According to The world Bank, these remittances send back to the developing or underdeveloped countries are even 1,5 times greater than the worldwide budget spend on development aid. For the developing countries, remittances represent about 2 of their Gross Domestic Product, for the underdeveloped countries roughly 6 and for some of the least developed countries of this world this percentages rises to almost 20! There are certain analysts who equate remittances with foreign investments, but opinions are divided on this subject. There are even analysts who claim that remittances have mainly negative effects on the economies in underdeveloped countries. Remittances create and maintain economic dependency and take away incentives to start local businesses and take the initiative to enhance living standards. While there are indeed negative effects, most economists believe remittances to be a good thing for developing and underdeveloped countries.
Essay on, brain, drain, complete, essay for Class 10, Class 12 and
It can be at first sight be discouraging to invest in the education of academic personnel when the most talented individuals dream of a career in the western world. As expected, the negative aspects of the brain drain are numerous and can be devastating in the short run. The human capital of a country not only resume determines the number of skilled workers available for domestic production, but also affects other important parameters of an economy: technology and the capacity to innovate! Both factors determine the volume and type of incoming investments. Add to this the diminishing support rate and the low returns on investment on education and the picture doesn't results don't look promising. Advantages of skilled migration Remittances â investments? More often than not, migrants send home large sums of money to their family whom they left behind in their home country. These sums are called remittances. They are sometimes even the only or at least the most important reason for migrants to travel to a richer and better developed country in search of career opportunities and wealth. At first, many migrants plan to work a few years until they have acquired enough money to be able papers to return back home and maintain their family. It makes therefore perfect sense that these migrants send home lots of money even before returning home.
The brain drain clearly slows down or even stops the development of underdeveloped supermarket or developing countries who are only attractive for their low wages or natural recourses. The regions principally affected are again the least developed countries: Sub-Saharan Africa and unstable Asian countries. The middle east or Eastern Europe is less affected. The recent revolution even shows that there seem to be to many high schooled young people. They don't find a job even after several years of academic schooling. The Economic returns to investment on education in underdeveloped countries go to the developed countries. The investments in education done by underdeveloped countries and developing countries partly disappear without a trace. The investments go up in smoke when the high skilled workers, educated in their own country, leave their country and migrate to the developed world. As mentioned before, the same can be said about big parts of the development aid send to underdeveloped countries: parts of this aid are reserved for educational projects.
When discussing the first brain drain, we talk about the most skilled workers who leave. Those skilled workers are the first and most important people who use and/or develop new technologies. The talents of these workers are indispensable when a country wants to advance to higher technology level. Technology is an important factor determining the type of (foreign) investments a country attracts. The brain drain can thus have an immense effect on the development of a country. When foreign investors are only interested in cheap workers or natural recourses, but not in the local talents; foreign investments often don't help to develop a country. Companies who search a country with enough skilled workers are often willing to invest in training, but will look for countries with a better starting word position.
Countries with an unstable and violent history have as a result lost almost all their skilled workers. This also means that they need to invest in the training of new skilled workers or that they have to attract foreign doctors, engineers, craftsmen. As a consequence, a huge part of the official development assistance goes to the recruitment and or training of skilled workers (doctors and other health care workers, skilled craftsmen for rebuilding infrastructure, â) who are difficult to retain once trained. This way, western countries are indirectly investing their own future workers. Especially sub-Saharan Africa has this huge problem. The first step to retain their skilled workers is off course, the much needed political and economical stability. As a result the growth of "Technology" slows down. As explained above, there's another important factor affected when human capital goes down: technology.
Brain, drain, in Economics cite This, essay
This is a major problem for countries in Eastern Europe. African countries, the professional middle east and India all have a very young population. The diminishing support rate doesn't really trouble them. Human Capital goes down. The biggest and most notable disadvantage of schooled migration looking from the perspective of the sending countries is the downswing of human capital in these time sending countries. Human capital is the stock of competences, knowledge and personality attributes embodied in the ability to perform labour so as to produce economic value.
It is the attributes gained by a worker through education and experience (Sullivan, Arthur; Steven. It's obvious that human capital of a country is affected by the migration of the high schooled and best trained workers. The human capital of a country determines among others the number and type of investments a country attracts, but has also a huge impact on another important factor of the growth of a country: the technology level of an economy. Political unstable or unsafe countries are often faced with a large stream out of both high schooled and unschooled workers. The stream out of these unstable countries is often a lot bigger than the stream out of more stable underdeveloped countries where workers leave for economical reasons only.
Disadvantages of skilled migration, support rate diminishes, when the active part of the population diminishes, a smaller group of people are capable of providing economic support to the number of older people, children and students who are materially dependent on the support of others. The burdens are carried by a shrinking group workers and the part of the population that creates an added value becomes smaller and smaller. The support rate in Western Europe and Japan for example, diminishes due to the aging of the population. Not only western Europe and Japan are hit by the aging of the population! There are developing countries in Eastern Europe and Asia that face the same problems.
