Down the Brain Drain

Cross-border migration, particularly from the global-south, is an increasingly predominant factor in today’s society. This pattern is prevalent from the global-south to the global-north. Immigration and emigration between the two are the underlying cause behind several of the global south’s problems. This phenomenon is a global issue. The effects of migration have always been a global concern, although, in the past the focus was on the impact on the receiving countries. Now it has been acknowledged that it is important to explore the impact of cross-border migration from the global-south to global-north. These impacts are predominantly through the loss of human capital, affecting the development of sending countries both economically and socially. It is this aspect that this paper will explore, predominantly dealing with the negative impacts of people’s departures from their societies. This essay will argue that through these processes the resulting balance of brains is a far-reaching and predominantly negative factor in contemporary developing societies.

Due to the complex nature of cross-border migration this paper will highlight many of the underlying issues, examining some of the most prevalent. Firstly, in order to gain an understanding on the issue, it is important to outline the background nature of migration and its rise over the last 50 years, clearly establishing the size and structure of the movement from the global south. With this understanding the paper will then explore the economic contributions and impacts of the process known as the ‘balance of brains’ (Docquier, 2013, 13) between the north and south, addressing the positive and negative impacts of positive selection and remittances and applying these trends to several empirical studies in some of the affected areas. The ramifications of outside factors will also be explored in the case study outlining the correlation between the ‘balance of brains’, tertiary education and poverty in the Caribbean. The impact on the economy of source countries and the correlation between the social factors including the impacts on the family unit, education and health, with links to the rise of poverty, crime and terrorism. Through the discussion of these broader areas the paper will answer the initial questions of the impact on source countries in relation to development. Also highlighting the consequences and negative impacts of people’s departures from society.

As mentioned, in order to address current empirical studies into the consequences of migration, it is important to understand the reasons why cross-border migration occurs. In the last decade several databases have been constructed in order to catalogue migration by origin, country of destination, gender and education level. One such database is the United Nations’ International Migrant Stock database (Docquier, 2013, 4), which highlights the fact that in the last half century the number of international immigrants has increased from 75 million to 214 million (Docquier, 2013, 4). When this is put in context with the increase of world population in the last 5 decades it appears to run in parallel with population growth, only slightly increasing from 2.5% to 3.1% (Docquier, 2013, 5). When applying these statistics one would conclude that the globalization process that has flourished in the last 50 years is quite divorced from the migratory process. This is not the case. When focusing the study of the migration between undeveloped and developed countries, a growing trend is evident as a much larger percentage of human capital is migrating. In this case the total number of migrants from global-south to global-north has risen from 43% to 60% from 1960–2010 (Docquier, 2013, 5). If this trend continues, over the next 50 years there will be a dramatic increase in human migratory patterns worldwide, in particular from the global south to north.

Ozden et al. (Özden et al. 2011, 1) (referred to a OPSW henceforth) database is comprised of over 1,000 censuses over that apply to the last 5 completed rounds. This database focuses on economic migrants as opposed to refugees. Through the use of this database it is shown that migrant stock has increased from 95 to 165 million in the last half century (Docquier, 2013, 1). This data reveals there is a growing necessity for what the OPSW database calls non-OECD (Organisation for Economic Cooperation and Development) member states, or those in the global south to migrate to HIOECD (High Income Organisation for Economic Cooperation and Development) (Docquier, 2013, 4) member states, or those in the global north. The OPSW database also provides raw data showing that South-South migration is of a much higher percentage in global migration, counting for 72.6 million migrants (44.6%) in 2000, compared with the 55.4 million south-north migrants (Docquier, 2013, 5). When the focus of the data provided by the OPSW database is further scrutinized more upcoming trends appear as over the last 50 years the rate of immigration to global-north countries has increased. In particular the increased flow of college educated migrants from non-OECD states to HIOECD states. In all these cases of cross-border migration a selection process is applied to the human capital. Two types of selection are used, positive and negative selection. (Docquier, 2013, 2) Those negatively selected are those who have a lower level of education. One such case is those who migrated to America early, the “tired…poor…huddled masses” (Lazarus 1898). Comparatively the positive selection applies to those who have obtained a higher level of education within their source countries. This illustrates the growing level of people departing from their societies through the use of the data supplied, and gives a background into the magnitude of migration impacting on the social and economic development of these sending countries.

