Salsa and Apple Pie
A U.S.-Mexican Union in the making
by Steven Hill
Immigration issues are always ripe for demagoguery, particularly in a
presidential election year. Yet rarely do the bumper sticker slogans
match the complex reality along the US-Mexican border.
That reality is being driven fast by surging population demographics. A
new report from the US Census Bureau predicts that the number of Latinos
and Asians will triple in the United States, and by 2050 whites will
comprise only fifty percent of the nation's population. Latinos are by
far the fastest-growing population. By 2050 most of the US will look
like California today. And California will look more like Mexico.
For some people, these changes are alarming. We can expect to see a new
crop of demagogues calling for closing and militarizing the border. But
economic disparities guarantee that low-income Mexicans will continue
seeking entry into El Norte, legally or illegally.
If we can't shut out Mexicans seeking a better life, and we can't just
throw open the border, what else can we do? There is a third way that
holds great promise: gradual integration of the two political economies.
That process already has begun, but it has been resisted and resulted in
the wrong regulatory scheme--the North American Free Trade Agreement
(NAFTA).
For an idea of how this integration can proceed better, look towards the
European Union. In May 2004, the 15 nations of the E.U. integrated ten
new nations, becoming the largest advanced political economy in the
world, a powerful free-trading bloc of 450 million people. Yet the ten
new nations are poorer than the other 15--just like Mexico is poorer than
the United States.
European Union leaders wisely created policies for fostering regional
integration that make American efforts like NAFTA look timid. They
realized they had to prevent a "giant sucking sound" of businesses and
jobs relocating from the wealthier to the poorer nations. They also had
to foster economic growth and the spread of a middle class in these
emerging economies, and prevent a mass exodus of poor workers to the
developed nations.
So they gave the new member states massive subsidies--billions of dollars
worth--to help with the construction of schools, roads,
telecommunications and housing, making these nations more attractive for
business investment. The idea is to raise up the emerging economies,
rather than drag down the advanced economies. It will be expensive, but
the result will be a larger economic union where a rising tide floats
all boats.
In return, the ten poorer nations must agree to raise their standards on
the environment, labor laws, health, and safety, so that predatory
corporations looking to exploit cheap labor and deregulation won't find
that by relocating. There won't be any border maquiladoras in the
European Union.
But Europe's union is not just an economic one--it also includes
continent-wide political institutions, including a European Parliament
and an executive commission where all 25 nations are represented.
The European Union signals the direction that border policy between the
US and Mexico needs to go. At some point it will make sense to move the
North American regional integration out of the realm of a shadow economy
and flawed free trade agreement. But what might such an American-Mexican
Union look like?
It would start with massive subsidies from the US to Mexico, with the
goal of decreasing disparities on the Mexican side of the border and
fostering a climate riper for investment. This would create more jobs in
Mexico, and foster a growing middle class, complete with homeownership,
schools, roads and health care. A larger middle class would result in
fewer Mexicans desiring to emigrate north, and create more consumers
buying American products. The rising tide would float all boats, a kind
of Marshall Plan for Mexico. But here's an even more intriguing
possibility.
We always assume that if we open the border, hordes of Mexicans will
stream into the US. But under this scenario, we would see something new
and different--Americans would begin emigrating to Mexico. Los Angeles,
Phoenix, and Houston are all closer to Mexico City than to New York City
or Washington DC. The cost of housing is cheaper in Mexico, and so is
the cost of living. All things being closer to equal, many American
workers will relocate to Mexico in search of jobs and homeownership,
even to start businesses. They would chase the American Dream--in Mexico.
By 2050 not only will the rest of the United States look like California
today, and California look more like Mexico, but Mexico will look more
like the US. Already we see the beginnings of this, with American
expatriate communities springing up around places like Guadelajara.
This kind of regional integration is the future for the United States
and Mexico. It is happening already. And as that process unfolds,
regional political structures will make more sense, perhaps including an
American-Mexican parliamentary body. Canada, not wishing to be left out,
will ask for inclusion.
Of course George Bush and John Kerry did not talk about these issues,
since their pollsters told them to avoid anything controversial. Expect
American politicians to stick to bumper sticker slogans and avoid the
reality of border issues until they are overtaken by the surging tide.
But that day is looming closer with each passing election.
Steven Hill is senior analyst for Center for Voting and Democracy
(www.fairvote.org) in San Francisco, California and author of "Fixing
Elections: The Failure of America's Winner Take All Politics"
(www.FixingElections.com).
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