The aging of the population isn't the only cause for a diminishing support rate. Migration can have the same effect, especially when young or high schooled workers leave the country: the group of active workers shrinks when some of them search a better future in other countries all over the world. When developing countries who have to cope with a growing group of retired inactive people, also lose their trained and educated workers, they are hit twice. First of all, this means that the pressure on the government budget augments: pensions need to be paid, medical costs are higher while tax revenues go down. One of the consequences can be that countries will cut in educational programs. This can even amplify the brain drain: not only do they lose their most productive workers, they also won't be able to educate enough new young high skilled workers to replace the retired workers.
Essay on, brain, drain
Table 1: regional characteristics in 2000: Region. Skill, aemig, semig, rem/y, eas.22.214.171.124, mEN.126.96.36.199, sSA.188.8.131.52. Ind.184.108.40.206, data source: Luca marchiori, i-lung Shen, Frédéric Docquier (2009). We can conclude from table 1 that Eastern Europe and the middle east and Northern Africa have attained a reasonable level of education already. The situation in India is worse and alarming in Sub-Saharan Africa. In all four regions, the skilled migration rate is a lot higher than the average migration rate, hence the brain drain. Again, the situation in Sub-Saharan Africa is disturbing. Eastern Europe and to essay a lesser extent also the middle east and North Africa also have a very high skilled migration rate. The skilled migration rate is lower in India, but the skilled and unskilled migration rates of bigger countries are always less impressive than those of smaller countries.
Answering this question is not easy. Who are the highly skilled? Should we also count unskilled migrants who are educated in the developed world and thus become skilled? Do we count illegal migrants as well? We won't tackle these questions in this paper, but simply use the data provided by organisations like the imf, the world Bank Group and the oecd. According to these organisations skilled migrants are migrants with at least tertiary educational attainment, wherever they completed their schooling. Table 1 shows us some regional characteristics of religion the different regions in 2000. It provides us for each region the proportion of skilled in the resident population (Skill the average emigration towards the oecd countries (Aemig the skilled migration rate (Semig) and the ratio of remittances to gdp (Rem/Y). The regions are grouped as follows: Eastern Europe (eas middle east and Northern Africa (men sub-Saharan Africa (SSA) and the Indian world and Pacific Islands (IND).
themselves. The final section sums up the conclusion and gives some moral point of views and my opinion about this theme. Where possible, we will make a distinction between several groups of underdeveloped and developing countries: Eastern Europe, middle east and Northern Africa, sub-Saharan Africa and the Indian world and Pacific Islands. Every region has a different history and every region has different regional characteristics. The effects of skilled migrations or the extent of every effect will be different for every region depending on the technology level, the political stability, the share of skilled workers, the composition of the population. How big is the brain drain? Before summarizing the advantages and disadvantages of skilled migration from the sending countries perspective we first must know how big the brain drain really. How many skilled workers leave the Third World and migrate to the developed countries?
Many countries have restricted migration policies; but high-skilled well trained workers are often more summary than welcome and often even encouraged to come to the western world. There are many reasons for this skilled migration and the reasons to migrate may differ from region to region. Skilled workers living in Eastern Europe migrate to the usa or the eu because there are more career opportunities, salaries are higher and social security is better. African migrants sometimes flee violence, poverty, political instability or corruption. While there are also highly skilled European academics working in the usa, the far East or vice versa; we will focus on the skilled migration from under-developed or developing countries to the developed world. In this paper we will take a deeper look at the brain drain. The first section summarises migration data, both skilled and unskilled The next section discusses the disadvantages of skilled migration from the point of view of the underdeveloped and developing countries.
Brain drain and solutions for this problem essay 0405
Print, reference this, published: 23rd March, 2015, in this paper we will describe one of the shredder side effects of globalisation, more specific the effect on the human capital of underdeveloped and developing countries who see their best and most productive workers leave the country. In an economic context "Globalisation" is the reduction or removal of barriers and borders in order to facilitate flows of capital, goods, services and also labour. Globalisation is also the integration of economies and societies around the world. This paper focuses on the labour flows and more specific on the migration and flows of skilled labour. Globalisation is not something new, but the technological and political evolutions after World War ii have hastened this process. We won't look at the flows themselves, but rather at one of the side-effects of migration in a globalised world: the brain drain, and, in some cases the brain gain. Brain drain is human capital flight. It's the phenomenon where skilled workers or young potentials : individuals with technical skills or knowledge; migrate and leave their country. While brain drain is not something new, it's effects are much greater in a globalised world where skilled workers can freely travel the world.