Brain drain or human capital investment?
There is a general trend for people to migrate in search of a seemingly greener pastures. Migration may occur within a given country as in the pattern of rural-urban drift towards areas where there are greater opportunities for education and employment. There is also the movement across national and geographic boundaries as people leave their homeland in pursuit of their dreams, or to escape harsh living conditions.
A 2020 UN Report on International Migration indicated that, “Growth in the number of international migrants has been robust over the last two decades, reaching 281 million people living outside their country of origin in 2020.” The migratory spirit is not just limited to people of lower social or economic status who are trying to make something of their lives. Various literature have confirmed that it is common to see well-trained and highly skilled professionals engaging in the exodus towards lands of greater opportunities.
This migratory trend amongst educated, well-trained, and highly skilled professionals is commonly referred to as brain drain. The term is used across various disciplines of study, such as arts and education, social sciences, applied sciences, economics, business and management, social psychology, and anthropology. Used in a very lucid manner, brain drain is taken to mean the movement of qualified professionals from their homeland to other regions in search of such advantages as a better standard of living, improved quality of life, higher salaries, or greater access to advanced technology.
Aside from this search for greater economic advantages, the migratory brain drain may also be driven by social or political unrest in homeland territories; cultural or religious intolerance; or even natural disasters, health epidemics, or other social or environmental challenges.
The incidences of migration usually pose several challenges to the locations on either side of the travel belt. In the land of destination there are such issues as overcrowding, high incidences of under-employment, increased pressure on the social amenities and support services such as health care, education, housing, travel, security, and access to recreational facilities. This increased demand for the obviously finite resources arising from the high volume of traffic and sometimes mass migration may result in urban decay and a breakdown in municipal order. Similarly, in the land of origin there are significant issues and challenges arising from the migratory brain drain. Primary consequences include the loss of vital human capital resources, diminished statutory tax revenue, limited scope for growth and investment, demographic depletion, and the loss of innovative and entrepreneurial expertise. A recent Harvard Business Review Journal noted that, “Brain drain can result in an especially pernicious drag on the source nation’s talent pool.” Additionally, the brain drain reality can be very disruptive and chaotic, and usually results in instability and uncertainty in various vital sectors in the society. It is also a costly and very time-consuming situation to be re-assigning and re-aligning key personnel to various positions that become vacant as a result of migration. Another consequence of the migration trend is the dislocation of the family structure when one or both parents move away to work and the children are left behind, perhaps with relatives. The absence of the parents, especially during the formative years of a child’s development, can be devastating for the latchkey or barrel child. There are myriad other negative consequences of the brain drain, as established in various research literature and secular authorities on the subject.
Despite the challenges and issues associated with the brain drain experience, there are significant benefits to be realised on either side of the migration spectrum. The land of destination benefits from the windfall of qualified and trained personnel with minimum expenditure in the cost associated with the education production system. There is the importation of new cultures and experiences and the opportunity to expand the consumption revenue base. Similarly, there are potential benefits to be realised in the regions of origin. Among the benefits established in the literature are the economic opportunities arising from increased remittances to family members; the possibilities for inducements to increase the education production systems; the creation of a diaspora whose strong ties with homeland may stimulate demand for home-grown products, thus increasing the potential for investment and trade; the creation of job vacancies for new aspirants; and the reduction in the demand for the limited employment opportunities. A recent report indicated that more than a third of the qualified professionals is unable to find suitable employment in their fields of study, or are underemployed in relations to their training and qualifications.
Given the identifiable benefits from the migratory brain drain, and the fact that the regions of destination invariably welcome and encourage the movement of trained and qualified professionals to their domain, there could be a need to rethink the brain drain classification. There could possibly be the opportunity for investment in the human capital resource. The term human capital refers to people’s collective skills, knowledge, and expertise. The human capital is developed though training, education, and experience. An investment in the human capital can be done at the personal, organisational, or national levels. Such investment in the human capital is expected to result in a larger pool of qualified professionals. How can the human capital investment be used to tide the ebb of brain drain?
An ideal approach to the issue is to utilise the comparative advantage associated with the local training institutions. This comparative advantage is evidenced by the fact that recruiters from seemingly First World countries continue to prey on developing nations in an effort to attract and employ various categories of workers. These recruited workers, which include skilled and qualified professionals, are usually paid at lower rates than that paid to nationals of the host countries. Notwithstanding this however, the locals are prepared to make the move towards what is considered a better option than that which is available in their homeland. In order to capitalise on this comparative advantage, training institutions should carry out adequate research to ascertain the manpower needs in the countries where our trained professionals are likely to move to, and the types of careers fields that are in great demand in those areas. With this data the local training institutions could determine the extent to which they are offering those fields of study, making the necessary adjustments to their programmes of study as may be required.
Special funding arrangements could be established through scholarships, joint ventures and other strategic alliances with recruiting organisations overseas. The recruiting organisations or the receiving countries could thus give support to the educational advancements in the developing nations. There is the ever-growing demand for funding and technical support in the local education production systems. Then, as batches of students are trained in the identifiable career fields, some may be bonded to work locally for a given period of time. Others who may have accessed the scholarships and other special funding and assistance programmes sponsored by the recruiting agencies and organisations would be allowed to enrol in a controlled overseas recruitment programme upon completion of their studies, or after serving their bonds locally. Over time, with adequate regulation and coordination there would be a point of optimality between those retained in local employ and those allowed to go overseas in a controlled recruitment programme. Hence, a possible formula for a viable human capital investment programme with tangible and significant returns on the investment.
It is true that not all career fields may be initially categorised in the identifiable field. Too, with or without this regulated and controlled human capital investment programme, some who are bonded to work locally will find ways to break their bonds and move away at their own doing. How often we decry the exodus of our qualified personnel in such fields as security, nursing, teachers, accounting, or medicine, some leaving during the tenure of their bonds. However, their numbers can be reduced if, with adequate compensation, their desire for overseas employment can be tamed. Of course, there are some who have no desire to migrate in the first place.
It is no surprise then that a 2008 study by the United Nations University suggested that “the so-called brain drain of migrants taking their skills and initiatives to new countries of residence can also serve as an engine of growth in their homeland”. Similarly, a 2012 press release from the United Nations Conference on Trade and Development (UNCTAD) proposed a new international support mechanism aim at enabling highly skilled professionals from developing countries now living and working in the diaspora to contribute to specialised knowledge transfer and to channel investments to their home countries. It is yet to be ascertained what progress has been made with this proposal. In any event, however, it is clear that the issues associated with the brain drain should be revisited with a view of counterbalancing this seemingly negative phenomenon with a vibrant, controlled and regulated human capital investment opportunity.
Courtney Garrick, PhD, is a senior lecturer in the School of Business Administration at the University of Technology, Jamaica. Send comments to the Jamaica Observer or cgarrick@utech.edu.jm.