Victor Fersht, professor of Far Eastern State Academy of Economics and Management

Migration. Case study: Vladivostok, Russia

1. Existing situation

Vladivostok is a center of Far Eastern region of the Russia named Primorsky region. Total population of this region now estimates in 2 million, among them 600 thousands lives in Vladivostok. It is the biggest city of Russia Far East and center of industrial, social and political life of Russia on Pacific shore.


The main factor of Vladivostok as well as all Russian Far East regions is tremendous depopulation beginning during last 15 years. During this time population of all Russian Far East declined by 1 million and Vladivostok and its region by 400 thousands. This was the result of both migration and natural population decline. Migration outflow was the main factor of the decreasing population.


On the third Pacific Forum of Compatriots held in Vladivostok on October 2003 was announced that more than 60 per cent of young people consider leaving Primorye in the future, which would drain the region of its workforce.


If the current situation persists, by 2010 the Primorye region will reach a critical level where ageing people make up over 20 percent of the population.
The problem of surviving of the local population in Vladivostok and its region is very urgent nowadays. Let us observe the changes in the ethnic region mixture and analyze them according the data of the Committee for State Statistics of the Primorsky Region and report of doctor Vashchuk.


According to the census of 1989 there were 1976.6 thousand people on the whole living in the Primorsky Region; 1721.6 thousand of them were Russians, 185 thousand - Ukrainians, 21.9 thousand - Belorussians, 4.1 thousand - Germans.


Those were the most numerous nationalities. But till 1998 their size diminished as the result of migration: the number of Russians diminished by 27.6 thousand people, Ukrainians - by 10.1 thousand, Byelorussians - by 2.7 thousand, Germans - by 0.8 thousand people. On the other hand, the ethnic variety increased, because of immigration. The arriving migrants replenished the population size.


The refugees from the former Soviet Republics (Middle Asia, Kazakhstan, Moldova, the former Caucasian and Baltic Republics) began arriving in the Primorsky Region in 1992. The majority of them immigrated in 1994 (some 1100 people). By 1999 about 4258 refugees had settled in the region, while 27 per cent of the number came from Tajikistan.


In 1996 the migration scale changed greatly. The migrants arrived mostly from the peaceful regions of the former USSR. The majority of them came from Kazakhstan (71 per cent), while the number of Koreans diminished from 1339 in 1995 to 52 in 1997. As a rule, Korean immigrants settle in the South of the region - in Vladivostok - just like during the Soviet period, that is why the Korean Diaspora is the most numerous there (more than 15 thousand people).


Still another kind of migrants in Vladivostok and its region exists. There is a settled limit for foreign workers constituting 15 thousand workers per year. Of them 77 per cent come from China, 27 per cent - from Korea and only 6.5 - from the former USSR.


In Vladivostok and region there are more than 50 national communities, 30 confessions and more than 150 religious organizations.


The main reason of population outflow is economic stagnation of region causes unstable situation in Russia during last decade. Now economic situation changed to better. But Vladivostok and in its region a severe shortage of local workers in the agricultural, construction, and sewing industries explains the necessity of attracting labor force.


Meanwhile not far from Vladivostok only in 100 kilometers from the center of the city across the Chinese border lives more the 100 million unemployment Chinese who can suggest themselves on Vladivostok labor market.


Best informed researcher from Moscow State University doctor Vilya Gelbras consider that since the Soviet Union and China signed the agreement on visa-free cross-border travel in 1988, the Russian Far East had to deal with the huge migration flow of the Peoples Republic of China migrants coming into the region as migrant workers, traders, business people, tourists, poachers, and black marketers. Scarcity of publicly available official information on this issue has been accompanied by alarmist speculations in the media on the scale of Chinese migration.


Minister of Interior of Russia claimed that up to 150,000 illegal immigrants were settling in Primorye, as part of 400,000 to 2 million PRC migrants that infiltrated the Russian Far East.


Their numbers have been growing so rapidly, in fact, that the head of the Federal Migration Service warned that Chinese could become the dominant population in much of the Russian Far East later in this century.


Chinese citizens can cross Russian border without visas using only tourists vouchers.


