Summary: Immigration Reform - The Opportunities for Minneapolis-Saint Paul and Beyond

Speakers:

• Carlos M. Gutierrez, Former U.S. Secretary of Commerce; Chairman, Republicans for Immigration Reform; Vice Chairman, Albright Stonebridge Group
• R.T. Rybak, Mayor, City of Minneapolis
• Paul Williams, Deputy Mayor, City of Saint Paul

Summary

A July 15 AS/COA public luncheon in Minneapolis, Minnesota explored how passage of comprehensive immigration reform legislation would reshape national policies toward immigrants, as well as how local communities can maximize the economic and civic contributions of their immigrant populations. The speakers also looked at how reforms would impact the Minneapolis-Saint Paul economy and local businesses. The lunch was part of AS/COA’s Immigration and Integration Initiative, supported by the Rockefeller Brothers Fund, which is working in new immigrant gateway cities to raise public awareness of the role immigrants play in local economies and nationally.

Watch a Univision report about the event (en español):

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Minneapolis-Saint Paul as National Model

The Minneapolis-Saint Paul metro area, home to 80 percent of Minnesota’s immigrant population, serves as a model of immigrant integration for other local governments across the country. According to Minneapolis Mayor R.T. Rybak, much of the metro area’s success is due to the fact that the community was “built on the backs of immigrant brain-power and manpower.” The city of Minneapolis has taken a leadership role in integrating the region’s various immigrant groups, including Mexicans, Ethiopians, Somalis, Chinese, and others. Saint Paul Deputy Mayor Paul Williams highlighted the work of regional development centers and technical colleges in creating jobs opportunities and providing training for immigrants and other communities of color in the region. 

Rybak and Williams noted that immigrants in Minneapolis and Saint Paul have brought economic vitality and competitiveness to their respective cities’ economies. To this end, both governments have worked together to enact policies that facilitate small-business creation, such as restructuring loans so that they are Sharia-compliant and accessible to Muslim residents. Williams added that while Minneapolis and Saint Paul are two cities, they are one metropolitan area and operate as one economy. The collaboration between two city governments to build one community is an ongoing challenge, but also provides an interesting model for other cities across the country.

Former Commerce Secretary Carlos Gutierrez explained that well-integrated foreign-born communities such as those in the Twin Cities spur economic activity and a robust, young workforce that is critical to U.S. competitiveness.

Overcoming the Achievement Gap

To maintain competitiveness, Gutierrez emphasized that reform must focus on creating a new system that allows for more work-based visas, both in essential jobs and high-skilled fields. Without comprehensive immigration reform, the system forces many U.S.-based businesses to close, move overseas, or hire undocumented immigrants. According to Gutierrez, while many believe that “the problem with President Reagan’s reform was that he didn’t secure the border, I would say that the problem with President Regan’s reform is that they didn’t create a new system.”

Locally, despite the Minneapolis-Saint Paul region’s success in integrating immigrants and giving them the tools necessary to begin small businesses, Rybak conceded that the achievement gap in Minneapolis public schools presents a significant challenge. Williams agreed, stating that the demographics of the Twin Cities require policies that help usher new arrivals through the public education system and into the workforce, equipped with in-demand skills. The Twin Cities’ regional competitiveness rests on its ability to build a qualified and diverse workforce, and according to Williams, “to engage entrepreneurship and innovation in those communities who will come from these small immigrant businesses.”

Country-wide Benefits of Immigration Reform

Gutierrez noted that from a national perspective, immigrants are also crucial to U.S. demographics as well as the economy. Immigrants help offset the declining population, which is currently below replenishment rates. If not enough is done to mitigate this phenomenon, Gutierrez argued that the U.S. economy will stagnate due to a workforce shortage. And while the benefits of increased immigration are clear, Gutierrez characterized the current battle over immigration reform as highly politicized. He conceded that although the Senate’s comprehensive immigration reform bill is not as robust as he would prefer, he implored more of his Republican colleagues in the House of Representatives to support the legislation to avoid a long term recession. Although border security is an important component of reform, he argued that border security alone will only exacerbate the problem by creating labor shortages.

While immigration reform will be critical for spurring the economy and increasing employment opportunities nationally, local governments have already benefitted from immigration during the recession. Both Rybak and Williams agreed that without immigrants, blighted areas in their communities would not have been revitalized and would not be as economically robust as they are today. Thanks to the Latino and Hmong population, Saint Paul has been able to build a model of an inclusive, mixed-income, and mixed-race community with a strong base of neighborhood revitalization. Williams stressed that it was these immigrant communities that “provided seed capital for the transformation and rebuilding of many of these communities.” Minneapolis’ Lake Street area, once known for crime and prostitution, is now booming with immigrant-owned small businesses, particularly ethnic restaurants.

According to Gutierrez, “immigration is not only a desirable thing to do, but an absolutely necessary thing to do if we’re going to continue to be the most vibrant economy in the world and if we’re going to compete with the other economies coming onto the scene.” On one hand, the United States has been fortunate to receive high levels of immigrants and has a competitive advantage over European countries that have not successfully integrated immigrants into society. But the United States lags behind Australia, Canada, and New Zealand, countries which amended their laws to allow for more skill-based immigration. Immigration laws, in the eyes of Gutierrez, need to be updated for the twenty-first century.