BRAIN- DRAIN

Large scale- emigration with

technical skill and knowledge.

CONTENTS

INTRODUCTION

HISTORY OF BRAIN DRAIN

CHARACTERISTICS

PUSH AND PULL FACTORS OF BRAIN DRAIN

MAGNITUDE OF BRAIN DRAIN

BRAIN DRAIN OF INDIA

BRAIN GAIN

REVERSE BRAIN DRAIN

CONCLUSION

INTRODUCTION

A brain drain or human capital flight is an emigration of trained

and talented individuals ("human capital") to other nations or

jurisdictions.

Brain drain can occur either when individuals who study abroad

and complete their education do not return to their home country,

or when individuals educated in their home country emigrate for

higher wages or better opportunities.

HISTORY OF BRAIN DRAIN

MAIN CHARACTERISTICS OF

BRAIN DRAIN

There are numerous flows of skilled and trained persons fromdeveloping to developed countries.

In these flows engineers, medical personnel and scientists

usually tend to predominate.

They are characterised by large flows from a comparatively small

number of developed countries and by small flows from a larger

number of developing countries.

PUSH FACTORS OF BRAIN DRAIN

Under employment Low wage/salary. Lack of research and other facilities. Lack of freedom. Discrimination in appointment and promotion. Poor working facilities Desire for a better urban life. Better career expectation. Lack of satisfactory working conditions.

7

PUSH FACTORS

MAIN REASON OF BRAIN DRAIN

PULL FACTORS OF BRAIN DRAIN

Better economic prospects. Higher salary and income. Better level of living and way of life. Prestige of foreign training. Better working condition and better employment

opportunities. Technological gap. Allocation of substantial funds for research.

MAGNITUDE OF BRAIN DRAIN Migration of people as a phenomenon differs from country to

country and from time to time.

The phenomenon of migration of high quality manpower can justify the use of the expression on the term “brain drain”.

COUNTRIES WITH HIGHEST BRAIN DRAIN

COUNTRY STUDENTS GOING ABROAD (PER YEAR)

CHINA 421000

INDIA 153300

REPUBLIC OF KOREA 105300

GERMANY 77500

JAPAN 54500

MIGRATION TO USA

BRAIN DRAIN DUE TO

EMPLOYMENT

BRAIN DRAIN IN INDIA

Above data shows that the students going for higher studies abroad

has increased by 256% in the last 10 years. When 53,000 Indian

students went abroad for higher studies in 2000, the figure shot up to

1.9 lakh in 2010.

INDIAN HIGHER EDUCATION

ENROLLMENT IN TOP 7 COUNTRIES

YEAR USA UK AUS CANADA NZ CHINA GER TOTAL

2012 96754 12629 28929 11349 10237 5745 190055

2011 100270 29900 15395 23601 12301 9370 4825 228774

2010 103895 39090 21932 17549 11616 9014 3821 253743

2009 104897 38500 28020 9561 9252 8468 3236 247631

2008 103260 38065 28411 8325 6348 8145 3217 216516

2007 94563 25905 27078 7304 3855 7190 3431 205852

2006 83833 19228 29497 6927 2599 3245 3583 158215

COUNTRY CHOICE OF INDIAN

STUDENTS

BRAIN DRAIN OF IITs & AIIMS

Institution

indicators

IIT Bombay IIT Madras IIT DELHI AIIMS

Year of study 2007 2009 2005 2007

Period covered 2000-07 2000-09 2000-05 2000-07

Population size 1262 5942 1224 2479

Sample size

in India

out of India

501

179

322

429

184

245

402

200

202

460

316

144

Magnitude of

brain drain

30.8%

(+/- 2%)

25-28% 56.2%

(+/- 1.3%)

23.1%

(+/- 1.5%)

