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Human capital flight, more commonly referred to as "brain drain", 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. In terms of countries, the reasons may be social environment (in source countries: lack of opportunities, political instability, economic depression, health risks, etc.; in host countries: rich opportunities, political stability and freedom, developed economy, better living conditions, etc.). In terms of individual reasons, there are family influence (overseas relatives), and personal preference: preference for exploring, ambition for an improved career, etc. Although the term originally referred to technology workers leaving a nation, the meaning has broadened into: "the departure of educated or professional people from one country, economic sector, or field for another, usually for better pay or living conditions".[1] Brain drain is usually regarded as an economic cost, since emigrants usually take with them the fraction of value of their training sponsored by the government or other organizations. It is a parallel of capital flight, which refers to the same movement of financial capital. Brain drain is often associated with de-skilling of emigrants in their country of destination, while their country of emigration experiences the draining of skilled individuals.
The term brain drain was coined by the Royal Society to describe the emigration of "scientists and technologists" to North America from post-war Europe.[2] Another source indicates that this term was first used in the United Kingdom to describe the influx of Indian scientist and engineers.[3] The converse phenomenon is "brain gain", which occurs when there is a large-scale immigration of technically qualified persons. There are also relevant phrases called "brain circulation" and "brain waste".
Brain drain is common amongst developing nations, such as the former colonies of Africa,[4] the island nations of the Caribbean,[5] and particularly in centralized economies such as former East Germany and the Soviet Union, where marketable skills were not financially rewarded.


Historical examples

Neoplatonic academy philosophers moves

After Justinian closed Academy in AD 529, according to the historian Agathias, its remaining members looked for protection under the rule of Sassanid king Khosrau I, carrying with them precious scrolls of literature and philosophy, and to a lesser degree of science. After a peace treaty between the Persian and the Byzantine empire in 532 guaranteed their personal security, some members of it found sanctuary in the pagan stronghold of Harran, near Edessa. One of the last leading figures of this group was Simplicius, a pupil of Damascius, the last head of the Athenian school. From there, the students of an Academy-in-exile could have survived into the 9th century, long enough to facilitate the Arabic revival of the Neoplatonist commentary tradition in Baghdad.[6]

Spanish expulsion of Jews and Moors

After the end of the Catholic reconquest of Spain, the Catholic Monarchs pursued a religiously uniform kingdom. Jews were expelled from the country in 1492. As they dominated financial services in the country, their expulsion was instrumental in causing future economic problems, such as the need of foreign bankers such as the Fugger family and from Genoa. On 7 January 1492 the King ordered the expulsion of all the Jews from Spain-from the kingdoms of Castile, Catalonia, Aragon, Galicia, Majorca, Minorca, the Basque provinces, the islands of Sardinia and Sicily, and the kingdom of Valencia. Before that the Queen had expelled them from the kingdom of Andalusia[7] More information is available in Jewish History Sourcebook.
The war against Turks and North African Moors affected internal policy in the uprising of the Alpujarras (1568–1571) and motivated the Expulsion of the Moriscos in 1609. Despite being demographically a minority they were a key part of the farming sector and trained artisans. Their departure contributed to economic decline in some regions of Spain. This way, the conservative aristocracy increased its power over economically developed provinces.

Huguenot exodus from France (17th century)

