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Migration	
  
Brain	
  drain	
  or	
  brain	
  gain?	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
Economic	
  and	
  Social	
  Development	
  
Essay	
  –	
  15th	
  of	
  October	
  2014	
  
	
  
	
  
Jelena	
  Dukic	
  &	
  Niamh	
  Deutz	
  Ebeling	
  
	
  
	
  
  1	
  
Contents	
  
Contents.................................................................................................................................... 1	
  
Introduction.............................................................................................................................. 2	
  
Migration.............................................................................................................................. 2	
  
Motives	
  for	
  migration.......................................................................................................... 2	
  
Content	
  essay....................................................................................................................... 2	
  
Brain	
  drain ................................................................................................................................ 3	
  
Definition.............................................................................................................................. 3	
  
“Brain	
  drain”	
  effects ............................................................................................................ 3	
  
Downsides	
  and	
  upsides........................................................................................................ 3	
  
Examples .............................................................................................................................. 4	
  
How	
  to	
  prevent	
  immigration? ............................................................................................. 4	
  
Brain	
  gain.................................................................................................................................. 6	
  
Definition.............................................................................................................................. 6	
  
Increase	
  in	
  migration ........................................................................................................... 6	
  
“Reverse	
  Brain	
  Drain” .......................................................................................................... 6	
  
Remittances.......................................................................................................................... 7	
  
Education	
  and	
  economic	
  growth......................................................................................... 8	
  
Africa .................................................................................................................................... 8	
  
Conclusion .............................................................................................................................. 10	
  
References .............................................................................................................................. 11	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  2	
  
Introduction	
  
Migration	
  
Since	
   the	
   late	
   1990s,	
   when	
   the	
   technical	
   boom	
   began	
   to	
   expand,	
   more	
   and	
   more	
  
governments	
   opened	
   their	
   doors	
   to	
   immigrants,	
   and	
   specifically,	
   highly	
   educated	
  
immigrants.	
  This	
  has	
  resulted	
  in	
  an	
  even	
  bigger	
  movement	
  of	
  people	
  across	
  the	
  world,	
  than	
  
the	
   start	
   of	
   globalization	
   had	
   already	
   caused	
   in	
   the	
   19th
	
   century	
   with	
   the	
   industrial	
  
revolution.	
  In	
  2008	
  it	
  was	
  estimated	
  that	
  the	
  world	
  exists	
  of	
  191	
  million	
  immigrants,	
  of	
  which	
  
60%	
  lives	
  in	
  developed	
  countries	
  (20%	
  in	
  US	
  and	
  33%	
  in	
  Europe).	
  To	
  get	
  the	
  facts	
  straight,	
  it	
  
is	
  necessary	
  to	
  define	
  what	
  migration	
  means	
  and	
  which	
  types	
  of	
  migration	
  exist.	
  According	
  
to	
   the	
   UN	
   (1998)	
   a	
   migrant	
   is	
   defined	
   as	
   a	
   person	
   who	
   moves	
   to	
   a	
   country	
   (other	
   than	
  
his/her	
  usual	
  residence)	
  for	
  a	
  period	
  of	
  at	
  least	
  12	
  months.	
  There	
  are	
  two	
  types	
  of	
  migration:	
  
immigration	
  and	
  emigration.	
  Immigration	
  defines	
  people	
  who	
  migrate	
  into	
  a	
  country	
  and	
  
emigration	
  defines	
  people	
  who	
  depart	
  from	
  a	
  country.	
  
Motives	
  for	
  migration	
  
Looking	
  at	
  migration	
  from	
  a	
  historical	
  point	
  of	
  view,	
  the	
  most	
  common	
  motive	
  for	
  migration	
  
was	
  a	
  common	
  language	
  or	
  religion	
  in	
  a	
  different	
  country.	
  More	
  recent	
  examples	
  –	
  such	
  as	
  
slave	
  trade	
  or	
  The	
  Irish	
  Famine	
  –	
  show	
  that	
  migrating	
  is	
  not	
  per	
  definition	
  a	
  choice,	
  but	
  that	
  
there	
   are	
   different	
   reasons	
   for	
   migration.	
   In	
   this	
   context,	
   some	
   circumstances	
   can	
   force	
  
people	
   to	
   move,	
   but	
   voluntary	
   migration	
   on	
   the	
   contrary,	
   has	
   become	
   more	
   widespread	
  
over	
  the	
  past	
  decades.	
  The	
  current	
  trend	
  of	
  voluntary	
  migration	
  has	
  multiple	
  under	
  laying	
  
causes:	
   the	
   emergence	
   of	
   a	
   global	
   labour	
   market,	
   the	
   development	
   of	
   knowledge	
  
economies,	
   the	
   increase	
   in	
   foreign	
   investment	
   and	
   trade	
   and	
   the	
   tech	
   boom	
   of	
   the	
   late	
  
1990’s	
   has	
   made	
   more	
   governments	
   open	
   their	
   doors	
   and	
   has	
   made	
   it	
   easier	
   for	
   human	
  
movement	
  across	
  the	
  globe.	
  As	
  mentioned	
  above,	
  migration	
  has	
  become	
  a	
  very	
  important	
  
aspect	
  of	
  the	
  modern	
  day	
  world.	
  Some	
  people	
  consider	
  migration	
  as	
  something	
  negative,	
  
but	
  others	
  consider	
  it	
  to	
  be	
  positive.	
  So	
  can	
  migration	
  be	
  seen	
  as	
  “brain	
  drain”	
  or	
  “brain	
  
gain”?	
  
Content	
  essay	
  
In	
  the	
  first	
  chapter,	
  the	
  term	
  brain	
  drain	
  will	
  be	
  discussed.	
  This	
  especially	
  focuses	
  on	
  the	
  
negative	
  effects	
  of	
  migration.	
  In	
  the	
  second	
  chapter,	
  the	
  term	
  brain	
  gain	
  will	
  be	
  discussed.	
  
This	
   especially	
   focuses	
   on	
   the	
   positive	
   effects	
   of	
   migration.	
   In	
   the	
   fourth	
   chapter,	
   all	
   the	
  
gathered	
  information	
  and	
  knowledge	
  will	
  be	
  formed	
  into	
  a	
  conclusion.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  3	
  
Brain	
  drain	
  	
  
	
  
Definition	
  
To	
  begin	
  with,	
  this	
  worldwide	
  phenomenon,	
  brain	
  drain,	
  refers	
  to	
  the	
  significant	
  emigration	
  
of	
   knowledgeable,	
   well-­‐educated	
   and	
   skilled	
   professionals	
   from	
   their	
   home	
   country	
   to	
  
another	
  country,	
  resulting	
  in	
  the	
  loss	
  of	
  the	
  skilled	
  people	
  –	
  the	
  so-­‐called	
  “brains”	
  in	
  the	
  
places	
   they	
   come	
   from.	
   As	
   a	
   starter	
   example	
   to	
   better	
   understand	
   brain	
   drain	
   is	
   Albert	
  
Einstein	
   who	
   moved	
   from	
   Germany	
   to	
   the	
   U.S.	
   as	
   a	
   result	
   of	
   unwillingness	
   of	
   German	
  
government	
  to	
  invest	
  into	
  research	
  &	
  development.	
  It	
  is	
  widely	
  known	
  that	
  he	
  ended	
  up	
  
influencing	
  the	
  nuclear	
  era	
  and	
  becoming	
  very	
  famous.	
  From	
  this	
  example,	
  and	
  many	
  more,	
  
it	
  can	
  be	
  see	
  that	
  the	
  effect	
  of	
  “brain	
  drain”	
  causes	
  countries	
  to	
  lose	
  valuable	
  professionals.	
  
