Issues of Demographic Imbalance in UAE - Example

Issues of Demographic Imbalance in UAE Name Course Name and Code Date The changing population and migration factors influence the populations of different countries and create both benefits and challenges. UEA and other GCC countries are facing the population imbalance problems. The aim of the paper is to discuss the demographic imbalance focusing on UAE and understanding the challenges presented. The second part discusses whether the benefits of foreign labor population exceed the costs while the last part discusses strategies that UAE and other Gulf states can embrace in addressing the demographic imbalance. “Demographic Imbalance” And the Main Challenges That It Presents For the UAE Demographic imbalance is the presence of more non-national residents compared with the indigenous populations. UAE faces problems because of demographic imbalance because there are more of non-national compared to the national population. Based on the 2005 data of UAE Population by Emirates, the non-national population was 3,280,932 while the national/indigenous population was 825,495. Based on the UAE’s National Bureau of Statistics, under the methodology of estimating the population on 2010 estimated data, the problem of demographic imbalance is evident. The number of national (indigenous) population was 947,997 while the non-national population was 7,316,073. It indicates that the demographic imbalance is huge and continues to grow. For analytical purposes in comparing these two data, the change of population for the nations is (947,997 – 825,495 = 122,502) while for non-national is (7,316,073 – 3,280,932 = 4,035,141). The data indicates the growth of non-nationals is faster compared to the national population, which presents numerous challenges for the UAE. These challenges come in the form of security, political, social and economic. In the current situations where terrorism and related criminal activities, migration introduces these criminal elements to the country (Banu and Mini 2013). Migration is not wrong, but some people come with ulterior aims such as criminal activities including drug distribution and sale of weapons. The society is also affected because of degradation of traditions and cultures, and the new migrants can introduce behaviors and characteristics, which are against the traditional and cultural fabric (Forstenlechner and Emilie 2011). The economy is also affected because the provision of basic services including welfare and education are constrained because more people who are not natives obtain the benefits of the nationals (Sleiman-Haidar 2014). Job opportunities and other governmental benefits are distributed across different migrants and natives creating issues with distribution of resources (Modarress and Diane 2013). The political situation includes the creation of ideologies and views against the migrants resulting in problems such as criminal activities against the migrants. Thus, demographic imbalance creates numerous problems to the host country, and effective balancing is paramount to ensure the host country remains stable. Do the benefits of the foreign labor population exceed the costs? Migrants can influence the employment opportunities and specialization. The low skilled migrants can be employed in the low paying job while the indigenous population can specialize in highly paid jobs. Thus, the low skilled employees complement the functions and activities of indigenous populations. The migration enables transfer of knowledge, which contributes to the improvement of skills of the indigenous population (Banu and Mini 2013). Migrants also improve the organization’s competitiveness, which translates in the generation of more employment opportunities for the indigenous population (Forstenlechner, Emilie and Rashed 2012). It is premised on the understanding the migrants are employed in the low paying jobs, resulting in a reduction in the costs of production, improving the competitive advantage of the organizations because of costs of operations (Modarress and Diane 2013). It results in an increase in demand for the skilled employment, and indigenous population can capitalize on these benefits. From this angle, the foreign labor population reduces the costs of operation, which is important crucial for development and productivity; hence, it does not exceed the costs when viewed from this angle. New migrants contribute to increased inequality because of competition to the existing social services with the indigenous populations. Low-skilled migrants compete with numerous benefits, but since these low-skilled migrants are already disadvantaged, they can create more problems requiring the government to review its policies (Forstenlechner and Emilie 2011). It may increase inequality meaning the government, and other public institutions are forced to formulate and implement policies and measures to improve or to address the inequality (Banu and Mini 2013). This exceeds the costs because of the forced institutional adjustments, and if situations existed that migration of labor force was not encouraged, the society may have likely developed effectively. Issues associated with efficiency and effectiveness can be raised. The foreign labor force comes in different forms ranging from skilled to unskilled meaning the unskilled requires some training and development (Banu and Mini 2013). The skilled employees can be seen as an asset to a country, but the unskilled can create numerous problems. It raises arguments of efficiency and effectiveness in completing different tasks and assignments (Forstenlechner and Emilie 2011). The migrants can be seen as cheap labor but may affect productivity because of the quality of production. Manufacturing and production problems associated with efficiency of the processes and the effectiveness of the employees may increase the overall costs (Modarress and Diane 2013). Thus, the skilled employees are added advantage to the country, but the unskilled requires additional training and development to understand and appreciate the production processes, the cultural and societal requirements, and the traditions and legal frameworks of the host country. It indicates migration, especially on labor, creates more costs, and it is advisable to train and develop indigenous populations so that these problems cannot surface. Are there ways that the UAE and other Gulf states could minimize the strains associated with the “demographic imbalance”? The indigenous population prefer national or government jobs rather than the private sector positions. The national “jobseekers” continue to seek for government opportunities because of either cultural or economic factors that influences their decisions (Modarress and Diane 2013). In the private sector, numerous opportunities such as menial and unskilled positions exist but