In such circumstances they enter to Vladivostok for short term, long term or permanent duration and work as a foreign labor force.


In fact not only Chinese citizens come to Vladivostok as migrants.


Vladivostok Migration Service statistics presents North Koreans, Vietnamese, Middle Easts and Caucuses migrants as second large migration stream to the region.


At the beginning of 2004 Federal Migration Service registred in Vladivostok and in its region 154161 legal migrants. At the same time it was estimated nearly 120000 illegal and short term migrants according the poll of Vladivostok organization Physicians for human rights.


Altogether at the beginning of 2004 more than 275 thousand foreigners lived in Vladivostok and region.

 

Figure 1.

Number of migrants officially registered for temporary or permanent residence in Vladivostok and its region.
According Vladivostok Federal Migration Service report

 
1994 year
2004 year
Chinese
26347
106954
Azerbaijan and Armenian
1340
13197
Japanese
7777
9476
South Korean
5095
6427
Middle East (former CIS) countries:
Uzbekistan, Kazakhstan, Kyrgyz,
Tadzhikistan
1273
6180
Tadzhikistan
1273
6180
Ukraine
6987
2509
North Korean
2519
2300
German
723
1046
Great Britain and Canada
825
838
Vietnam
274
600
Total
47049
154162

In 1995 49892, in 1996 53755, in 1997 -70800, in 1999 95870, in 2002 -156425.

This is an official number of migrants in Vladivostok. But in reality figures are higher. A lot of migrants come in Vladivostok from central part of Russia officially crossing border but not registered in Vladivostok. They do not need registration or work permission because they come for temporary business and live in their relatives and friends accomodations. Another part of unofficial migrants in Vladivostok is illegal migrants.


Chinese migrants dominate in total migration inflow in Vladivostok with 90 percent of all legal, illegal and irregular migrants.

Figure 2.

Unofficial number of migrants in Vladivostok and its region
According poll of Vladivostok organization Physicians for human rights

  1994year 2004 year
Illegal migrants 12000 45000
Short term migrants 2300 75000

Illegal and irregular migrants were estimated during special polls conducted by Vladivostok organization Physicians for human rights. Managers of Chinese, Koreans, Caucuses and Middle East companies are polling every year in order to estimate real social needs of migrants.

 

2. The issues.

Number of Chinese who could receive Russian passport began increasing. In 2002 in Vladivostok 1264 Chinese received Russian citizenship and in 2003 they received 1323 Russian passports.


Number of migrants seeking Russian or other countries citizenship has increased dramatically during last three year. This is a brand new phenomenon.


The main factor of huge Chinese migration to Vladivostok according doctor Gelbras is the social-psychological perception of PRC in the Russian society. Fear of the so-called Chinese yellow peril, which emerged in the end of the 19th century through the beginning of the 20th century, has proved to be amazingly lasting. As the Chinese economy grew, this fear again became a reality of the social consciousness.


The Russian condescending imperial views of China and the Chinese changed to contemptuously complacent attitudes toward the great power of China and the Chinese. Russian mass media raise two problems regarding the social-economic role of Chinese migration. Both of them are viewed through the prism of a new social-psychological situation in the country.


First, China is often mentioned when the question of potential labor deficits, caused by low birthrates and emigration of local people from the Russian Far East, are raised. Second, many politicians and experts believe that Chinese migrants cause severe damage to the Russian economy by carrying out illegal operations, such as the export of currency and gray-black schemes in acquiring lumber, rare natural and industrial raw materials, poaching, import of drugs, etc. At the same time the Chinese migrants positive influences on the Russian economy are rarely mentioned.


In order to understand Chinese migration in Russia, the following points need to be noted. The vast majority of Chinese migrants are a part of an organized structure, a functional element of the flow of goods from China. During the 1990s, Chinese migration was formed by individuals who were setting out to Russia in search of income at their own risk. In the late 1990s the situation changed. Therefore, doctor Gelbras and other experts define Chinese who permanently live and conduct business in Russia or periodically or routinely visit the country for business purposes as migrants.


As a natural part of the Chinese trade structure, Chinese migrants cannot disrupt their connections with China. The disruption or break-up may leave them without a source of income. Moreover, receiving Russian citizenship has been quite complicated before but it became even more difficult after the Russian government adopted a new law on citizenship.