Furthermore,	
   this	
   term	
   is	
   usually	
   used	
   to	
   describe	
   the	
   departure	
   of	
   doctors,	
   scientists,	
  
engineers	
  or	
  any	
  highly	
  educated	
  person	
  from	
  that	
  specific	
  country.	
  
	
  	
  
“Brain	
  drain”	
  effects	
  
There	
  are	
  two	
  different	
  ways	
  a	
  country	
  is	
  being	
  harmed	
  when	
  people	
  decide	
  to	
  leave	
  it.	
  First,	
  
the	
  supply	
  of	
  those	
  specific	
  professions	
  that	
  people	
  who	
  leave	
  the	
  country	
  possess	
  declines.	
  
Second,	
  the	
  country's	
  economy	
  is	
  harmed	
  as	
  each	
  professional	
  represents	
  surplus	
  spending	
  
units.	
   It	
   means	
   that	
   as	
   professionals	
   often	
   earn	
   large	
   salaries,	
   their	
   departure	
   removes	
  
significant	
  consumer	
  spending	
  from	
  the	
  country.	
  There	
  are	
  several	
  factors	
  that	
  cause	
  this	
  
effect.	
  The	
  most	
  obvious	
  ones	
  are	
  the	
  availability	
  of	
  better	
  job	
  opportunities,	
  better	
  salaries,	
  
working	
  conditions	
  and	
  standard	
  of	
  living.	
  Some	
  other	
  factors	
  are	
  wars,	
  health	
  issues,	
  and	
  
political	
  instability.	
  	
  
	
  
Downsides	
  and	
  upsides	
  
There	
  are	
  downsides	
  and	
  upsides	
  when	
  discussing	
  the	
  brain	
  drain	
  phenomenon.	
  The	
  first	
  
one	
  to	
  be	
  looked	
  at	
  is	
  the	
  upsides.	
  One	
  of	
  the	
  most	
  important	
  sides	
  of	
  brain	
  drain	
  is	
  the	
  
money	
   the	
   emigrants	
   send	
   back	
   to	
   their	
   home	
   country.	
   Due	
   to	
   this,	
   emigrants	
   helped	
   in	
  
alleviating	
   poverty	
   in	
   their	
   homes,	
   reducing	
   both	
   the	
   level	
   and	
   severity	
   of	
   poverty.	
   The	
  
money	
  remittances	
  send	
  back	
  are	
  spent	
  more	
  in	
  investments	
  such	
  as	
  education,	
  health	
  and	
  
housing,	
  rather	
  than	
  on	
  food	
  and	
  other	
  goods.	
  This	
  has	
  resulted	
  in	
  greater	
  child	
  schooling,	
  
therefore	
  higher	
  literacy	
  rate,	
  less	
  child	
  labour,	
  more	
  hours	
  worked	
  in	
  self-­‐employment	
  and	
  
a	
  higher	
  rate	
  of	
  people	
  starting	
  capital	
  intensive	
  enterprises.	
  Moreover,	
  there	
  is	
  one	
  more	
  
aspect	
  of	
  “brain	
  drain”	
  gain	
  and	
  that	
  is	
  if	
  the	
  professionals	
  decide	
  to	
  return	
  to	
  their	
  home	
  
country	
  after	
  some	
  time	
  spent	
  abroad.	
  That’s	
  when	
  the	
  country	
  that	
  was	
  once	
  losing	
  can	
  
now	
  start	
  benefiting.	
  Unfortunately,	
  this	
  happens	
  rarely,	
  for	
  the	
  reason	
  that	
  only	
  one	
  side	
  
truly	
  sees	
  the	
  benefit	
  from	
  this,	
  which	
  is	
  a	
  less	
  developed	
  country.	
  This	
  is	
  due	
  to	
  the	
  clear	
  
difference	
   in	
   higher	
   job	
   opportunities	
   between	
   less	
   developed	
   countries	
   and	
   more	
  
developed	
  countries.	
  Despite	
  this	
  way,	
  a	
  country	
  can	
  gain	
  in	
  one	
  more	
  way,	
  that	
  is,	
  if	
  an	
  
international	
   network	
   is	
   established.	
   This	
   involves	
   networking	
   between	
   people	
   that	
   went	
  
  4	
  
abroad	
   with	
   people	
   that	
   remained	
   in	
   the	
   home	
   country.	
   For	
   instance,	
   swiss-­‐list.com	
   is	
   a	
  
networking	
   website	
   that	
   was	
   created	
   to	
   generate	
   a	
   relationship	
   between	
   Swiss	
   scientists	
  
abroad	
  and	
  those	
  in	
  Switzerland.	
  
On	
   the	
   other	
   hand,	
   the	
   country	
   that	
   experiences	
   brain	
   drain	
   suffers	
   a	
   loss.	
   Due	
   to	
   its	
  
influence,	
  the	
  investment	
  in	
  higher	
  education	
  is	
  lost	
  as	
  the	
  highly	
  educated	
  people	
  leave	
  the	
  
country	
  and	
  become	
  an	
  asset	
  to	
  some	
  other	
  country.	
  That	
  raises	
  the	
  question	
  as	
  to	
  whether	
  
the	
  skills	
  are	
  being	
  put	
  to	
  good	
  use	
  in	
  the	
  destination	
  country,	
  since	
  many	
  college	
  graduates	
  
are	
  leaving	
  their	
  homelands,	
  which	
  all	
  leads	
  to	
  a	
  shortage	
  of	
  skilled	
  and	
  competent	
  people,	
  
and	
  vast	
  increase	
  in	
  wages	
  of	
  high-­‐skilled	
  labour.	
  “Brain	
  drain”	
  loss	
  seems	
  to	
  be	
  much	
  more	
  
common	
  than	
  a	
  “brain	
  drain”	
  gain	
  and	
  loss	
  in	
  that	
  manner	
  is	
  much	
  more	
  substantial.	
  Why?	
  
To	
  add	
  to	
  what	
  was	
  mentioned	
  above,	
  less	
  developed	
  countries	
  do	
  not	
  have	
  the	
  ability,	
  both	
  
monetary	
   and	
   intellectual	
   to	
   support	
   a	
   developing	
   industry,	
   therefore	
   different	
   types	
   of	
  
losses	
  arise	
  –	
  economic	
  loss	
  in	
  the	
  potential	
  capital	
  the	
  well-­‐educated	
  people	
  could	
  have	
  
brought,	
  a	
  loss	
  of	
  education,	
  since	
  educated	
  people	
  leave	
  and	
  there	
  is	
  no	
  one	
  to	
  teach	
  the	
  
next	
   generation	
   and	
   improve	
   them,	
   and	
   lastly,	
   loss	
   in	
   research	
   and	
   development	
   and	
  
advancement,	
  since	
  the	
  knowledge	
  of	
  professionals	
  is	
  not	
  going	
  into	
  the	
  home	
  country,	
  but	
  
the	
   other	
   country.	
   That	
   is	
   the	
   answer	
   to	
   why	
   the	
   losses	
   are	
   much	
   more	
   persistent	
   and	
  
common.	
  
	
  
Examples	
  
In	
  order	
  to	
  better	
  understand	
  the	
  whole	
  concept	
  of	
  “brain	
  drain”	
  there	
  are	
  several	
  examples	
  
to	
  be	
  shown.	
  For	
  instance,	
  in	
  Russia,	
  brain	
  drain	
  has	
  been	
  an	
  issue	
  for	
  quite	
  some	
  time	
  now.	
  
