Introduction

The term brain drain appears to have gained wide usage in the late1960s when growth in the migration of skilled personnel from developingto developed countries accelerated.1 The developed countries, by attractingscarce skilled labor, were widely held to be pursuing policies that werecostly to developing countries, both in the short and longer run. The costswere not only in terms of output and employment, but alsodepending onthe way in which education was financedthrough additional fiscal costsassociated with public subsidies to education. A variety of policy proposals,mostly centered around taxation, were floated, although none were ultimatelyimplemented. Part of this may be attributed to likely difficultieswith implementationmeasurement problems (including temporary migrationand migration linked to education enrolment in developed countries)and ambiguities with respect to the welfare consequences.Many of the same issues and debates have undergone a recent revival.This can be attributed to a number of factors. In the first place, it is commonlybelieved that the emigration of skilled labor from developing countrieshas again accelerated over the last decade, not least in association withthe growth-of-information and knowledge-intensive activities. Second, thedeveloped economies have actively and openly set out to poach talent, usinga range of incentives and institutional mechanisms for attracting skilledlabor. In particular, the use of temporary skilled-migrant visas whether inthe United States or, more recently, in Western Europe, has been striking.Possible explanations for why poaching has increased are various. Theyinclude skill shortages resulting from rapid skill-biased technical change aswell as educational failures. Gaining access to international competenceheterogeneitymay be another factor, while access to technical or marketknowledge may be another. The first explanation generally is taken as bringingin substitutes to local human capital, although this need not necessarilybe the case. The importing firm would gain through lowering wage costs,dampening any domestic-wage pressure, or both. The other explanations,however, may be consistent with complementarity (at least in static or shortrunterms). By widening the talent pool, poaching may result in the selectionof the best candidates and hence impart a positive productivity effect.At the same time, there has been growing recognition not only of theglobal benefits of greater mobility, but also that the emigration of skilledlabor may not be negative for the sending country. In the first place, emigrationof talent may provide a positive signal that motivates others in thesending country to acquire more education, thereby raising human capitaland possibly promoting growth. Second, emigrants may, in due course, returnor, through networks and resource repatriation (such as through remittances),provide essential inputs to new businesses and activities in thesending country. Third, emigration may actively promote a more effectiveflow of knowledge and information. Fourth, the changing nature of mobilityin part due to major advances in communications technologymaybe limiting the extent to which skills are actually lost. A network industry,like software, is possibly a case in point.This paper has several objectives. First it attempts to take stock of ourknowledge concerning the scale, composition, and direction of migrationfrom developing to developed countries in the recent period. Second, itplaces that mobility in the context of the existing literature, and, third, itattempts to indicate ways in which, at both an analytical and empiricallevel, progress can be made in better understanding the phenomenon and,in particular, the appropriate policy implications.The paper is organized as follows. Section 7.2 provides a brief empiricalsurvey of our knowledge concerning the scale, distribution, and compositionof skilled labor flows. Section 7.3 surveys a class of models developedin the 1970s that focused primarily on the implications of emigration for labormarkets in the sending countries. Section 7.4 surveys the subsequentclass of dynamic models in particular, those that endogenize human-236 Simon Commander, Mari Kangasniemi, and L. Alan Winterscapital decisions. We extend the analysis to take account of possiblescreening by developed countries. Section 7.5 then examines the empiricalevidence for screening, while section 7.6 looks at the relevance of returnflows, remittances, and diasporasfactors that may offset some of thenegative effects associated with skilled migration. Section 7.7 then turns toexamining the relevance of economic geography models for understandingthe brain drain and not least the reasons for why agglomeration occurs.Section 7.8 then moves on to look in a little bit more detail at two sectorssoftware and healththat have features that may be helpful in understandingsectoral differences. Section 7.9 concludes.

The Facts

Quantification of the movement of skilled individuals across countrieslet alone the exact measurement of any associated brain drainremains very patchy. National authorities have maintained very limiteddatabases on migration with highly inconsistent skill or education categories.2 There is a lack of data on the attributes of the individual migrantsand the changing nature of migrationwhich is away from permanent,point-to-point migrationhas itself complicated matters. Furthermore,the link between education and migration has changed over time. For example,a significant component of skilled migration is now accounted forby students that stay on after completion of degrees.