In 1685, Louis XIV revoked the Edict of Nantes and declared Protestantism to be illegal in the Edict of Fontainebleau. After this, Huguenots (with estimates ranging from 200,000 to 1,000,000[8]) fled to surrounding Protestant countries: England, the Netherlands, Switzerland, Norway, Denmark and Prussia — whose Calvinist Great Elector Frederick William welcomed them to help rebuild his war-ravaged and underpopulated country. Many went to the Dutch colony at the Cape (South Africa) where they were instrumental in establishing a wine industry.[9] At least 10,000 went to Ireland where they assimilated into the Protestant minority during the plantations.
Many Huguenots and their decedents prospered. Henri Basnage de Beauval fled France and settled in the Netherlands, where he became an influential writer and historian. Abel Boyer, another noted writer, settled in London and became a tutor to the British Royal Family. Henry Fourdrinier, the descendant of Huguenot settlers in England, founded the modern paper industry. Augustin Courtauld fled to England settling in Essex and established a dynasty that founded the British silk industry. Notes Swiss mathematician Gabriel Cramer was born in Geneva to Huguenot refugees. Sir John Houblon, the first Governor of the Bank of England, was born into a Huguenot family in London. Isaac Barré, the son of Huguenots settlers in Ireland, became an influential British soldier and politician. Future British Field Marshal John Ligonier, born Jean Louis Ligonier, was a child when his family fled France for England. Gustav and Peter Carl Fabergé, the descendants of Huguenot refugees, founded the world famous Fabergé company in Russia.
Other settlers went to the newly established British colonies in North America. They established communities in places such as New Rochelle and New Paltz in New York. The Huguenot Church in Charleston, South Carolina was originally founded in 1687 by a group of refugees from France. The Huguenots and their descendants were instrumental in the growth of the United States. Revolutionary leaders John Sevier, Francis Marion and Paul Revere were descendants of Huguenot refugees. Seven other US presidents have documented Huguenot ancestors: George Washington, Ulysses S. Grant, Theodore Roosevelt, William Taft, Harry Truman, Gerald Ford and Lyndon Johnson.[10]
The exodus of Huguenots from France created a brain drain as Huguenots accounted for a disproportionate number of entrepreneurial, artisan, and technical occupations in the country. The loss of this technical expertise was a blow from which the kingdom did not fully recover for many years.[citation needed]

Anti-Semitism in pre-WWII Europe (1933–1943)

Antisemitic feelings and laws in Europe through the 1930s and 1940s, culminating in the Holocaust, caused the emigration of many scientists to the United States. Notable examples are:
and many others.
In addition to the anti-Semitic conditions, Nazi political persecution against liberals and socialists in Germany contributed to another kind of emigration. The Bauhaus, perhaps the most important arts and design school of the 20th century, was forced to close down during the Nazi regime because of their liberal and socialist leanings, which the Nazis considered degenerate.[citation needed] The school had already been shut down in Weimar because of its political stance but moved to Dessau prior to the closing. Following this abandonment, two of the three pioneers of Modern architecture, Mies Van Der Rohe and Walter Gropius, left Germany for America (while Le Corbusier stayed in France). Along with them, they brought the European modern movement to the American public and fostered the international style in architecture and design.[citation needed] They helped to transform design education at American universities and thus influenced a generation of up and coming architects.[citation needed]

Eastern Bloc brain drain crisis (1922-1961)

By 1922, the Soviet Union had issued restrictions making emigration of its citizens to other countries almost impossible.[11] Soviet Premier Nikita Khrushchev later stated "We were scared, really scared. We were afraid the thaw might unleash a flood, which we wouldn't be able to control and which could drown us. How could it drown us? It could have overflowed the banks of the Soviet riverbed and formed a tidal wave which would have washed away all the barriers and retaining walls of our society."[12] After Soviet occupation of Eastern Europe at the end of World War II, the majority of those living in the newly acquired areas of the Eastern Bloc aspired to independence and wanted the Soviets to leave.[13] By the early 1950s, the approach of the Soviet Union to restricting emigration was emulated by most of the rest of the Eastern Bloc, including East Germany.[14]
Even with the closing of the Inner German border officially in 1952,[15] the border between the sectors of East Berlin and West Berlin remained considerably more accessible than the rest of the border because it was administered by all four occupying powers.[16] The Berlin sector border was essentially a "loophole" through which East Bloc citizens could still emigrate.[15] The 3.5 million East Germans, called Republikflüchtlinge, that had left by 1961 totaled approximately 20% of the entire East German population.[17] The emigrants tended to be young and well educated, leading to the brain drain feared by officials in East Germany.[13] Yuri Andropov, then the CPSU Director on Relations with Communist and Workers Parties of Socialist Countries, to write an urgent letter to the Central Committee on 28 August 1958 about the significant 50% increase in the number of East German intelligentsia among the refugees.[18] Andropov reported that, while the East German leadership stated that they were leaving for economic reasons, testimony from refugees indicated that the reasons were more political than material.[18] He stated "the flight of the intelligentsia has reached a particularly critical phase."[18] The direct cost of labour force losses has been estimated at $7 billion to $9 billion, with East German party leader Walter Ulbricht later claiming that West Germany owed him $17 billion in compensation, including reparations as well as labour force losses.[17] In addition, the drain of East Germany's young population potentially cost it over 22.5 billion marks in lost educational investment.[19] In August 1961, East Germany erected a barbed-wire barrier that would eventually be expanded by construction into the Berlin Wall, effectively closing the loophole.[20]