During	
   the	
   Soviet	
   Union	
   and	
   after	
   its	
   collapse,	
   brain	
   drain	
   has	
   been	
   increasing,	
   due	
   to	
  
talented	
  people	
  movements	
  to	
  the	
  West	
  or	
  other	
  countries	
  to	
  seek	
  better	
  opportunities.	
  The	
  
Russian	
   government	
   introduced	
   many	
   programs	
   and	
   still	
   does	
   in	
   order	
   to	
   return	
   the	
  
professionals	
   that	
   once	
   left	
   Russia,	
   and	
   to	
   encourage	
   future	
   professionals	
   to	
   remain	
   in	
  
Russia	
   and	
   contribute	
   to	
   the	
   development.	
   Another	
   example	
   is	
   India,	
   whose	
   education	
  
system	
  is	
  one	
  of	
  the	
  top	
  in	
  the	
  world,	
  although	
  the	
  problem	
  is,	
  when	
  an	
  Indian	
  graduates,	
  
one	
  tends	
  to	
  leave	
  India	
  and	
  move	
  to	
  other,	
  better	
  developed	
  countries.	
  However,	
  in	
  past	
  
few	
   years,	
   this	
   trend	
   has	
   started	
   to	
   reverse	
   itself.	
   Namely,	
   Indians	
   that	
   go	
   abroad,	
   for	
  
example	
  in	
  the	
  United	
  States,	
  they	
  tend	
  to	
  feel	
  that	
  they	
  are	
  missing	
  the	
  cultural	
  experiences	
  
of	
  their	
  home	
  country	
  and	
  want	
  to	
  go	
  back	
  to	
  seek	
  better	
  economic	
  opportunities.	
  
	
  
How	
  to	
  prevent	
  immigration?	
  
From	
   examples	
   mentioned	
   above,	
   it	
   can	
   be	
   seen	
   that	
   brain	
   drain	
   is	
   more	
   common	
   in	
  
developing	
  countries.	
  Every	
  developing	
  country	
  tends	
  to	
  become	
  developed,	
  and	
  in	
  order	
  for	
  
one	
   country	
   to	
   do	
   so,	
   one	
   has	
   to	
   have	
   talented	
   people	
   that	
   will	
   contribute	
   to	
   that	
  
development.	
  A	
  country	
  that	
  has	
  many	
  professionals	
  is	
  most	
  probably	
  more	
  innovative	
  and	
  
growing	
   in	
   comparison	
   of	
   those	
   that	
   do	
   not.	
   As	
   a	
   result	
   of	
   this,	
   in	
   different	
   countries,	
  
different	
  rules	
  and	
  policies	
  apply	
  when	
  it	
  comes	
  to	
  retaining	
  skilled	
  workers.	
  There	
  are	
  many	
  
  5	
  
examples	
  of	
  which	
  African	
  countries	
  dominate,	
  and	
  in	
  several	
  various	
  measures	
  have	
  been	
  
introduced	
   in	
   order	
   to	
   try	
   and	
   limit	
   the	
   migration	
   of	
   workers	
   to	
   richer	
   countries.	
   On	
   the	
  
other	
   hand,	
   there	
   is	
   an	
   example	
   of	
   Kuwait,	
   where	
   people	
   have	
   argued	
   that	
   the	
   country	
  
should	
  develop	
  a	
  sense	
  of	
  security	
  and	
  hope	
  among	
  the	
  nation,	
  since	
  the	
  reason	
  of	
  leaving	
  
the	
  country	
  is	
  uncertainty	
  about	
  a	
  country’s	
  future.	
  Furthermore,	
  China	
  does	
  not	
  have	
  any	
  
mechanisms	
  to	
  protect	
  this	
  phenomenon,	
  but	
  rather	
  tries	
  to	
  create	
  a	
  free	
  atmosphere	
  that	
  
would	
   help	
   talents	
   develop	
   and	
   in	
   the	
   long	
   run,	
   stay	
   in	
   the	
   country.	
   Another	
   example	
   is	
  
India,	
  a	
  country	
  that	
  has	
  suffered	
  severe	
  brain	
  drains	
  over	
  years,	
  and	
  their	
  government	
  has	
  
not	
  adopted	
  any	
  strict	
  policies	
  since	
  they	
  believe	
  that	
  the	
  talent	
  that	
  goes	
  abroad	
  will	
  come	
  
back	
  and	
  eventually	
  contribute	
  to	
  the	
  nation.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
This	
   graph	
   shows	
   that	
   the	
   programs	
   invented	
   to	
  
prevent	
   the	
   migration	
   (both	
   emigration	
   and	
  
immigration)	
  in	
  Russia	
  works	
  very	
  well.	
  	
  
	
  
	
  
	
  
	
  
	
  	
  	
  	
  	
   	
  
	
  
	
  
	
  
	
  
This	
  map	
  shows	
  the	
  parts	
  of	
  the	
  
world	
   that	
   receive	
   remittances	
  
from	
  migrants	
  who	
  work	
  outside	
  
the	
   country	
   and	
   region.	
   It	
   is	
   a	
  
reflection	
  of	
  the	
  "brain	
  drain"	
  of	
  
the	
  impoverished	
  world,	
  and	
  the	
  
compensatory	
   flow	
   of	
   wealth	
  
back	
  to	
  the	
  home	
  countries.	
  	
  
	
   	
   	
   	
  
  6	
  
Brain	
  gain	
  
	
  
Definition	
  
In	
  the	
  previous	
  chapter,	
  the	
  issue	
  of	
  “brain	
  drain”	
  has	
  been	
  defined	
  as	
  significant	
  emigration	
  
of	
  educated	
  or	
  talented	
  individuals;	
  this	
  can	
  result	
  from	
  turmoil	
  within	
  a	
  nation,	
  from	
  there	
  
being	
  better	
  professional	
  opportunities	
  in	
  other	
  countries	
  or	
  from	
  people	
  seeking	
  a	
  better	
  
standard	
  of	
  living.	
  This	
  chapter	
  will	
  now	
  focus	
  on	
  “brain	
  gain”,	
  which	
  can	
  be	
  seen	
  as	
  the	
  
opposite	
  of	
  brain	
  drain.	
  “Brain	
  gain”	
  can	
  be	
  defined	
  as	
  an	
  increase	
  in	
  the	
  number	
  of	
  highly	
  
trained,	
  professionals	
  departing	
  a	
  country	
  to	
  live	
  and	
  work	
  where	
  greater	
  opportunities	
  are	
  
offered,	
  with	
  the	
  prospect	
  of	
  returning	
  to	
  their	
  home	
  country.	
  According	
  to	
  the	
  Economist	
  
(The	
   Economist,	
   2011)	
   several	
   economists	
   reckon	
   that	
   the	
   brain	
   drain	
   hypothesis	
   fails	
   to	
  
account	
   for	
   the	
   beneficial	
   effects	
   for	
   the	
   home	
   country	
   such	
   as	
   remittances,	
   return	
  
migration,	
  the	
  possibility	
  that	
  being	
  able	
  to	
  migrate	
  to	
  greener	
  pastures	
  induces	
  people	
  to	
  
get	
  more	
  education.	
  If	
  these	
  aspects	
  are	
  taken	
  into	
  account,	
  some	
  argue	
  that	
  these	
  highly	
  
skilled	
  people	
  could	
  turn	
  out	
  to	
  be	
  a	
  net	
  benefit	
  to	
  the	
  countries	
  they	
  leave.	
  	
