The Formation of Immigrant Society and Welfare State Finance

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The purpose of this study is to consider the impact of immigrant societies on liberalization policy in both the advanced welfare states and the developing countries. In the advanced countries like Britain and U.S.A., the formation of immigrant societies are apt to break down a consensus of the welfare state through a channel of local self-government. Because the racial difference between beneficiary and taxpayr are coming up in the social sector. Namely, the tax burden of social services is put mainly on the white middle-class, while its benefit tends to be concentrated to the poor immigrants.On the other hand, in the developing countries like South Asian countries and Philippine, the inflow of remittance from immigrants has contributed to maintain the Structural Adjustment Policy. Because it has made up the trade deficit which has been produced by liberalizing trade and foreign exchange regime in the developing countries. And in the case of China, investment by the Ethnic Chinese has encouraged the high ecomonic growth.Thus, the formation of immigrant societies sustains the liberalization policy in both advanced and developing countries. Of course, it does not always mean that the policy resolves the racial problems in the advanced welfare states and the poverty problems in the developing countries.