Brain Gain versus Brain Drain - Research Paper Example

Research Paper: Brain Gain versus Brain Drain The issues of brain gain and brain drain have become a great concern for many countries. Even as countries try to attract the best skills and experiences in building their economies, it has become prudent for the countries to develop mechanisms of retaining the skills and experience of their workforce. Many developed and developing countries in Asia such as China, India, and South Korea have recorded tremendous success in transforming their brain drain into brain gain. Over the years, many foreign professionals have been recorded in the U.S, with a majority of them coming from the Asian countries, most notably, China, India and South Korea. However, a different trend was noted towards the turn of the millennium where many immigrants from these Asian countries embarked on a reverse mode to their countries of origin (Lien & Wang 156-157). In this regard, the return channel of the immigrants meant substantial brain gain for the developing countries and absence channel for the western countries. It has been noted that professionals from China and India who have acquired higher education in the western countries are increasingly been forced back to their homelands. This is as a result of the economic instability and changing immigration laws in the western countries such as the United States. On the other hand, it is plausible that about 55% of Indian immigrants and about 80% of their Chinese counterparts return to their homelands due to the availability of equal business and employment opportunities back home. On a specific basis, about 30% of these immigrants have returned home due to increased job security. In addition, 28% have been attracted back by brighter future prospects, and 25% have been attracted by enhanced education systems and options. Furthermore, about 12% of the immigrants have cited attractive employment packages as their major reasons for opting back to the motherland (Paldam 458). Within the Asia-Pacific region, immigration and emigration of professionals and skilled workers has become as a pivotal point for some of the world’s economic movers including China and India. It has been noted that some of the major reasons that initially contributed to the movement of professionals from India and China included shortage of skilled labor, changing demographic patterns and rising costs of living. It is noteworthy that enhanced social, economic, political, and educational environment in the Asian region are churning new opportunities for migrant students, talented individuals, and skilled labor (Paldam 453). As a result of these trends, many migrants have begun to question the justification of migrating to western countries such as U.S and Canada. Furthermore, the creation of better economic conditions, improved education systems, and favorable social environment are exerting substantial pull on former immigrants from Asia. Indeed, most of these migrants have increasingly become frustrated by the challenges of breaking the ‘glass ceiling’ in the western countries where demand for skilled labor has skyrocketed in the recent years. There are others who still harbor the feeling that their skills and qualifications have become under-utilized leading to some sense of ‘brain waste.’ For some of the migrants, the apparent lack of sense of social belonging in the western countries has increased their desire to return home. It is plausible that these trends have been reciprocated by western nationals who lack any family connections in these Asian countries but whose qualifications and experiences matched them to professional opportunities available in Asia. Collectively, these emerging trends have necessitated a reversal of the flow of immigration from Asia. This is especially for former immigrants whose skills are now compatible with the available professional opportunities in their home countries (Paldam 455). Thus, as western nationals return to their homelands and Asia migrants takeover new opportunities in their motherland, the result is a phenomenon of reverse migration. This includes not just the reversal; of the current migration trends from Asia, but also a reversal of the current trends of migration. That is; in-flow of western nationals into Asia is gradually becoming replaced by outflow of westerners and inflow of former Asian migrants. For a long period, United States was able to lure foreign skilled workers and students seeking better educational facilities. But as indicated by research on recent trends, countries such as South Korea, China, and India, that have been greatly affected by brain drain are luring their expatriates back home at unprecedented rates. As social, economic, and political transformations continue to take root within their countries, many Asian students currently attending universities in western countries are returning home in large numbers. In fact, earlier studies had predicted that the prevalence of brain drain would eventually reverse itself once social and political reforms, coupled with economic development, became established in the developing countries (Dawson 485). It is noteworthy that the newly found reason for returning back home can also be attributed to the aggressive, state-sponsored