In recent years, with the progression of globalization, foreign workers and immigrants have become an indispensable part of many societies. However, in the face of economic uncertainty, concerns about public safety, and cultural friction, some countries and regions have seen a rise in xenophobic sentiment. If such exclusionary tendencies go unchecked, they could lead to significant economic and cultural losses, as discussed in the article like Toyo Keizai Online 2025-07-18. I would like to clarify the major adverse effects of xenophobia on both the economy and culture in this essay.
1. Economic Losses
(1) Worsening Labor Shortages
In advanced countries suffering from declining birth rates and aging populations—particularly Japan—foreign labor has become essential in many sectors. Industries such as elder care, construction, agriculture, and food service already rely heavily on foreign workers. If xenophobic policies and rhetoric become widespread, foreign nationals may no longer consider such countries attractive places to work. This would further deepen labor shortages and cause stagnation in both production and services.
(2) Negative Impact on Innovation and Entrepreneurship
In many developed economies, foreign nationals play a key role in starting new businesses and driving economic growth. For example, in Silicon Valley, many leading tech companies were founded by immigrants. Xenophobic climates can discourage such talented individuals from launching startups or moving to these countries, leading to a long-term decline in innovation. This, in turn, hampers the emergence of competitive industries and reduces economic dynamism.
(3) Decline in International Competitiveness
Countries are competing more fiercely than ever to attract foreign workers and skilled professionals. Germany, Canada, and others have adopted proactive immigration policies to draw a diverse pool of talent. If a country develops a reputation for hostility toward foreigners, it may fail to attract such talent and fall behind in international competitiveness. The consequences would extend beyond manufacturing into R&D, services, and other key sectors.
(4) Damage to Foreign Exchange and Tourism
Tourism is another area vulnerable to the effects of xenophobia. Many countries—including Japan—depend heavily on inbound tourism as a source of revenue, particularly in regional economies. If foreign visitors feel unwelcome, the country’s appeal as a destination diminishes, and tourism revenue drops. This affects not only travel and hospitality but also retail, food service, transportation, and related sectors.
2. Cultural Losses
(1) Regression of a Multicultural Society
Living with foreigners is not just about accepting them—it involves cultural interaction that enriches society. The blending of diverse values and lifestyles often leads to new ideas and creativity. If xenophobia cuts off such interaction, society becomes more homogeneous, and cultural diversity deteriorates. Furthermore, it hinders the development of internationally minded individuals and leads to cultural and diplomatic isolation.
(2) Deterioration of Educational Environments
A multicultural educational setting provides children with opportunities to learn about other cultures and develop tolerance. Children with foreign roots are valuable assets in such environments. However, in xenophobic societies, they are more likely to face discrimination or bullying and may be excluded from education. This exacerbates inequality in educational opportunities and deepens social division.
(3) Stagnation in the Arts and Cultural Activities
People with diverse cultural backgrounds are key contributors to the arts. Whether in music, visual arts, film, or literature, many groundbreaking works have emerged from intercultural collaboration and influence. Xenophobia reduces opportunities for such cultural exchange and stifles creativity. Since culture thrives on cross-border interaction, cutting off these exchanges results in significant cultural impoverishment.
3. Increased Social Costs
Another major consequence of xenophobia is the fragmentation and destabilization of society. Prejudice and discrimination against foreigners can lead to violent confrontations or exclusionary movements, increasing social tension. Governments are then forced to spend more on human rights initiatives and public safety, leading to greater fiscal and administrative burdens. Moreover, a country that allows xenophobia to flourish risks losing international credibility and becoming diplomatically isolated.
Conclusion
While yielding to xenophobic sentiment may offer a false sense of security—such as preserving public order or cultural purity—in the short term, it comes at a high long-term cost: economic stagnation, cultural decline, and social conflict. In today’s interconnected world, foreigners are not outsiders but partners in shaping our society. Rather than excluding diversity, we must embrace it. A society that values and leverages diversity is best positioned to create a sustainable and creative future.