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Spain looks to immigrants to drive economy

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Spain looks to immigrants to drive economy
BBC Smiling asylum seekers playing the game bingo at a hotel in northern SpainBBC

Asylum seekers such as these can find work in Spain six months after they have arrived

A group of Sub-Saharan African men are playing bingo in a conference room of a hotel near the northern Spanish city of León.

They laugh and celebrate when their numbers are called out, but many of these asylum seekers have harrowing stories.

Among them is Michael, who fled Ghana to escape a violent feud that saw his sister and father killed. After travelling by land to Morocco, he paid a trafficker who put him on an inflatable boat crammed with people which took him to the Canary Islands.

“I was so happy, because I knew all my troubles, and the people trying to kill me, were behind me,” he says. “Because once you are in Spain you are safe.”

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In Ghana he worked as a petrol pump attendant and a storekeeper. He also started studying human resource management, which he hopes to be able to continue in Spain once he has settled.

“Spain is one of the most respected countries in the world,” he says. “Being here is an opportunity for me.”

Getty Images Migrants and refugees wearing blankets to stay warm are standing on a boat, operated by Spain's Maritime Rescue ServiceGetty Images

Migrants and refugees who try to take small boats to Spain often have to be rescued

Around 170 asylum seekers are staying in this hotel, in the town of Villaquilambre, which has been converted into a migrant centre.

They are among the many thousands of people who take the maritime route between the African coast and Spain each year.

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So far this year, more than 42,000 undocumented migrants have arrived in Spain, an increase of 59% on 2023, the vast majority having undertaken the perilous crossing to the Canary Islands.

The archipelago’s difficulties in managing these large numbers have contributed to a fierce political debate about immigration, mirroring that in many other European countries. In Spain the controversy is driven in great part by the far-right Vox party, which frequently describes the trend as an “invasion”.

However, the arrivals have also underlined a major potential source of manpower for an economy which faces stiff demographic challenges.

Javier Díaz-Giménez, a professor of economics at the IESE business school and an expert in pensions, says that a baby boom which lasted from the mid-50 to the late-70s has created a generation of Spaniards who are heading for pension age, and the “baby crash” that followed means there are not enough workers to replace them.

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“The next 20 years are going to be critical, because more and more people are going to retire,” he says. “According to the most recent demographic scenario, 14.1 million people will retire during that time.”

One way of tackling the workforce deficit, he says, is to ape the kind of economic model implemented by Japan, which has a similarly low birth rate, by investing heavily in algorithms and machines. The obvious alternative to that is immigration.

“If you want to grow GDP, if you want to pay pensions for all the retiring baby boomers, you need to grow GDP in a different way to how we’re growing it now, because there will not be as many people, unless we bring them in through immigration,” adds Prof Díaz-Giménez.

Getty Images Elderly women in Mallorca walking with sticksGetty Images

Spain has an aging population

Spain’s central bank has put a figure on the projected labour shortfall. In a report published in April, it said that the country will need around 25 million immigrants over the next 30 years.

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The left-wing Spanish government has also made the economic case for immigrants, with Prime Minister Pedro Sánchez describing them as representing “wealth, development and prosperity” for his country, while on a recent tour of Mauritania, Gambia and Senegal.

“The contribution of migrant workers to our economy is fundamental, as is the sustainability of our social security system and pensions,” he said.

Mr Sánchez’s coalition is hoping that a proposal to legalise the status of up to 500,000 undocumented migrants, mainly from Latin America, will get through parliament. Spain has seen nine such mass regularisations in its democratic era, most recently in 2005 under a previous government led by the Spanish Socialist Workers’ Party.

However, the country’s economic needs contrast with ordinary Spaniards’ perception of immigration. A new poll shows that 41% of people are “very worried” by the phenomenon, making it their fifth-biggest concern after inflation, housing, inequality and unemployment.

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While only 9% of Spaniards associate immigrants with economic progress, 30% link them to insecurity, and 57% believe that there are too many of them.

Villaquilambre, meanwhile, is an example of how undocumented new arrivals can integrate into the workforce.

The asylum seekers here are allowed to work six months after their arrival in Spain.

“Before they receive the authorisation to start working we place great emphasis on them learning Spanish, as well as offering them training courses and classes on risk avoidance,” says Dolores Queiro, of the San Juan de Dios Foundation, the non-governmental organisation that manages the migrant centre in Villaquilambre.

