Why not open the door to digital nomads?

For a few months now, the narrative against digital nomads has hardened with messages that border on xenophobia both on social networks and on posters in the streets of Mexico City. The recent announcement of an alliance of the government of Mexico City to promote it as the capital of creative tourism and remote work unleashed a wave of comments whose background transcends the arrival of temporary workers.

Gentrification, rising prices and the lack of urban planning are areas that must be addressed with public policies born from agreements between government and society. But more importantly, it is time to demystify many of the hate messages, or at least see the grays between black and white, around migration to Mexico, particularly digital nomads.

Around 50 countries in the world -including Spain, Japan, Portugal, Barbados, and Costa Rica- have created special visas or work permits for digital nomads, since they see in their regulation a path to greater innovation, cultural and capital richness. . Meanwhile, in Mexico this migratory figure does not exist. Therefore, digital nomads enter and leave the country as tourists, a fact that prevents their correct measurement. In the country we do not know for sure how many there are or where they are.

A first step to really perceive greater benefits from these migratory flows is to keep a record, which allows us to better understand what policies are necessary. The metrics on immigration in Mexico must be updated to the reality of an interconnected world that tends towards the digital, this would help create work visas with benefits for immigrants and for the country, such as greater investments, creation of companies and jobs. formal, among others.

There are studies around the world, including one done in Mexico City, that demonstrate the benefits of foreign entrepreneurs in attracting capital and generating jobs. Foreign digital entrepreneurs in Mexico City alone have created more than ten thousand jobs in the last decade and have attracted more than 1.7 billion dollars in capital. In Silicon Valley, the capital of entrepreneurship and innovation, 38% of the population is foreign and more than 50% of startups valued at more than a billion dollars are founded by migrants. Today, processes as simple as opening a bank account represent a barrier for immigrants, be they remote workers, digital nomads, refugees, etc. The answer, again, is not to ask them to leave, but to ask them to stay.

Much has been said that digital nomads do not pay taxes in Mexico. Although they do not pay income tax – like more than half of Mexicans who work in the informal economy – they do pay all consumption taxes; ie VAT and IEPS. Not only that, in absolute value, they pay well above the average (hence the complaint about the price hike). Unlike those who are part of the Mexican formal economy, the nomads cannot deduce it. The key is, once again, to regulate and promote their arrival in the country.

On the other hand, the rise in prices is the result of a basic principle of economics: the law of supply and demand. The price increase is a concern for those who participate on the demand side (consumers), while that extra benefit goes to the suppliers (markets, changarros, restaurants, homeowners, service providers, etc. .). In reality, the income level of thousands of people is being increased.

When digital nomads ask for services, do they do it in English? Probably many do so, but many others do not. Mexico has historically been a diverse country, whose worldview is the product of the syncretism of multiple native and foreign cultures. The diversity of ideas and cultures enriches societies and, in addition, multiculturalism is also a source of innovation, jobs, and opportunities. Mexico is a country known worldwide for its human warmth and receptive culture. The Mexican does not tell the foreigner to go away. Just as we demand respect from our diaspora to our neighbor to the north, so we must behave here. Instead of having street signs saying “New in the city? Working remotely? You’re a fucking plague and locals fucking hate you. Leave.” Why don’t we put up signs that say: “New in the city? Working remotely? Ask for your tacos in Spanish, it is said: Can you give me two pastor with everything? Thank you.” We have to be proactive rather than reactive.

Limiting the debate of digital nomads around gentrification makes us lose sight of many of the benefits and benefits that these people can add to our society. Remember that less than 0.8% of the national population is foreign-born: one of the lowest levels in the world. In addition, it limits us to seeing the problem in a very short period of time, what we should be doing is precisely facilitating the nomads to move towards a greater permanence, put down roots, generate companies, jobs, and contribute to the public treasury. But, if we say: get out of here!, we would be closing the doors to a lot of innovation, a lot of talent, a lot of investment and a lot of capital in the broad sense of the word.

It must be accompanied by adequate public policies so as not to harm our local population: YES, without a doubt. But for no reason should we be a xenophobic society with a discourse that expels migrants. That’s not how we Mexicans are.

Pedro Casas Alatriste is Director of Research and Public Policy at the US-Mexico Foundation.

Twitter: @PedroCasas