That is why Chinese migrants who have lived in Russia for five or even ten years still have to retain their Chinese citizenship using different legal loopholes in order to stay in Russia. It is also important for them to retain the Chinese citizenship in order to protect their rights and dignity. For this reason, until recently only a few Chinese sought Russian citizenship.


Furthermore, the number of Chinese migrants who intend to settle in Russia permanently if they are guaranteed stable legal rights for living and working in the country. There is little doubt that their numbers will continue to grow rapidly if the Russian attitudes towards Chinese migrants change, if police and bureaucrats will stop extorting money and nationalists will stop their discriminatory campaigns.


Another issue is a labor deficit in Vladivostok.

Vladivostok and its region is the major employer of foreign citizens. For several years Administration of region signed contracts and agreements aimed at attracting temporary foreign labor. However, the scale of this practice has not yet increased. The number of foreign workers in the region was approximately the same in the period of 1994-2004. For example, in 2000, foreigners received work permission in Vladivostok was 11624 included 7,708 PRC citizens (65.8%); 1,469 DPRK citizens (12.5%); 940 Vietnamese citizens (8.0%); and 338 citizens of the Republic of Korea (2.9%). During the same period, 1,169 workers (10%) from the CIS countries were employed.
In the beginning of 2004 total number of foreign workers was nearly the same - 10611 workers with same percentage of nationalities.

3. Transnational migration and national polices

The size of economically active population in the region exceeds one million people, it is clear that currently the share of foreign workers is very small. And we can conclude that the contribution of foreign labor force in the regions economy was and remains insignificant. The situation with foreign citizens working in different industrial projects in Russia is rather complex. A part of the Chinese, Korean, and Vietnamese workers who entered Russia in accordance with contractual obligations for different types of work in reality is not engaged in the designated lines of work.


Often their bosses force them to conduct independent business, support themselves, and simultaneously make regular financial contributions to the enterprise, which enables them to earn income in Russia. Illegal activities, which take place in the personnel practices of foreign companies, can be prevented with the help of appropriate control mechanisms.


However, what is important is that the well-intended proposals of many Russian specialists to solve the problem of Russias labor shortage by attracting Chinese, Korean, and Vietnamese workers are extremely difficult to realize. In order to make it work, Russia should establish a proper form of incorporation, develop legal regulations, and ensure effective protection of foreign workers rights.


In principle, signing contracts and agreements that provide for the importation of foreign labor for certain volume of work in the country is a widespread phenomenon. Its role in Russia is most likely to increase due to the growing labor shortage in the country. Up to now, however, foreign workers are offered positions which do not attract the local population.


Until recently Russia has almost never attracted foreign experts specializing in the fields which are in short supply of Russian specialists. The country will most certainly need to acquire this kind of experience available in international business practices.


Now there is no chance for Chinese migrants who settle in Russia will be engaged in Russian domestic production, thus helping to overcome the shortage of work force. The majority of this particular contingent of foreign workers does not speak Russian and lack necessary professional qualifications. As an element of the Chinese trading system, Chinese migrants are oriented toward generating fast and large profits; therefore, most of them prefer to be involved in trade and restaurant business.


One possible solution to the labor shortage problem is to attract more foreigners, especially Chinese, Koreans, and Vietnamese, to Russian educational institutions.


Before we analyze the social-economic impact of Chinese migration in Russia, we need to consider first of all its positive aspects, which are rarely discussed in Russia.


Positive and Negative Aspects of Chinese Migration in Vladivostok
According Victor Larin and Vilya Gelbras

Positive aspect 1.
Supplying the Russian market with consumer goods and food. Local population and authorities should be grateful to Chinese and Russian shuttle traders who supplied them with food and clothes in the hungry early 1990s. In the following years their role slightly decreased, however even now, in 2004, it is still significant not only in Vladivostok, but also in the European part of Russia.

Negative aspect 1.
Inhibition of Russian producers. For example, in the Far East rice, soy and other domestic agriculture products cultivation has been practically liquidated.