Skilled Migration in The Recent Period

Carrington and Detragiache (1998) provide a benchmark for skilled migrationin 1990. They compiled the U.S. census and the Organization forEconomic Cooperation and Development (OECD) migration statistics forthat year and then compared the immigrant stocks to the size of the educatedpopulation in the sending country using Barro and Lees (1996) educationdata for 1993. Their study has several shortcomings: In addition to possibledeficiencies of the basic data they use,3 their figures fail to take into accountskilled migration to the Middle East, which for countries like India actuallyaccounts for a large proportion of the total migration. Also, the immigrationto the United States in their study includes all types of migration, not onlyemployment based, which is what is usually understood by brain drain.Despite their shortcomings, the Carrington and Detragiache estimatesare probably the best available estimates of brain drain. We use them toThe Brain Drain: Curse or Boon? A Survey of the Literature study the relationships between population, the gross domestic product(GDP), and migration. Table 7.1 provides information on population, onexpenditure on tertiary education, and a measure of the intensity of migration(i.e., the share of a countrys labor force having tertiary educationthat has migrated). The share presented in the table is based on the assumptionthat the Barro and Lee estimates do not include the migrants.What emerges is that there are a significant number of small countriesprincipally in the Caribbean, Central America, and Africawith veryhigh skilled-migration rates. Similar exercises comparing skilled-migration rates and GDP per capitaalso yield negative correlations. Countries where the fraction of highly educatedworkers and general productivity (GDP per capita) is already lowalso tend to lose relatively more skilled workers. Of course, this raises somedifficult issues of interpretation. For instance, if the productivity of skilledlabor in these countries is low because of factorssuch as lack of managerialtalent (Rauch 1991) and inability to achieve economies of scale thatare hard, if not impossible to correctthen the emigration of skilled labormay indeed be the best outcome. We return to these questions below.What has happened since 1990? The general consensus appears to bethat skilled migration has accelerated, yet the data are limited mainly tocensus and labor-force surveys. Salt (1997) has arrived at some estimatesfor high skilled-migrant flows to selected OECD countries from a numberof developing and transition countries. He draws a number of (weak) inferencesto the effect that the stocks of highly skilled foreign workers inOECD countries have increased since 1990. Certainly, the flows of thehighly skilled have been increasing at a higher rate than those of less-skilledmigrants. With respect to the European Union as a whole, labor-forcesurveydata show that highly skilled migrants (International Standard ofClassification of Occupations [ISCO] categories 13)4 in 1997 accountedAn Overview of Brain Drain in the WorldRao (1979) asserts that the history of cross-national diaporas of scholars andresearchers can be traced back to the times when academics migrated to the Lyceum in355 B.C. and to Athens in 388 B.C. Around 300 B.C. Alexandria, where most of the bestwork on science and philosophy was carried out between 300 B.C. and 500 A.D., becamethe first centre of science, philosophy and arts (Dedijer, 1968). Soon after 500 A.D. thiscentre of teaching and learning was shifted to Gundi Sapur in East Persia, where theGreek King Hursa Anusirwan established a university and gathered scholars, physicians,and scientists from many parts of the world, but mainly from Christian countries. Duringthe middle-ages, cross-border mobility of scholars, teachers and artists was common toEuropean universities, especially to people from Italy, France, Britain and Austria. Thedirect causes for this cross-national mobility were said to be the economic, political,social issues and intellectual demands for knowledge in natural and physical sciences andhumanities (Rao, 1979).According to Thomas (1968), in the nineteenth century, there was a great flow ofhuman capital from Europe to the New World4 in terms of exporting physical andunskilled labour, and this flow helped create an infrastructure in the New World whichhad to send their people to European countries to receive further training at a later stage.As a result, both the sending and receiving countries could enjoy economic benefits.After World War II, developing countries began to build sustainable physicalinfrastructure, but they were short of technical and professional personnel in keyscientific, administrative and research positions (Rao, 1979). The flow of expertise wasthen characterized as a North - South, developing developed direction (Carrington,Detragiache, & Vishwanath, 1996). In the 1960s, depending on their national needs,political leaders receiving countries acted accordingly either to stimulate or to preventfrom such migrations, yet those who held high degrees of science could generally begranted immigration permission (Dedijer, 1968). The British Royal Society, for the firsttime, coined the term brain drain to describe the outflow of British scientists to the USin the 1950s and 1960s. As popularly used, the term brain drain denotes the migrationof scientists, academics, doctors, engineers and other professionals with universitytraining from one country to another (Myint, 1968; Shinn, 2002).As the skilled workforce net flow moves heavily in one direction from developingcountries to developed countries, it is commonly said that the former suffer fromshortages of high-level skilled workforce and losses of resources to train that humancapital. The latter, on the other hand, gain the needed high-level skills and save hugesums of money and time needed to educate and train such