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“When the date for them being able to start working approaches we get in touch with different companies – and they contact us as well – and we start looking for jobs for them.”

Companies get in touch, she says, “because they know that we have people here who want to work.”

Migrant worker Makan, from Mali, looks into the camera in his work uniform at the Spanish firm he works for

Makan, from Mali, now works for a local Spanish business

Makan, from Mali, has just started working for a local business, GraMaLeon, which makes walls, bathrooms and kitchen counters out of marble and granite. He commutes the short distance from the hotel to the factory each day on an electric scooter.

“I’m happy to be working,” he says, in halting Spanish, after completing a shift hauling slabs of marble around the factory.

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Ramiro Rodríguez Alaez, co-owner of the business, which employs around 20 people, says that finding workers is not easy.

“We need a lot of manpower in this profession. But it’s tough, it gets cold, you have to lift heavy weight, so it’s not a job that many young people here want to do.

“There aren’t a lot of companies in this industry around here, but those that do exist all need people. We’re all looking for people locally and we can’t find them.”

He adds: “Immigrants provide an important source of manpower for us.”

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Why does awareness of flood risk remain so low?

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Banker all-nighters create productivity paradox

While you are statistically more likely to be flooded than burgled, public awareness of the risks posed by surface water flooding, and what we need to do to mitigate it, remains alarmingly low. That is why I was particularly grateful to see Francesca Perry’s article on “sponge tactics” featured on the front page of House & Home (September 21).

As Perry notes, comprehensive flood resilience strategies are rarely co-ordinated across entire cities. This is especially evident in London, where responsibility for managing surface water flood risks is fragmented across more than 30 different organisations.

The London Surface Water Strategic Group has estimated that London requires the equivalent of 10,000 football pitches-worth of spongy Sustainable Drainage Systems (SuDS) like those mentioned in the article to begin mitigating this threat. However, delivering such a large-scale solution will only be possible through co-ordinated, strategic action by all relevant authorities.

Elizabeth Rapoport
Chair, London Surface Water Strategic Group, London E17, UK

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Israel’s strategic coherence, on display for the first time

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To characterise Israel’s current activities in Lebanon as lacking strategy is premature, and probably inaccurate (FT View, October 1). On the contrary, it is arguably the first instance of a protagonist in the current conflict demonstrating strategic coherence.

Similarly inaccurate is the description of the conflict as a “cycle”. Terms such as “cycle of violence” have had some relevance for Israeli-Palestinian clashes over recent decades, but the current conflict is primarily one between major states, namely Israel and Iran (the latter having quasi-state allies or proxies).

Such actors do not engage in cyclical violence and fated escalation; their behaviour is considered, and influenced by perception of essential national interests. It is possible that the latter will cause Israel to strike Iran’s nuclear energy facilities in due course. If that were to happen, it would be a result of sufficient strategy, not a lack thereof; and it would follow a logical path — the same path that determines its current action against Hizbollah.

Deri Hughes
London E15, UK

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Centara Mirage Lagoon Maldives to open in November 2024

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Centara Mirage Lagoon Maldives to open in November 2024

Centara Hotels & Resorts, one of Thailand’s leading hotel operators, will be opening the Centara Mirage Lagoon Maldives on 1 November 2024. The underwater world-themed resort is the third Centara property to open in the Maldives – and the fourth in the group’s porfolio under the renowned family-focused Mirage brand

Continue reading Centara Mirage Lagoon Maldives to open in November 2024 at Business Traveller.

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India’s rich are the main beneficiaries of growth

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Two FT reports on successive days earlier this month accurately captured the essential features of India’s economic growth path: abysmal jobs growth and skyrocketing income and wealth inequality.

In the early 1980s, India’s economy moved into an unmistakably higher growth path, compared to the previous three decades after gaining independence from Britain. According to data available in the Ministry of Finance’s most recent economic survey, between 1950 and 1979 India’s real gross value added at basic prices grew at an average 3.4 per cent per year; from 1980 to 2022, it grew at an average 5.8 per cent per year.

This significant growth acceleration has disproportionately benefited the rich and wealthy because the economy has been unable to generate an adequate number of good quality jobs for India’s growing labour force.

Therefore, economic growth over the last four decades in India has largely bypassed the vast majority of working people. This pattern continues even today, as highlighted in the FT report “India jobs dearth mars Modi’s third term” (Report, October 3).

