The recommendation comes at a time when countries like Nepal are getting overtly concerned about brain drain due to lack of employment opportunities for skilled workforce.[break]
Although there is no official data on emigration of skilled human resources, it is believed around 10-15 percent of around two million people, who have migrated abroad for employment purpose through formal channel, are skilled.
“The brain drain reduces human capital stock, which can lead to lower economic and productivity growth as well as reduced activity in science, technology and innovation. It also creates acute shortage of skilled people in health and education sectors. This shrinkage of skilled human capital base tilts LDCs´ relative endowments and comparative advantage away from skill-intensive sectors toward low-skilled activities,” says the UNCTAD´s latest report on Least Developed Countries 2012 made public on Thursday.
Though these are adverse impacts of brain drain, the report argues countries also gain from flight of skilled human resources.
For instance, emigration prospects may encourage people to obtain further education, which may result in brain gain, says the report titled ´Harnessing Remittance and Diaspora Knowledge to Build Productive Capacities´.
“These high-skilled emigrants also form a knowledge pool which can be organized as diaspora knowledge network, facilitating flow of knowledge and technology to home countries. Besides, presence of diasporas can strengthen business flows between the host and home countries through trade and investment links, while migrants who have returned to the home country for good can bring with them accumulated savings, knowledge, experience and business networks,” the report adds.
These are some of the aspects that can convert brain drain into brain gain. But there is a caveat.
“Benefiting from a diaspora is not automatic. Policy action by home and host countries and by international community is crucial for fostering and strengthening positive diaspora effects on LDCs,” the report says, calling on governments to take stronger and more systematic policy action on migration, remittances and diaspora engagement to reap benefits from emigrants.
Studies have shown that engagement of emigrants has been instrumental in developing productive capacities of home countries. Countries like China, India, Israel and Ireland are few examples where migrant entrepreneurs have helped build knowledge-based industries. “A lesson from these experiences is that entrepreneurs abroad can help develop firms at home and also serve as a two-way link for market knowledge connections and technology transfer across countries,” the report says.
Although the report has acknowledged LDCs may not be able to reap such benefit in the short term because of limited human and venture capital, the emigrants can be agents of change for their home countries because of their skills, knowledge and experience.
But for this the home country needs to be come up with enabling and favorable policy framework, the report says.
“This will require an agency, ideally at a ministerial level, to reflect the cross-cutting nature of these issues; ensure policy coherence and consistency across the board; and coordinate with potential actors around a set of identified priorities,” the report says.
Related story
Brain Drain to Brain Gain: Reform Higher Education
