Effects of brain drain in developing countries

ByIon Ilasco

Effects of brain drain in developing countries

Poverty and lack of economic growth trigger thousands of educated people from developing countries to look for better living conditions in richer states. However, the migration of educated individuals, alias the ‘brain drain’, does have some positive impact on the source country. What are the causes of brain drain? What are the effects it has on the source and destination countries? Our latest editorial takes a deeper dive into the reasons behind brain drain.

Migration is an omnipresent phenomenon in human history. It refers to the movement of people from one place to another for temporary or permanent settlement and is often driven by social, economic, or personal reasons. Substantial migratory waves of educated individuals from one country within relatively short periods of time can lead to the occurrence of brain drain. The least developed and developing countries typically experience brain drain more often than developed countries as they offer lower standards of living and thus find it more difficult to retain or attract highly skilled professionals.

What is brain drain?

The concept of brain drain describes waves of substantial levels of migration of highly educated individuals from one country to another. Generally, brain drain refers to the transfer of human capital from developing to developed countries but it can also occur horizontally relating to the migration of highly skilled professionals (such as engineers, physicians, etc.) between developed countries. Some of the main causes of brain drain are:

  • Disparities in working conditions, levels of pay, or the potential for career development between the source and destination countries
  • Poverty and a lack of economic growth which are believed to be the main reasons
  • Discrimination, political repression, and a lack of freedom
  • Environmental disasters and the effects of climate change
  • Military or civil conflicts

What are the effects of brain drain?

The migratory waves that have taken place in recent decades have led to dramatic changes in the global economic landscape as countries started to compete for a share of highly qualified human capital. Although the evidence suggests that developing countries suffer the most from brain drain, nonetheless the effects can be interpreted either positively or negatively according to the perspective of the source country, the receiving country, or the migrant.

Some positive effects of brain drain

  • Brain drain can stimulate education in source countries as people living there will see this as a passport to future emigration
  • Brain drain may lead to positive economical feedback for source countries as emigration will increase remittance flows, reduce international transaction costs and enhance trade
  • Brain drain can facilitate the development of strong diaspora networks and enhance the transfer of know-how, innovation, and technology between the destination and source countries
  • Brain drain can lead to a circular migration allowing the destination and home countries to share the benefits of labor mobility

Some negative effects of brain drain

  • The loss of skilled and innovative individuals leads to the lost socio-economic potential for the source countries
  • A loss of tax revenues for the source countries which minimizes the potential for public spending
  • Waves of substantial emigration can induce shortages of manpower for source countries in key sectors such as education or health
  • Migrants may need to face a number of bureaucratic barriers in destination countries to be able to work in their field of expertise

Read more about brain drain and its causes in a-DevAid exclusive Experts’ Opinion

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