initiatives within the above Asian countries. Indeed, these initiatives have been specifically designed to reverse the usual reasons that cause brain drain. In turn, it initiates a trend of reverse brain drain, or what has come to be known as brain gain. The new phenomenon of brain gain is a good indicator for economic development for these developing Asian countries. However, the trend may be detrimental to the western countries that have traditionally benefited from massive brain drain from Asian countries. Not only do the current trends of reversal mean that less skilled workers and students will migrate to western countries, but it also means that professionals living in these countries will return to their countries or origin. The major implications here are that as western countries lose their skilled labor they rely on to build their economies. Asian countries benefit from the returning skills and competencies and use the same in establishing their competitive edge on the global platform. This may herald the beginning of the greatest transfer of skills and technology ever experienced. The new trend will be far greater than the initial intention that encompassed the transfer of skills to developing countries by educating their workforce who would then apply their gained knowledge in facilitating economic development back home. A possible result of brain gain may point at exponential economic growth, influence, and power, and enhanced ability to compete worldwide with the developed countries in a competitive global market. It is plausible that even as brain gain gives the Asian countries a new sense of development. The resultant brain drain on western countries will greatly affect their ability to maintain present levels o global economic influence and double-digit economic growth (Paldam 465-477). Several years after the Indian Institute of Technology (IIT) in Kanpur was established in India, it received hundreds of applications, with a fifth of them coming from the U.S and other European countries. It is important to note that about two-thirds of the Indians appointed to the faculty had earned their education in U.S universities. The contribution of these U.S-educated Indians in developing one of the country’s best institutions has been monumental (Kapur & Mchale 21-24). From this example, it is clear that a judgment on the immense contribution of reverse brain drain to India’s educational and economic development in the 1960s can only arrive at a categorical positive assessment. However, over the next three decades after the establishment, the earlier cashing in on India’s ‘brain bank’ in foreign countries, rather than stemming it, exacerbated the situation. Only a decade after its establishment, about 25% of IIT-Kanpur graduates had migrated to western countries mainly the United States. Even for the few who still maintained contact with the homeland, the links were mainly personal and familial but not financial or professional. It is this absence of India’s best and brightest manpower that contributed to sad illusion that educated manpower was the only high-tech product in which the country was globally competitive (Chacko 134-135). The effects of brain drain from the IITs became more pronounced in the 21st century than it was in the 20th. Scholars have argued that if a country is made up of people and not territorially defined, then the brain drain of India’s technology experts more than likely were beneficial to the Indian state in the aggregate. It is important to note that the impact of international migration is strongly influenced by the selection traits of the migrants and the characteristics of both the source and the destination nation. Moreover, the status of emigrants and their mode of incorporation in the destination country will affect the nature of their connections to their homelands. Consequently, going by the sheer heterogeneity of global migration from India, it would be inappropriate to try to come up with a simple conclusion regarding the overall impact of brain drain on India. Nevertheless, the effects of emigration can be assessed within particular domains (Fidrmuc 591-593). Firstly, the economic effects of international migration have been mixed for the case of India. For instance, the emigration of less-skilled workers to countries in the Middle-East has resulted in a positive impact in India, mostly due to the large inflow of remittances. In regions experiencing high emigration rates, labor markets become tightened with resultant high wages for the workers left behind. As a result, many poorer migrants are drawn from other parts of the country. The financial remittances have also had significant systemic impact on the country’s balance of payments, thus allowing fro increased trade deficits that may not have been possible. The result is the stabilization of the country’s currency exchange rate, and hence giving the central bank sufficient monetary policy power. It is in no doubt that brain drain has had more ambiguous implications. Given that skilled migrant mainly come from the upper castes, their migration bolsters political stability, and this is often healthy for economic development. Furthermore, their success in destination countries has resulted in reputational externalities for the