilieir countries cf
origin. If the progrararrie is to be reinstated, it most also come to terns
with die troth thai it wiO be used by some fimply as a nicans of tecuriflg
visas - as happens with the Ca nadi a n and US progranunes. See Inglis
atid Wb (1991). for a ftiU dUcussion of the Australian businets-
immigrsiioa programme: see alae Australia (1991): and Bmean af
Immipaiioo Research (I991X


Tliat b linle doubt ia my mind that, in Kiting viable
jHimigratioa policies, the US •udtoribet havt been mucb
riower - or perhaps less adept - at recogniring the
jBportance of public perceptions and acting on them.
Ibese officials need to nress that immigration policy
icflects the country's values, interests, and priorities.
Perhaps dte Inunigratioa Act of 1990, with its much higher
jBunigration levels, win galvanize policy-maken into
akiag tesponsibility for their inunigratioa actions. A
toaspiracy of activism" b dearly needed on the issue."*

would probably be naeful - and cenainly be mare efficient
•nd coat-effective. At the tame time, however, it must be
■oied that Canada's experiment with consolidating
imffiigration and cmployntent fiuctioQS under a tingle
agency (Employment and Immigratioa) has had its
problems. Appvently the marriage bat not led each grtiup
of civil lervanu to ^praciate more fiilly the other's views
on immigtatioa's appropriate place in the econo my and
society, and it has not "mivcdT matt Ol the cocrdi nation
problems that also permeate official Washington. In fKt,

Qv) Obctaclet to convcrgHKC

The degree to which Canada and die United States
can make use of each other's experiences will be affected
by die attributes they thire when making decisions. There
mt both similarities and tlifferences in the following areas:

• the tiegree of autonomy different branches of
government have in making decbions on

• the branch of government which has highest
authority on immigratioa and the amount of
independence it shows;'"

• the degree of involvement by different political
jurisdictions such as stales and localities and by the
private sector in immigratioa policy:

• the degree of concentratiao or diffiisioo of
responsibility for immigration among executive

• the extent, quality, and effectiveness of efforts to
explain and enlist support for immigration policies
among a broad spectrum of interests; and

• the place of immigratioa in a countiy's nation-
building mythology.

Two differences deserve additional explication.
Rnt, meaningfii] regular consultations could enhance
official Washington's sensitivity to the views of states and
kicalities on immigntioo policies. Paiticulaily,
Washington could learn mote about how policies decided
in the capital affect the ability of state and local
governments to plan for and deliver services to dieir
constituents - "old" and "^w." This will invdve states
and localities in policy-making from the earliest stages and
will be a step toward an equal partnership widi Congress
and the Administration on this issue. Such a partnership
may be the best bet for devising a coherent and integrated
approach to immigration for which an effective
constituency can be built, a constituency that will sustain
the policies for a long time.

Second, increased coordination among federal
agencies in making and executing inunigration policy

"' Ai »cn at cic«iin| an "optimun kvd of udal Insiea dui can
kad 10 gnaier acativiqr' (DionuH (1991), pJ).

"* When aprnprialt. Ml aay iadade pobGdy icapoadtel B opiniaB
polh. Moff ofniBoii poOi on iaunifntioB icaoh te aaillitih Mti
ftcqncady eonfiiaiiit bifanatiaat. For iactaBot, larft a^ioritia of
Anerfcans are IbfUy ispporthw of imnifntint la jiiMjal bsi alao
mppon ovcfiD liiiBii. Whea aiked abaina qurntom atoii ipcdttc
policies (ndi », 1>B jna Aiak Ihal die US fmatiy wetpit loo
few/loo many/aboai the ii|fat nnnibcr of ImimpaiutT^ noai Amcricaa
fend to cxpfcss; (a) j nwnhirfl ^^ ntn abool legal tanmtraooa lewii
tdm "ta) high"; (b) (caeial oonoeni ifcoiH beiaf *t''~^ and kaviat
wtu wa|ct uiiuciiuuied by bomtiaitti; (c) vny Ugh ummhii aboM
Oegal tanraigntion; and (d) goenl nippact for ack ideai aa nkar
bofocf oomrou and Ifae fiiung of ciiip4oyen who lake ca iDegal fanign
woiten. (OeoenUy, ao n^jorily cpinioa cailm on ttie oiBiia for
aeleoing US inunignais - diat ia, whether ii dioald be ^killi' or
ttimly' icladofuhipt). However, when Ibc qneatiaBt daft ftom
genenlitiet or ahenct prindplct B apedfici (nch ai bow die
fespondcnt feels about iminigiiaiii/Rnigees Doo oenani cooatnes or
^lecific iiuiiugi aoti/iefiigees wiih wIioid the itipondfcj fi*T*if la
eootaci through comnnaity or wortplacc), the appaical oaacem wiA
immipalioe generally gives way to nnch nore poaidi« views.
rsniirtiaii opinion polls generally icinforoc these cbacrvaliaaa (Angat
Rcid Oroup (I9g9)) Further, like raoti polU. immigntioa opiibai poOi

Online LibraryUnited States. Congress. House. Committee on the JLegal immigration reform proposals : hearing before the Subcommitee on Immigration and Claims of the Committee on the Judiciary, House of Representatives, One Hundred Fourth Congress, first session, May 17, 1995 → online text (page 28 of 30)