Brain Drain-Management Practices-Project Report, Study Guides, Projects, Research of Management Fundamentals

This is project report for Management Practices course submitted to Shankar Jamedar at Agra University. It includes: Brain, Drain, Analysis, Highly, Qualified, Migrants, Professional, Issues, Gain, Outflow, Technologists

Typology: Study Guides, Projects, Research

2011/2012

Uploaded on 07/06/2012

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APPENDIX
SUB HEADINGS:
S. NO. PAGE NO.
1. INTRODUCTION………………………………………............................02-04
(i) Table 1: Regional trends of migrants over all the world…..………………………04
1.1BACKGROUND...................................…………………………………....................04-05
2. LITERATURE REVIEW…………………………………………………05-08
(ii) Table 2: Regional Trends of Migration Outflows from Pakistan, 1995-2004..........06
3. ANALYSIS…………………………………………………………………08-18
3.1 Brain Drain In Pakistan………………………………...……………………............08-18
(iii) Table 3: Highly-Qualified and Highly-Skilled Pakistani Migrants by Professional
Category, 2001-2005………………………………………………………………..11
(iv) Table 4: Most Important Issues In Pakistan…………………………………………16
3.2 Brain Gain In Pakistan……………………………………….....................................17-18
4. CONCLUSION………………………………………………………….....18-19
5. REFERENCES………………………………………………………………..20
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APPENDIX

SUB HEADINGS:

S. NO. PAGE NO.

1. INTRODUCTION………………………………………............................02-

(i) Table 1: Regional trends of migrants over all the world…..……………………… 04 1.1BACKGROUND...................................…………………………………....................04-

2. LITERATURE REVIEW…………………………………………………05-

(ii) Table 2: Regional Trends of Migration Outflows from Pakistan, 1995-2004..........

3. ANALYSIS…………………………………………………………………08-

3.1 Brain Drain In Pakistan………………………………...……………………............08- (iii) Table 3: Highly-Qualified and Highly-Skilled Pakistani Migrants by Professional Category, 2001-2005……………………………………………………………….. (iv) Table 4: Most Important Issues In Pakistan…………………………………………1 6 3.2 Brain Gain In Pakistan……………………………………….....................................17-

4. CONCLUSION………………………………………………………….....18-

5. REFERENCES………………………………………………………………..

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BRAIN DRAIN IN PAKISTAN

DEFINITION:

“Human capital flight commonly referred to as " brain drain " is the large-scale emigration of individuals with technical skills and knowledge.”

1) INTRODUCTION:

ORIGIN OF THE TERM :

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.

The term “Brain Drain” was coined by the spokesmen of the Royal Society of London to describe the outflow of scientists and technologists to the United States and Canada in the early 1950 s. Since then the term has become synonymous with human capital or the migration of highly educated individuals from the developing, mostly third world countries, to the developed ones.

MAJOR REASONS FOR BRAIN DRAIN:

The reasons usually include following two aspects which respectively come from countries and individuals:

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Table 1: Regional trends of migrants over all the world

1.1 BACKGROUND:

Back in14th^ century after the end of the Catholic recon quest 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.

Some say the greatest brain drains have been from rural to urban areas. In the 19th century and 20th century there were notable emigrations to North America from Europe, and in modern times, from developing nations to developed nations, especially after colonialism. Sometimes such brain drains have been occurred between developed countries.

Likewise, if we see in Europe its phenomenon falls into two distinct trends. The first is an outflow of highly-qualified scientists from Western Europe mostly to the United States. The second is a migration of skilled workers from Eastern and Southeastern Europe into Western Europe, often made easy by new EU membership, although there is evidence that the trend is slowing. 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".

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Although the EU recognizes a need for extensive immigration in order to mitigate the effects of an aging population, nationalist political parties have gained support in many European countries by calling for stronger laws restricting immigration. Immigrants are perceived as a burden on the state and cause of social problems like increased crime rates, even in the absence of hard evidence.

In 2006, over 250,000 Europeans emigrated to the United States (164,285), Australia (40,455),[Canada (37,946)[^ and New Zealand (30,262).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. 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 cater for losses to Australia, Canada, Switzerland, Germany and Austria.

Since Pakistan began market economic reforms in the late 1970s, many Pakistani began migrating to countries Western Europe, North America and Oceania. It is estimated that 30 percent of the 100,000 Pakistani students who study abroad annually return to Pakistan. The fact is there are many more job opportunities, higher standard of living and education opportunities for Pakistani living abroad, as a result Pakistan suffers severe brain drain. The Pakistani government is trying to bring back its foreign educated professionals by increasing their salaries, housing and job incentives.

2) LITERATURE REVIEW:

According to BBC report on November 17, 2000, Gallup-Pakistan says more than two-thirds of Pakistan’s adult population wants to go abroad. This is a brain drain with pain. There is another brain drain with shame, where the brains leaving the country do not want to go abroad. Instead they are forced to leave. Abid Ullah Jan’s is the latest addition to this cadre that not only drains Pakistan of valuable minds, but also shames the government for its policies.

These are exceptions with exceptional minds and capabilities. The thousands leaving US for Canada – for whom our Foreign Minister has run from pillar to post – are not bringing any bad name to Pakistan, nor are they a brain drain because they are already abroad.