By region

Europe

Brain drain phenomena in Europe fall into two distinct trends. The first is an outflow of highly qualified scientists from 'Western Europe' mostly to the United States.[21] The second is a migration of skilled workers from 'Central' and 'Southeastern Europe' into 'Western Europe', within the EU,[22] although there is evidence that the trend is slowing.[23][24] The European Union has noted a net loss of highly skilled workers and introduced a "blue card" policy – much like the American green card – which "seeks to draw an additional 20 million workers from Asia, Africa and Latin America in the next two decades".[25]
Although the EU recognizes a need for extensive immigration to mitigate the effects of an aging population,[26] nationalist political parties have gained support in many European countries by calling for stronger laws restricting immigration.[27] Immigrants are perceived as a burden on the state and cause of social problems like increased crime rates and major culture differences.[28]

Western Europe

In 2006, over 250,000 Europeans emigrated to the United States (164,285),[29] Australia (40,455),[30] Canada (37,946)[31] and New Zealand (30,262).[32] Germany alone saw 155,290 people leave the country (though mostly to destinations within Europe). This is the highest rate of worker emigration since reunification, which itself was equal to the rate in the aftermath of World War II.[33] Portugal is suffering the largest drain in Western Europe. The country has lost 19.5% of its qualified population and is struggling to absorb sufficient skilled immigrants to compensate for losses to Australia, Canada, Switzerland, Germany and Austria.[34]

Central and Eastern Europe

More than 500,000 Russian scientists and computer programmers have left the country since the fall of the Soviet Union in 1991.[35] Central and Eastern European countries have expressed concerns about extensive migration of skilled labourers to Ireland and the United Kingdom. Lithuania, for example, has lost about 100,000 citizens since 2003, many of them young and well-educated, to emigration to Ireland in particular.[citation needed] (Ireland itself used to suffer serious brain drain to America, Britain and Canada before the Celtic Tiger economic programmes.) A similar phenomenon occurred in Poland after its entry into the European Union. In the first year of its EU membership, 100,000 Poles registered to work in England, joining an estimated 750,000 residents of Polish descent.[36] Research conducted by PKO Bank Polski, Poland's largest retail bank, shows that 63% of Polish immigrants to the UK are aged between 24 and 35 with 40% possessing a university degree.[37] However, with the rapid growth of salaries in Poland, booming economy, strong value of the złoty, and decreasing unemployment (which fell from 14.2% in May 2006 to 8% in March 2008[38]), the flight of Polish workers is slowing.[39] In 2008 and early 2009 people who came back outnumbered those leaving the country. The exodus is likely to continue.[40]
Albania is also one of the countries that has experienced brain drain from the fall of communist regime. Since 1991, people started emigrating in the closest countries, Italy and Greece and with the passing of years going further to the United Kingdom, Canada and the United States. In the last 10 years, educated people and professionals have been leaving the country and going in other countries where they feel they can have better possibilities, better and secure lives. This is a concern for Albania as it is losing its skilled-workers and professionals.

