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An Economic History of Walls and Fences

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An Economic History of Walls and Fences An Economic History of Walls and Fences Victoria Vernon State University of New York and GLO; [email protected] Klaus F. Zimmermann UNU-MERIT, CEPR and GLO; [email protected] Contribution to THE ECONOMIC GEOGRAPHY OF CROSS-BORDER MIGRATION Draft: October 16, 2018 Abstract Through history, border walls and fences were constructed for military, security, humanitarian or economic reasons. An intensive historical documentation of the huge efforts reveals that the benefits of fortification were questionable. The recent revival of walls and fences create a paradox: In spite of the rhetoric of policymakers, research has identified that income security is a major determinant behind this development although open borders could generate much larger economic advantages. This suggests to accept mobility as an important source of wellbeing in the face of the increasing global migration pressures to come over the next decades. JEL: F22, F66, H56, J61, N4 Keywords: Walls, fences, defense, security, international migration, mobility, conflict management 1. Introduction Since the dawn of time, people have moved across land and ocean in search of a better life. When humans first left Africa to settle across the globe, they were motivated by their need of food and space, their desire for power and resources, or just by their curiosity. Early large-scale migrations were people fleeing wars, famine and disease. In the modern era, global mobility has become more systematic to reap the benefits of economies of scale and scope, and to take advantage of the benefits of cooperation. The ability of the human tribe to cooperate explains in large part the long-term survival of our species (Harari, 2014). Economic literature on the effects of migration overwhelmingly supports that voluntary and peaceful labor mobility is beneficial not only for the migrants, but for the natives of host countries and for families back home. By encouraging migration and removing barriers for foreign-born workers, countries can achieve higher growth and improve the standard of living of their citizens. Cross-border migration has been gaining momentum for the last few decades, fueled by rising per capital incomes in poorer countries, booming international business, expanding personal ties, and cost cutting advances in transportation and communications. Foreign-born people now account for 28% of the total population of Australia, 23% of Israel, 20% of Canada, 13% of the US, 13% of Germany, and 12% of the UK1. Yet even at its highest level ever, international migration is surprisingly uncommon: only about 3% of the world population lives outside of their country of birth2. In the last few years regional conflicts in the Middle East and poverty in Africa sent a flow of refugees to Europe and the US. Politicians in Europe and the US appealed to domestic fears of foreigners stealing jobs and threatening existing institutions of democracy by gaining voting rights. Western countries adopted new laws that limit immigration and many countries invested in new border barriers. In the years to come, we are bound to witness more people crossing continents in response to climate change, rising demographic imbalances and worsening inequality. Therefore, it is more important than ever to discuss the economic aspects of migration and border protection policies. In this chapter, we examine the global phenomenon of walls, fences, and other man-made physical barriers between nations. We offer a historical perspective on why border barriers existed in the past, and how the rationale for building walls has changed. We discuss the costs and benefits of walls and fences, and review literature on alternative policies, including the open border policy. 1 https://data.oecd.org/migration/foreign-born-population.htm 2 http://www.unfpa.org/migration 1 We estimate that at least 67 international borders are fortified to various degrees with man- made barriers as of 2018, and there are plans to build 10 more in the next few years3. Figure 1. Border Walls and Fences Border Walls and Fences 90 80 70 60 50 40 30 20 10 0 0 2 3 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 7 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 1 1 2 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 Note: The graph presents the authors’ count of all walls and fences in the world, including partially constructed (Estonia-Russia fence) and planned through 2020. Our estimates are overall similar to those in Vallet (2014), Jones (2016a) and Carter and Poast (2017), although our estimates are more conservative. Vallet, Barry and Guillarmou (quoted in Jones, 2016a) suggest an estimate of 69 fences in 2016 while our count is 63. We include only walls and fences on international borders (this excludes the Wall of Baghdad, the Walls of Peace in Belfast, and the Great Wall of China), the existence of which we could verify. (For example, we are not sure if there is a fence on the border of Russia with China, Mongolia, and North Korea. There is probably at least partial fencing, but in the absence of information we did not count them.) As construction start dates differ between sources, we used the most commonly reported dates. Table 1 at the end lists all walls and fences included into our calculations. Humans have been building walls for millennia. Ancient and medieval walls were built around city-states and, more rarely, along the borders of entire kingdoms. The main motive for their construction was to defend against the armies of unwelcome nomadic neighbors. A large physical obstacle was also a signal of political power, wealth and strength, which helped to deter future threats. 3 See section 3 for more details. 2 In peaceful times, walls were used as customs checkpoints for taxable goods to prevent smuggling, to stop the movement of criminals, and occasionally for a diverse set of other purposes such as flood control and ceremonies. In times of abundance, rulers built border walls as physical claims to land and as markers to define who belonged inside and who did not. Regardless of their intended purpose, walls would block the movement of civilians, and restrict religious and cultural mixing. Despite costing much resources, wealth and manpower, ancient walls were only partially successful in achieving their intended goals, and often did not last much longer than the lifetime of their builders. Many stone-and-earth walls of the past have disappeared (Roman Limes, Walls of Benin), while others have been turned into museums (the Great Wall of China, Belfast walls in Northern Ireland). In modern times, the threat of barbarian tribes has disappeared, the nation-state has been strengthened, diplomacy has become a way to manage conflicts, and travel documents have been introduced to control migration. The era of globalization promised to transform the world into a prosperous, borderless space, with free trade and migration. Yet surprisingly, border walls re-emerged at the end of the 20th century and into the 21st. Contemporary border fences are claimed to be built for much the same set of reasons as ancient walls. We have defense walls against external threats of terrorism and infiltration by insurgents. There are walls that separate conflicting cultures and religions, walls that establish ownership of land, barriers that regulate trade, and fences that restrict migration of civilians. The attributes of walls have changed from earthwork, bricks and masonry to sophisticated structures that include concrete, razor wire, sensors, personnel, dogs, infrared equipment, patrol vehicles, drones, helicopters, planes and satellites. There are additional invisible walls made of legal and digital barriers to restrict movement of goods and people. Like ancient walls, modern ‘security walls’ are only partially successful in accomplishing their goals. No physical barrier can provide effective protection against home-grown terrorists and modern weapons. No fortification can stop migrants who arrive by air and sea. No wall will reduce the drug flow when most of it crosses the border through legal entry points. Solutions other than walls have proven more successful in addressing all the issues for which barriers are built. Economic policies are more effective in dealing with issues of migration and smuggling, while diplomacy can address security. More than ever before, walls today are politically motivated - they are examples of a signaling behavior by governments serving their own interests. The building of walls seems to follow more economic motives than admitted. Given the loss of potential gains in economic welfare for the natives, this is counterproductive. Section 2 deals with the economics of international migration as a starting point. Section 3 surveys the history of walls and fences. Section 4 discusses their rationale. And section 5 concludes. 3 2. Open or closed borders? Gallup estimates that 14% of world adults, 710 million people, would migrate permanently if they could, and even more would move temporarily.4 That includes more than 40% of the surveyed respondents from very poor countries and countries with armed conflicts. In Africa alone, working age population is projected to rise by about 1,000 million in 2055, increasing the pressure at the gates to Europe and China, two areas where population is predicted to decline substantially (Bruni, 2018). There is a lively debate in the economic literature around the potential consequences of allowing more migration. Kennan (2013, 2014) and Clemens (2011) argue that lifting the restrictions on immigration could produce large efficiency gains because the same workers, - barbers, drivers,- become more productive when they move from a low wage to a high wage country.
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