specialists at home(Carrington, Detragiache, & Vishwanath, 1996; Rao, 1979; Rapoport, 2002; Salt, 1997).The losses caused by this global migration have been internationally alerted since the1960s when the hiring and circulation of skilled workers within transnationalcorporations (TNCs) has made an increasing contribution to international migratory flows(Salt, 1997). The causes and consequences of brain drain led to debates and resolutionsin the United Nations as early 1967, concerning the argument that the poor countries losttheir skilled workers to the rich countries (Lowell, 2002).The discussion on brain drain usually refers to two groups of people. The firstgroup includes professionals who migrate from LDCs or who migrate from a developedeconomy to a more dynamic one, and join the workforce of the developed countriesimmediately. The other group consists of students who leave LDCs initially for thepurpose of education and training and then decide to live and work in developedcountries (Rao, 1979). Each group has different reasons and expectations for theirmigration. Some professionals go to developed countries to work temporarily, and othersmigrate on a long- term basis. The receiving countries have to carefully assess theprofessionals qualifications, and judge whether they will be able to make a social andeconomic contribution. Both the receiving and sending countries have to make sure thatthe migrating professionals do not leave any obligations and financial debts at home.Gedamu (2002) divides international intellectual migrants into three maincategories. The first group includes flows of professionals leaving their home countriesdue to economic reasons such as lack of employment and low salaries. The second typeresults from political instability in home countries, and thus people do not trust theirgovernments in creating conditions and opportunities for a promising future. They areusually disadvantaged individuals due to their ethnic, cultural, religious belongings orpolitical affiliation in their home countries. The third cohort consists of scholars whohave been sent abroad for further professional development and remain abroad for abetter life, leaving their families and work at home. Some of them can find good jobs andare able to secure a stable life, but other migrants expectations are not met as hoped andbecome ashamed of returning home being empty-handed. This kind of migration resultsfrom the lack of appropriate information and misguidance.The Socio-Economic Effects of Brain Drain

In general, brain drain occurs due to different reasons such as political and socialturmoil (Adams, 1968; Glaser, 1978; Johnson, 1968; Mountford, 1997; Portes, 1976;Rao, 1979; Thomas; 1968), economic imbalances (Portes, 1976; Rutherford, 1992), lackof professional development in home countries (Adams, 1968; Bushnell & Choy, 2001;Rutherford, 1992; Salt, 1997), and lack of receptivity in home countries due to the oversupplyof specialized graduates in LDCs (Kindleberger, 1968; Rutherford, 1992). It isagreed that brain drain is like a zero-sum game in which rich nations gain on the loss ofpoor nations (Bhagwati, 1976; Bhagwati, 1979; Bhagwati & Hamada, 1974; Bhagwati &Partington, 1976; Hamada, 1977). If migration did not happen, the home country wouldhave a more skilful workforce, and per capita output would be higher (Stark,Helmenstein, & Prskawetz, 1997; Vidal, 1998). Although different countries havedifferent socio-economic, political and historical contexts, brain drain has a negativeeffect in most sending countries. Stalker (1994) estimates that every year 23,000graduates leave Africa mainly for Europe and North America. According to the estimatesof the Presidential Committee on Brain Drain in Nigeria, this country had to lose 10,694professionals from tertiary education alone during the period from 1986 to 1990, makingthe nations engine room be taken away due to their economic and political crises(Anekwe, 2001, p. 1). Also, with a rapidly growing population, the country has toestablish more educational institutions to accommodate its expanding population. Yet,there have been no corresponding employment opportunities for school and universityleavers, and hence brain drain has occurred. Ethiopia has also faced the same situationwhen 50% of the Ethiopians who went abroad for further education have not returnedhome for the past two decades after completing their studies in the West (Gedamu, 2002,p. 2).The number of temporary resident overseas-trained doctors arriving in Australiato work in rural and remote areas has increased from 667 in 1992-1993 to 2,899 in 2001-2002 (AMWAC, 2002). In 2001, 5.7% of the Australian medical workforce was born inAfrica or the Middle East and 16% (8,348) in Asia (AIHW, 2003). In the Philippines thereare about 2,000 medical doctors migrating to western countries while the country cantrain only 1,000 doctors every year, resulting in both a waste of money on the trainingcosts and a deficiency of doctors in this country. Many of these migrating doctors evenaccept to work as nurses with the average salary of 8,000 USD/month, which is 16 timeshigher than that a doctor in the Philippines is paid (Tuoi Tre, 05 August, 2005). Ingeneral, Olesen (2002) estimates that the total number of brain drain from LDCs toOECD countries is a stock figure of 12.9 million (with 7 million migrating to the US and5.9 million to OECD countries), and in most developing countries the migration rate ishighest among university graduates. Carrington and Enrica (1998) assert that a majorityof LDC migrants tend to be much better educated than the rest of the population, andconclude that the very well educated tend to be the most internationally mobile group.Amongst the emigrants are students who go abroad to study and decide not toreturn to their home countries after completing their courses. Within 40 years, the numberof non-returnees of this type has increased seven times from 245,000 in 