the indigenous populations are against or lack attraction to these positions. The problem is associated with perception and changing the perception is an integral component that will encourage the indigenous population to seek opportunities such as domestic workers and construction work. The knowledge-based economy is important because of the innovative private sector and the market dynamics such as foreign ideas and competition, meaning the policy on indigenous population has to change. If the indigenous population gives more incentives and training, these individuals would be motivated and continue seeking opportunities within the different sectors especially in the private sector (Forstenlechner and Emilie 2011). The idea is changing how things are done and the contribution of the indigenous population. Improvement of the skills based on the market dynamics such as encourage the indigenous population to skills improvement platforms in educational facilities, linking the job opportunities with economic significance, and the potential benefits of incorporating the dynamism of the opportunities (Banu and Mini 2013). Thus, the market dynamics should shape the thinking, skills acquisition, and knowledge management on the indigenous populations. Market labor reform enables the changes in policies and approaches in allowing migration (Szuchman 2012). The aspect of migration creates the demographic imbalance because many people are coming to UAE and other Gulf states because of skewed nature of the policies and the perceptions of the local employees. Management of the visas and assigning specific visas with specific job opportunities is important (Modarress and Diane 2013). Through controlling issuing of visas through a private-public kind of partnership, it is possible to determine the right persons to be issued with visas, the job opportunity offered, and determine reasons why the indigenous population did not apply for the same position. The reform would incorporate a clause, which encourages the indigenous population to move across jobs easily based on experiences and skills accrued during the periods (Banu and Mini 2013). The reform would improve on the current structures in which private sectors are given incentives to encourage employment of indigenous populations. These strategies would change the ideologies and philosophies of the national population and continue seeking employment opportunities reducing the requirement to employ migrants. Professionalization and skill development policy approach should be upheld. The aspect includes decreasing the reliance on labor-intensive strategies and considering the use of technologies and creativity to create positive effects both in the production and working conditions (Banu and Mini 2013). Embracement of technology, for example, would force the private sector to pay better wages and also a reduction in reliance on unskilled manual labor (Forstenlechner and Emilie 2011). Betterment of the salaries through the introduction of technology would encourage the indigenous populations to seek for these opportunities translating to reduced dependence on non-national jobseekers (Modarress and Diane 2013). The aspect of professionalism and development of skills includes encouraging the indigenous population to obtain short term diplomas, which is reflected as trained craftsman. Other vocational training programs and creation of professional standards improves the perception of menial jobs, and the entire job market dynamics would be reflected. Overhauling the migration sector such as the departments and associated policies would minimize the imbalance. It includes the management of the needed migrants better through giving opportunities to migrants already in the country in terms of the dependents, working age offspring and spouses. It will reduce the reliance of more migrants through capitalization on what is available or incorporating conditions on the visa application processes (Forstenlechner and Emilie 2011). Focus on skilled employees rather than the unskilled is paramount and these individuals should be motivated to stay longer enabling the transfer of skills (Modarress and Diane 2013). Incentives such as exponential gratuity should be provided to encourage the skilled expertise to continue transferring skills to the indigenous populations especially in the educational sectors. All these components relies on the effectiveness of the migration system and the incentives provided to the indigenous and foreign employees in advancing cohesive developments. Improvement of national human capital and changing the societal perceptions and creating an inclusive approach that encourages the integration of different variables are important (Modarress and Diane 2013). It ensures the society appreciates the importance of females in advancing the labor and economic requirements because Middle East society believe the position of a female individual is at home (Banu and Mini 2013). Encouraging labor diversity through allowing equity in terms of employment and other related processes such as education and participation in programs such as vocational training increases the value of human capital. Improvement of the educational system through encouraging inclusivity and appreciating the significance of national identity are important (Forstenlechner and Emilie 2011). The idea is utilizing the local capacities and capability and deleting the assumptions and societal/cultural positions on employment, education, and positions of individuals within the wider population. Embracement of such ideologies improves the wages/salaries, creates an inclusive workforce, and the need for foreigners would be reduced. These processes translate to a reduction of demographic imbalance. References Banu, Mahjabin, and Mini Amit. "Dynamics of Expatriation Process–A Case of Indian Expatriation to UAE." Global Journal of Management and Business Studies 3, no. 6 (2013): 581-588. Forstenlechner, Ingo, and Emilie Jane Rutledge. "The GCC's “Demographic Imbalance”: Perceptions, Realities and Policy Options." Middle East Policy 18, no. 4 (2011): 25-43. Forstenlechner, Ingo, Emilie Rutledge, and Rashed Salem Alnuaimi. "The UAE, the “Arab Spring” and Different Types of Dissent." Middle East Policy 19, no. 4 (2012): 54-67. Modarress, Batoul, A. Ansari, and Diane L. Lockwood. "Emiratisation: From Policy to Implementation." International Journal of Human Resources Development and Management 13, no. 2-3 (2013): 188-205. Sleiman-Haidar, Ribale. "Addressing the Demographic Imbalance in the GCC States: Implications for Labour Markets, Migration, and National Identity in the GCC States." London School of Economics and Political Science (2014): 1-9. Szuchman, Jeffrey. "Archaeology, Identity, and Demographic Imbalance in the United Arab Emirates." Heritage & Society 5, no. 1 (2012): 35-52. Read More