Better professional opportunities and better standard of living are the two main reasons why people seek better employment. The sad fact is that professionals from developing countries think that better employment with better salaries can only be found abroad – significantly in developed countries. If this is the on-going way of thinking of the professionals, it is not surprising that they have chosen to work and live abroad. Professional and skilled people are needed in every part of the world. If they will keep on thinking that better quality of life, better standards of living, higher salaries, more stable political and economic conditions and easy access to technology can only be provided by developed countries, it may be a bit difficult to convince them to stay and serve their countrymen. But, if they will be given incentives to stay home, they may think twice about giving into the push and pull factors of the Brain Drain phenomenon (Pistone & Hoeffner, 2007).
According to 35% of the participants government of Taiwan can be able to totally put a stop to the Brain Drain phenomenon that is increasingly affecting their economy and 31% of the participants do not think so.
If the government of Taiwan really wants to suppress the Brain Drain phenomenon, they have to make sure that they have something extremely exciting to offer to their professional citizens. They cannot just totally put a stop to the phenomenon; they have to make ways that will entice the professionals to either stay or come back home. They have to think of coming up with effective ways of making the professionals wish to return. The incentives should be highly enticing or else, all their efforts will be in vain. These people that they are trying to bring back home are intelligent and most of them have gone through intensive trainings from the countries they have chose, they will surely want to make sure that all their efforts will gain positive results. They wouldn’t just replace their current lives with lives that will just put them back to where they used to be; in a society where they will be deprived of the opportunities that they have enjoyed elsewhere (Grubel & Scott, 1977).
The findings obtained also highlight the fact that in some aspects, they may not be much difference between keeping the professionals home and enticing the ones abroad to come home. It can be more difficult though to keep the new professionals from going abroad to work because they will want new adventures and better opportunities. They are the fresh and ready to roll. They will surely want to go out there and experience the world. They have the urge to see what the rest of the world can give them. They want to try something new, while earning bigger money and living better lives. For those who have already been working abroad, they may be easier to enticed back home because they could be missing how it is to live among their family and friends. They can also be enticed back by promising a few incentives, like better employment with higher salaries.
The push and pull factor is indeed significant in why some people are finding it hard to return home after years of training or working abroad. The push factors are said to be a country’s (of origin) depressing characteristics which produce emigration. The pull factors on the other hand, are a country’s (destination) attracting features which induce immigration.
As per the above findings obtained, apart from push and pull factors there also exist other significant factors in brain drain phenomenon. Besides the pull and push factors, researchers have also cited that the other reasons why professionals are not returning include: poor facilities, lack of sufficient research funding, limited career opportunities and improvements, reduced intellectual stimulation, lack of good and quality education for their children, and threats of violence. Incentives being provided for the migrants to return home have been insufficient to supersede the more notable limitations at home. It may be true that some developing countries are making significant investments and developments in education but they have failed to achieve any kind of scientific development as well as significant innovative and technological capacity, which can be used to either recover or retain the human capital that they generated (Carrington & Detragiache, 1988).
Young, healthy and well-educated individuals are surely the most likely to work and migrate to developed countries simply because they are the ones with the kind of eagerness to test new waters. They have been educated and trained, thus in their minds, they have what it takes to go out there and conquer the world. Young professionals are also hungry and thirsty for more information that only the advanced technologies of developed countries can provide.
Developing countries, like Taiwan are currently the main source of professional migration to developed nations. This kind of trend has drastically led to deep concerns that the outflow of professionals is unfavorably affecting the specialized system in developing nations. As a result, Taiwan’s decision makers have been searching for effective policy options that can be used in slowing down and even reversing the outflow of skilled professionals.
The study findings state that it plays an important role in integrating the indicators of human capital parameters and taking up the policy analysis based on these indicators. Developing countries face the challenge of maintaining sustainable growth and providing well-being of all the citizens. In the scene of rapidly changing world, the importance of human potential is becoming more apparent than ever (Egger et.al, 2012).