1960 to 1.7million (Asian students accounting for 44% of the total number) in 2000. In the US,foreign students account for 35% of the total number of students. According to the USNational Science Foundation (NSF, 2004), half of the PhD candidates in the US are fromSouth Asia. Half of these Asian PhD candidates are originally from India and China whohave already been granted degrees by US educational institutions and have decided toremain in that country for higher education. The receiving countries then enjoy themoney that has been spent on their training. In fact, it is estimated that the US can earnseven billion US dollars, and the UK two billion US dollars annually from their braingain (Lien hiep Hoi KH&KT Vietnam, 2004). Among the 150 million people who areparticipating in scientific activities worldwide, 90% are from the seven most developedcountries, and 25% are working in the US and Canada. 90% of patents in the worldbelong to English-speaking countries. These figures show that there seems an unevenexchange of knowledge between the east and the west, which is different from Lukesassertion (2001) about the reciprocal exchange of knowledge between the two directions.Instead, developed countries are more dominant in the production and application ofknowledge.For the past ten years, developed countries have applied measures to attractskilled workers from developing countries. For example, the US and Germany haveloosened immigration policies to people from Russia, China and India who are oftenassumed to possess high educational backgrounds. To call for skilled labour to come, theUS also grants Skilled Worker Visas (H-1B and L-1 Visas) to those who hold at least abachelors degree in the fields which are needed. The H-1B classification applies topeople in a specialty occupation which requires theoretical and practical application of abody of highly specialized knowledge, and the completion of a specific course of highereducation such as a bachelors degree. According to the US Chamber of Commerce,since October 2000 the number of visas granted has annually increased from 140,000 to195,000. Within the past ten years, the number of immigrants has reached 28.4 million,accounting for 10% of the total US population. The US Immigration and Nationality Actprovides employment-based immigrant visas to people with extraordinary ability, whichare classified into five preference categories including science, arts, education, businessand athletics. Applicants who are mostly outstanding professors and researchers mustprove that they have achieved national or international acclaim and recognition in theirfield of expertise. Seeking highly skilled workforce from foreign countries, Australia hasrecently tightened the skilled immigration policy which strictly requires applicants tohold at least a Masters degree in certain fields instead of a bachelors degree comparedto the past. In France, effective measures have been applied to encourage foreignprofessionals to come and work. In fact, French professors lecturing in North Africancountries are also asked to call for local professionals to migrate to France (TheLabourer, 23 March 2005).Brain drain has also occurred amongst developed countries. In Canada, forinstance, brain drain has been happening in connection with brain gain the reception ofskilled labour from other countries to replace the lost professionals. The annual averagepermanent and temporary emigration in Canada to the United States during the 1990swas in a range of 22,000 to 35,000, accounting for 0.1% of the Canadian population, andthese emigrants were better educated than both the Canadian-born population and recentimmigrants to Canada. While losses of skilled workers to the US accelerated, Canadaalso enjoyed an influx of 39,000 skilled workers in 1996 into the nations labour market(The Daily Statistics Canada, 24 May 2000). In general, as trained workforce movesfrom developing countries to developed countries, the former experience shortages ofhighly skilled human resource and suffer losses of financial resources to train that humancapital while the latter tend to gain the needed expertise human capacity and save hugesums of money for not having to train such specialists. In other words, brain drain is likea slow death for sending countries (Blagov, 2000).In Vietnam, amongst the 30,000 students studying overseas, approximately 95%who have received financial assistance and loans have returned home. The others haveremained in the foreign countries to work to pay the debt or to pursue higher education(Tin Tuc Vietnam, 23 July 2004; VNS, 11 November 2004; UNDP, 2002). According tothe writers survey done at an Australian university in 2005 (Nguyen, 2005), selffinancingstudents tend not to return to Vietnam after graduation in order to pay themoney that their parents had to invest for their education. However, also according to thissurvey, about 95% of the Vietnamese students at this university expect to return toVietnam to work due to two main reasons: ties with families in Vietnam and theirpatriotism. Their patriotism cannot be seen as the sole love for the country and theprotection of their home country, but it is expressed as transnational patriotism withtheir expectations and efforts to contribute to the nations development even from ageographical distance. This is the determinant pull factor from Vietnam (the push factorfrom Australia) while the pull factor from the Australian university (considered as thepush factor from Vietnam) is the chance to enhance their professional development in themodern R&D environment. Consequently, if Vietnam could provide academic courses ofhigh quality as those in Australia, would students choose to study abroad? If Vietnameseeducators could train each individual with real patriotism, would Vietnamese academicschoose to leave home? It is certain that these questions are just some examples of thechallenges Vietnam is facing with at the moment.