Southeastern Europe

The rapid and small-scale departure of highly skilled workers from Southeastern Europe has caused concern about those nations developing towards inclusion in the European Union.[41] This has sparked programmes to curb the outflow by encouraging skilled technicians and scientists to remain in the region to work on international projects.[42]

Portugal, Ireland, Italy, Greece and Spain

Citizens of countries mostly stricken by the crisis in Europe head towards Australia, Brazil, Angola and Argentina.[43][44]

The UK

There are a considerable number of people leaving the UK for Australia.[45]

Africa

Conservatively speaking, "Brain drain has cost the African continent over $4 billion in the employment of 150,000 expatriate professionals annually."[46] According to the United Nations Development Programme, "Ethiopia lost 75 per cent of its skilled workforce between 1980 and 1991," which harms the ability of such nations to get out of poverty. Nigeria, Kenya and Ethiopia are believed to be the most affected. In the case of Ethiopia, the country produces many excellent doctors, but there are more Ethiopian doctors in Chicago than there are in Ethiopia.[47] South African President Thabo Mbeki said in his 1998 'African Renaissance' speech:
"In our world in which the generation of new knowledge and its application to change the human condition is the engine which moves human society further away from barbarism, do we not have need to recall Africa's hundreds of thousands of intellectuals back from their places of emigration in Western Europe and North America, to rejoin those who remain still within our shores! I dream of the day when these, the African mathematicians and computer specialists in Washington and New York, the African physicists, engineers, doctors, business managers and economists, will return from London and Manchester and Paris and Brussels to add to the African pool of brain power, to enquire into and find solutions to Africa's problems and challenges, to open the African door to the world of knowledge, to elevate Africa's place within the universe of research the information of new knowledge, education and information."
Africarecruit is a joint initiative by NEPAD and the Commonwealth Business Council to recruit professional expatriate Africans to take employment back in Africa after working overseas.[48]
In response to growing debate over brain drain of health care professionals, especially from lower income countries to some higher income countries, in 2010 the World Health Organization adopted the Global Code of Practice on the International Recruitment of Health Personnel, a policy framework for all countries for the ethical international recruitment of doctors, nurses and other health professionals.

Ghana

The trend for young doctors and nurses to seek higher salaries and better working conditions, mainly in higher income countries of the West, is having serious impacts on the health care sector in Ghana. Ghana currently has about 3600 doctors—one for every 6700 inhabitants. This compares with one doctor per 430 people in the United States.[49] Many of the country's trained doctors and nurses leave to work in countries such as Britain, the United States, Jamaica and Canada, in what many refer to as the brain drain. It is estimated that up to 68% of the country's trained medical staff left between 1993 and 2000 and according to Ghana's official statistics institute, in the period 1999 to 2004, 448 doctors, or 54% of those trained in the period, left to work abroad.[50]

South Africa

Along with many African nations, South Africa has been experiencing a "brain drain" in the past 20 years. This is believed to be potentially damaging for the regional economy,[51] and is almost certainly detrimental for the wellbeing of regional poor majority desperately reliant on the health care infrastructure given the HIV/AIDS epidemic.[52] The skills drain in South Africa tends to demonstrate racial contours (naturally given the skills distribution legacy of South Africa) exacerbated by Black Economic Empowerment policies, and has thus resulted in large White South African communities abroad.[53] The problem is further highlighted by South Africa's request in 2001 of Canada to stop recruiting its doctors and other highly skilled medical personnel.[54]
For the medical sector, the loss of returns from investment for all doctors emigrating is $1.41bn for South Africa. The benefit to destination countries is huge: $2.7bn for the United Kingdom only, without compensation.[55]

Western Asia

Iraq

The lack of basic services and security is feeding an outflow of professionals from Iraq that began under Saddam Hussein, under whose rule 4 million Iraqis are believed to have left the country.[56] The exodus is fuelled by invasion of Iraq by the USA and subsequent violence, which, as of 2006, has seen 89 university professors and senior lecturers killed.[57]

Iran

In 2006, the International Monetary Fund ranked Iran highest in brain drain among 90 measured countries.[58] The estimated exodus of 180,000 people per year is thought to be due to a poor job market, and tense domestic social conditions.[59][60]