Positive selection of human capital contributes to source countries development in the global south in both positive and negative aspects. The main effect of this process is referred to as a ‘balance of brains’ (Docquier, 2013, 4) This is a growing trend in non-OECD countries, evidenced by a process in which college educated of society are incentivized monetarily to emigrate and find better job prospects, usually in states of the global north (HIOECD states). Between 1990 and 2000 there was a 63.7% (Batista et al. 2010, 2) increase in the number of highly skilled immigrants residing in OECD countries. This produces a source country with a disparity of formal sector workers leaving too many in the informal sector, this lack of nurses, doctors, engineers and other highly trained professionals impacts negatively on the human capital of these developing countries. This ‘brain drain’ directly correlates with the sending countries relative poverty level, the worst cases have been recorded as occurring in Guyana, Jamaica and Haiti where cross border migration accounts for a large reduction of the skill level through the 80–90% emigration rate of college graduates (Docquier, 2013, 11). In the Caribbean region in particular 12% of the formal sector labour force has migrated to OECD member states (Mishra 2006, 14). Particularly impacted upon in the Caribbean is the education sector, predominantly in the higher-schooling sector. Most countries in the Caribbean have lost approximately 50% of tertiary education workers (more than 12 years of education) and 30% in the secondary education segment (9–12 years of education) (Mishra 2006, 5). Adding to this emigration loss (brain drain), are the amounts of subsidies governments such as Barbados and Jamaica spend on tertiary education for emigrants, which largely outweighs the amounts spent on primary and secondary schooling, this impacts negatively on the long term development of these sending countries. This deficit is usually overlooked in studies into the negative effects of cross-border migration. Also overlooked when studying the ‘brain drain’ in sending countries is augmented emigration loss (Mishra 2006, 5). This loss is quantifiably substantial, even when considering the direct losses of higher skilled workers as emigration leads to a decline in productivity of workers who have stayed in the source country. Doctors, teachers and engineers are not only able to increase productivity through their own contributions, but are proven to increase the productivity of those around them.

This can show that with a slight change in the marginal product of skilled labor in the economy, output in total is effected. The database for analyzing this particular sect of data is the DOPA (Docquier, Ozden, Parsons and Artuc (2012) (Docquier, 2013, 5), which only records individuals over 25 years of age as a proxy of the working-age population, excluding temporary studying emigrants and children. When focusing on this specific data we are able to witness that in HIOECD countries such as Israel, Iceland, Ireland, Canada and Australia rates of college workers were over twice as large as overall immigration rates. This data helps quantify the exact loss experienced financially as these tertiary educated workers emigrate from their society, stagnating the economy of businesses and in turn, the country itself.

As the ‘brain drain’ is detrimental to many developing countries economies, in some cases a net ‘brain gain’ is also experienced. Recent studies have shown that the seemingly negative impact over time can begin to impact in a positive way economically and socially. One such study, undertaken by Beine (Docquier, 2013, 29) has found that countries with low levels of human capital and low skilled emigration rates are actually likely to experience a net ‘brain gain’. In these cases the incentive of emigration drives the native population to study, as the possibility of an educated native to successfully migrate is 10–20 times higher than a non-educated native (Docquier, 2013, 29). For these benefits to be effective two conditions must be fulfilled. Firstly the level of poverty in the source country must be low enough to generate an incentive but not so low that education is inadequate. Secondly, the probability of emigration must be relatively low, optimally 10% of tertiary educated students successfully emigrating (Batista et al. 2010, 15). This has been observed by Beine in Cape Verde, the country exhibiting the highest brain drain rate in the African continent. Beine has shown that a 12% decrease in the probability of migrating is associated with a correlating fall of 12% in the educational attainment for non-migrants, showing the incentive of emigration must be present in developing countries in order for a brain gain to arise (Batista et al. 2010, 15). These studies are not a blanket rule, in a study of 108 countries, Beine only observed 20 experiencing a ‘brain gain’, whereas 88 countries experienced the ‘draining effect’.