  
Increase	
  in	
  migration	
  
Due	
  to	
  the	
  technological	
  boom	
  from	
  the	
  1990s	
  onwards,	
  connections	
  all	
  over	
  the	
  world	
  have	
  
rapidly	
  improved	
  and	
  have	
  become	
  indispensable	
  to	
  us.	
  This	
  has	
  created	
  a	
  world	
  that	
  is	
  now	
  
perceived	
  as	
  smaller,	
  but	
  yet	
  bigger	
  at	
  the	
  same	
  time.	
  Globalization	
  has	
  also	
  played	
  a	
  part	
  in	
  
this,	
   creating	
   a	
   more	
   complex	
   world,	
   but	
   opening	
   many	
   doors	
   along	
   side	
   that.	
   Due	
   to	
  
globalization,	
  it	
  has	
  increasingly	
  become	
  easier	
  to	
  enter	
  a	
  different	
  labour	
  market.	
  This	
  has	
  
resulted	
  in	
  the	
  fact	
  that	
  migration	
  has	
  increased	
  rapidly	
  and	
  is	
  still	
  increasing,	
  with	
  people	
  
seeking	
  to	
  work	
  in	
  different	
  countries.	
  Migrants	
  accounted	
  for	
  47%	
  of	
  the	
  increase	
  in	
  the	
  
workforce	
  in	
  the	
  United	
  States	
  and	
  70%	
  in	
  Europe	
  over	
  the	
  past	
  ten	
  years.	
  Many	
  people	
  
argue	
   that	
   (highly	
   educated)	
   migration	
   “drains”	
   the	
   native	
   country,	
   leaving	
   behind	
   the	
  
unskilled	
  and	
  lower	
  educated	
  population.	
  But	
  on	
  the	
  contrary,	
  many	
  studies	
  have	
  shown	
  the	
  
benefits	
  of	
  migration.	
  
“Reverse	
  Brain	
  Drain”	
  
The	
  International	
  Organization	
  for	
  Migration	
  is	
  trying	
  to	
  encourage	
  more	
  emigrants	
  to	
  come	
  
home	
  on	
  a	
  permanent	
  or	
  temporary	
  basis,	
  to	
  give	
  back	
  some	
  of	
  what	
  they	
  have	
  learnt	
  and	
  
achieved	
  abroad.	
  One	
  of	
  the	
  programmes	
  they	
  support	
  is	
  called	
  “Reverse	
  Brain	
  Drain”.	
  Dr.	
  
Noppawan	
   Tanpipat	
   (Vice	
   President	
   of	
   the	
   International	
   Relations	
   and	
   Organization	
  
Communications,	
  National	
  Science	
  and	
  Technology	
  Development	
  Agency)	
  says:	
  “But	
  what	
  
we	
  are	
  really	
  seeing	
  is	
  the	
  exchange	
  of	
  ideas,	
  of	
  attitudes,	
  of	
  different	
  ways	
  of	
  doing	
  things.	
  
We	
  have	
  become	
  used	
  to	
  the	
  phenomena	
  of	
  ideas	
  flying	
  across	
  borders	
  through	
  cyberspace	
  
but	
  we	
  don't	
  recognize	
  the	
  human	
  hard	
  drives	
  that	
  physically	
  bring	
  their	
  entrepreneurism	
  
and	
  experience	
  to	
  host	
  countries,	
  and	
  back	
  home”,	
  stressing	
  the	
  positive	
  effect	
  migration	
  
has,	
  but	
  the	
  lack	
  of	
  recognition	
  for	
  this.	
  No	
  higher	
  mathematics	
  is	
  needed	
  to	
  understand	
  that	
  
highly	
  educated	
  migrants	
  moving	
  to	
  another	
  country	
  with	
  better	
  prospects	
  will	
  bring	
  back	
  a	
  
vast	
  amount	
  of	
  knowledge	
  on	
  their	
  return.	
  This	
  knowledge	
  can	
  be	
  gained	
  from	
  for	
  example	
  
  7	
  
the	
  high	
  quality	
  of	
  education	
  abroad,	
  working	
  in	
  (international)	
  companies	
  abroad	
  or	
  setting	
  
up	
   businesses	
   abroad.	
   Besides	
   that,	
   many	
   observers	
   claim	
   that	
   the	
   newly	
   acquired	
  
knowledge	
  or	
  technology	
  by	
  migrants	
  to	
  developing	
  countries	
  can	
  increase	
  productivity	
  and	
  
economic	
  development.	
  
Remittances	
  
Another	
   argument	
   that	
   supports	
   “brain	
   gain”	
   is	
   that	
   a	
   lot	
   of	
   the	
   migrants	
   send	
   back	
  
remittances	
  to	
  their	
  relatives	
  in	
  their	
  native	
  country	
  after	
  having	
  moved	
  abroad.	
  In	
  its	
  annual	
  
report,	
   Western	
   Union	
   stated	
   that	
   almost	
   84%	
   of	
   its	
   annual	
   revenue	
   was	
   derived	
   from	
  
consumer-­‐to-­‐consumer	
   (C2C)	
   money	
   transfer	
   services	
   (Market	
   Line	
   Western	
   Union	
   Case	
  
Study,	
   2012).	
   Also,	
   an	
   important	
   demand	
   driver	
   in	
   this	
   market	
   segment	
   is	
   an	
   increase	
   in	
  
global	
  net	
  migration	
  (immigration	
  minus	
  emigration)	
  over	
  the	
  period	
  from	
  1990	
  tot	
  2010,	
  
see	
  figure	
  5	
  below.	
  It	
  shows	
  that	
  migration	
  has	
  come	
  from	
  Africa,	
  Asia-­‐Pacific	
  and	
  the	
  non-­‐
US	
  Americas	
  towards	
  the	
  US	
  and	
  Western	
  Europe.	
  The	
  Case	
  Study	
  gives	
  the	
  increase	
  from	
  
lower	
  to	
  higher	
  income	
  countries	
  in	
  search	
  of	
  better	
  wage	
  levels	
  and	
  living	
  standards	
  as	
  an	
  
explanation	
  for	
  this	
  phenomenon.	
  
	
  
In	
  contrast	
  to	
  figure	
  5,	
  figure	
  6	
  shows	
  the	
  net	
  flow	
  of	
  funds	
  (remittances	
  received	
  minus	
  
remittances	
  sent)	
  for	
  the	
  major	
  geographical	
  regions.	
  The	
  graph	
  substantiates	
  the	
  idea	
  that	
  
remittances	
  are	
  sent	
  out	
  of	
  more	
  developed	
  regions	
  such	
  as	
  US	
  and	
  Western	
  Europe	
  and	
  are	
  
sent	
   to	
   the	
   less	
   developed	
   economies.	
   In	
   the	
   Western	
   Union	
   Case	
   Study	
   it	
   explains:	
  
“According	
  to	
  the	
  International	
  Monetary	
  Fund,	
  for	
  poorer	
  recipients	
  remittances	
  may	
  help	
  
pay	
   for	
   basic	
   needs	
   such	
   as	
   food,	
   housing,	
   healthcare,	
   and	
   education;	
   for	
   higher	
   income	
  
recipients,	
  they	
  can	
  help	
  support	
  new	
  business	
  ventures.”	
  (Market	
  Line	
  Western	
  Union	
  Case	
  
Study,	
  2012).	
  In	
  2012	
  the	
  value	
  of	
  the	
  remittances	
  of	
  the	
  migrant	
  population	
  had	
  increased	
  
to	
   around	
   $400	
   billion.	
   In	
   Lebanon,	
   Lesotho,	
   Nepal,	
   Taikistand	
   and	
   a	
   few	
   other	
   places,	
  
  8	
  
remittances	
  are	
  more	
  that	
  20%	
  of	
  GDP	
  (The	
  Economist,	
  2011),	
  this	
  is	
  due	
  to	
  the	
  fact	
  that	
  the	
  
skilled	
  migrants	
  may	
  earn	
  several	
  multiples	
  of	
  what	
  their	
  income	
  would	
  have	
  been	
  at	
  home.	
  
