Rio de Janeiro – Large scale migration of people from poor countries to rich ones will be a permanent feature of economy for the next decades, according to a report released this month by the International Monetary Fund (IMF) and World Bank. According to IMF’s executive director in Brazil, Otaviano Canuto, the country can take advantage of this trend for its own development.
According to Canuto, Brazil is missing out on the opportunity created by its demographic dividend window – when the majority of the population is on the working age-group (15 to 64 years old) – to develop the country. This happens, according to him, because Brazil hasn’t increased productivity or savings accounts nor has it made adjustments in its pension system.
The Global Monitoring Report 2014-2015 by the IMF and World Bank rates the country as being in the late stage of its demographic dividend window – it lost the first phase of the demographic dividend window, but could still take advantage in the next few years. “In a few years, Brazil will face a shortage of labor in some areas and, for that, immigration can be very interesting”, said Canuto during a seminar this Friday (16th) at Fundação Getulio Vargas (FGV).
*Translated by Sérgio Kakitani
