Skilled Emigration or Brain Drain

Skilled Emigration (or Brain Drain) remains a controversial topic for Economists to debate upon. Globalization has given rise to their concerns about the World Economy at large. Skilled Migration from developing nations to developed nations has caused inflation in the World distribution of income specifically, between the sending and receiving economies. The GDP of developing nations is falling due to low skilled emigration rates and the developed nations are gaining immensely through that. “The fact that skilled emigration rates tend to be lower in relatively affluent countries is explained by the low wage differentials between these countries and the potential destinations.” (Mountford, A. and Rapoport, H.,2011)

It is observed that highly skilled immigrants tend to travel to more developed countries as they are unable to find opportunities in their home country, the research facilities are lagging, and also, there is a major conflict of salary. The rich countries open-heartedly welcome the skilled workers as they enhance the GDP but at the same time the home country suffers from "brain drain". Economists have varied opinions on this conflict, some are supportive like in the case of Yasin Sadiq Mayanja, a Ugandan government economist who believes if there is an oversupply of manpower as in the case of art streams, "if we had opportunities we would leave".(The Economist 2018)

There are also instances where emigrants choose to come back to their home countries after two-three years of working in abroad or may also think about their country while working in abroad like in the case of Violeta Hernandez, a management consultant who quoted "If we start a business abroad... we're always thinking about how to bring some benefits to Guatemala."(The Economist 2018)

Venezuela is one of the many countries that is majorly suffering from the problem of brain drain due to a dysfunctional economy which has made the skilled as well as non-skilled residents to shift abroad. It has lost almost a third of its doctors.

This loss is commonly observed more in less developed countries (LCDs) and lesser in more developed countries (MCDs). It is majorly because of career enhancement, academic employment, and the development of educated individuals. The country which suffers this loss feels deprived of the transition of knowledge and education from one generation to another.

The optimism one can withhold during the crisis of brain drain is hoping for the emigrant to return to the home country with enhanced skills as experienced in the case of Indians returning from America as they could not find the cultural richness of their country in the US. Also, one might be able to create international networking through this scenario as happened in the case of Swiss-list.com which has encouraged networking between Swiss scientists abroad and those in Switzerland. [Karpilo, J (2019)]

There are things which countries can do to combat the brain drain. As per OECD Observer, "Science and technology policies are key in this regard”. [Karpilo, J (2019)]. The prompt idea is to increase job opportunities, enhance research facilities, be able to provide satisfactory salaries. In crux, giving the highly skilled workers a reason to stay in their country and be an instrument in developing their economy. It is easier said than done, but it is the only way out. For countries suffering from political instability, health risks, or conflicts have to work that through to reduce the issue of brain-drain.

For decades, India’s skilled professionals have preferred emigrating to the West in search of better jobs, lucrative salaries, and higher standards of living. Today’s millennials are keen to follow the same course. It is noted that in 2019, the average Indian’s craze for pursuing a life abroad is head-scratching. Four years ago, a UN report named India as having the largest “diaspora” population in the world, with more than 16 million persons of Indian origin living abroad. If India can’t plug the drain, it should at least receive compensation for it. 

Let’s look at this condition from a business perspective. From a market of zero just a few years ago, there are now a million electric rickshaws in north India that ferry around 60 million riders. Smart entrepreneurs can profitably offer essential services to India’s heartland and thrive.

Yet our most able-bodied youth desperately want to leave India for presumed greener pastures abroad. A rich family with a roaring business acquires investor green cards. The IT employee prays day and night to earn that coveted H-1B visa. The student, whose father set up a hotshot small business by taking advantage of the liberalized economy of the 1990s, plans her trip abroad as early as the first year of college. Many small and medium-scale enterprises have no family heirs to nurture them and grow — and are sadly sold.

So, what awaits all these immigrants out West? Indian diaspora populations rarely integrate with the locals. They create Indian colonies everywhere they go. Indian small businesses exist only to serve other Indians. What binds everyone together is the power of the almighty dollar, and the perceived higher quality of life — when waits for green cards exceed 18 years.

Meanwhile, India loses on all counts, ceding away valuable human capital in which it has invested its scarce resources. Worse, large scale migration is burdening India’s vaunted family structure with senior citizens left behind. With a thumping majority in parliament, the government should enact big, bold, structural moves to limit regulation on residents and free up India’s jugaad spirit. The Brain Drain tax is just one idea.

A $1,000 annual surcharge on each diaspora Indian would generate $16 billion, about ₹1.15-lakh crore, an amount sufficient for the government to immediately announce a 33 percent across-the-board reduction in income taxes to spur economic growth. Is this a punitive idea? No, just practical.

Think about it!

As reasoned above the countries face a major challenge in the global economy era i.e. brain drain, it has its pros and cons but in general opinion, it can be only be countered with persistence and patience to develop the best homely environment for the residents of the nation simultaneously focusing on their economic development at an individual level as well as the citizen of the country.

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