	
  	
  
Education	
  and	
  economic	
  growth	
  
The	
  economic	
  growth	
  and	
  average	
  workforce	
  skill	
  in	
  the	
  native	
  country	
  can	
  also	
  be	
  increased	
  
by	
  another	
  factor.	
  The	
  possibility	
  of	
  emigration	
  for	
  higher	
  wages	
  -­‐	
  which	
  other	
  inhabitants	
  
have	
  successfully	
  achieved	
  -­‐	
  could	
  stimulate	
  individuals	
  to	
  pursue	
  education,	
  which	
  may	
  also	
  
cause	
  domestic	
  enrolments	
  to	
  increase.	
  As	
  a	
  result,	
  the	
  educated	
  population	
  will	
  increase	
  
and	
  contribute	
  to	
  the	
  economic	
  growth	
  of	
  a	
  country.	
  A	
  study	
  on	
  this	
  topic	
  looks	
  at	
  Cape	
  
Verdeans,	
  showing	
  that:	
  “An	
  increase	
  of	
  ten	
  percentage	
  points	
  in	
  young	
  people’s	
  perceived	
  
probability	
   of	
   emigrating	
   raises	
   the	
   probability	
   of	
   their	
   completing	
   secondary	
   school	
   by	
  
around	
  eight	
  points.”	
  (The	
  Economist,	
  2011).	
  Even	
  if	
  they	
  don’t	
  all	
  end	
  up	
  emigrating,	
  this	
  
will	
  increase	
  the	
  rate	
  of	
  educated	
  people	
  in	
  their	
  home	
  country,	
  benefiting	
  their	
  national	
  
economy.	
  The	
  culture	
  and	
  knowledge	
  an	
  emigrant	
  brings	
  to	
  a	
  foreign	
  country	
  will	
  make	
  local	
  
people	
  more	
  acquainted	
  with	
  products	
  from	
  the	
  migrants	
  native	
  country,	
  which	
  in	
  return	
  
will	
   increase	
   the	
   export	
   of	
   the	
   migrants	
   native	
   country.	
   So	
   the	
   increased	
   export	
   will	
   also	
  
stimulate	
  the	
  overall	
  economic	
  growth	
  of	
  the	
  country.	
  	
  
Africa	
  
According	
  to	
  a	
  new	
  paper	
  from	
  the	
  World	
  Bank:	
  “Does	
  Migration	
  Foster	
  Exports?”,	
  migration	
  
does	
   indeed	
   foster	
   exports	
   in	
   Africa.	
   It	
   suggests	
   “one	
   additional	
   migrant	
   creates	
   about	
  
$2.100	
   a	
   year	
   in	
   additional	
   exports	
   for	
   his	
   country	
   of	
   origin.”	
   (World	
   Bank,	
   2014).	
   An	
  
estimation	
   tells	
   us	
   that	
   a	
   half-­‐million	
   more	
   African	
   migrants	
   moving	
   around	
   the	
   world	
  
(accounting	
   for	
   1/100th
	
   of	
   the	
   world’s	
   population)	
   would	
   create	
   more	
   than	
   $1	
   billion	
   in	
  
additional	
  exports	
  for	
  Africa,	
  per	
  year.	
  “Looking	
  at	
  Africa’s	
  expected	
  population	
  boom	
  in	
  the	
  
  9	
  
next	
  decades,	
  the	
  impact	
  Africans	
  have	
  from	
  a	
  distance	
  on	
  their	
  home-­‐country	
  is	
  only	
  set	
  to	
  
grow.”	
  (The	
  Atlantic,	
  2014)	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  10	
  
Conclusion	
  
	
  
In	
  assessing	
  the	
  usefulness	
  of	
  brain	
  drain,	
  it	
  is	
  important	
  to	
  understand	
  that	
  for	
  some	
  of	
  the	
  
world’s	
   developing	
   countries	
   "the	
   gains	
   from	
   migration	
   accrue	
   neither	
   from	
   migrant	
  
remittances	
  nor	
  do	
  they	
  return	
  home	
  with	
  amplified	
  skills	
  acquired	
  abroad”.	
  This	
  shows	
  that	
  
the	
   highly-­‐educated	
   migrants	
   not	
   returning	
   home,	
   will	
   cause	
   a	
   loss	
   of	
   knowledge	
   for	
   the	
  
home	
  country,	
  which	
  in	
  turn	
  will	
  also	
  have	
  a	
  negative	
  effect	
  on	
  the	
  economy	
  of	
  the	
  home	
  
country.	
   Looking	
   at	
   the	
   phenomenon	
   from	
   this	
   point	
   of	
   view,	
   brain	
   drain	
   only	
   seems	
   to	
  
benefit	
  the	
  host-­‐country.	
  On	
  the	
  other	
  hand,	
  it	
  can	
  be	
  argued	
  that	
  the	
  gains	
  for	
  the	
  home	
  
country	
   come	
   from	
   the	
   increase	
   in	
   promotion	
   of	
   education	
   of	
   highly	
   skilled	
   labour	
   in	
  
developing	
  countries,	
  as	
  well	
  as	
  investment	
  in	
  infrastructure.	
  Nonetheless	
  there	
  does	
  exist	
  a	
  
vast	
  "remittance	
  economy	
  worldwide	
  worth	
  $400	
  billion	
  in	
  2012".	
  This	
  goes	
  to	
  show	
  that	
  
globalization	
   has	
   made	
   labour	
   markets	
   in	
   different	
   countries	
   more	
   accessible,	
   increasing	
  
migration	
  all	
  over	
  the	
  world.	
  Highly	
  educated	
  people	
  are	
  receiving	
  more	
  opportunities	
  for	
  
mobility.	
  As	
  a	
  result,	
  we	
  can	
  conclude,	
  that	
  migrants	
  have	
  been	
  moving	
  to	
  countries	
  with	
  
better	
   opportunities,	
   sending	
   remittances	
   back,	
   stimulating	
   education	
   on	
   return	
   and	
  
increasing	
  export	
  and	
  the	
  economic	
  growth	
  of	
  the	
  native	
  country.	
  	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
  11	
  
References	
  
	
  
Ehrhart,	
  H.	
  &	
  Goff,	
  Le	
  M.	
  &	
  Rocher,	
  E.	
  &	
  Singh,	
  R.J.	
  (2014).	
  Does	
  migration	
  foster	
  exports?	
  
Evidence	
  from	
  Africa.	
  The	
  World	
  Bank.	
  
	
  
Lowell,	
  B.L.	
  &	
  Findlay,	
  A.	
  (2001).	
  International	
  migration	
  papers:	
  Migration	
  of	
  highly	
  skilled	
  
developing	
   countries:	
   impact	
   and	
   policy	
   responses.	
   International	
   Labour	
   Office,	
   Geneva,	
  
Switzerland.	
  
	
  
Organisation	
  as	
  the	
  author	
  
Market	
  Line	
  	
  
Case	
  Study:	
  Western	
  Union:	
  Globalization	
  benefits	
  a	
  money	
  transfer	
  market	
  leader.	
  Market	
  
Line	
  Advantage	
  (2012).	
  
	
  
Organisation	
  as	
  the	
  author	
  
The	
  Economist	
  
Economic	
  focus.	
  (May	
  26,	
  2011)	
  Drain	
  or	
  gain?	
  Poor	
  countries	
  can	
  end	
  up	
  benefiting	
  when	
  
their	
  brightest	
  citizens	
  emigrate.	
  
http://www.economist.com/node/18741763	
  
	
  
Parle,	
   De	
   J.	
   (August	
   20,	
   2007).	
   Border	
   crossings:	
   Rising	
   breed	
   of	
   migrant:	
   skilled	
   and	
  
welcome.	
  The	
  New	
  York	
  Times,	
  New	
  York,	
  USA.	
  