Sustainable Measures Used to Mitigate Negative Effects of Brain Drain

To deal with the flows of professionals in the 1960s, when governments weremaking efforts to mitigate the negative effects of these migrations, sending countries hadto raise salaries for professionals, which had to at least reflect their opportunity costsabroad (Adams & Dirlam, 1968). Yet, this approach seems unrealistic in poor nations likeVietnam because it lies out of the States financial capability. Also, salary differentialsamongst employees may result in many negative effects such as strong competition to goabroad, passing-the-buck and increasing personal jealousy. In my view, although the nextagenda seems to be too slow for LDCs to carry out, they need to create more local-basedprofessional development opportunities for people and for those in employment. In fact,it calls for the revolutionary economic and technological changes that build up a newclass of professionals who produce innovations and encourage the receptivity to change.Furthermore, sending countries must restructure investment in education, tailor theirtraining needs and rationalize human capacity policies. This approach insists that reformsin education be carried out to produce the right skills with the right proportions in orderto produce skilled workforce who possess both academic and social knowledge in orderto survive and grow in the changing environment. More specifically, the governmentmust place a strong emphasis on the training and development of the knowledge-basedeconomy and R&D.Furthermore, governments must establish local institutions with both capital andprofessional assistance from foreign organizations and countries in order to retain moststudents at home. Attention to and efforts in human resource management should be paidmore closely to create favourable conditions for those who have been trained abroad todisseminate the knowledge that they have learnt overseas to locals. If exploitedunreasonably, their knowledge is wasted. This is the alarming situation in Vietnam,especially in State agencies, when employees with high qualifications and good workingabilities are not employed properly. After a while, their professional knowledge maybecome fossilized.The measure of paying remuneration based on meritocracy and working abilitiesinstead of hiring foreign professionals also presents some disadvantages in developingcountries. Attracting well-trained professionals by offering high salaries is one of themain causes to internal brain drain. For example, many foreign companies such as Ikea,Electrolux, P&G Cooperation, BP, Prudential, Ericsson, Mercedes-Benz, etc. have comeand looked for Vietnamese foreign-trained professionals. A prospective employee canapproximately earn a monthly salary of 1,000 USD compared to that of 100 USD paid bythe State sector. These foreign employers are also offering attractive working promotionprograms to attract as many professionals as possible by accepting students as interns andthen promoting bright students to suitable posts in their headquarters. These TNCs haveactually contributed to GDP in Vietnam, yet at the same time, they are the Statescompetitors in staff employment.Bhagwati (1976, 1979) and Gedamu (2002) also suggest another alternativemeasure which is to tax emigrants who are indigenously trained in their home countriesin order to stop the influx from overseas. Yet, this issue, to my mind, is indeed sensitiveand may be not feasible for some countries which really need specialists to work in somespecilizations and to replace the lost workers. In addition, this measure may impinge onthe basic human rights to choose the nature and location to work and reside.In Vietnam, what the Vietnam Ministry of Education and Training (MOET) doesis to request sponsored students and their relatives to sign in an agreement which forcesthem to return upon the completion of their studies, otherwise the relatives will be heldaccountable for such illegal emigration, and will have to pay back the money for thetraining fees. In 2000 the Ministries of Finance and MOET issued Circular75/2000/TTLT/BTC-GDDT, under which State-financed non-returnees must repay all thegrants they have received during their time abroad three months after their graduation oreven return home ahead of planned time due to violations of academic rules, or becausethey have chosen to drop out of their courses. The amount of repaid money is determinedby the specifics of each case, but must be at least 50 percent of the total expenses (UNDPin Vietnam, 11 August, 2000). However, in the case of self-financing students, thepossibility to coerce them to return after graduation seems impracticable.In my own view, governments can reduce the possibility of brain drain bybuilding an appropriate number of training institutions in their countries and designingtraining programs that best fit their urgent and long-term demands. Political, economicand educational leaders must reach a consensus in devising long-term strategic planswhich recognize and prioritise what expertise fields and the number of expectedprofessionals in the future are required for the national development. Furthermore, theycan employ professional locals who have been trained and have been residing abroad asthe main seeds in disseminating their knowledge to other local people (Hugo, 2002).Even building networks of professionals in the same expertise can encourage them tocontribute their ideas and innovations to the nations development from overseas. Thisstrategy can reduce the costs and time to send many people overseas and preventunexpected brain drain. Also, there must be bilateral and multilateral compromisesamongst sending and receiving countries to avoid the situation where one countryenjoys great financial benefits from professional migration whereas others have tosuffer from the losses. They must plan what kind of expertise needed for their strategicdevelopment and the quantity of professionals demanded. The sending countries cannegotiate to send professionals trained in an abundant number who may be at the risk ofunemployment. The sending countries and receiving countries can meet their demands byexchanging professionals, stopping the unexpected outpouring of talents and facilitatingknowledge to circulate amongst the countries.In addition, calling for more foreign universities to come and build their offshorecampuses in LDCs benefits the course of long term education development. Most parentswant their children to have a foreign western degree. Also studying at a foreign-fundeduniversity which is based locally is less expensive than studying overseas, and helps thelocal currency circulate inside home countries. Once foreign universities are built, localhigher education sectors have to urgently improve their training quality and managementin order to attract more students for financial competition (economic bottom line) andsocial competition (training quality and prestige).Not all professional migrants can secure a better life in a destination countrybecause their linguistic competence, the skills and knowledge they have obtainedsomewhere else may not be as appropriate in the foreign country as in their home countryprior to migration. For example, some Asian migrants holding high degrees in TESOL(Teaching English to Speakers of Other Languages), Cultural Studies (American orVietnamese Studies), or Medicine cannot find jobs appropriate to their qualifications.This phenomenon causes a human capital waste (or brain waste termed by OECD,1987 cited in Giannoccolo, 2004, p. 4) in receiving countries and a brain drain in sendingcountries. Also, employers in receiving countries are not always completely informed ofmigrants skills except those who have been studying and working with them for a longtime. Conflicts at workplace may occur as employers do not share the same culture,background, and language with those of immigrating workers. Finally, compared to theirlives in their home countries, many migrants have to start their lives again almost fromsquare one, e.g. looking for accommodation, or spending some time adjusting into thenew living. Migrants do return home due to different reasons such as work failure,retirement, ties with relatives in home countries, and expectations to contribute to thehome countries development by sending remittances6 and ideas and innovations.