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The top sliver of India’s income and wealth distribution has of course never had it so good, as evidenced by their voracious appetite for luxury consumption, including Swiss watches (“India becomes hot ticket for Swiss watchmakers”, Special Reports, Watches & Jewellery, October 4).

Deepankar Basu
Associate Professor, University of Massachusetts Amherst, Amherst, MA, US

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Biden-Netanyahu call fails to dispel doubts over US ability to influence Israel

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Joe Biden on Wednesday pressed Benjamin Netanyahu to find a diplomatic solution to the conflict in Lebanon and minimise civilian casualties in Israel’s strikes against Hizbollah, even though previous calls for restraint from the US have fallen flat.

The US president and the Israeli prime minister spoke by phone for the first time in two months after a new flare-up in tensions between the two allies compounded by miscommunication over Israel’s approach to expanding conflict in the Middle East.

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The conversation, which was described as “direct” and “productive” by the White House, came as US officials try to limit Israel’s response to last week’s Iranian missile attack on the country and rein in its ground offensive in the south of Lebanon.

However, there are widespread doubts over Biden’s influence over Netanyahu after the Israeli prime minister has time and again ignored Washington’s pleas for more limited military operations and increased diplomatic engagement since the war in Gaza broke out in October 2023.

Those concerns have grown more acute in recent weeks, as Israel’s military has sharply increased its attacks on Hizbollah, the Iranian proxy group operating in Lebanon, directly defying Biden’s calls for a ceasefire in the region at the UN General Assembly in New York last month.

According to the White House, Biden did not call for Israel to stop all military operations in Lebanon in his conversation with Netanyahu on Wednesday.

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But he did tell the prime minister that a “diplomatic arrangement” was needed for Lebanese and Israeli civilians to return to their homes on both sides of the “blue line” — the de facto border between the countries. He also called for Israel “to minimise harm to civilians” in Lebanon, especially in the capital, Beirut.

The White House did not say whether the two leaders discussed Israel’s looming response to Iran, though the US president has warned the Israelis away from striking nuclear facilities and energy infrastructure.

But while Biden and other top US officials have repeatedly been irked and even angered by Netanyahu’s unwillingness to heed their advice, they have been unwilling to make any big changes in US policy to raise the pressure on Israel — such as an arms embargo.

“Biden has been unwilling to use his leverage over Netanyahu because of the president’s persona, policy and domestic politics, especially so close to one of the most consequential elections in modern American history,” said Aaron David Miller, an analyst at the Carnegie Endowment for International Peace.

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“Biden’s margin for pressuring Netanyahu contracted, [while] Netanyahu’s margin for resisting that pressure expanded,” he added.

In recent weeks, US officials have acknowledged that Israel has made what they see as tactical gains against Hizbollah in Lebanon after it killed Hassan Nasrallah, its leader, and damaged much of the group’s capacity to strike at Israel.

But Washington has also warned Israel against overplaying its hand, insisting there should be a path back to a truce.

When Netanyahu on Tuesday warned the Lebanese people in a video address to root out Hizbollah or face similar destruction to what Israel inflicted on Gaza, Karine Jean-Pierre, the White House press secretary, responded: “We cannot and will not see Lebanon turn into Gaza — into another Gaza.”

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Other US officials have said Israel needs to develop a better long-term vision for its place in the Middle East.

“The challenge going forward is to turn tactical wins in battle into a strategy that secures Israel’s people and its future,” Jake Sullivan, Biden’s national security adviser, said at an event at the Israeli embassy in Washington this week.

“That takes real discipline, it takes courage, it takes foresight to match the conduct of war to a clear and sustainable set of objectives. That is never easy, but it’s imperative,” he added.

But many in Washington say US diplomacy towards Israel has floundered. “US policy has been trying to both deter and de-escalate at the same time, and realistically speaking, you can most effectively do one or the other, but trying to do both seems to have limited effects in both directions,” said Jonathan Lord, an analyst at the Center for a New American Security.

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‘I was evicted and lost £20,000 in a rent scam’

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'I was evicted and lost £20,000 in a rent scam'
Sam Read/BBC Craig Spokes is looking at the camera with a serious expression and wearing a white T-shirt with a blue shirt open on top. He is standing in a garden with hanging baskets in the background.Sam Read/BBC

Craig Spokes is rebuilding his life in Northampton and has a new job after losing almost £20,000

A man said he felt “embarrassed and ashamed” after losing almost £20,000 of his inheritance in a rental scam and being evicted from his flat three weeks after he moved in.