	
  
Raviv,	
  S.	
  (February	
  12,	
  2014).	
  Why	
  ‘Brain	
  Drain’	
  can	
  actually	
  benefit	
  African	
  countries:	
  A	
  new	
  
study	
  reveals	
  that	
  the	
  farther	
  African	
  migrants	
  move,	
  the	
  more	
  they	
  increase	
  exports	
  in	
  their	
  
home	
  countries.	
  The	
  Atlantic.	
  	
  

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Migration - Brain Drain or Brain Gain

  • 1.   Migration   Brain  drain  or  brain  gain?                   Economic  and  Social  Development   Essay  –  15th  of  October  2014       Jelena  Dukic  &  Niamh  Deutz  Ebeling      
  • 2.   1   Contents   Contents.................................................................................................................................... 1   Introduction.............................................................................................................................. 2   Migration.............................................................................................................................. 2   Motives  for  migration.......................................................................................................... 2   Content  essay....................................................................................................................... 2   Brain  drain ................................................................................................................................ 3   Definition.............................................................................................................................. 3   “Brain  drain”  effects ............................................................................................................ 3   Downsides  and  upsides........................................................................................................ 3   Examples .............................................................................................................................. 4   How  to  prevent  immigration? ............................................................................................. 4   Brain  gain.................................................................................................................................. 6   Definition.............................................................................................................................. 6   Increase  in  migration ........................................................................................................... 6   “Reverse  Brain  Drain” .......................................................................................................... 6   Remittances.......................................................................................................................... 7   Education  and  economic  growth......................................................................................... 8   Africa .................................................................................................................................... 8   Conclusion .............................................................................................................................. 10   References .............................................................................................................................. 11                                                
  • 3.   2   Introduction   Migration   Since   the   late   1990s,   when   the   technical   boom   began   to   expand,   more   and   more   governments   opened   their   doors   to   immigrants,   and   specifically,   highly   educated   immigrants.  This  has  resulted  in  an  even  bigger  movement  of  people  across  the  world,  than   the   start   of   globalization   had   already   caused   in   the   19th   century   with   the   industrial   revolution.  In  2008  it  was  estimated  that  the  world  exists  of  191  million  immigrants,  of  which   60%  lives  in  developed  countries  (20%  in  US  and  33%  in  Europe).  To  get  the  facts  straight,  it   is  necessary  to  define  what  migration  means  and  which  types  of  migration  exist.  According   to   the   UN   (1998)   a   migrant   is   defined   as   a   person   who   moves   to   a   country   (other   than   his/her  usual  residence)  for  a  period  of  at  least  12  months.  There  are  two  types  of  migration:   immigration  and  emigration.  Immigration  defines  people  who  migrate  into  a  country  and   emigration  defines  people  who  depart  from  a  country.   Motives  for  migration   Looking  at  migration  from  a  historical  point  of  view,  the  most  common  motive  for  migration   was  a  common  language  or  religion  in  a  different  country.  More  recent  examples  –  such  as   slave  trade  or  The  Irish  Famine  –  show  that  migrating  is  not  per  definition  a  choice,  but  that   there   are   different   reasons   for   migration.   In   this   context,   some   circumstances   can   force   people   to   move,   but   voluntary   migration   on   the   contrary,   has   become   more   widespread   over  the  past  decades.  The  current  trend  of  voluntary  migration  has  multiple  under  laying   causes:   the   emergence   of   a   global   labour   market,   the   development   of   knowledge   economies,   the   increase   in   foreign   investment   and   trade   and   the   tech   boom   of   the   late   1990’s   has   made   more   governments   open   their   doors   and   has   made   it   easier   for   human   movement  across  the  globe.  As  mentioned  above,  migration  has  become  a  very  important   aspect  of  the  modern  day  world.  Some  people  consider  migration  as  something  negative,   but  others  consider  it  to  be  positive.  So  can  migration  be  seen  as  “brain  drain”  or  “brain   gain”?   Content  essay   In  the  first  chapter,  the  term  brain  drain  will  be  discussed.  This  especially  focuses  on  the   negative  effects  of  migration.  In  the  second  chapter,  the  term  brain  gain  will  be  discussed.   This   especially   focuses   on   the   positive   effects   of   migration.   In   the   fourth   chapter,   all   the   gathered  information  and  knowledge  will  be  formed  into  a  conclusion.                  
  • 4.   3   Brain  drain       Definition   To  begin  with,  this  worldwide  phenomenon,  brain  drain,  refers  to  the  significant  emigration   of   knowledgeable,   well-­‐educated   and   skilled   professionals   from   their   home   country   to   another  country,  resulting  in  the  loss  of  the  skilled  people  –  the  so-­‐called  “brains”  in  the   places   they   come   from.   As   a   starter   example   to   better   understand   brain   drain   is   Albert   Einstein   who   moved   from   Germany   to   the   U.S.   as   a   result   of   unwillingness   of   German   government  to  invest  into  research  &  development.  It  is  widely  known  that  he  ended  up   influencing  the  nuclear  era  and  becoming  very  famous.  From  this  example,  and  many  more,   it  can  be  see  that  the  effect  of  “brain  drain”  causes  countries  to  lose  valuable  professionals.   Furthermore,   this   term   is   usually   used   to   describe   the   departure   of   doctors,   scientists,   engineers  or  any  highly  educated  person  from  that  specific  country.       “Brain  drain”  effects   There  are  two  different  ways  a  country  is  being  harmed  when  people  decide  to  leave  it.  First,   the  supply  of  those  specific  professions  that  people  who  leave  the  country  possess  declines.   Second,  the  country's  economy  is  harmed  as  each  professional  represents  surplus  spending   units.   It   means   that   as   professionals   often   earn   large   salaries,   their   departure   removes   significant  consumer  spending  from  the  country.  There  are  several  factors  that  cause  this   effect.  The  most  obvious  ones  are  the  availability  of  better  job  opportunities,  better  salaries,   working  conditions  and  standard  of  living.  Some  other  factors  are  wars,  health  issues,  and   political  instability.       Downsides  and  upsides   There  are  downsides  and  upsides  when  discussing  the  brain  drain  phenomenon.  The  first   one  to  be  looked  at  is  the  upsides.  One  of  the  most  important  sides  of  brain  drain  is  the   money   the   emigrants   send   back   to   their   home   country.   Due   to   this,   emigrants   helped   in   alleviating   poverty   in   their   homes,   reducing   both   the   level   and   severity   of   poverty.   The   money  remittances  send  back  are  spent  more  in  investments  such  as  education,  health  and   housing,  rather  than  on  food  and  other  goods.  This  has  resulted  in  greater  child  schooling,   therefore  higher  literacy  rate,  less  child  labour,  more  hours  worked  in  self-­‐employment  and   a  higher  rate  of  people  starting  capital  intensive  enterprises.  Moreover,  there  is  one  more   aspect  of  “brain  drain”  gain  and  that  is  if  the  professionals  decide  to  return  to  their  home   country  after  some  time  spent  abroad.  That’s  when  the  country  that  was  once  losing  can   now  start  benefiting.  Unfortunately,  this  happens  rarely,  for  the  reason  that  only  one  side   truly  sees  the  benefit  from  this,  which  is  a  less  developed  country.  This  is  due  to  the  clear   difference   in   higher   job   opportunities   between   less   developed   countries   and   more   developed  countries.  Despite  this  way,  a  country  can  gain  in  one  more  way,  that  is,  if  an   international   network   is   established.   This   involves   networking   between   people   that   went  