Conceptualizing brain drain/brain gain

According to the traditional literature views, the exodus of human capital is something of a curse for developing countries, and policies need to be considered to oppose or reduce its negative impact on the emigration countries, including the taxation of migrants income abroad. However, in contemporary theoretical debates, the term brain drain is contrasted with the relatively new term brain gain which emerged in the late 1990s. 7 This literature has taken into consideration the benefits of skilled migration including increased trade, remittances, knowledge, capital flows--including Foreign Direct Investment (FDI8), and the skills attained by return migrants in the destination country.9 As a result, brain drain primarily means the spontaneous phenomena accompanying skilled persons decisions regarding where to work and live, without being influenced by any policy-makers or state administration, whereas brain gain is concerned with the intentional efforts of different institutions designed to identify and generate benefits from the outflow of skilled people. goods produced by skilled labour.150 Clearly the presence of highly-skilled specialists can improve diverse sectors within receiving countries. For instance, the report presents data from the UKs Science and Engineering Policy Studies Unit showing that the incorporation of scientists and engineers from Eastern Europe had increased in a variety of institutions in the UK over the previous few years.151 It can be concluded in few words: a generally favourable picture is present for the host country from the immigration of skilled workers.Causes of Increased Brain Drain in developing countriesThere are many factors which cause brain drain from the less developing countries to the highly developed countries. The regional, national and global flow of migrates are increasing every second. There are two main factors due to which people move from one place to another place. There are some major routes of human migration before 1950s but highlighted in 60s. The reasons can be different region to region; i.e. satisfactory facilities of goods and services, the reconnection of diverse cultural groups, in the time of conflict and war, political instability, health risks and the lack of opportunities. The mobility of intellectuals and skilled personals or emigrants from the country of origin referred to as the PUSH FACTORS of their capital flight. And there are many parallel and inverse reasons for the immigrants called PULL FACTORS to attract towards host countries.Theoretical frameworkBrain drain is studied under the theoretical frame of migration theories under the two main factors as discussed below:Push factors:There are certain push factors causing brain drain, to leave the less developed country to developed countries as listed below:Substandard living conditions, dearth of conveyance, accommodationUnder-utilization of skilled and semi- skilled personnel; lack of adequate working conditions; low panorama of specialized developmentLow and corroding wagesDiscrimination in recruitments and promotionsSocial unrest, Political instability, conflicts and warsLack of research facilities, including support staff; meagerness of research funds, lack of professional apparatus and toolsLack of freedom and autonomyDeteriorating excellence of educational system,Why Academic intellectuals leave their Country of Origin:Challenging socio-economic conditions (poverty, unemployment, epidemics diseases, increased rate of crime, corruption, etc.)Poor libraries, ICT & apparatus for researchLack of autonomy academic freedom to create literature at universitiesPolitical instability and harassment, human rights manipulations, warsLack of pure democracyDeprived payments for intellectuals and skilled personalsLack of self-determination and social equivalenceLack of quality education for childrenLack of career opportunitiesLack of entrepreneurial investmentsWhy Students go abroad:Poor worth of national education from the Montessori level to post graduation levelUnavailability of scholarships or financial assistance for the brilliantMiserable infrastructure of schools, colleges and universitiesLimited opportunities for higher studies studentsAs a decided step towards emigration, they suffered with inferiority complex, due to all the above reasons and many more pushing factors resulted to leave their point of origin.Why Students Do Not Return:Limited employment opportunities restrict to come back in the homelandespecially at PhD level, Course or research work not relevant to home countrys state of affairsconvenience of grants for further explorationliving conditions, insufficient earning and job satisfaction in developed worldNeed to send money home and support the familyGetting married to a host countrys citizen to get the citizenshipAlthough, they suffered with many crisis as alienated in the host country including the identity crisis, diaspora and make up their own imagined communities to prevent themselves with the socio-political and religious disparities.Pull FactorsSimilarly, numerous attractive pull factors at the destination states permitting the brain drain to occur at a higher leap:Sophisticated standard of livingEmployment opportunitygreater income and Higher wagesExtensive resources for research, unconventional and advanced technology, modern facilities of laboratory equipment; availability of experienced support workforceHealthier working conditions; employment and occupation opportunities with the proficient developmentModern educational schemes; prestige of foreign trainingPolitical stability & foreigner secured policiesMeritocracy, transparencyScholarly &Intellectual autonomyAppreciation & rewards on governmental levelEffects of Brain Drain in Developing CountriesAftermaths of