The present debate points out that, all the countries is experiencing necessity of adjusting the demand, which is changing from unskilled to skilled workers which is seen as human capital. The Continuous Reporting System on Migration by the OECD is coming up with annual reports on the migration trends. International migration is on the agenda of many countries over the last decade. According to Egger et.al (2012) there were increased flaws during 1990’s and these are seen to be growing again. Estimates show that three million immigrants enter OECD region every year. Secondly, due to ageing population and disinterest in certain occupations, there will be requirements for more workers in foreseeable future (Egger et.al, 2012). This makes the job of the Governments difficult as they need to balance between openness to migration and the aspiration of getting required skills satisfying the domestic requirements and developing suitable policies. Surely, in the recent periods of growth there is a forceful argument in demand for skilled labor force compared to unskilled labor. This is especially more in case of IT sector which has lack of workers in developed countries which has encouraged the governments to make policies to remove the restrictions on entry of skilled immigrants.
All nations are in need of skilled immigrants. Persons having tertiary educations are more among the international immigrants. All of the developed countries receive the immigrants, yet there are is eagerness to get more highly skilled workers. Gibson and McKenzie (2011) assert that in 2011 and 2012, these countries declared their interest in putting in place migration policies encouraging employment and also tightening control the over immigration. With mounting requirement for migration focuses on recruiting highly skilled immigrants by having policies in the context of global competition to retain the workers to make up the labor shortage, to ease the restrictions on immigration in developed countries, many measures are being implemented. In January 2010, European implemented first of such measures by publishing Green Book to develop common approach for managing labor migration. In December of the same year, the Commission introduced the programs in response to European Council’s decision on The Hague Program. Highest interest was shown regarding the creation of EU work permit, the Green Card provided by the member states which could be used in the whole of EU area (Gibson and McKenzie, 2011).
The report, “International Movements of the Highly Skilled” produced by OECD defined the highly skilled as a heterogeneous group consisting of mainly professional, technical and managerial specialists. Hence, the skilled people or human capital is essential in the broader notion to be a measure of social and human development. Human capital refers to skills, knowledge and health of the individual which facilitates the creation of personal, economic and social well-being (Egger et.al, 2012)”.
International movement of highly skilled workers having broad range of occupational and academic backgrounds, like students, IT specialists, nurse, researchers, managers and company transferees. Many of these immigrants move on temporary basis, but there are others who migrate with desire to settle permanently. The transfers of the staff in the multinational companies is also part contributing to higher mobility of highly qualified workers. The report indicates tendency towards absorbing finishing students who can cause serious loss to source countries, especially for smaller countries, though this gets compensated by regular remittances. This is more pronounced as developed countries have provisions that allow foreign students to stay back after completing their studies, in areas where there are labor shortages.
There is also a large increase in its member countries seen by increased standard of living and other factors like, working condition, education and health attainments. Though these changes are not uniform across all the countries, there is decline in the levels of absolute poverty since 1950’s (Grubel & Scott, 1977). After the tremendous increased in the economic output, there is an increased concern about the quality of this growth and on the ways to realize increases in well-being and also on the quality of labor in terms of training and education. The flow of highly skilled workers is seen as new international division of labor resulting from the restructuring of global economy (Fan and yakita, 2011).
There is increase in tertiary education compared to native born population. This is because the tertiary educated people are used to international market and have high likelihood of realizing their plans than individuals having less education. Skilled people like to migrate because of push factors: economic opportunities in foreign countries, which are greener than the ones in the native countries and also because of migration policies at the destination countries. Other factors motivating highly skilled people are intellectual pursuits like research, learning and demand in R&D professions and academics which drive the decision for migration. For those who are entrepreneurially minded, there is a climate of innovation and support for business start-ups, encouraging in migrating. The important flows of highly skilled staff reflect the global expansion of international trade, and expansion of trans-national corporations and the activities of recruitment agencies and government department.
There are some special situations like the ending of cold war that encouraged market based solutions for the economic problems and support for globalizations that increased the competition in many markets which were traditionally a source for higher levels of employment. The combination of higher international competition, technological progress and higher wages has made a shift towards post-materialist attitudes that display a new equilibrium between developing world and the development. For example, the Russian Federation and Ukraine have become a major source of skilled persons since the year of 2000 (Özden & Schiff, 2006). Spain and Italy are important destination countries for workers form Ukraine, Romania. Turkey is destination for Bulgarians. The skilled persons may get a working permit in the host country on a temporary basis or sometimes it may be a passage to settlement with no need to return to home countries. By considering the expected demand of the skilled workers in the fields of science, ICT, medical profession, it is quite likely that recruiting and retaining the workers is going to expand continuously.