  • 5.   4   abroad   with   people   that   remained   in   the   home   country.   For   instance,   swiss-­‐list.com   is   a   networking   website   that   was   created   to   generate   a   relationship   between   Swiss   scientists   abroad  and  those  in  Switzerland.   On   the   other   hand,   the   country   that   experiences   brain   drain   suffers   a   loss.   Due   to   its   influence,  the  investment  in  higher  education  is  lost  as  the  highly  educated  people  leave  the   country  and  become  an  asset  to  some  other  country.  That  raises  the  question  as  to  whether   the  skills  are  being  put  to  good  use  in  the  destination  country,  since  many  college  graduates   are  leaving  their  homelands,  which  all  leads  to  a  shortage  of  skilled  and  competent  people,   and  vast  increase  in  wages  of  high-­‐skilled  labour.  “Brain  drain”  loss  seems  to  be  much  more   common  than  a  “brain  drain”  gain  and  loss  in  that  manner  is  much  more  substantial.  Why?   To  add  to  what  was  mentioned  above,  less  developed  countries  do  not  have  the  ability,  both   monetary   and   intellectual   to   support   a   developing   industry,   therefore   different   types   of   losses  arise  –  economic  loss  in  the  potential  capital  the  well-­‐educated  people  could  have   brought,  a  loss  of  education,  since  educated  people  leave  and  there  is  no  one  to  teach  the   next   generation   and   improve   them,   and   lastly,   loss   in   research   and   development   and   advancement,  since  the  knowledge  of  professionals  is  not  going  into  the  home  country,  but   the   other   country.   That   is   the   answer   to   why   the   losses   are   much   more   persistent   and   common.     Examples   In  order  to  better  understand  the  whole  concept  of  “brain  drain”  there  are  several  examples   to  be  shown.  For  instance,  in  Russia,  brain  drain  has  been  an  issue  for  quite  some  time  now.   During   the   Soviet   Union   and   after   its   collapse,   brain   drain   has   been   increasing,   due   to   talented  people  movements  to  the  West  or  other  countries  to  seek  better  opportunities.  The   Russian   government   introduced   many   programs   and   still   does   in   order   to   return   the   professionals   that   once   left   Russia,   and   to   encourage   future   professionals   to   remain   in   Russia   and   contribute   to   the   development.   Another   example   is   India,   whose   education   system  is  one  of  the  top  in  the  world,  although  the  problem  is,  when  an  Indian  graduates,   one  tends  to  leave  India  and  move  to  other,  better  developed  countries.  However,  in  past   few   years,   this   trend   has   started   to   reverse   itself.   Namely,   Indians   that   go   abroad,   for   example  in  the  United  States,  they  tend  to  feel  that  they  are  missing  the  cultural  experiences   of  their  home  country  and  want  to  go  back  to  seek  better  economic  opportunities.     How  to  prevent  immigration?   From   examples   mentioned   above,   it   can   be   seen   that   brain   drain   is   more   common   in   developing  countries.  Every  developing  country  tends  to  become  developed,  and  in  order  for   one   country   to   do   so,   one   has   to   have   talented   people   that   will   contribute   to   that   development.  A  country  that  has  many  professionals  is  most  probably  more  innovative  and   growing   in   comparison   of   those   that   do   not.   As   a   result   of   this,   in   different   countries,   different  rules  and  policies  apply  when  it  comes  to  retaining  skilled  workers.  There  are  many  
  • 6.   5   examples  of  which  African  countries  dominate,  and  in  several  various  measures  have  been   introduced   in   order   to   try   and   limit   the   migration   of   workers   to   richer   countries.   On   the   other   hand,   there   is   an   example   of   Kuwait,   where   people   have   argued   that   the   country   should  develop  a  sense  of  security  and  hope  among  the  nation,  since  the  reason  of  leaving   the  country  is  uncertainty  about  a  country’s  future.  Furthermore,  China  does  not  have  any   mechanisms  to  protect  this  phenomenon,  but  rather  tries  to  create  a  free  atmosphere  that   would   help   talents   develop   and   in   the   long   run,   stay   in   the   country.   Another   example   is   India,  a  country  that  has  suffered  severe  brain  drains  over  years,  and  their  government  has   not  adopted  any  strict  policies  since  they  believe  that  the  talent  that  goes  abroad  will  come   back  and  eventually  contribute  to  the  nation.                 This   graph   shows   that   the   programs   invented   to   prevent   the   migration   (both   emigration   and   immigration)  in  Russia  works  very  well.                                 This  map  shows  the  parts  of  the   world   that   receive   remittances   from  migrants  who  work  outside   the   country   and   region.   It   is   a   reflection  of  the  "brain  drain"  of   the  impoverished  world,  and  the   compensatory   flow   of   wealth   back  to  the  home  countries.            
  • 7.   6   Brain  gain     Definition   In  the  previous  chapter,  the  issue  of  “brain  drain”  has  been  defined  as  significant  emigration   of  educated  or  talented  individuals;  this  can  result  from  turmoil  within  a  nation,  from  there   being  better  professional  opportunities  in  other  countries  or  from  people  seeking  a  better   standard  of  living.  This  chapter  will  now  focus  on  “brain  gain”,  which  can  be  seen  as  the   opposite  of  brain  drain.  “Brain  gain”  can  be  defined  as  an  increase  in  the  number  of  highly   trained,  professionals  departing  a  country  to  live  and  work  where  greater  opportunities  are   offered,  with  the  prospect  of  returning  to  their  home  country.  According  to  the  Economist   (The   Economist,   2011)   several   economists   reckon   that   the   brain   drain   hypothesis   fails   to   account   for   the   beneficial   effects   for   the   home   country   such   as   remittances,   return   migration,  the  possibility  that  being  able  to  migrate  to  greener  pastures  induces  people  to   get  more  education.  If  these  aspects  are  taken  into  account,  some  argue  that  these  highly   skilled  people  could  turn  out  to  be  a  net  benefit  to  the  countries  they  leave.     Increase  in  migration   Due  to  the  technological  boom  from  the  1990s  onwards,  connections  all  over  the  world  have   rapidly  improved  and  have  become  indispensable  to  us.  This  has  created  a  world  that  is  now   perceived  as  smaller,  but  yet  bigger  at  the  same  time.  Globalization  has  also  played  a  part  in   this,   creating   a   more   complex   world,   but   opening   many   doors   along   side   that.   Due   to   globalization,  it  has  increasingly  become  easier  to  enter  a  different  labour  market.  This  has   resulted  in  the  fact  that  migration  has  increased  rapidly  and  is  still  increasing,  with  people   seeking  to  work  in  different  countries.  Migrants  accounted  for  47%  of  the  increase  in  the   workforce  in  the  United  States  and  70%  in  Europe  over  the  past  ten  years.  Many  people   argue   that   (highly   educated)   migration   “drains”   the   native   country,   leaving   behind   the   unskilled  and  lower  educated  population.  But  on  the  contrary,  many  studies  have  shown  the   benefits  of  migration.   “Reverse  Brain  Drain”   The  International  Organization  for  Migration  is  trying  to  encourage  more  emigrants  to  come   home  on  a  permanent  or  temporary  basis,  to  give  back  some  of  what  they  have  learnt  and   achieved  abroad.  One  of  the  programmes  they  support  is  called  “Reverse  Brain  Drain”.  Dr.   Noppawan   Tanpipat   (Vice   President   of   the   International   Relations   and   Organization   Communications,  National  Science  and  Technology  Development  Agency)  says:  “But  what   we  are  really  seeing  is  the  exchange  of  ideas,  of  attitudes,  of  different  ways  of  doing  things.   We  have  become  used  to  the  phenomena  of  ideas  flying  across  borders  through  cyberspace   but  we  don't  recognize  the  human  hard  drives  that  physically  bring  their  entrepreneurism   and  experience  to  host  countries,  and  back  home”,  stressing  the  positive  effect  migration   has,  but  the  lack  of  recognition  for  this.  No  higher  mathematics  is  needed  to  understand  that   highly  educated  migrants  moving  to  another  country  with  better  prospects  will  bring  back  a   vast  amount  of  knowledge  on  their  return.  This  knowledge  can  be  gained  from  for  example  