motherland. Additionally, this portion of the Diaspora has an intertwined network of cross-national links that facilitate the flow of business and commercial ideas, as well as technologies into the country. The trend has also influenced ‘in-sourcing’ as demonstrated by the rapid expansion of the country’s polishing and diamond cutting sectors. Therefore, it is clear that brain drain has resulted in substantial brain gain for India. The example of India demonstrates a broader picture of how sectoral expertise gained by expatriates overseas trickles back to the country of origin. It is similar trends are very conspicuous in both China and South Korea. In fact, parallels can be seen in the Chinese example where the economically successful Chinese migrants accumulated their wealth and obtained relevant competencies in labor-intensive manufacturing (Zweig 15-18). Subsequently, the resultant investments in labor-intensive manufacturing in the country expanded to the related sectors, as well. On the bottom side, it is plausible that the loss of substantial numbers of skilled workers has had significant negative effects on the Asian countries. The most notable effect is a reduction in the supply of a skilled workforce with technical and managerial experience to manage institutions and organizations. For instance, there is a widespread notion that professional standards in India have affected, for instance, the ethics that govern Indian medical profession. Thus, it is likely that the migration of many better-skilled professionals might have had a significant contribution to this trend (Paldam 476). In a bid to ensure that maximum benefits are accrued from brain gain, China has already initiated efforts of collecting the database of Chinese expatriates, including professionals, professors, and students. In fact, three national agencies have been tasked with the attraction, retention, and development of global talent. These agencies include the Ministry of Labor and Social Security, the Ministry of Personnel, and the Organization Department of the CPC (Levin, et al., 2014). The contemporary trends show that China has no worries regarding the brain drain marvel. The fact that even as the country continues to supply the majority of the global skilled migrants. China also experiences a large backflow of global talent (Goldin, Cameron, & Balarajan 21-34). For instance, the percentage of Chinese graduates returning home in 2013 was 37.6% compared with 32.6% and 29.4% in 2010 and 2006 respectively. In conclusion, it is plausible that Asian countries such as China, India, and South Korea have realized the immense benefits that accompany brain gain. In this regard, the countries have started major initiatives aimed at turning brain drain into brain gain. The countries have committed immense financial resources to attract some of their best and brightest talent from foreign countries. This is achieved by offering incentives such as elevated socio-economic status, well-paying jobs, and opportunities for talent development. For instance, China has implemented a nationwide policy of human resource development, with several programs such as Thousand Talents Program. So far, the program has lured more than luring many professors and professionals back into the country. South Korea has also begun investing heavily in policy mechanisms that will enable the country to lure expatriates and skilled workers. It is noteworthy that these trends of reverse brain drain have become pivotal in accelerating economic development in these countries, subsequently giving them a broader competitive edge on the global market. But even as the countries increase their efforts at luring back their skilled labor. It is critical for them to remain aware that employment is the most paramount factor in determining whether or not the fiscal contribution of the returnees will be positive or negative. Therefore, must the receiving nations to prepare sufficient framework fro employment opportunities and transfer of credentials in order to avert negative fiscal impacts that may result from the reverse brain drain. Works Cited Chacko, Erick. From Brain Drain to Brain Gain: Reverse Migration to Bangalore and Hyderabad, India’s Globalizing High Tech Cities. GeoJournal, 2005, 68, 131-140. Dawson, James. Causality in the freedom-growth relationship. European Journal of Political Economy, 2003, 19, p. 479 – 495. Fidrmuc, John. Economic reform, democracy and growth during post-communist transition. European Journal of Political Economy, 2003, 19, p 583 – 604. Goldin, Ian., Cameron, Geoffrey & Balarajan, Meera. Exceptional people: How migration shaped our world and will define our future. Princeton: Princeton University Press, 2011. Print Kapur, Devesh & Mchale, John. Give us your Best and Brightest: The Global Hunt for Talent and its Impact on the Developing World. Washington, DC: Center for Global Development, 2009. Print Lien, Donald & Wang, Yan. Brain Drain or Brain Gain: A Revisit. Journal of Population Economics, 2008, 18, 153-163. Paldam, Martin. Economic freedom and the success of the Asian tigers: An essay on controversy. European Journal of Political Economy, 2003, 19, 453 – 477. Zweig, David. Redefining the Brain Drain: China’s Diaspora. Science Technology and Society, 2008, 13, 1-33. Read More