Positive aspect 2
Labor market competition, occupying vacant positions in construction, agriculture, and service sectors. On the contrary, Chinese migrants do not create labor market competition. Rather, the higher the share of foreign labor force, the lower the unemployment rate.

Negative aspect 2
Destroying of domestic trade system :from industry to buyer.
Many Russian shuttle traders became a part of the Chinese system of goods marketing.
Hundreds of thousands of Russians now buy Chinese goods in China or Chinese wholesale
markets in Russia and sell them in the remote areas of Russia.

Positive aspect 3
Price competition and dampening of domestic goods prices. Chinese migration created
competition in consumer goods markets. The appearance of Chinese goods on Russian
markets caused an increase in Russian production volumes and a decrease in the prices of domestic goods.

Negative aspect 3
Chinese goods, due to competition with developed countries products, are categorized as cheap and shoddy. However, this did not boost Russias domestic production.

Positive aspect 4
Investments in real estate. The fact that Chinese buy real estate and lease land in Russia is always evaluated on the emotional level and presented as something negative.
However, property and assets, generating revenue, stay in the country. The scale of Chinese investments in Russian property is still small but increased from 2002 twice.

Negative aspect 4
Until recently, Chinese migrants in Russia did not make investments. They handled their
income according to the following two models. The first model is saving money in order to leave the Far East for the European part of Russia, then abroad. This is a dream cherished by many Chinese migrants. The second model is the export of goods and US dollars from Russia to China. For these purposes underground banks and gray and black schemes have been established in order to acquire natural and industrial resources in Russia, to smuggle them to China and to sell them.

Positive aspect 5
Tax levies imposed on market traders and businessmen and customs duties go to the federal and local coffers.

Negative aspect 5
Though Russian authorities complain that Chinese businessmen evade taxation, it was they who created lots of loopholes that allow Russian, Chinese and other citizens to minimize taxes, levies and fees.

Positive aspect 6
Development of tourism and appropriate services sectors.

Negative aspect 6
The Chinese tourism business is structured in such a way that travel agencies and Chinese
communities in Russian cities generate maximum profits, whereas Russia receives minimal fees, levies and profits. This created favorable conditions for opening Chinese restaurants, casinos, bordellos etc; developing flying money schemes that facilitate the transfer of cash (Russian and US currency) to China.

Positive aspect 7
The higher level of individual welfare of some officials, customs inspectors, policemen, etc
who work with Chinese.

Negative aspect 7
Various Russian firms, such as transportation, law, security and other firms are now dependent on working with Chinese migrants. The size of Russians working thus is expanding.

1. Urban polices for transnational migration

Chinese people have a great wish to work in Russia, particularly in the Far East. They try to achieve this goal by means of every legal and illegal ways. For example, a lot of groups of Chinese left for Russia as tourists, but then stayed to work at a Russian timber company.


Fake Chinese tourists store up tons of caviar and other sea food, they smuggle tree-frogs to China (a tree-frog is a very expensive delicacy there). It seems that the process is not going to stop.


Russia and China have serious problems regarding the issue of the Chinese labor force expansion in Russian regions. Up to 350 thousand Chinese people cross borders to the Vladivostok region every year on an illegal basis.


About 45 thousand illegal Chinese citizens live in region in total. An enterprise in Russia is supposed to pay the tax of about $100 for every foreign worker. Of course, Russian businessmen try to use visa-free tourism in order to gain as much profit as possible with the help of the cheap Chinese labor. So do Chinese workers. Russians often leave eastern territories and move over to the center, while Chinese people take their places.


Russian authorities try to decide many social problems caused by increasing migration to Vladivostok. For example in 2003 Primorye Governor Sergei Darkin recommended that municipal authorities ensure safe living conditions for foreign laborers, and that medical supervision over them be arranged for the first five days after their arrival, with regular medical checks to be held afterward.


Russian economic experts come to conclusion that China will become Russias major economic partner in the 21st century. Russians wear clothes that are made in China, they have Chinese TV sets and fridges; they go to eat to Chinese restaurants, and so on and so forth. "Made in China" label can be seen everywhere in Russia. Russians do not really care that all those things are low-quality goods. A cheap price is far more important.