Asia Pacific

Malaysia

There has been a serious brain drain from Malaysia. Major pull factors have included better career opportunities abroad and compensation while major push factors included corruption, social inequality, and educational opportunities, and the government's Bumiputera affirmative action policies. As of 2011, Bernama has reported that there are a million talented Malaysians working overseas.[61] Recently the brain drain has increased in pace: 305,000 Malaysians migrated overseas between March 2008 and August 2009 compared to 140,000 in 2007.[62] Non-Bumiputeras particularly Malaysian Indian and Malaysian Chinese were over-represented in these statistics. Popular destinations included Singapore, Australia, the United States and the United Kingdom.[63] This has caused Malaysia's economic growth rate to fall to an average of 4.6% per annum in the 2000s compared to 7.2% in the 1990s.[64]

Philippines

Philippine professionals commonly seek better income opportunities in other more developed countries, even if employment is available in their home country.[65][citation needed]

South Asia

India

The UNDP estimates that India loses $2 billion a year because of the emigration of computer experts to the U.S.[66] Indian students going abroad for their higher studies costs India a foreign exchange outflow of $10 billion annually.[67]

Nepal

Every year 250,000 youth are reported to leave Nepal for various reasons. They seek opportunities in its various manifestation — higher living standards, employment, better income, education, a luring western lifestyle, stability and security. The list entails everything Nepal is incapable of providing to the youth for the obvious reasons.[68]

Pakistan

The ever-increasing Pakistani diaspora through the migration of skilled labour from Pakistan to industrialised nations in Europe, North America and oil-rich Middle East has contributed to a professional brain drain in the country.[citation needed] In recent years, the uncertain political situation and better job opportunities abroad has allowed many Pakistanis to seek prospective interests outside the country.
While Pakistan is a semi-industrialised country that has not overtly been affected by a brain drain, a continuous emigration of professionals is thought to be an impediment in its long-term economic growth.[69] Each year, thousands of highly qualified doctors, engineers and scientists are said to move abroad, the most visible effect being an overall loss of skilled human resources.[70]

Sri Lanka

Sri Lanka is losing a significant proportion of its intellectuals (almost all are educated by government money through the free education system of Sri Lanka.) Majority migrated to USA, UK or Australia.

Eastern Asia

China

China is now a rising star in the world stage. With the rapid growth of GDP and the higher degree of openness towards the rest of the world, however, the brain drain is increasingly serious. A popular Internet writer recently caused a stir when he asserted that “all Chinese who earn more than 120,000 yuan ($17,650) a year want to immigrate.” While this view is exaggerated, there is no denying the upsurge in Chinese emigration to Western countries—particularly the United States, Canada and Australia—since the mid-first decade of the 21st century.[71] China became the biggest worldwide contributor of emigrants in 2007. According to the official Chinese media, 65,000 Chinese last year secured immigration or permanent resident status in the United States, 25,000 in Canada and 15,000 in Australia.[71] The largest group of emigrants consists of professionals and experts with a middle-class background,[71] who are the backbone for the development of China. As the biggest contributor of emigrants, China also suffers the worst brain drain in the world, according to a new study that found seven out of every 10 students who enroll in an overseas university never return to live in their homeland.[72]
The brain drain usually happens in two ways, including that the skilled intellectuals migrate to other countries, and students study overseas and then stay abroad. In China, both ways exist, but the second one is more popular and common.
Since the beginning of last century, international students were sent to different countries to learn advanced skills and knowledge, and they were expected to return to save the nation from invasion and poverty. While most of these students came back to make a living, there were still those who chose to stay abroad. From 1950s to 1970s, China was in a period of widespread upheaval due to political instability. As a result, many Chinese felt upset and disappointed about the situation. The situation did not improve after the gradual liberalization of China during the 80s; just as many people chose to go abroad since there were more opportunities overseas. More social upheavals happened with the Tiananmen Square Massacre—the result of which was an increasing Chinese diaspora. As steady economic growth boost GDP per capita, more families in China are able to support their children to go abroad for studying or living. All of these factors contribute to the current brain drain in China. In this day and age, most students do not go back to China if they are able to find a good job abroad. Wealthy Chinese people tend to settle down abroad to enjoy high quality of life

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