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� Brain drain is an emigration of trained and talented individuals to other countries.

� It is the outflow of professional people trained in low-income countries (developing-Third World) to higher-income countries (developed-advanced)

What is Brain DrainWhat is Brain Drain

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Evolution of brain drainEvolution of brain drain� Historically, brain drains have been from rural to urban

areas (from countryside to cities).� In the 19th century and 20th century there were great

migrations of brains from Europe to North America.� In modern times, there are migrations of brains from

developing nations (Asia, Africa, Latin America) to developed nations (America, Europe, Australia).

� Sometimes, migrations of brains is between developed countries, especially in the areas of finance, software, aerospace, healthcare and entertainment.

� India is said to be presently undergoing brain drain. Can you think of reasons why?

We must knowWe must know

INDIA� OUT OF EVERY 8 TALENTED PEOPLE

2 PEOPLE LEAVE THE COUNTRY FOR PURSUE OPPORTUNITY IN OTHER

COUNTRIES

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MigrationMigrationPush /Supply Factors Pull/Demand Factors

� Unemployment� Lower Wages� Poor Living Conditions� Poor Health and or Education

Service� Few Facilities� Natural Disasters� Civil Wars� Political Instability

� More jobs� Higher wages� better Living Conditions� Lesser chance of natural disasters� Transit to target country� Political stability� Better health and education

Services� Better facilities

Poor Living ConditionsPoor Living Conditions

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Lower WagesLower Wages

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Poor Health and or Education Poor Health and or Education ServiceService

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Few FacilitiesFew Facilities

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Why is brain drain critical?Why is brain drain critical?

� Talented, trained, and professional people are considered human capital.

� Brain drain involves flight of human capital from one country to another. Therefore, skilled professionals are prepared in one country but are invested in another country.

� Investment in higher education is lost when trained people leave their countries to work and live in another country, and usually not return.

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We must knowWe must know

USAIn 2009 the US government announced it was

raising the annual number of work visas granted to highly skilled professionals from

foreign countries, from 115,000 to 835,000 per year, until 2011

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Who is impacted by brain drain?Who is impacted by brain drain?

� Brain drain has impact on:1. The migrants: individuals and their families benefit

economically and professionally by living in rich and more advanced countries.

2. The countries they leave: these are said to lose because they lose part of their human capital and investment.

3. The countries they join: these are said to gain because they get qualified and talented human capitals without having to pay for their education and training.

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We must knowWe must know

UKIn 2009 the British government started a £20 million, five year research program that aimed

at drawing the return of the UK’s leading professionals

Classification of Classification of BrainBrain Migration Migration

� a) Brain over flow.� b) Brain export.� c) Brain drain.

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Brain over flow

♦ Due to the over production or low rate of utilization of brain, some of the brains may remain wholly unabsorbed/ surplus because of effective demand/excess supply at home, such brain spill over and get absorbed in a foreign market. Brain migration of this type is called brain overflow

Brain export

♦ Brain migration may take the form of brain export by the sending country. The brain exporting country receives in exchange for brain, remittances continuously over a number of years. The payment may be spread over a number of years in the form of remittance of tax, it mat be a once-for ever lump sum exit tax.

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Brain Drain

It is one way permanent migration of skilled people mostly from LDCs to DCs. The manpower involved as brain drain is usually under utilised in the home country.

♦The surplus/unutilized brain power may arise due to (i) over production, (ii) low employment generation (iii) non-availability of suitable job where brain may be optimally utilized (iv) existing brain power lacking in experience/competence for the available jobs requiring a fairly high standard of efficiency, excellence and training.

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Different sides of brain drainDifferent sides of brain drain� Brain drain involves other sides:1. Brain gain: the movement of trained and

talented individuals into a country (brain drain for a country and brain gain for another!!) Western industrial countries gain when qualified individuals from developing countries go to them.

2. Brain exchange: is a situation in which many qualified and highly-skilled individuals move out of the country, and at the same time many qualified and highly-skilled individuals move into the country (the case of Canada)

Solution to brain drain preventionSolution to brain drain prevention

� Govt. should promote industrialization� Govt. should take steps to encourage brain

gain.� Colleges & Schools must provide proper

carrier guidance to the students.� Increase the standards of health services,

education, better living conditions, political stability etc.

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We must knowWe must know

Approximately 80% of all Indians live on the equivalent of less than $2 a day.

OUR INDIA

100 million farmers own NO land.

India produces about 100,000 new engineers a year. About 3 times the number of the U.S.

40% of farm produce goes to waste as a result of poor transportation

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MID DAY MEAL IN DELHI

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THANKS&

HAVE A GOOD DAY