In view of the recent development, there are estimates that the developed countries offer highest wages. World System Theory claims that changes to the trade patterns, especially the rising trade with economies of low wages are the main reasons for the trend that is showing high inequalities. Trade is making some contribution to the position of decreasing labor market for low skilled workers and also pointed to skill-based changes in fields of technology to be a more important parameter. The mobility of the highly skilled is important from the general demand seen over the last few years (Sukhatme, 1994). The labor market situation has seen a radical improvement. This improvement shows a combination of structural and cyclical factors like changes in the product and labor markets caused by policy changes and by introducing the new technologies. By this view, the traditional companies need to have employees possessing specialized skills needed for standard production processes. People do not migrate in spite of differences in wages and trade barriers. Hence, today’s unwelcome migration started when the industrial country programs recruited from the present emigration countries. Though pull factors influence the flow of migration, push and pull factors must be seen as complementary(Kalipeni et.al, 2012).
Impact of Brain-drain on source countries
Economic analyses have assessed the impact of migration of skilled labor both on the sending and receiving countries. This is determined by calculating the rates of return based on the earnings on the investments made on education. For example, the rates of returns can be evaluated by use of private costs and earnings over the life time and the social rates of return should add the variety of societal costs involved in the investments in human capital(Kalipeni et.al, 2012).
The OECD states that when a country pursues human capital from declining areas to growing areas, the labor market gets diminished in the first area and improves in in the latter and does not generate many disparities. The reports say that skilled workers play important role in personal development, social cohesion and growth and market for skilled workers is feature of developing global economy, It is estimated that the brain drain creates negative impact of the source country because of lack of skilled workers. If the education of the worker was financed by government funding (tax payer money) then the losses are still greater(Kalipeni et.al, 2012).
But the potential benefits of brain drain in the form of remittances and better use of the human capital as a result of development of source countries is a contented issue for last two years. Many international organizations like IMF and WB have studied the problem of remittances and growth in these countries, where there is reduction in the official aid.
Assessment of positive effects of brain drain
The brain drain debate claims that the loss of human capital in the source countries will have a positive result due to return of the migrants and developing the network that assist the circulation of skilled workers between the source and destination countries. But, if the migrants go back to countries that have not developed, they may retire instead of being a factor for economic change. If the migrants settle abroad and the relatives join them, there will be reduced remittances limiting contribution to the countries’ development. Brain drain gets compensated by investment in training in the source countries and inflow of foreign currency (Carrington & Detragiache, 1988).
The existence of “immigrant entrepreneur network” and “Scientific Diaspora” also helps the source countries to gain some benefits. But, because of weak implementation goals, the diaspora was not as successful as it was supposed. These networks were sponsoring at the local and the institutional levels and maintain that it usually worked as a catalyst. The benefits for source countries, are in the long-term and require these countries to invest in research and training. To gain the positive effects of brain drain, it is necessary to pay more attention to private initiatives in both the receiving and the sending countries and also to the decentralized cooperation processes and the role of authorities and the next generation.
The countries affected by the brain drain should attempt for achieving permanent economic growth which depends on proper investment levels and also should have high levels of national savings. It is necessary to have constancy of prices and low inflation to have stable economic environment. Structural policies must be parallel to macroeconomic policies in the successful strategy for improvement of growth and the employment opportunities. Also, the transition to new technologies is a difficult process which can result in mismatches between the skills which people possess and those are required. Improving the aptitude of the economies for fostering new jobs is one aspect of the strategy to fight unemployment and reduce the brain drain. The strategy of high-productivity and highly paying jobs can success only with highly qualified people (Tanner, 2005).
The scientific diaspora and the network of immigrant entrepreneur must be taken in to account seriously as it helps the source countries capturing benefits from emigration of skilled people. These networks are sponsored at institutional and local level but international and local level is an important technique (Özden & Schiff, 2006).
Because of the globalization, there is an increased interdependence. They also need to think Global and fit their national policies fitting in the international context. OECD countries should also use the policy of coordination to ensure microeconomic policies being reliable across all the countries. Cooperation among the developed countries is required for responding to migration problems and these should be considered in trade, investments and other development activities between developed and emigration areas, in developing countries and Eastern and Central Europe.