Brain drain has a variety of causes, but each country's experience with it is unique.
- The most common reasons for this are the need for work or better-paying work, political instability, and a desire for a better life. Because of these conditions, highly qualified and bright workers are fleeing their home nations in search of new chances. Companies and industries that cannot keep up with the rapid changes in technology and society see an exodus of their brightest employees, resulting in organizational and industrial brain drain. Two categories of causes contribute to brain drain: push factors and pull factors.
- Migration from less developed countries is motivated by a lack of opportunities in their native countries, which are referred to as push factors. It's not just unemployment and political instability but also a lack of research facilities and terrible working conditions that push people away from their jobs. Political instability, economic inactivity, poor wages, and high costs are all examples of these factors.
- There are many considerations that a migrant considers when deciding whether or not to relocate to a more developed country. Pull forces include higher wages and better living conditions. Superior economic prospects, international training's status as an educational gold standard, political stability, and the availability of contemporary educational resources are all strong incentives for people to pursue higher education abroad. Other factors, some of which may be peculiar to countries or individuals, may also play a role.
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What are the long-term repercussions of brain drain? The economy of a developing country may suffer if there is a large outflow of skilled workers. These may cause the following outcomes:
- Reduced tax receipts
- Entrepreneurial talent is being lost in the process.
- Skilled and vital personnel are in short supply.
- People may be less inclined to stay if the economy suffers as a result of brain drain.
- A decrease in the generation of new ideas
- The loss of the country's educational investment
- Reduced accessibility to essential health and education services and facilities;
Typically, brain drain is referred regarded as an issue that must be addressed. The phenomenon, on the other hand, has advantages. When people relocate from less developed countries to more developed countries, they acquire new skills and experiences that they can use when they return to their native country. In addition, remittances, which are money that migrants send back to their home countries, can support the economies of such countries.
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Brain drain has more negative effects than positive ones; thus, governments can take the following steps to minimize the number of highly educated and skilled employees who leave the country.
- Governments can retain competent people by ensuring that populations feel safe and encouraging economic growth.
- Governments may stem their brain drain by providing better jobs, opportunities, and a better standard of life for citizens, which discourages them from leaving in the first place.
- Despite the fact that no treatment for brain drain is flawless, governments can make various efforts to minimize the rates of brain drain or even force individuals to return to their country. Political stability and government openness are examples of positive economic conditions.
- It's not only about the money. Human resources managers know better than anyone that not everyone stays or goes because of money. It's okay to order pizza or sushi if, as an employer, one has a plan for a weekly lunch date and everyone knows when that time is. But don't tinker with the methods used to keep the best employees.
- Well-structured information - There are now a variety of techniques available to human resources professionals to measure the emotional atmosphere in their organization, the amount of employee engagement, and the sense that their employees have great work experience.
- Creating a better educational system can also reduce brain drain. This will help educate children about the demeaning nature of dowry, and the financial humiliation people may have to face because of it. Moreover, it will instill a mindset in students that the country's best brains, the youth, can serve their country by putting their skills to use for the betterment of the country itself.
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Brain drain examples can exist in different fields and aspects of life.
- There is a brain drain because of distance. This phenomenon is known as Geographic Brain Drain, and it occurs when highly qualified individuals leave their home region or country in search of better career prospects. When a large number of highly educated persons from a third-world country find work in the United States, this is an example of brain drain. For example, greater wages and working conditions in wealthy countries like the United States and Western Europe may entice qualified people in emerging countries like India and Pakistan.
- The EU's social and economic disparities are directly responsible for the problem of brain drain. In spite of EU institutions' efforts at reducing these discrepancies, they've been only moderately successful. Post-war European "scientists and technologists" who migrated to North America are one such example.
- Organizational Brain Drains occur when a group of professional workers leaves a firm or an organization they had previously worked for, resulting in a loss of expertise and knowledge. Employees at Nike, for example, have the option of moving on to work at Adidas.
- Drains of industrial talent-A phenomenon known as Industrial Brain Drain occurs when highly competent and brilliant employees leave a firm or an entire industry. It's a combination of the rapid changes in the economy, the inability to keep up with technical and social changes, and the lack of chances for workers.
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The definition of brain drain is the migration of experts from one nation to another, typically in quest of a greater standard of living, better technology, and more stable political situations. The mere use of the phrase brain drain carries with it a stigma. Moreover, the word brain drain carries a bad meaning by itself. When highly educated and competent workers depart, the economy can suffer a loss of tax revenue, the loss of health and education service personnel, and other evils. When highly educated and competent workers depart, the economy suffers from a drop in tax revenue, a decrease in healthcare professionals, and other evils. All that is required for production is money, machinery, structures, land, and labor. All that is required for production is money, machinery, buildings, land, and labor. In this context, the labor component usually refers to the human resources or human capital.