Brain Drain in Exaggerated Regions of the globalized world:Negative effects:The phenomena of brain drain has left harmful effects in the region of poor countries like Africa, because of their great hope, talents and skills have immigrated to the richer countries. As seen pragmatically, develop and rich countries become richer and more developed and poor and developing countries become poorest and failure states. Consequently, some of the outcomes have produced the poorer rates of growth and development, highly instable politically some are in the condition of cold war like Pakistan ..fewer productive educational funds, and worse health care system and Loss of potential modernizers who might have paved the way to rejuvenation and up gradation through their advanced and creative abilities.Doctors, Engineers, scientists & students leave for the industrialized worldAfrica loses the best brains it needs for its trade and industrial development

African recruitment of thousands of expatriates from the industrialized West at a cost of billions every yearincreased deterioration of higher schoolingUniversities have to be close, extension of higher education not possiblePoor people seriously affected by the epidemic, infectious diseasesUniversities unable to run and achieving Development GoalsIn the global knowledge economy, Africa becoming sidelinedDue to the pitiable environment, Lack of skilled people.Crumbling poor & middle classpolitical instability & religious persecutionCorruption of income tax equal to less basic goods and servicesEconomic instability leads to increased rate of unemployment and inflationLack of industrial growth & innovation.Positive EffectsThe brain drain may cause numerous positive effects for source countries. It is well documented that remittances of employees played a significant support to GNP of a country and are a viable spring of income in several developing countries. Remittances and transmittals intrude on family decisions in terms of professional choice, labor supply, education, investment migration, and fertility, with hypothetically essential aggregated special effects. Especially in the case of poor countries, where market inadequacies available to members of low-income classes reduce the set of possibilities.Brain Circulation equalizes Brain DrainTransnational corporation and increase in Foreign Direct InvestmentWhen possibility of migration is real. level of education in sending countries risesAmalgamation in global economies

Advantages of the brain drainA brain drain is effectively an export of human resources such as education services, which has inadvertently become a money machine for countries such as the US, contributing over $7 billion to the US economy.[161] However, it is important to note that the knowledge and wealth generated is twofold, both for the country of origin and the host country, which acquires additional human capital to fill labour gaps, thus increasing economic development. The country of origin, exporting their skilled and highly educated workforce, benefit from a brain gain both in terms of the increase in the labour power they possess, and also in the fact that skilled migrants leaving the country generate increased demand for higher level education amongst the population[162] Furthermore, the sending back of remittances increases economic development in the country and its standard of living. Circular migration presents a number of benefits associated with brain drain. First, the economy of the origin country may not be able to take advantage of the skilled labourers, so it becomes more beneficial for the workers to migrate and send back remittances. Second, when the migrant workers return home as part of the circular pattern, they may bring with them new skills and knowledge.Remittances are a positive effect of the brain drain because they increase living standards in society; as Faini notes, skilled migrants typically earn more therefore remit more thus fostering growth.[163] Nevertheless, this is not a precedent. The remittance economy is a significant part of the brain drain as well an integral source of income for developed economies: 2011 remittances were estimated at $372bn,[164] and for countries such as Mexico and the Philippines were worth $24 and $34 billion[164] respectively.Negative consequences of brain drainWhile a brain drain is beneficial, its flaws are inherent in its title, since it usually involves the loss of human capital, i.e. a skilled labour force which is vital to the development of society and the country as a whole. In the case of skilled manpower, Alam et al. recognise emigration of these skilled workers as essentially providing personal benefits for individuals rather than public benefits.[165]The brain drain benefits individuals more than society; however, implementing policies to reduce their movement, according to Skeldon, "is in effect to act against the process of development.[162] This means society is inadvertently caught in a catch-22 scenario, whereby "allowing the Brain Drain to continue is likely to result in knowledge being distributed unevenly"[161] across space, resulting in a fall in economic development for either the country of origin or destination countries.Another consequence of the brain drain is the existence of social marginalisation, which occurs due to several reasons. For example, highly skilled labourers have been villainised by society because they may be perceived as a disruption to existing society. The migrants themselves, who have struggled to adapt to their new surroundings and way of life, may subsequently perceive themselves as living 'parallel lives.' The most pressing issue skilled migrants face in contemporary society, however, is what Tsuda refers to as double marginalisation,[166] which is when migrants are kept from