Have you heard about “Nomads” before? You’ve probably come across the term in a history book or heard it during a prehistoric period class. Defined by the Cambridge Dictionary, Nomads are “members of a group of people who move from one place to another rather than living in one place”, exemplified by the phrase “a tribe of Somalian desert nomads”.
However, there is a new concept growing all around the world: the “Digital Nomads”. These modern Nomads are also travelers but have very little in common with a simple and humble Somali tribe. In fact, they are the ones responsible for major problems in local communities around the world.
A new form of colonization
The modern Nomads are people who choose to work remotely and travel the world while doing so. The notion revolves around the use of technology in order to do the work and is heavily sustained by the ‘work from home‘ policies implemented during and after the pandemic.
At first, it appears to be the perfect job scenario and indeed a harmless practice, but that is until the consequences of it are demystified, and the truth is revealed.
All around the globe, Digital Nomads establish themselves in tourist destinations, specifically the ones where the cost of living is lower and international currencies stronger. The problem is that they are not there as tourists, which would actually support the local economy and stimulate commerce.
Instead, they are now part of that society as foreigners living in places where their country’s currency – mostly the USA and Europe – is much more valuable, making rent, groceries, gas, and other living expenses extremely cheap for them – but very expensive for everyone else around them.
The presence of the Nomads generates a hole in the local economy because, as demand is higher and these consumers have larger purchasing power than the average population, prices go over the top, making the life of the community harder and overpriced.
Real-Life Consequences
It may seem unreal, and even like an exaggeration for those who are only now getting familiar with the topic, but the presence of Digital Nomads has been so established that there are even countries offering a specific type of visa for them.
According to the online page, “Planet Nomad,” there are over 40 countries around the world offering visas for the Nomads, including Brazil, Italy, Mexico, and Thailand.
The latest report on Immigration Trends from the company Fragomen has stated that there are expected to be over 1 billion Digital Nomads by 2035.
This new modality of working is already a reality and has impacts on the daily life of many. During episode three of the podcast “Desenrola,” hosted by the journalist and ex-student of Fundação Cásper Líbero, Dandara Fonseca, the guests Jéssica Pádua and Matheus Souza talked about their experiences as Digital Nomads.
When asked about her lifestyle living abroad, the writer and content creator Jéssica Pádua said that “Some countries are more expensive, and others cheaper, but in the end, you maintain the same lifestyle”.
The problem resides in the fact that those travelers come and go, living their lives anywhere they wish to do so, and when they’re finished, they leave the community behind – sometimes negatively affected – and are ready to do the same someplace else.
New Rights and New Duties
As the increase in Digital Nomads continues to grow all over the world, new rules and duties ought to accompany it in order to regulate the small economies and support local communities.
Just as international companies are legally obligated to pay taxes to the country’s government where they’re established, Nomads ought to contribute in a similar way.
The international companies acting in Brazil, for example, have to pay a range of different taxes, according to the consulting company G Jacintho, those include: “Corporate Income Tax” or, “Imposto de Renda da Pessoa Jurídica (IRPJ)”, “Social Contribution on Net Profit”, as in “Contribuição Social Sobre o Lucro Líquido (CSLL)” and finally, “Withholding Income Tax”, which stands for “Imposto de Renda Retido na Fonte (IRRF)”.
It is undeniable that Digital Nomads represent a huge improvement in the working culture and a revolutionary achievement for employees, one that should be celebrated.
However, we must not forget that there are people who did not choose to work as Digital Nomads, do not have the luxury of doing so, and yet, have their lives directly affected by it. These people have to be protected, and new regulations need to follow the Nomads’ progress.
—————————————————————–
The article above was edited by Manuela Miniguini.
Liked this type of content? Check Her Campus Cásper Líbero home page for more!