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After reading this article you will learn about:- 1. Meaning of Brain Drain 2. Factors Leading to Brain Drain 3. Measures.
Meaning of Brain Drain:
Brain drain refers to the migration of highly qualified, trained and talented persons from one country to another. Now-a-days, it means the outflow of human capital from developing countries to developed countries.
It involves international migration of surgeons, physicians, natural scientists, social scientists, engineers, technologists, business administrators, financial experts, information technologists, etc. to more prosperous countries like U.K., U.S., Germany, Australia, etc.
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Developing countries are great losers due to brain drain when professionals and technical persons emigrate to other countries. They subsidise the educational costs of such personnel but are unable to tax their incomes. The money which some of them remit is insignificant as compared with the above two types of losses.
Often the best of brains settle abroad which is a permanent loss to the home country. Mihir Desai, Devesh Kapur and John McHale of Harvard University have estimated that the total income of Indian-born residents in the USA accounts for 10 per cent of India’s national income, though they are only 0.1 per cent of the American population.
Factors Leading to Brain Drain:
The following factors lead to brain drain from developing countries like India to developed countries like the USA:
1. In developing countries, job opportunities are limited or no-existent. So highly qualified persons migrate to developed countries like U.S.A. to take advantage of wider and better job opportunities.
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2. Even though similar skills are needed in both developing and developed countries, people migrate and settle permanently in the latter countries because they pay very high salaries. The famous saying is “brains go to where money is.”
3. Some persons go abroad for higher studies and research because academic and research facilities are not of international standards in poor countries. For instants, there are first rate facilities for research in social and natural sciences and technology. These attract persons from poor countries who after acquiring higher proficiency in their respective fields permanently settle there. Another saying is “Brains go where brains are.”
4. A few highly skilled person migrate and settle permanently in developed countries attracted by a comfortable standard of living as compared to their own country.
5. Some are persuaded by friends and relatives already settled abroad to get higher education and training. They ultimately settle in that country by joining firms in their respective fields of study.
6. Another important factor is the excess supply specialised and trained persons at home over the demand for them in developed countries which encourages people to migrate to developed countries permanently.
7. Brain drain is also encouraged in developing countries because of “unfriendly, non-motivated, constrained and non-creative work environment” as compared to friendly, cooperative and healthy work environment in developed countries.
8. In developing countries good jobs are filled and promotions are made on the basis of family connections, political influence and corruption. In public sector institutions and oganisations, there is “Stifling and unresponsive bureaucracy.” Corruption is rampant which encourages brain drain abroad. On the other hand, freedom of occupation, better job opportunities, possibilities of professional growth, financial security and congenial work environment attract highly qualified and skilled personnel to developed countries.
9. Countries like the United States, lure away talented manpower from developing countries by liberalising their immigration policies to permit and encourage such migration.
Measures to Reduce Brain Drain:
The following measures have been suggested by economists to reduce brain drain from developing country:
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1. Prof. Parthasarathi in an article “Brain in Developing Countries” suggests that every student should be allowed to go for higher study abroad only if he has attained the highest possible level of education in his chosen field of study in his own country. After this, he should be employed in the country for at least two years before being permitted to go abroad.
2. Prof. Dandekar in an article “The Brain Drain” suggests that the inequality within the intellecutal ranks both in terms of status and income, should be narrowed down to reduce brain drain.
3. Besides, “an intellectually stimulating environment” should be created in the institutions where the talented persons work in the home country.
4. An organisation should be set up to provide information and advice to highly qualified persons on job opportunities within the country.
5. There should be a Scientists Pool Scheme to help the young talented scientists for placements in various institutions and organisations and to attract those who are working or studying abroad to come back to their country.
6. Besides good pay and perks, they should be provided such amenities as housing, schooling for children, conveyance, etc. For those who are willing to return from abroad should also be paid the travel fare by the organisation which they join.
7. Prof. Jagdish Bhagwati suggests the levy of an international tax on professionals settling abroad. The country to which the person migrates permanently should collect this tax and remit it to the country from which the person comes. Such a tax would be sufficient to close the revenue deficits of developing countries.
Recently, Mihir Desai, Devesh Kapur and John McHale of Harvard University have empirically carried forward Bhagwati’s idea of the immigration tax. They have estimated that the net fiscal loss of India from emigration of skilled persons to the USA was between 0.24 per cent and 0.58 per cent of India’s GDP in 2001.
According to them, a Bhagwati Tax can yield an annual revenue of about $ 500 million. They prefer an “exit tax” on all skilled persons who emigrate. But the problem is of collecting such a tax – when, where and how?
8. Prof. Bhagwati has also suggested the setting up a world migration organisation on the lines of WTO to develop a coherent policy on the movement of individuals across borders.
Above all, to prevent brain drain and to attract those who have already settled abroad, it is essential that there is a congenial working environment which provides financial security, professional growth, based on meritocracy and is free from bureaucratic corruption and nepotism.
Coming back home of successful emigres, some of whom get fabulously rich, will invest capital to start industries in developing countries, thereby leading to reverse brain drain.