A comment on the latest migration figures

There has been a lot of attention paid to the migration figures released last week. However most of this focussed on the increase in European immigration to the UK, particularly from Bulgaria and Romania.

This ignores what is going on in the Commonwealth. The headline figures were encouraging with a 20,000 increase in just three months. However this is still well below previous peaks and only half of what it was a decade ago:

What is particularly concerning is that 25% of the increase in the net figure is down to a fall in Brits moving to other Commonwealth countries. All of our proposals to fix Commonwealth migration and visas are based on reciprocity. It is vital that Commonwealth migration remains a two way street so that every citizen can benefit from all the network has to offer. However the latest figures are the lowest they have been since at least December 2004 (the earliest point in this dataset).

However it is great to see more Commonwealth citizens to the UK. In particular, it is welcome to see an increase in those coming here with a definite job offer, up nearly two thirds on a year ago and finally back to the levels last seen before the financial crisis.

All in all, they are encouraging figures but there is a lot of work still to do. We again call on the UK Government to adopt the proposals outline in our report "How to Solve a Problem Like a Visa" to ensure that Commonwealth citizens are able to move as freely as possible around the Commonwealth.

CX Directors published in new IEA Monograph on Britain outside the EU

The Co-Founders and Directors of CX have contributed a chapter to the latest monograph published by the Institute of Economic Affairs (IEA). The volume is called "Brexit: Directions for Britain Outside the EU" and includes a number of options for the UK to pursue if it were to leave the EU.

The chapter in question, penned by Ralph Buckle and Tim Hewish, outlines a plan to reinvigorate trading links with Commonwealth and Anglosphere countries. The reasoning for this approach is also outlined in a post on the IEA blog here.

In the blogpost and the chapter, we argue that the UK's common language and legal system, the booming growth of the Commonwealth, the ease of doing business in many member states, and the prevalence of the internet, all make the Commonwealth the obvious starting point for the UK when seeking new international trading partners.

It builds on our award winning entry to the IEA's Brexit prize last year.

Download the book for free here.

Read the introductory blogpost here.

A promotional video is also available here.

New employment statistics show mixed picture for Commonwealth citizens seeking work in the UK

There was some welcome news for Commonwealth citizens in the ONS' latest employment statistics. The number of Australians and New Zealanders finding work jumped by 9% year on year in the last quarter of 2014. However this is still well below peak levels and only around half the increase seen in EU nationals finding work.

Figures for the same quarter in previous years show that the number of Australian and New Zealand nationals finding work in the UK is still down by over 7% from 5 years ago and down by over 15% since 2004.

The figures for South African nationals are even worse. They fell a further 1.7% year on year and are now 43% lower than they were in the same quarter of 2008, the year the country was removed from the Youth Mobility Visa.

The proposals from our report "How to solve a problem like a visa" would ensure that Commonwealth citizens wanting to work or study in the UK, and vice-versa, are able to do so. It's vital that they are adopted!

***Update*** TNT magazine report our findings and a quote from our Director here: "Crumbs of comfort as more Antipodeans find work in UK."

Round up from our latest event: Why the Commonwealth is good for UK-Indian business

We were delighted to host a lunchtime event with keynote speakers Professor Peter Buckley and Dr Surender Munjal from the Leeds University Business School to discuss their latest work looking at India and boosting intra-Commonwealth trade.

We also welcomed a great audience that ranged from a number of Peers, High Commission staff, the Commonwealth Enterprise & Investment Council, FTI Consulting, and the FCO.

Prof Buckley and Dr. Munjal’s study - “The role of the Country Alliances in Reducing the Transaction Costs of Internationalism: Evidence from Indian Multinational Enterprises”, examined over 1000 overseas acquisitions made by 326 Indian multinationals between 2000 and 2007 in 82 countries. Specifically, they explored how a Commonwealth alliance would influence business in India. 

Prof Buckley opened by discussing the value of the Commonwealth and how it was an understudied topic. He said that a Commonwealth alliance would bring together the advanced and emerging economies of Australia, India, the UK, Canada, South Africa, Nigeria and Malaysia, who accumulatively have a (GDP) worth $10.450 trillion. 

More generally, he explained the different barriers which affected International business and trade, specifically looking at: Cultural Distance, Geographic Distance and Economic Distance (cost of trading):

Dr Munjal went over their findings and was incredibly informative. They proved that:

Cultural Distance was an important factor for Indian Multinationals, with them seeking “to invest in countries which have a lower cultural distance from India”. Countries with similar identities and cultures were easier to do business with and “reduced risk and uncertainty” in international trade. 

Commonwealth countries are psychologically close, with our shared history and heritage alleviating many cultural barriers. Similar laws, customs and language make for a positive environment to trade and invest.

Geographical Distance between trading countries will never change, technological advancement, free trade policies and procedures can encourage international trade. In fact, they noted that many South Asian multinationals often do not wish to invest in neighbouring countries due to what has been described as “political rivalries”.  

Economic Distance calculated the costs of undertaking business in countries influenced by investment and trade. The outcome was that the “Home-host country alliance positively influenced the internationalisation of Indian MNEs”. If trade between nations was cheaper/free it would be a sweetener in any transaction.

Q & A Session

We had a lively and engaging Q&A session. Our Executive Director asked about the effect of immigration and visa issues to businesses looking to invest and trade. Prof Buckley said that there was “strong implications” on “restricting Commonwealth opportunities” should current polices remain unreformed. He also spoke about increasing the Commonwealth supply chain that also included individuals. If this was restricted too heavily then this would indeed impact investment.

