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SOME MIGRANTS huddled in tents provided by local volunteers. Others slept on the desert floor, facing fire pits burning rubbish. The camp, which in 2023 sprang up outside Jacumba Hot Springs, a town in San Diego County, California, was encircled by mountains, highways and the border wall. When Border Patrol agents came to take people for processing, they had to resort to nonverbal communication. “Sit if you have a passport.” “Step forward if you are travelling with children.” If the migrants were from Mexico and Central America, as most used to be, Spanish would suffice. Yet among those who had just walked across from Mexico were people from China, India and Turkey.
Image: The Economist
Last year seems to have set records for the number of migrants apprehended at the southern border, and Republicans in Congress are demanding reforms to America’s asylum system in return for aid to Ukraine. A deal has proved elusive. Slightly more under the radar, the diversity of the Jacumba camp reflects a big change in who is crossing over. In fiscal year 2023, for the first time, migrants from places beyond Mexico, El Salvador, Guatemala and Honduras made up more than half of all those apprehended at the border (see chart 1). Venezuelans are the largest part of this group. But last year 43,000 Russians, 42,000 Indians and 24,000 Chinese also made the crossing—up from 4,100, 2,600 and 450, respectively, in 2021. America’s northern border has proved porous, too. In total some 40,000 Indian and Chinese migrants came south from Canada last year.
Migrants take different paths to the southern border, depending on where they come from. An analysis by Idean Salehyan and Gil Guerra of the Niskanen Centre, a think-tank in Wasington, DC, suggests that most Chinese fly to Ecuador, to which they have visa-free travel, before making the long and dangerous trek through Panama’s Darién Gap. Panamanian data confirm that the number of Chinese migrants crossing the jungle rose steadily in 2023. In October, El Salvador began to tax African and Indian travellers at the country’s main airport. Turkish migrants in Jacumba had flown to Tijuana and then walked into California.
Certain nationalities tend to cluster in specific border sectors. Chinese and Russians often cross near San Diego and Indians near Tucson, Arizona. Migration flows are constantly evolving, says Ariel Ruiz Soto, of the Migration Policy Institute, a think-tank. He likens the border to a balloon. If you squeeze one side (say, enforcement increases in San Diego), the air will flow to another (migrants will head to Tucson or El Paso.) Social media and messaging apps have helped spread information. TikTok and YouTube are filled with videos teaching migrants about routes. “Once families know that their friend or cousin has made it,” says Mr Ruiz Soto, “they’re much more likely to take a chance.”
Smuggling networks have evolved to serve the increased demand. Notices painted on walls and printed on fliers all over the Indian states of Punjab and Gujarat promise help with moving to America, Australia, Britain and Canada: visa services, college admissions, job opportunities. A charter plane bound for Nicaragua and filled with Indian migrants was recently grounded in France while officials conducted a human-trafficking investigation. The Turks in Jacumba admitted they had paid a coyote to show them the way to a hole in the border wall. Mexican cartels are also diversifying their enterprises by getting into the people-smuggling business.
Why the surge? A number of trends converged in 2023 to diversify irregular migration to America. War and instability pushed people to leave their countries. The Jewish Family Service of San Diego, which runs a migrant shelter, helped more Russians than any group besides Mexicans in the nearly two years since Russia invaded Ukraine. The end of China’s lengthy and repressive zero-covid policy allowed Chinese to travel internationally again.
Several Republican politicians have suggested that China is sending spies to infiltrate America. It is not lunacy to be wary of potential agents working for Chinese security services. Last year the Department of Justice charged two Chinese men living in New York City with operating an illegal police station “to monitor and intimidate dissidents”. Yet Mr Salehyan argues that there is no evidence that asylum-seekers, who willingly give themselves up to Border Patrol, have sabotage in mind.
Image: The Economist
Roughly 70% of asylum applications from Chinese migrants between 2003 and 2023 were granted, suggesting that their reasons for leaving China were mostly credible (see chart 2). In fact, Ecuadorian data show that a disproportionately high share of Chinese migrants are coming from Hong Kong, where dissent has been punished, and Xinjiang, where Uyghurs have been persecuted. Rather than plotting to undermine America, plenty seem to be seeking freedom.
But many, probably most, migrants have a financial incentive to come. Several at the camp in Jacumba said they were fed up waiting years for a visa, and hoped to earn more money in America than back home. As of December, more than 300,000 people who had submitted immigrant visa applications were waiting for an interview. Delays are largely the result of the pandemic, which shut down consulates and decimated their staff. More important, there are not nearly enough visas for the number of people who want to come. Yet expanding legal pathways has not, so far, been part of Congress’s spasmodic negotiations.
This increasingly global migration to America’s borderlands says something about the enduring power of the idea that America is a land of opportunity. For many migrants in Jacumba there is no other place that they would risk everything—their money, their safety—to get to. When asked why he didn’t try to move somewhere closer to Turkey, Selim Gok, a 20-year-old student, responded matter-of-factly: “Because I speak English.”■
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On July 20, Andy Burnham has been chosen to be the next Prime Minister in UK. The appointment of a new Prime Minister in the United Kingdom often raises questions from people outside the country, especially when no nationwide election has taken place. Many wonder how a new national leader can assume office without voters casting ballots. The answer lies in the UK’s parliamentary system, where the Prime Minister is not directly elected by the public but is instead chosen based on who commands the confidence of the House of Commons.
How the UK Selects Its Prime Minister
Unlike presidential systems where citizens vote directly for the head of government, the United Kingdom elects Members of Parliament (MPs) during a general election. The political party that secures a majority of seats in the House of Commons usually forms the government, and that party selects its own leader to serve as Prime Minister.