  • 8.   7   the  high  quality  of  education  abroad,  working  in  (international)  companies  abroad  or  setting   up   businesses   abroad.   Besides   that,   many   observers   claim   that   the   newly   acquired   knowledge  or  technology  by  migrants  to  developing  countries  can  increase  productivity  and   economic  development.   Remittances   Another   argument   that   supports   “brain   gain”   is   that   a   lot   of   the   migrants   send   back   remittances  to  their  relatives  in  their  native  country  after  having  moved  abroad.  In  its  annual   report,   Western   Union   stated   that   almost   84%   of   its   annual   revenue   was   derived   from   consumer-­‐to-­‐consumer   (C2C)   money   transfer   services   (Market   Line   Western   Union   Case   Study,   2012).   Also,   an   important   demand   driver   in   this   market   segment   is   an   increase   in   global  net  migration  (immigration  minus  emigration)  over  the  period  from  1990  tot  2010,   see  figure  5  below.  It  shows  that  migration  has  come  from  Africa,  Asia-­‐Pacific  and  the  non-­‐ US  Americas  towards  the  US  and  Western  Europe.  The  Case  Study  gives  the  increase  from   lower  to  higher  income  countries  in  search  of  better  wage  levels  and  living  standards  as  an   explanation  for  this  phenomenon.     In  contrast  to  figure  5,  figure  6  shows  the  net  flow  of  funds  (remittances  received  minus   remittances  sent)  for  the  major  geographical  regions.  The  graph  substantiates  the  idea  that   remittances  are  sent  out  of  more  developed  regions  such  as  US  and  Western  Europe  and  are   sent   to   the   less   developed   economies.   In   the   Western   Union   Case   Study   it   explains:   “According  to  the  International  Monetary  Fund,  for  poorer  recipients  remittances  may  help   pay   for   basic   needs   such   as   food,   housing,   healthcare,   and   education;   for   higher   income   recipients,  they  can  help  support  new  business  ventures.”  (Market  Line  Western  Union  Case   Study,  2012).  In  2012  the  value  of  the  remittances  of  the  migrant  population  had  increased   to   around   $400   billion.   In   Lebanon,   Lesotho,   Nepal,   Taikistand   and   a   few   other   places,  
  • 9.   8   remittances  are  more  that  20%  of  GDP  (The  Economist,  2011),  this  is  due  to  the  fact  that  the   skilled  migrants  may  earn  several  multiples  of  what  their  income  would  have  been  at  home.       Education  and  economic  growth   The  economic  growth  and  average  workforce  skill  in  the  native  country  can  also  be  increased   by  another  factor.  The  possibility  of  emigration  for  higher  wages  -­‐  which  other  inhabitants   have  successfully  achieved  -­‐  could  stimulate  individuals  to  pursue  education,  which  may  also   cause  domestic  enrolments  to  increase.  As  a  result,  the  educated  population  will  increase   and  contribute  to  the  economic  growth  of  a  country.  A  study  on  this  topic  looks  at  Cape   Verdeans,  showing  that:  “An  increase  of  ten  percentage  points  in  young  people’s  perceived   probability   of   emigrating   raises   the   probability   of   their   completing   secondary   school   by   around  eight  points.”  (The  Economist,  2011).  Even  if  they  don’t  all  end  up  emigrating,  this   will  increase  the  rate  of  educated  people  in  their  home  country,  benefiting  their  national   economy.  The  culture  and  knowledge  an  emigrant  brings  to  a  foreign  country  will  make  local   people  more  acquainted  with  products  from  the  migrants  native  country,  which  in  return   will   increase   the   export   of   the   migrants   native   country.   So   the   increased   export   will   also   stimulate  the  overall  economic  growth  of  the  country.     Africa   According  to  a  new  paper  from  the  World  Bank:  “Does  Migration  Foster  Exports?”,  migration   does   indeed   foster   exports   in   Africa.   It   suggests   “one   additional   migrant   creates   about   $2.100   a   year   in   additional   exports   for   his   country   of   origin.”   (World   Bank,   2014).   An   estimation   tells   us   that   a   half-­‐million   more   African   migrants   moving   around   the   world   (accounting   for   1/100th   of   the   world’s   population)   would   create   more   than   $1   billion   in   additional  exports  for  Africa,  per  year.  “Looking  at  Africa’s  expected  population  boom  in  the  
  • 10.   9   next  decades,  the  impact  Africans  have  from  a  distance  on  their  home-­‐country  is  only  set  to   grow.”  (The  Atlantic,  2014)                                                                          
  • 11.   10   Conclusion     In  assessing  the  usefulness  of  brain  drain,  it  is  important  to  understand  that  for  some  of  the   world’s   developing   countries   "the   gains   from   migration   accrue   neither   from   migrant   remittances  nor  do  they  return  home  with  amplified  skills  acquired  abroad”.  This  shows  that   the   highly-­‐educated   migrants   not   returning   home,   will   cause   a   loss   of   knowledge   for   the   home  country,  which  in  turn  will  also  have  a  negative  effect  on  the  economy  of  the  home   country.   Looking   at   the   phenomenon   from   this   point   of   view,   brain   drain   only   seems   to   benefit  the  host-­‐country.  On  the  other  hand,  it  can  be  argued  that  the  gains  for  the  home   country   come   from   the   increase   in   promotion   of   education   of   highly   skilled   labour   in   developing  countries,  as  well  as  investment  in  infrastructure.  Nonetheless  there  does  exist  a   vast  "remittance  economy  worldwide  worth  $400  billion  in  2012".  This  goes  to  show  that   globalization   has   made   labour   markets   in   different   countries   more   accessible,   increasing   migration  all  over  the  world.  Highly  educated  people  are  receiving  more  opportunities  for   mobility.  As  a  result,  we  can  conclude,  that  migrants  have  been  moving  to  countries  with   better   opportunities,   sending   remittances   back,   stimulating   education   on   return   and   increasing  export  and  the  economic  growth  of  the  native  country.                                                  
  • 12.   11   References     Ehrhart,  H.  &  Goff,  Le  M.  &  Rocher,  E.  &  Singh,  R.J.  (2014).  Does  migration  foster  exports?   Evidence  from  Africa.  The  World  Bank.     Lowell,  B.L.  &  Findlay,  A.  (2001).  International  migration  papers:  Migration  of  highly  skilled   developing   countries:   impact   and   policy   responses.   International   Labour   Office,   Geneva,   Switzerland.     Organisation  as  the  author   Market  Line     Case  Study:  Western  Union:  Globalization  benefits  a  money  transfer  market  leader.  Market   Line  Advantage  (2012).     Organisation  as  the  author   The  Economist   Economic  focus.  (May  26,  2011)  Drain  or  gain?  Poor  countries  can  end  up  benefiting  when   their  brightest  citizens  emigrate.   http://www.economist.com/node/18741763     Parle,   De   J.   (August   20,   2007).   Border   crossings:   Rising   breed   of   migrant:   skilled   and   welcome.  The  New  York  Times,  New  York,  USA.     Raviv,  S.  (February  12,  2014).  Why  ‘Brain  Drain’  can  actually  benefit  African  countries:  A  new   study  reveals  that  the  farther  African  migrants  move,  the  more  they  increase  exports  in  their   home  countries.  The  Atlantic.