However, the statistics of the economic development in the Far East region of Russia shows that the economic cooperation between Russia and China is beneficial only to China.


The trade cooperation, joint ventures activities help regional Russian authorities to solve certain social and economic problems, although those activities are aimed at taking the Russian market over, pumping raw materials and money out of it. Chinese businessmen smuggle ferrous an non-ferrous metals, as well as titan-alloys that are used in the defense industry. Chinese companies buy those goods at very cheap prices and then resell them in China. Certain Chinese commercial companies evince greater interest in catching rare animals and expensive fish.


Border territories of China develop alcohol businesses, producing high quality beer and vodka sometimes. The underground vodka production is organized very well as well. Cheap low quality vodka is delivered to Russia secretly in passenger trains, buses and vans. Some firms deal with exporting Russian girls to China too. Such firms act as legal, official organizations. They offer Russian girls official jobs in China, arrange all necessary documents. There is nothing to pick such firms up, taking into consideration the fact that no girl filed a complaint or anything. This means that women were aware of what they would have to do in China.
Russian authorities struggle with Chinese migrants, who stay in the Far East of Russia on an illegal basis. However, this struggle leaves much to be desired. Inefficient sanctions and imperfect laws pose a serious obstacle in this respect. Chinese can move on the Russian territory almost without any difficulties. Far Eastern law-enforcement bodies every year registered more than 25 thousand foreigners (including North Koreans and residents of former Soviet republics), documented over 43 thousand administrative violations, and 40 percent of those crimes were committed by Chinese migrants. More than 6000 Chinese were ousted from Russia; almost 1200 of them were called into criminal account.


There are 87 checkpoints in the Far East of Russia. This is a half of what is supposed to be in such a large region. Moreover, they experience absurd problems, which impede them from efficient working. For example, there is a strong lack of immigration blanks, necessary equipment, experienced personnel, and so on.


According Russell Working who is a freelance reporter of The New York Times lived in Vladivostok a recent study of crimes among foreigners has found that crime has increase every year.


But police are arresting foreigners involved in activities ranging from poaching frogs to extortion and murder. A large percentage of such crimes occur in Vladivostoks Chinese Market, which is like a small Chinatown with its own hotels, restaurants, and pool bars.


Police say criminal activity by foreigners includes both the sort of deals commonplace in Russia's gray market economy, such as illegal harvest of timber, and the occasional violent crime. Police recovered only a tiny portion of the money because the criminals had transferred the cash back to China.


Alexander Torenko, deputy chief of the Primorye Police's Department for the Solution of Foreigner-Related Crimes confirmed that the heads of Chinese organized crime in Vladivostok gain on lots of cash.


Vladivostok organization Physicians for Human Rights poll estimates that Chinese crime leaders every year received nearly 1 billion dollars from Vladivostok and its region.


Chinese dominate the picture of murders, robberies, and thefts committed by or against foreigners, with 80 percent of such cases. North Koreans come second with 16 percent and the Vietnamese account for 4 percent.


Primorye police have a cooperation agreement with police in China's Tsilin and Heilungkiang provinces across the border of Vladivostok region.


Migrants have been the victims of crime by Russians as well. In 2000 only one foreigner was killed in Vladivostok and its region in compare with 36 in 2003. In the first half of 2004 it has became already 48 murdered migrants in this area.


Other crimes typical of Chinese criminals in Primorye are illegal migration, drug dealing, smuggling goods ranging from food to timber, and poaching.


The worst poaching hits Primorye's ginseng and frogs, which the Chinese use for medicinal purposes. Frogs have completely disappeared from environs of Vladivostok in recent years. This led to the disappearance of snakes in this area. The pending extinction of frogs is "a very serious ecological problem.
North Korean crime occupies a different niche in Vladivostok region. While police suspect that many North Koreans deal in opium, few cases have been reported. Officially police reported two North Korean drug cases. Few years ago police arrested a North Korean who had a large amount of opium. He then committed suicide in his cell.


The opium was industrially processed. This suggests that North Korea smuggles the drug into Primorye as part of a state program to fill the budget confirmed deputy chief of the Primorye Police's Department for the Solution of Foreigner-Related Crimes Alexander Torenko.