integrating into their new surroundings either by society or by existing governments, and upon their return home are shunned by the community they originally migrated from due to their earlier departure. Double marginalisation has become a common feature in contemporary society, which has in some respects reduced the amount of skilled migration occurring.Impact on the health systems of developing countriesDespite the existence of significant global efforts trying to improve health and healthcare systems in the developing world, the money invested is insufficient, as health workers from the developing countries leave their home countries and immigrate to the developed world, assuming low-status positions in rich countries. As a result of many local health workers abandoning their countries, countries in the developing world lack sufficient health care workers, which harms the local health system. Health systems in the developing world are receiving financial aid to deal with significant diseases and health issues such as child mortality, AIDS, and malaria. However, the money is ineffective, as there is not sufficient manpower in the form of medical and health professionals to do the work required, which further damages the health system rather than strengthening it.[167]The utility of the brain drainIn assessing the usefulness of brain drain, it is important to understand that for some of the worlds developing countries "the gains from migration accrue neither from migrant remittances nor do they return home with amplified skills acquired abroad".[168] The gains come instead from the increase in promotion of education of highly skilled labour in developing countries, as well as investment in infrastructure. Nonetheless there does exist a vast "remittance economy worldwide worth $510 billion in 2007"The real reason for Indias brain drainWe always come across reports of how much talented Indians are and are conquering the world in the field of technology & business. There are several reports suggesting that Indians dominate the technology industry of USA.

But why are most of those Indians not in India but in US/UK? If we go a little more in depth to analyze this issue, we will begin to notice that the top Indian professionals & entrepreneurs today in US had actually left India during 1970s & 80s after obtaining their degrees in India. So, Why did we have such a severe brain drain in 1970s and 80s?One common answer we get is that India did not have the right opportunities for their specialization. Maybe true for technical PhD holders who need employment from research institutes which might not have been prevalent in India. But what about entrepreneurs? They had a market of 0.7 billion ppl, something that nobody would like to ignore. Instead of going to a foreign land and toiling hard to become entrepreneurs, why did they not remain in India and do the same here? Afterall, India being a developing nation could have provided them a chance to experiment as well as capture marketshare.It is easy to say that they were greedy, did not care for our country and flee to the US for greener pastures. But the real reason lies in the political & economic system.This snapshot of the 1974 budget might give us some hints. During Indira Gandhis rule in 1970s, income tax was at an all time high with the top slab having a tax rate of 97.75% !!ConclusionRecommendation for the developing countries:How the future of developing countries can preserve and what should be the recommendation?Establish recorded database of skilled, intellectual, students and specialists on the time of departure from LDCs.Reformation of the national education system and the infrastructure of schools, colleges and universities.High budget allocated for the higher education and use of funds purely for the education projects.Sufficient facilities for research projects in universities and establish the research cells.Encourage the distant learning and education for all.Pure democracy, encourage human rights and enforce the legislation, strictly keep an eye on the law and order situation to stable and regulate the factors like corruption, crime etc.On governmental level, the allocation of budgets to the science and technology organizations and from the health sector to control the infectious diseases.Introduce new policies and laws to reduce the conflict and war at the national and international level.Role of government should be the key role to avoid the issue of human capital flight.Government should spend heavy fund for the infrastructure, avoid load shedding like issues and provide the demanded power supply and drinking water and the efficient communication.Facilitate the education system through training, research, and educationGovernment should advertised job opportunities on merit & provide specific allowance and salary for the scientists, engineers, doctors and highly intellectualsState should reduce the rooted conflict to maintain peaceDemocratic governance is the best solution for the cancerous problem of brain drain.Engage the LDCs best organizations with DCs and encourage the collective training and work with DCs as partnersIf west needs some research they should request on the governmental level for researchHow western countries can help to reduce brain drain?Ensure through incentives and immigration policies, intellectual return back to their resource countries discourage labor recruitment through academics and qualified personalsDiscourage full time attendance for the foreigner graduate studentsConsideration of joint degrees with developing world universitiesEncourage riven PHDs instead of 100% attendanceSupport university association to progress LDCs (curriculum, quality and methodology of research)Collaboration through appropriate university association for e.g. (HEC, AAU, ACU, AUF IAN)