As emigrants depart their source country, the cost of their education can be treated not just as an economic cost, but also social. In the worst affected countries in the Caribbean, Jamaica and Barbados, 12% — 14% of the governments GDP is spent on education (Mishra 2006, 14). 70% of these educated natives will then migrate to OECD countries (Mishra 2006, 16). This then perpetuates an impact in sending countries with an insufficient supply of human capital. One integral part of a countries human capital is its schooling system. When such a large number of tertiary educated individuals emigrate, for example, teachers, it leaves the source country with an inability to educate its youth, making it difficult to maintain basic levels of human capital in the future. This is being observed in the Caribbean as. Without adequate education, lower skilled workers, operating within the informal sector are unable to attain the skills required to participate in a skilled or semi skilled formal profession. This would allow them to attain a more beneficial lifestyle, for themselves socially and for the developing country economically. As this does not occur, the process condemns these developing countries to stagnation of their economies. No revenue is being raised through the lack of payment of taxes, as revenue is raised through the formal sector of employment, with a large percentage of these workers being tertiary educated natives. This fiscal loss, in turn then forces these developing governments to raise income taxation rates on its remaining citizens still operating within the formal sector. Lower wages are enforced in order for the country to maintain profitability in its exports. This fiscal devaluation further incentivizes workers to emigrate, departing from their society, in most cases leaving behind a broken family unit.

Emigration does not entirely cut off a workers contribution to their source countries GDP. A driving factor behind workers emigration rates is better wages. In most cases these workers will not be able to migrate with their families. In order to continue to contribute to the family unit package payments, known as ‘remittances’ are made to the source countries. A remittance is defined as “the value of monetary transfers sent to the source countries by workers who have been abroad for more than one year” (Mishra 2006, 11). These payments have both positive and negative impacts on society. The world’s largest recipient of remittances is Caribbean region, being the largest source of external funding, accounting for 13% of the regions GDP. Between 1990 and 2002 remittances to the Caribbean have steadily increased, rising from 3% to 13% of GDP, whereas both FDI and ODA have declined. FDI (Foreign Direct Investment) has declined from 9% to 3% and ODA (Official Development Assistance) has declined from 4% — 1% (Mishra 2006, 19). As these organizations capital contributions are directed towards a developmental sector the loss of their percentage of GDP is detrimental to the infrastructure of these developing countries, as remittances are not directed solely towards the development of the source country. This issue is in a constant state of flux as the percent of emigration determines the levels of this developmental assistance. Through the use of databases and government reports we are able to observe that this deficit in foreign investment and assistance is a direct result of people’s cross-border migration and a negative consequence of remittances. This impacts on economic development and as a result, social development.

Many factors influence a migrant’s departure from their society. The most common factors for wanting to emigrate are lack of opportunities, political instability, abject poverty and an inherent lack of freedoms. The most intricately linked issue would be that of poverty. It and ‘brain drain’ are interdependent processes, highlighted by Beine, as brain drain increases with poverty so does poverty with brain drain, non-OECD countries such as Haiti experience poverty rates of 80% (2003 est.) (CIA World Factbook 2014) of population living below the international poverty line of $1.25 American dollars (The World Bank 2014). The brain drain effect can also lead to other problems within the source country, as the relative poverty experienced by those in the informal sector leads into a mental state of hopelessness, as the World Health Organization recognizes that degrees of poverty directly affect the physical, social and mental health of an individual (Murali et al. 2004, 216–224). This then transfers these symptoms into society, causing stress, frustration and family disruption, which then increase the rates of crime, homicide and violence (Murali et al. 2004, 216–224). Abject poverty creates slums and poor neighborhoods, which are rife with drugs and gangs. Idealistic militant groups target these slums. Hopelessness caused by poverty creates a susceptibility to indoctrination of extreme religious ideals and the hope given by these radical groups provides a direction for those poverty stricken individuals. This is directly linked to the rising numbers of many militant/terrorist groups, one such group is ‘Islamic State’ operating in the middle east and particularly in Syria. This groups ‘jihad’ has caused hundreds of thousands of nationals to flee their native country. Those who do not have the resources too are left behind, this forced migration due to war is one of the greatest factors behind migration as Jordan has taken in over 110,000 Syrians over the last 12 years in the wake of this conflict (Olwan et al. 2012, 4). This mass migration creates a decaying infrastructure and human capital deficit.

