More and more nations are facing the same routine dilemma of trying to protect their employees and businesses from foreign competition. There is fear that foreign entrance into a local economy destroys local industry and the hiring of highly-skilled foreign workers results in the loss of jobs for local skilled workers. But it is important to look at the additional perspectives that foreign workers bring to a country.
An interesting case is making its way through the US court at this time. The case is Washington Alliance of Technology Works (WashTech) versus US Department of Homeland Security. WashTech is trying to eliminate a programme that allows foreign students to work in the United States for 12 months to 29 months after they graduate from an American university.
The United States is an immigrant nation that has previously gone through waves of anti-foreigner sentiment. The latest wave of anti-foreign worker backlash is a product of the fear the US has lost its competitive edge and is economically stagnant.
Headlines that China has surpassed the United States as the world's largest economy reinforce these fears. However, the source of the anti-foreign worker fear is wrong.
Highly skilled, foreign workers drive the US economic engine. In 2006, the World Intellectual Property Organisation said about a quarter of patents from the United States had a minimum of one non-citizen inventor.
Foreign companies employ about one of every 10 workers in the United States. A quarter of technology and engineering startups have a foreign born owner.
Foreign high-skilled employees bring a different perspective to a workplace. They have the knowledge and skill to understand the problems confronted by employers but bring a different cultural socio-economic background to view problems in an alternative manner. In the United States, where individual participation is expected, innovation is generated.
This brings me to Thailand, which has implemented laws to protect its citizens from foreign competition. The Foreign Business Act restricts or prohibits foreign owned companies from operating in many areas of business activities. Restricted business activities include the broad "other service businesses except those prescribed by Ministerial Regulations".
In addition, the Labour Ministry has a list of occupations prohibited to foreign nationals. The list contains occupations ranging from handicrafts to farming, hair-cutting and the professions. Professional work includes accountancy, engineering, brokering, architecture and legal services.
Thailand is at an economic crossroads. Population growth has stopped and its population is aging. The number of working adults has peaked and will begin to decline. Thailand has put a lot of money into its education system without corresponding results. The country has reached the upper-middle income level of development but it is hard to see an avenue to the next level of development under its current practices.
Thailand should look to amending its laws to allow greater internal competition. If a nation cannot grow its economy by adding additional workers, their workers must be more productive. Increased productivity can be achieved through greater efficiency and innovation. Opening up internal labour markets to high skilled foreign labour and foreign businesses will pressure Thai businesses to become efficient and innovate.
There is a saying that you should never be the smartest person in your group. It is better to be part of a diverse group with different methods of thinking. Competition should not be feared but embraced because it forces people to do their best work. Nations should also not insulate themselves from foreign workers.
Foreign workers bring different perspectives and generate innovation in the workplace. Nations can live in fear of competition and stagnate or try to grow their economy through diversity and innovation.
Robert R Virasin is legal manager of Siam Legal International. He is a graduate of the University of California Los Angeles, University of Houston Law School, and Chulalongkorn University.