In 1998, one North Korean was slain, three were attacked, and one received a death threat in Primorye. Also, the son of a North Korean diplomat was brutally beaten with a steel rod at his school in Vladivostok.
The Vietnamese play a low-key role because there are just near thousand of them in the region. Brought in for long-term construction contracts, they remained without work amidst Russian economic woes. Now they trade and change money at Vladivostok's black money exchange market and some other markets around town.


The purpose of migrants business in Vladivostok is forest. Only in Vladivostok region the volume of an illegal forest trade is almost 300 millions of U.S. dollars annually. More than half of the timber in Primorye has been already logged and almost 80 per cent is exported illegally. It results in dire socio-economic consequences including decrease of ripe forest areas and people migration.


Russian police and migration service make an aggressive effort to stop Chinese visitors from illegally staying on as construction workers, restaurateurs, roadside shoe repairmen, and traders in the open markets.


Chinese illegal aliens have been entering Russia for nearly a decade, since the border opened to tourists after the fall of the Soviet Union. In the middle of 90 th 90 percent of the Chinese who came in tour groups disappeared, according Federal Migration Service reports. Most of them went to trade on the markets and did not return home. Some migrated to other parts of Russia or even tried to go to third countries via Russia mostly in Europe.


For thousands of years, parts of what are now the Russian Far East were the home of aboriginal peoples and Chinese traders, explorers, and settlers. References to (Chinese) Amur natives can be found in Chinese chronicles from 770-256 B.C., and Han dynasty historians mention "fishskin" tribes (Nanai) and "hairy people" (possibly Ainu).


Vladivostok's bay was once known by a Chinese name, Haishenwei, named by the sailors who harvested trepang (sea cucumber) here. But as Russia made its eastward push to the Pacific in the 16th through 19th centuries, Cossack regiments claimed the land in the name of the tsar (Vladivostok itself means "possess the east"). Nowadays, Russian Far Easternerswho are otherwise quite admiring of foreigners, including Asiansare often openly hostile toward Chinese.


Russians have fairly recent reasons for their suspicions about Chinese intentions.


Mao Zedong declared in 1964 that Russia had "taken too much land," citing the Primorye region, where Vladivostok is located, as one example. After border clashes in 1969 along the Ussuri River that separates China from Russia, Beijing declared Primorye and the land along the Amur River to be "historically Chinese." By 1981, some Chinese historians were claiming the Arctic Ocean was their nation's northern frontier in the 13th century. In reply, Soviet officials renamed Chinese towns, rivers, and mountains in the region, so that, for example, the coal-mining town of Suchan near Vladivostok became Partizansk.


In fairness, the Chinese themselves have historic fears of Russia. The Soviet army occupied neighboring Mongolia until the beginning of the 1990s. And before the Russian Revolution, the tsar's troops made incursions into Manchuria and, following the lead of Great Britain in Hong Kong and Portugal in Macao, made a Russian base at Port Arthur (Dalian).


Russian officials now fear that without vigilance, the Chinese could take over someday. "If we don't control the migration process, then eventually we'll have to live under Chinese rule, rather than them following our rules," ex-head of Vladivostok Migration Service Yurman says.

5. Lessons learnt and recommendation
Migration in Vladivostok is a complex phenomenon and cannot be evaluated unambiguously. In Russia, this phenomenon is rather unique and differs from migration processes in other countries.


Chinese migrants dominate in migration inflow in Vladivostok and region therefore we consider them as a main migration society in region.


First of all, most Chinese migrants are a part of a Chinese trading structure. Second, these are not individuals who firmly intend to tie their new destiny in their new country with the goal to respect its traditions, rules, and norms. It is likely that Chinese migration in Russia is in a critical stage of development.


Chinese governments aspirations to subordinate Chinese migrants and communities to the realization of this strategy could cause dramatic changes in both the growth of immigration and the level of activity of Chinese communities in Russia.


Chinese communities in Russia have built a fundamental foundation for Chinese foreign economic expansion. Consequently, Russia has found itself in the position where it has to immediately work out its own strategy of social-economic development in Far East and in Vladivostok in particular.


Victor Fersht
May, 2004

See also Transition states and transnational migration

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