EMPLOYMENT MIGRATION OF INDIANS

19

INDIANS IN EUROPE2001 2009

EU country Indian

immigrants

Stock of

Indian

citizens

EU country Indian

immigrant

s

Stock of

Indian

citizens

UK 16,001 1,50,676 UK 64,000 2,93,000

Germany 8,949 35,183 Italy 12,769 91,855

Italy 4,820 32,507 Germany 12,009 47,025

Austria 836 4,879 Spain 5,956 29,754

Spain 835 6,790 Holland 2,699 8,003

Holland 684 3,361 Sweden 1,795 4,676

Belgium 1,787 6,749

France 1,458 13,000

Poland 1,137 269

Ireland 1,078 4,046

20

Total

acquisitions

in EU-27

United

Kingdom Portugal Germany Italy Other

% of total EU % of total EU % of total EU % of total EU % of total EU

31,100 85.3% 3.2% 2.9% 2.9% 5.7%

Employment Education Family reunification Other Total first

permits Permits

by reason total permits

Permits

by reason total permits

Permits

by reason

% of total

permits

Permits

by reason total permits

73,851 37% 51,501 26% 45,237 22% 30,809 15% 2,01,398

MAJOR PROBLEMS FACED BY INDIA DUE

TO BRAIN DRAIN

A shortage of skilled and competent people in India.

A tremendous increase in wages of high-skill labors in India.

Problems for the public sector : With the exception of ICICI, none of

the public sector finance companies have done a serious job of revamping

their pay scales. They face two alternatives: a sharp increase in wages of high-

skill labours, or bankruptcy.

Problems of governance : In government itself, low wages at senior

levels are a serious problem. An economic advisor at the Finance Ministry

earns less than Rs.20,000 a month. It is possible to have individuals take up

these roles if they are independently wealthy; altruistic; power-hungry; corrupt

or incompetent. This is not a happy state of affairs etc.

BRAIN GAIN

An opposite situation, in which many trained and

talented individuals seek entrance into a country, is called

a brain gain.

While simultaneously many qualified immigrants were

coming to home country from a number of different

nations.

This phenomenon is common in developed countries

where people come from many nations for higher studies

& didn't return back.

REASON OF MIGRATION

REASON FOR

MIGRATION

NO OF MIGRANTS PERCENTAGE OF

MIGRANTS

TOTAL

MIGRANTS

98,301,342 100

EMPLOYMENT 14,446,224 14.7

EDUCATION 2,915,189 1.2

BUSINESS 1,136,375 3

OTHERS 79,803,557 81.1

Brain drain vs brain gain

A brain drain or human capital flight is an emigration of

trained and talented individuals ("human capital") to other

nations is called brain drain.

Brain drain can occur either when individuals who study

abroad and complete their education do not return to their

home country, or when individuals educated in their home

country emigrate for higher wages or better opportunities.

This phenomenon is perhaps most problematic for

developing nations, where it is widespread. In these

countries, higher education and professional certification

are often viewed as the surest path to escape from a

troubled economy or difficult political situation.

REVERSE BRAIN DRAIN

§ Reverse brain drain is a form of brain drain where human

capital moves in reverse from a more developed country to

a less developed country that is developing rapidly.

§ These migrants may accumulate savings, also known as

remittances, and develop skills overseas that can be used in

their home country

§ Brain drain can occur when scientists, engineers, or other

intellectual elites migrate to a more developed country .

These professionals then return to their home country after

several years of experience to start a related business,

teach in a university, or work for a multi-national in their

home countryTheir return is thus "Reverse Brain Drain".

BRAIN- DRAIN REVERSALCause

India, the world’s 4 largest GDP.

30% IT industry growth in last 10 years.

Recruit over 100,000 people in 2007-2008 in big 6 software companies.

Indian companies now pay global salaries.

COUNTRIES THAT RECEIVED HIGHEST

AMOUNT OF REMITTANCE FROM

NATIONALS WORKING ABROAD

COUNTRY REMITTANCES

(MILLIONS IN US $)

% OF GDP

INDIA 11.97 2.6

PHILIPPINES 7.016 8.9

MEXICO 6.649 1.7

TURKEY 4.529 2.3

EGYPT 3.196 4.0

MOROCCO 1.918 5.5

BANGLADESH 1.803 4.1

28

PIE CHART

PERCENT

BOON OF REVERSE BRAIN DRAIN 60000 arrivals in India in 2010 from

overseas.