Craig Spokes, 36, from Northampton, paid a year’s rent upfront for a flat in London to Samy Daim, who he believed was the landlord. Yet less than a month after moving in, Mr Spokes was told to leave and all his possessions were left on the street.

Mr Daim, 27, has since not responded to Mr Spokes or to the BBC’s requests for comment.

Action Fraud, the police reporting body for scams, said it was not recommending an investigation into the case.

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Instagram Samy Daim wearing a white dressing gown and holding what appears to be an iPad. He is standing by an infinity pool with a city skyline and sunset behind. Instagram

Social media accounts of Samy Daim show pictures of him in luxurious locations around the world

In October 2023, Mr Spokes was looking to move to London after leaving a career as a cruise ship entertainer.

He said Mr Daim had told him he was the landlord of a flat in Bloomsbury, which could be secured for a £500 a month discount if a year’s rent was paid upfront.

Mr Daim was in fact a tenant himself, renting the flat from the real landlord, but he gave Mr Spokes the keys to the property and allowed him to move in.

The BBC has seen court documents that show Mr Daim owed more than £14,000 in rent to the real landlord and this had led to bailiffs being sent to the property.

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Instagram Samy Daim standing in a wooden room with an elephant's head coming through the window with its trunk extended upwards and taking food from Mr Daim's hand. Mr Daim is wearing a white T-shirt and smiling as he looks at the elephant.Instagram

Samy Daim’s social media profiles show him on trips to places such as Thailand, where he is pictured with elephants

The flat was listed on a letting agency website, but rather than using the company’s payment system Mr Spokes transferred £19,500 directly to Mr Daim to cover a year’s rent and deposit.

The money had come from his inheritance after his father Barry died of cancer.

Yet as he got ready for work one morning three weeks after moving, Mr Spokes was evicted by bailiffs instructed by the real landlord.

“By 08:30 everything was out on the streets,” he said. “It was a whirlwind and I was in such a state of distress. I was made to feel like a criminal.”

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‘Embarrassed and ashamed’

The experience has had a lasting impact on Mr Spokes who said he “felt so embarrassed and ashamed that I had fallen for this scam”.

He said for a period “days would go by and I couldn’t even go out”.

Mr Daim has not responded to Mr Spokes since the eviction. His social media profiles appear to show a jet-set lifestyle.

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He has not responded to BBC attempts to contact him.

instagram Samy Daim sitting on top of a white 4x4 vehicle parked beside a beach with  palm trees in the background. Mr Daim is wearing an unbuttoned white shirt with blue trousers and cap.instagram

Samy Daim is listed as the sole director of Cobblestone Realty Group Ltd and shown beside the beach at Key West in Florida

‘Let down’

Mr Spokes was told by the Metropolitan Police to report what had happened to Action Fraud, the national reporting centre.

Action Fraud does not have investigative powers, but assesses which cases to pass on to police forces for investigation.

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This case was not passed on and Mr Spokes said he felt “let down” by police and that it had been treated as if it was “not that serious of a crime”.

Action Fraud said reports were assessed against criteria including “the vulnerability of the victim”.

It added that it prioritised “reports most likely to present an investigative opportunity for local police forces, those where a crime is ongoing and those that present the greatest threat and harm to the victim or victims concerned”.

In 2023 Action Fraud classified 5,093 reports as rental fraud.

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‘Controls in place’

Mr Spokes said he also felt “let down” by his bank, Kroo, which said it will not repay the money.

Kroo said it has “a number of controls in place to manage financial crime and protect customer funds”.

Sam Read/BBC Pat Coomber-Wood is looking at the camera in an office with a straight face while wearing a top with a flower design on it.Sam Read/BBC

Pat Coomber-Wood from Citizens Advice said people should “slow down” the process of signing a contract

‘Don’t be rushed’

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Mr Spokes said he felt like he had “double-checked” everything before transferring the money, but all the information he had been provided “was part of the scam”.

Pat Coomber-Wood, the chief executive officer of Citizens Advice West Northamptonshire and Cherwell, said anyone feeling under pressure to sign a contract should “put the brakes on – it is better to miss out than be scammed”.

She said a land registry search, which costs £3, could determine whether the person you were dealing with owned the property.

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