Our director also asked what Britain could do to make the Commonwealth more business friendly. Prof Buckley said that there was “not a lot of marketing of the Commonwealth” especially in trade and investment and that “maybe there should be a renewed focus”. He reiterated that there “remained a strong Commonwealth effect” and their research bears this out. However, governments are not capitalising on such benefits.

We heard other questions that looked at the cultural dimension and its impact on trade and investment. Lord Howell spoke of the Commonwealth’s common working language and that it was not just the English we speak,  but its “internal laws or DNA” that allows for a “certain way of thinking, our phraseology which governs how English speakers behave.” This has a significant impact on business. He said that this would become more pronounced with the growth of services and digital goods. Our speakers agreed and also said that the institutional strengths of the Commonwealth are salient. Such examples are business case law and accounting practises.

Other questioners asked about Indian diasporas in Commonwealth nations how this could affect trade and investment. Our speakers agreed and said they would like to do more work in this area. We proposed that this could be opened up to included a wider Commonwealth diaspora.

In conclusion, Prof Buckley and Dr. Munjal provided timely evidence for policy-makers and businesses of the value of a Commonwealth alliance and provided an important reminder that the Commonwealth is a tremendous but undervalued network which could and should be harnessed.

UK Foreign Secretary delivers barnstorming pro-Commonwealth speech in Singapore

The UK's Foreign Secretary has delivered a fantastic speech in Singapore highlighting our close links, promoting the Commonwealth, and making the uncompromising case for more free trade.

Too often, even when the links that bind member states together are recognised, they are seen only in the bilateral sense, and not as part of the incredible network of networks that is the Commonwealth. It's great to see the Foreign Secretary explicitly recognising this and following on with his predecessor's pledge to put the 'C' back in FCO.

You can read the full speech here but we've collected some of the highlights below.

On our shared history:

"We have been part of the Singapore story for two centuries. Along with Australia and New Zealand, two of the stops on my current trip, our history is so closely interwoven that we have ties which the oceans cannot loosen."

“Our historical, cultural and commercial links mean the UK already enjoys thriving ties with the Asia Pacific region.”

On the Commonwealth diaspora in the UK:

Britain boasts a leading financial and creative hub, one of the world’s few truly global cities and is home to many vibrant Asian communities: 37,000 UK residents were born here in Singapore; 175,000 in Australia and New Zealand combined;

On the rule of law:

"In the UK, in the Commonwealth, and beyond, it has had a profound impact in the development of the rule of law, strong institutions and accountable government on which our societies have built enduring prosperity and stability. Nowhere is this truer than here in Singapore where there is a close correlation between the rule of law and the prosperity generated by global investment."

“These shared traditions bind the wider region, and beyond. Indeed, judges from the UK, Australia and New Zealand sit on the Court of Final Appeal in Hong Kong, where the rule of law has been a fundamental component of continuing economic success.”

On our shared values and language:

"Geographical distance has been no barrier to the development of shared values between the UK and countries in the region. With three of the countries that I am visiting – Singapore, Australia and New Zealand – we not only share a common language but common law traditions and Commonwealth membership as well. The same applies, of course, to India – that giant of democracy and integral part of the rising Asia story."

"We share with you in Singapore the worldwide language of business, science and engineering."

"It is a convenient truth that human rights, prosperity and security are mutually reinforcing. For example, the free flow of ideas and innovation - the life-blood of economic growth coursing through the veins of the free Asian nations, is a driver of economic growth, and a key differentiator in favour of democracy."

On free trade:

"Free trade is in Britain’s DNA and that is the code that is unlocking prosperity across the Asia Pacific region. So it is in all our interests to maintain the momentum behind trade and investment liberalisation in the region."

"[It is] bringing new levels of prosperity to the people of this continent; new opportunities for global trade; and higher standards of living for all."

On defence

"Britain is also a party, alongside Singapore, Malaysia, Australia and New Zealand to the Five Powers Defence Arrangements – still the only formal multilateral defence arrangements in South East Asia."

“That means we are ready and able to mobilise in support of Asia Pacific allies friends and partners… As we did in response to Typhoon Haiyan, facilitated by the Royal Naval presence here in Singapore and again when the world came together in search of missing Malaysian airliner MH370.”

On trade and investment between the UK and Singapore:

“the fundamentals have never been better for flourishing trade and investment relationships between the UK and the Asia Pacific region. The statistics tell the story: in Singapore alone there are over 1,000 British companies.

On the UK as a Commonwealth gateway to Europe:

"Nearly three quarters of Singapore’s investment into the EU goes to the UK."

“I hope the EU and Singapore will match this by implementing the FTA between them in the very near future. It should be the precursor to... further FTAs with Asia Pacific economies, including Australia and New Zealand.”

"Britain’s economy is on the move too. Ambassador, you said in your introductory remarks that Britain was the world’s sixth largest economy and I don’t often engage in Schadenfreude with my French neighbours, but we are now the world’s fifth largest economy!"

“few western countries can claim to know Asia as well as Britain.”

And finally, on the future of our relationships:

“the UK Government has not and will not let itself be distracted from the importance of building strategic relationships for Britain across the Asia Pacific region which are fit for the 21st Century.”

“The threats we face together as challenges to our common prosperity, to the values that bind us, and to civilisation itself can only be overcome through the kinds of partnership the UK is already developing across this region”

 “The UK and the countries of the Asia Pacific region are already working as partners for a safer and more prosperous world. But I firmly believe the best is yet to come; that the most important chapter of our shared history is the one we are about to write together.”