THE ECONOMIC SOCIAL AND BUSINESS IMPACT OF BRAIN DRAIN

BY: ISHNEET WALIAROLL NO: A1802012045

SECTION-D

OBJECTIVE OF STUDY

• To find out the reasons for brain drain that effects both the countries.

• Find out the facts about the social business and economic impact of brain drain.

What is Brain Drain?• Brain drain (or human capital flight), is the large-scale emigration of a large group of individuals

with technical skills or knowledge. The reasons usually include two aspects which respectively come from countries and individuals. Europe Brain drain phenomena in Europe fall into distinct trends. There is an outflow of highly qualified

scientists from 'Western Europe’ mostly to the United States. Portugal, Ireland, Italy, Greece and Spain Many citizens of the countries mostly stricken by the economic crisis in Europe have emigrated,

many of them to Australia, Brazil, Angola and Argentina.Turkey In the 1960s, many skilled and educated people emigrated from Turkey, including many doctors

and engineers.United Kingdom There are a considerable number of people leaving the United Kingdom for other countries,

especially Australia and the United States. In the 2000s, some 3.5 million people emigrated from the UK. Most of this emigration was to seek work in a more favorable economic climate.

India It is estimated that India loses $2 billion a year because of the emigration of computer experts to the

U.S. Indian students going abroad for their higher studies costs India a foreign exchange outflow of $10 billion annually.

REASON

• BETTER PAY• WORK ENVIRONMENT• INFRASTRUCTURE• SECURITY• HIGHER EDUCATION• POLITICAL INSTABILITY

ECONOMIC IMPACT

• The main finding is that the high-skilled individuals boosts the hosting economy in the long run. The positive impact of a brain drain could arise when individuals invest in human capital .

• The overall fiscal cost of highly skilled migration depends strongly on the country’s tax system. For example: Countries like Ghana and Papua New Guinea with highly progressive tax rates and low spending on public services suffer larger fiscal losses from the highly skilled emigration

• The growing volume of capital transfer from the wealthy country to the lagging one that results in the reduction of technological lag.

• Employers in receiving countries take a different position; they have their own shortages of skilled people in specific fields and can drain a developing country of expertise by providing job opportunities.

• Some researchers from developing countries cite other reasons for not returning after training which include: lack of research funding; poor facilities; limited career structures; poor intellectual stimulation; threats of violence; and lack of good education for children in their home country

SOCIAL IMPACT• Limited Access to Education Formal education in industrialized nations is, by and large, both free and of

high quality. In much of the developing, on the con-trary, education is of pitifully low quality, and is not widely access-ible due to cost-sharing arrangements which most families cannot match without sacrificing some of their basic necessities of life.

• Poor healthcare facilities Due to migration of high professional doctors and nurses mostly to the

united states which result in poor healthcare facilities.access to life-saving healthcare is seriously hampered by inadequate, dilapidatedand antiquated healthcare facilities..

• Family members left behind by emigrants are likely to derive indirect utility from the greater well-being of the emigrants, and if the emigration includes an entire family, the family would generally be better off.

• Further, emigrants generally work in diverse socio-economic settings where they interact with people from different cultural, ethnic and/or religious backgrounds.

BUSINESS IMPACT• Loss of Supervisors: Practicing doctors and senior nurses normally play major

roles in supervising staff in peripheral facilities in any given country that serve the majority of populations—such as health centers, dispensaries and health posts. Thus, when such doctors and nurses emigrate, the supervisory capabilities of a country’s healthcare system are diminished, contributing to a further weakening of the capacities of the healthcare system to provide quality services to patients.

• Loss of Potential Entrepreneurs: By virtue of their education and earnings, doctors and nurses often set up healthcare-related and/or non-healthcare business entities—such as private clinics, pharmacies, hospitals, retail outlets for groceries, or whole-sale shops. Emigration of such people, therefore, undermines the growth of entrepreneurship in affected countries and com-munities, and diminishes prospects for economic growth and development.

• Loss of Domestic Jobs: Doctors and nurses usually provide employment opportunities for housekeepers, gardeners and security guards at their places of residence. Thus, emigration of such people usually results in loss of employment opportunities and incomes for domestic workers and their families

CONCLUSION AND RECOMMENDATION

• The main conclusion is that the high-skilled individuals boosts the hosting economy in the long run. The positive impact of a brain drain could arise when individuals invest in human capital .

• The overall fiscal cost of highly skilled migration depends strongly on the country’s tax system.

• Family members left behind by emigrants are likely to derive indirect utility from the greater well-being of the emigrants, and if the emigration includes an entire family, the family would generally be better off.

• Further, emigrants generally work in diverse socio-economic settings where they interact with people from different cultural, ethnic and/or religious backgrounds.

• The smaller and less developed the country is, the more difficult it will be for it to compete globally and retain a skilled workforce. Despite this, there is much that developed countries can do and should do to help such countries combat the problems they face.hence it should be taken care of.

• The government should carry out some policies in order to control excessive immigration which can prevent the employers of the host country, there career prospects etc.