People migrate to other nations for a variety of reasons, but the two most common are push factors or the reasons for leaving and pull factors which also mean the reasons for moving to a new location. Despite the fact that no remedy to brain drain is infallible, governments can take some actions to lower the rates of brain drain or even force individuals to return to their homeland. Political stability and government openness are examples of positive economic conditions. For migrants, push factors are the undesirable aspects of their home country that make them want to leave. Political instability, economic inactivity, unemployment, poor wages, and high costs are all examples of these factors.
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Video Transcript
Definition of Brain Drain
Brain drain can be described as the process in which a country loses its most educated and talented workers to other countries through migration. This trend is considered a problem, because the most highly skilled and competent individuals leave the country, and contribute their expertise to the economy of other countries. The country they leave can suffer economic hardships because those who remain don't have the 'know-how' to make a difference.
Brain drain can also be defined as the loss of the academic and technological labor force through the moving of human capital to more favorable geographic, economic, or professional environments. More often than not, the movement occurs from developing countries to developed countries or areas.
Causes of Brain Drain
There are various causes of brain drain, but they differ depending on the country that's experiencing it. The main causes include seeking employment or higher paying jobs, political instability, and to seek a better quality of life. Causes of brain drain can be categorized into push factors and pull factors.
The push factors are negative characteristics of the home country that form the impetus for intelligent people migrating from Lesser Developed Countries (LDC). In addition to unemployment and political instability, some other push factors are the absence of research facilities, employment discrimination, economic underdevelopment, lack of freedom, and poor working conditions.
Pull factors are the positive characteristics of the developed country from which the migrant would like to benefit. Higher paying jobs and a better quality of life are examples of pull factors. Other pull factors include superior economic outlook, the prestige of foreign training, relatively stable political environment, a modernized educational system to allow for superior training, intellectual freedom, and rich cultures. These lists are not complete; there may be other factors, some of which can be specific to countries or even to individuals.
Effects of Brain Drain on the Home Country
When brain drain is prevalent in a developing country, there may be some negative repercussions that can affect the economy. These effects include but are not limited to:
- Loss of tax revenue
- Loss of potential future entrepreneurs
- A shortage of important, skilled workers
- The exodus may lead to loss of confidence in the economy, which will cause persons to desire to leave rather than stay
- Loss of innovative ideas
- Loss of the country's investment in education
- The loss of critical health and education services
Brain drain is usually described as a problem that needs to be solved. However, there are benefits that can be derived from the phenomena. When people move from LDC countries to developed countries, they learn new skills and expertise, which they can utilize to the advantage of the home economy once they return. Another benefit is remittances; the migrants send the money they earn back to the home country, which can help to stimulate the home country's economy.
Possible Actions to Curb Brain Drain
The drawbacks of brain drain outweigh the benefits, so there are some moves that governments can make to reduce the number of highly educated and skilled workers that relocate to other countries. One way that governments can keep its skilled workers is to ensure that citizens feel safe and to take steps to stimulate economic activity.
Other solutions include higher wages, creating a better educational system so that citizens do not have to go overseas for higher education. Also, when paying for higher education, governments can withhold the award of the degree until the individual returns and agrees to work in the home country.
Examples of Brain Drain
Brain drain has been taking place on a global scale for many years. Here are a few examples:
The European Union or EU
When countries such as Poland and Romania joined the European Union, it meant that barriers to movement between countries were removed. Citizens of these countries moved to other countries like the United Kingdom for better paying jobs and a better standard of living.
India
The education system in India is one of the best in the world. But oftentimes, when scholars have completed the training, they're unable to find employment that matches their qualifications, so they move to countries like the U.S. for better economic opportunities.
Russia
Beginning in the early 1990s, highly regarded professionals began to move westward or to socialist countries to work in science and economics. Today, the Russian government is making investments in programs that it hopes would lure those professionals back and to encourage future professionals to stay.
Lesson Summary
Brain drain is a problem described as the process in which a country loses its most educated and talented workers to other countries through migration. The causes of brain drain include push factors, which are negative characteristics of the home country that forms the impetus for intelligent people migrating from Lesser Developed Countries, such as political instability, and pull factors, which are the positive characteristics of the developed country from which the migrant would like to benefit, such as higher paying jobs. Negative effects include loss of tax revenues by the home country, and a loss of key health and education service professionals.
Points to Remember
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- Brain drain is the process in a which a country or area loses it most talented and educated workers to other countries or areas
- Brain drain occurs due to push and pull factors between countries or areas
- The negative effects of brain drain on the home country include loss of educated individuals for key sectors and loss of tax revenue
Learning Outcomes
Once you are done, you should be able to:
- Explain what brain drain is
- List some of the causes and effects of brain drain
- Discuss ways to prevent the negative effects of brain drain on the home country
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