The lack of human capital and decline in infrastructure caused from the positive selection of migrants and the forced migration due to conflict also creates issues relating to health. Children are unable to be properly educated due to a combination of either lack of schooling or absence of parents (possibly due to the case of global care-chains). The chances of contracting and spreading diseases then rise exponentially, as proper sanitation practices are learned in either the household or schools. Children are at risk of death due to simple illnesses such as diarrhea, which is the leading killer of children under 5, causing the deaths of over 5 million children worldwide (Denny et al. 1986, 1).

The education of medical workers in developing countries can also be impacted by the loss of human capital and inadequate schooling. This can lead to a lack of expertise and procedural knowledge. The transference of blood borne diseases is concerning in contemporary times, with the spread of the ‘Ebola’ virus an issue at the forefront of all disease prevention agencies priorities. Such diseases can easily be spread by improper use of needles during simple daily inoculations. A recent study by the World Health Organization, looking into the correct use of syringes in Uganda and Thailand showed that “each syringe was routinely used on three to ten patients without discarding/sterilizing”, due to these statistics, two out of every three injections would be considered unsafe in any hospital in the developed world (World Health Organization 1999). This procedural inadequacy can be due to tertiary trained doctors and nurses departures from their societies. A study by Chaudhury showed that over 6 countries 35% of health workers were absent (Chaudhury et al. 2006, 91–116). This deficit forces lower trained individuals into jobs, which they may not be qualified for. This contributing factor to the spread of disease in developing countries can have vast negative impacts on the social health of the societies.

As this paper has focused on the loss of human capital within societies in the global-south and the adverse effects this loss can induce, the fact that emigration is a deeply set part of these people’s lives is shown. These developing nations with disparities in the formal sector and a deficit of tertiary educated workers are represented in most studies as condemned to this fate. Further, deeper research is needed in the future to establish more connections between economic downturns and social factors. More comprehensive records taken by these nations can aid this research. Possibly examining the possibility of a net ‘brain gain’ beginning to occur more predominantly within these sending nations and the ramifications in the global-north if human capital immigrating from the global south was drastically decreased.

References

Batista, C., A. Lacuesta and P. C. Vicente. 2010 Testing the ‘Brain Gain’ Hypothesis: Micro Evidence From Cape Verde. Journal Of Development Economics: 2–15.

Chaudhury, N., J. Hammer, M. Kremer, K. Muralidharan and F. H Rogers. 2006 “Missing In Action: Teacher And Health Worker Absence In Developing Countries” The Journal Of Economic Perspectives 20, no. 1: 91–116.

CIA World Factbook. 2014. Central America And Caribbean: Haiti. https://www.cia.gov/library/publications/the-world-factbook/geos/ha.html.

Denny, F. W. and F. A. Loda. 1986 “Acute Respiratory Infections Are The Leading Cause Of Death In Children In Developing Countries” American Journal Of Tropical Medicine and Hygiene: 1.

Docquier, F. 2013. “Cross-Border Migration, Employment and Economic Growth” Paper presented at the Submitted to the High Level Panel on the Post-2015 Development Agenda: 2–29.

Lazarus, Emma. 1883. “The New Colossus”.

Mishra, P. 2006. “Emigration And Brain Drain: Evidence From The Caribbean” IMF Working Paper: 5–14.

Murali, V. and F. Oyebode. 2004. “Poverty, Social Inequality And Mental Health” Advances In Psychiatric Treatment 10: 216–224.

Olwan, M., and A. Shiyab. 2012. “Forced Migration Of Syrians To Jordan: An Exploratory Study” Submitted to the Migration Policy Center, 2012: 4.

Özden, Ç. 2011. ”Where On Earth Is Everybody?” The Evolution Of Global Bilateral Migration: 1960–2000: 1.

The World Bank. 2014. Poverty. http://data.worldbank.org/topic/poverty

World Health Organization. 1999. Unsafe Injections In The Developing World And Transmission Of Bloodborne Pathogens: A Review.: 4