72% IIT graduates see India as having

most promising future (only 17%

mention USA).

Drop in numbers of graduates thinking

of emigrating, from 75% in 80’s to

28%.

Brain Drain Index improved from 3.0 to

6.76.

TOP FIVE BRAIN DRAIN AND

BRAIN GAIN METRO REGIONS

CITY NO. OF MIGRANTS

PHOENIX-MESA 63084

DALLAS-FORT WORTH 54814

SAN FRANCISCO 48614

DENVER 40973

ATLANTA 30567

CITY NO. OF MIGRANTS

NEW YORK 122000

CHICAGO 29647

PITTSBURGH 20065

DETROIT 17224

Beginning of the end of brain drain For fifteen young innovators of Indian origin who were honoured with the MIT Global Indus Technovators awards, the question of 'brain drain' has always been a seminal one.

The ‘brain drain’ trend is reversing. Many colleagues have decided to stay in Indiaand many of my students from India are planning to return.

But was the 'brain-drain' a bad thing in itself? Perhaps, researchers and entrepreneurs in India found it difficult to escape from the shackles of poverty and anonymity, and wanted greener pastures to feed their passion for creativity.

As a solution to India's brain drain, the government needs to demonstrate to researchers a sincere commitment to supporting research while allowing scientists to remain as independent as possible.

There is such a wealth of talent in India that it would take long for even a small number of successful researchers based there to attract others and make India one of the world's leading nations for technical innovation.

Current brain drain issues

In particular, Eastern European countries have expressed concerns about brain drain to Ireland and the United Kingdom. Lithuania.

In Western Europe France is currently experiencing a brain drain, with young graduates moving to Britain, USA, and Canada because of economic and labor regulations making it extensively difficult to find white-collar private jobs.

Certainly there is a brain drain occurring in the last 5 years in Germany, with 144 814 people leaving their country in 2005 due to economic problems, the highest rate of emigration from Germany since the end of World War II.

Larger countries have less brain drain

Report shows the extent of the drain brain problem in larger countries is much less.

On average for countries with more than 30 million people, the brain drain is less than five percent of all college educated people. The reason is that they have a large population of skilled people, so that even with a large share of skilled people in the migrant population, their share in the skilled population is nevertheless small, Countries such as China and India only have about three to five percent of their graduates living abroad. And it's a similar situation in Brazil, Indonesia and the former Soviet Union.

34

ADVANTAGES OF BRAIN DRAIN

The money the emigrants have sent back home has helped in alleviating poverty in their homes.

It has resulted in less child labor, greater child schooling, more hours worked in self employment and a higher rate of peopl

The money remittances have also reduced the level and severity of poverty.

Moreover, the money migrants sent back are spent more in investments such as education, health and housing, rather than on fo

35

DISADVANTAGES

Due to the influence of brain drain, the investment in higher education is lost as the highly educated person leaves India an

Also, whatever social capital the individual has been a part of is reduced by his or her departure.

With all the college graduates leaving their homelands, it raises the question as to whether their skills are being put to go

The chances of Brain Waste are possible. In a similar way, there is a shortage of skilled and competent people in India.

A tremendous increase in wages of high-skill labour can be seen now in India.

The emigration has also created innumerous problems in the public sector.

CONCLUSION

Scientists who have emigrated for several reasons are

recoverable assets who can play a part in developing

opportunities at home. However, recovery requires the

opening of diverse and creative conduits.

Foreign professionals could be used to develop innovative

graduate education opportunities at home and technology to

be transferred to areas of national priorities for research and

development.

Building an enlightened leadership and an enabling national

scientific community, with the help of expatriate citizens, for

the coherent development of scientific and technological

capacity in developing countries will be mutually beneficial.

37

THANK YOU