A New Educational Model
Promoting Research and Innovation
Manthan Topic : Brain Gain
Entire graduatingclassesof the prestigiousIndian Institutes of Technology (IIT) left for graduate studiesin universities in the
United States in the 1970s and 1980s, many stayingon to work after obtaining their advanced degrees (Morning 2001).
India is a major source of migrants, especially of highly-skilled and well-trained workers. Even with a high
number of Indian talents abroad, India – as well as destination countries – takes advantage of the resources
generated by this population. Traditionally the flows of Indian professionals have been directed towards the
United States, Canada, the United Kingdom and other similar destinations. Recently, however, Western
European countries are being selected as migration options.
The highly-skilled nationals of India are most prominent in the United Kingdom. Among 12,852
permits issued for Indian highly-skilled workers in 2010, 5,615 or 44% were issued by the UK. Italy is
the first European destination for seasonal workers. In 2010 Italy issued 3,479 permits accounting for
92% of Indian seasonal workers in the EU.
According to the US Department of Homeland Security India was, in 2009, the first country of origin among
foreign students enrolled in US universities: indeed, 16% of all foreign students were Indian.
Desai, Kapur and McHale (2001) found that the 1 million Indians in the United States
who represent only 0.1 percent of India’s population earn the equivalent of about 10% of India’s
In this context, the loss of skilled labour is of vital importance for development and development potential. The loss of
teachers undermines the ability of schools and education systems to function, the loss of nurses impairs efforts to deliver
even basic healthcare and public health programmes and the loss of other skilled professionals acts as a barrier to
institutional capacity building, the efficient utilisation of external assistance and private sector growth.
The ‘Brain Drain’, as the flow of skilled professionals out of developing countries has become known, thus marks a
potentially serious barrier to economic growth, development and poverty reduction.’
Positive effects Negative effects
" Provides rewarding opportunities to educated workers
not available at home.
" Inflow of remittances and foreign exchange
" Induced stimulus to investment in domestic education
and individual human capital investments
" Return of skilled persons increases local human
transfer of skills and links to foreign networks
" Technology transfer, investments by diasporas
" Circulation of brains promotes integration into global
markets (India, Taiwan, (China)).
" Short term movements of service providers (GATS
Mode 4) generate benefits for both receiving and
" ICT allows countries to benefit from diasporas.
" Net decrease in human capital stock, especially those
with valuable professional experience
" Reduced growth and productivity because of the lower
stock of human capital
" Fiscal loss of heavy investments in subsidized
" Remittances from skilled migration may taper off.
" Reduced quality of essential services of health and
" Students educated at government expense or own
resources in foreign countries imply further drain
" Opportunities for short-term movement of natural
persons is seriously constrained by immigration policies
of developed countries.
" Causes increasing disparities in incomes in country of
Brain Drain Balance
Return of migrants to their source country
Permanent return focus of most policies
Restriction of international mobility
Restrictive emigration/immigration policies (explicit and e.g. national trades)
Recruitment of international migrants
Court foreign workers (tax incentives, simplified visa regimes)
Reparation for loss of human capital (tax)
Compensate source countries, or emigrants directly submit taxes, to deal with externalities created by the immediate loss of human
Resourcing expatriates (Diaspora options)
Significant resource, if ongoing contact between academic and private sector institutions is fostered. Government and private sector
initiatives seek to increase communications, knowledge transfer, remittances, and investment.
Retention though educational sector policies
Creating a highly educated workforce begins with strengthening domestic educational institutions. A viable system that encourages
graduates to stay with the system, that retains people, ensures that the source country keeps its original investment.
Retention through economic development
Giving people a reason to stay (or return) is doubtless the most effective policy for reducing emigration and the surest long-term
means of boosting average human capital, as well as economic growth.
Policy Option : 6 R’s
The Common Patterns in brain gain strategies
A reasonable levels of economic and political stability preceded successful brain gain
• Earlier investments in quality education and its linkage with the labor market needs
often the case behind the success stories on brain gain;
• Governments’ recognition of and commitment to the role of diasporas in the national
• The creation of a conducive enabling environment and designing specific policy and
financial incentive packages as part of the strategies;
• Expatriate Knowledge Networks share similar organizational and administrative
structures – website and databases of expertise;
• The knowledge networks have links with governmental structures and process.
The Uncommon Patterns in brain gain strategies
• Concentration of critical mass of expatriates in a particular sector and location (Indian
and Chinese communities in Silicon Valley);
• Strong transnational community living simultaneously in two countries (Taiwan)
• Promotion of university-industry collaboration in R&D (China)
• Dual citizenship rights for Diaspora (Ghana) including the right to vote and the right to
return and indefinite stay for Africans (including non- Ghanaians) in the Diaspora
• Open membership in knowledge networks for nationals other than country of origin
(South Africa and Colombia)
• Building on relative advantage (software sector in India, hardware and semiconductors
in China and the shift to value added software products in Taiwan)
Converting BRAIN DRAIN to BRAIN GAIN.
Here we provide a holistic and multifaceted strategy in addressing the brain drain issue.
The approach adopted is composed of enabling legal frameworks; national initiatives;
public sector focus which concentrates on the recruitment and retention of scarce skills in
the public service to deliver public services efficiently and on an affordable basis to the
people of India
We can also design a programme to encourage its citizens with expertise residing overseas
to return home and put in place incentive package that includes tax relief on personal
effects and vehicles brought by returning citizens, educational incentives for their
•These professionals contribute not only to the development of the country where they
live and work but also to the economy of the country of origin. Indian human capital
abroad can be leveraged by India to take advantage of its resources but also by destination
countries for the fulfillment of skill shortages.
•With a large number of young and educated people, India plays a major role in
international migration. In the context of the intensification of a global knowledge
economy, the demographic trends and the changes induced by the crisis, the destination
countries could take advantage of Indian.
•The redirection of mobility flows between evolutionary poles of migration emphasizes the
changing geopolitics at work: asymmetric traditional relationships have diminished and the
circulation paradigm redistributes current moves, opening new options and perspectives.
The Bangalore cluster is a relevant example of win-win scenario. It played a crucial role in
the development of the Indian IT industry, as well as of IT companies from Silicon Valley.
The destination country took advantage of the knowledge of Indian specialists while the
origin countries benefited from foreign direct investment and, from the Diaspora networks
which facilitated the emergence of India as preferred outsourcing destination.
The two emerging social trends support the assumption that other countries can benefit
from brain gain
• The trend towards transnationalisation due to globalisation which makes it possible to
live in two countries simultaneously
• The trend towards a “knowledge society”, in which the importance of human beings –
who carry the knowledge - in the development process is increasing.
India’s governments need to pay enough attention to design and promote innovative policy
environments that could be instrumental to benefit from the ‘brain gain’ potential. Such
policy reforms might include, but not limited to, monetary and non-monetary incentive
packages; tax and bureaucratic reforms; targeted infrastructure development; political and
administrative support to the knowledge and business networks; linking education
programmes with labour market needs; fostering partnership between universities and
industries; etc. Specific policy interventions and incentive packages provided by India,
China, Taiwan, South Africa, etc. show case their impact on ‘brain gain’ both to the home
country as well as their contribution to the international human capital stock and