If the leader resigns, becomes unable to continue, or is replaced by their party, the governing party can choose a new leader without triggering a general election. As long as the new leader is able to maintain the confidence of Parliament, they can immediately become Prime Minister after being formally appointed by the monarch.
Why No Election Was Required
A general election is not automatically required every time the office of Prime Minister changes hands. The governing party retains its parliamentary majority because voters elected MPs rather than an individual Prime Minister. If the ruling party chooses a new leader through its internal leadership process, the government continues to operate without interruption.
This constitutional arrangement provides stability and allows the government to continue functioning during periods of political transition. It also avoids the expense and disruption of holding a nationwide election every time party leadership changes.
The King’s Constitutional Role
After a governing party elects a new leader, the monarch invites that individual to form a government. This constitutional step is largely ceremonial and follows long-established conventions. The King appoints the person most likely to command a majority in the House of Commons, ensuring continuity of government.
Although the monarch formally appoints the Prime Minister, political power rests with Parliament and the elected representatives of the British people.
Could an Election Still Happen?
Yes. A newly appointed Prime Minister has the authority to request a general election if they believe it is politically advantageous or if they seek a stronger public mandate. Parliament can also reach a point where a government loses the confidence of the House of Commons, potentially leading to an election or the formation of a new government.
In many cases, however, a new Prime Minister continues governing until the next scheduled general election.
What This Means for the UK
The UK’s parliamentary democracy is designed to ensure government continuity while respecting the results of the most recent general election. Leadership changes within the governing party do not automatically alter the composition of Parliament, which is why a new Prime Minister can take office without another nationwide vote.
Understanding this process helps explain why political transitions in the United Kingdom can appear different from those in countries with presidential systems. While the Prime Minister may change, the democratic mandate of Parliament remains in place until voters elect a new House of Commons at the next general election.
On July 21, 2026, global economic analysis shifts focus toward a defining structural macroeconomic trend: the massive expansion of public and private capital deployment into high-capacity electrical grid infrastructure. As industrial electrification, automated data center hubs, and renewable energy integration accelerate worldwide, sovereign governments and institutional investors are facing a monumental economic challenge. Updating legacy power grids to meet skyrocketing demand has emerged as a primary driver of long-term capital expenditures and industrial productivity across both developed and emerging market economies.
According to international economic policy updates released this week, grid infrastructure investments are projected to exceed multi-trillion-dollar thresholds over the coming decade. Economic planners caution that without modernized, high-voltage transmission networks, regional manufacturing sectors face severe energy bottlenecks, localized power price volatility, and operational constraints. Consequently, infrastructure spending is rapidly transitioning from passive utility maintenance into a vital component of national economic competitiveness and industrial policy.
The macroeconomic ripple effects of this capital deployment are being felt across global commodity markets and labor networks. High demand for structural industrial inputs—such as copper, aluminum, specialized electrical steel, and high-capacity transformers—has created sustained pricing support for critical material producers. Simultaneously, the specialized technical labor required to manufacture and deploy modern grid hardware is driving wage growth in industrial sectors, adding a complex new layer to central bank disinflation trajectories.
For global policymakers and strategic investors, the economics of energy grid modernization represent a double-edged sword. While massive infrastructure investment boosts short-term gross domestic product (GDP) and strengthens domestic industrial foundations, it requires disciplined fiscal allocation to prevent inflationary crowding-out of private capital. Countries that efficiently streamline grid infrastructure permitting and mobilize private investment will secure lower long-term energy costs, attracting high-tech manufacturing and reinforcing sustainable economic growth.
The international trade architecture entering the second half of 2026 is undergoing a profound structural pivot. As major sovereign economic blocs adjust to the long-term impact of unilateral tariffs and escalating regional subsidies, traditional globalized supply chains are being rapidly replaced by bilateral trade corridors and regional alliance networks. Data released in late July 2026 highlights a significant divergence: while cross-continental freight volumes between non-aligned partners have cooled, intra-regional trade throughout North America, Southeast Asia, and Eastern Europe has surged to record levels. This shift reflects a broader macroeconomic strategy wherein multinational corporations prioritize geopolitical resilience over pure cost minimization.
The primary economic catalyst behind this regionalization is the proliferation of sector-specific tariffs targeting critical industries, notably battery components, clean energy technology, and advanced semiconductor hardware. In response, global manufacturers have adopted multi-tier sourcing models that distribute production across intermediate partner nations before final assembly. While this strategy successfully bypasses primary import duties, it adds structural layers of logistical complexity and administrative oversight. Economists note that while total output remains robust, aggregate production costs have drifted upward, contributing to persistent baseline inflation across major consumer markets.
Simultaneously, currency settlement patterns within these regional blocs are experiencing a notable transformation. Sovereign central banks and commercial institutions are increasingly utilizing localized currency swap lines and digital clearing mechanisms to settle cross-border trade transactions. This transition reduces direct exposure to foreign exchange volatility and mitigates third-party liquidity constraints, further solidifying regional economic cohesion. However, for developing economies situated outside these primary trading alliances, the tightening of international trade networks presents severe challenges, restricting access to key export markets and foreign direct investment.
For corporate strategists and policy analysts navigating late 2026, success requires a thorough understanding of these emerging trade corridors. Organizations must conduct regular risk assessments of their multi-tier supplier networks, model tariff sensitivities under shifting geopolitical scenarios, and invest in real-time supply chain telemetry. As regional economic blocs strengthen their regulatory borders, supply chain agility and compliance fortitude will distinguish market leaders from vulnerable enterprises in the evolving global economy.