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changed their policies. The situation gets worse if we keep harassing the top brains like this and keep on forcing them into exile. The government in Islamabad needs to take serious measures to reign in its agencies and stop harassing the journalists and scholars.

The negative role of pro-Government or the so-called “moderate” analysts also created an environment in which any one labeled as anti-American today becomes a “fundamentalist” tomorrow, extremist another day and a friend of Al-Qaeda by the end of the week. The story of the latest journalist victim is not new.

According to yespakistan.com staff writer, official estimates of Pakistan's Overseas Employment Corporation, close to 36,000 professionals, including doctors, engineers and teachers, have migrated to other countries in the last 30 years. Interestingly, this number is indicative of only a small proportion of actual migration, since the majority of emigrants do not register.

This trend is not particular to Pakistan though. Other South Asian states face the same shortfall. For example, India is the world's biggest exporter of doctors. The impact of the brain drain can be seen in this disturbing statistic: there is one Indian doctor in the Untied States for every 1, Americans. However, there is one Indian doctor in India for over 2,400 Indians.

Although American immigration policy since 1965 claims to open up the country's doors to the world's "poor and huddled masses", most of those it accepts as migrants do not fit this bill. Instead, entry into America has often been biased in favor of the best and brightest, highly educated professionals from places like Pakistan. This of course only fuels the brain drain from a country which needs all of the skilled manpower it can get, to one in which there is comparatively little shortage of such individuals.

Advancement for the highly skilled is limited in a system where individuals often gain jobs and other opportunities through personal contacts versus merit. This also fuels a frustration with the system. This also leads to Pakistan's professionals leaving the country for one in which their skills and talents will be rewarded properly, based on what they do, not who they know.

If Pakistan is serious about stemming its alarming brain drain, it must provide better job opportunities that properly remunerate workers based on their skills and talents. Otherwise, it

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will continue to lose its skilled labor to countries where benefits and opportunities are plentiful and a system based on merit versus contacts is in place.

According to Yajnavalka Banerjee article he told that a nation's research achievements depend mainly on the experience and the other which is skill of its available researchers. But the current trend for Pakistan's new PhDs is to pursue their postdoctoral training abroad and eventually to take up employment there. Few of these well-trained researchers return home, discouraged by factors such as corruption, political instability, lack of governmental initiative and inadequate health-care and social-security benefits.

3) ANALYSIS:

3.1 BRAIN DRAIN IN PAKISTAN:

After going thoroughly through the articles, in our analysis Pakistan is seriously in trouble now a days as the brain drain is increasing in Pakistan day by day. I myself highly appreciate Abid Ullah Jan as he rightly said in his article that not only drains Pakistan of valuable minds, but also shames the government for its policies.

Our PhD’s, intelligent doctors and engineers are moving toward foreign countries, mostly to U.s and United kingdom, while the students after or before graduate head towards foreign countries in order to sake better facilitation of studies, accommodations and securities. It is difficult to figure out how many Pakistanis are living abroad but it is roughly estimated that nearly six million of them have left the country for good. According to Wikipedia Encyclopedia, figures from the 2001 Canadian Census indicate that there are about 75,000 Canadians who claim Pakistani ancestry. World Institute for Development Economics Research (UNU-WIDER), in its study, has cautioned that in the health sector emigration hurts their ancestral homelands. Why we leave home, the land where we born, grow and have our families and culture? Feel shame sometime but what a person can do when society and the government has nothing to give back. We cannot blame the once who left Pakistan for good life. Filthy politics, strong grouping,

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INSECURITY OF LIFE & FUTURE:

The other main reason for migration from Pakistan to other country is that Pakistan is facing insecurity. One does not know that will he come back to home after finishing his study or duty.

Thousands of MBBS graduates are produced annually from different medical colleges and universities in the country, while 50 to 60 per cent of the fresh graduates leave the country to pursue for better professional careers in foreign lands. Conversely, the feeling of insecurity is also compelling common man to migrate towards prosperous countries, including Canada, Australia, England, America, New Zealand, Germany and South Africa. In Pakistan, the problem of brain drain in this matter has become a threat to the stability of the country after the incident of September 11, which created a war-like situation in the whole world. Pakistan perhaps was the only country who had to face several difficulties all alone in this crucial period. Most of the foreign investors had moved back to their homelands due to security risks. As a result, many projects were stopped and most of the multinational companies also changed their policies. So experts in their respective fields are migrating from Pakistan to secure their life as well as future the situation will get worse if we keep harassing the top brains like this and keep on forcing them into exile. The outflow of human capital spells gloom for the long- term growth of the country in near future.

ILLITTERACY:

Illiteracy is also one of the major cause in brain drain in Pakistan as people are not that much qualified because the standard of study is very low as compared to other foreign countries due to which people think of going abroad to achieve good knowledge as a result they get good and respectable jobs there.

General Secretary Karachi University Teachers Society, Prof Dr Abid Hasnain, said that current economic crisis, insecurity and political instability were the major causes behind brain drain in the country. He said the teachers feel insecure professionally as there is lack of opportunity for them in the country. The aim of the HEC to convert brain drain into brain gain is also being damaged because hundreds of students and teachers studying abroad will definitely prefer to stay there or

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pursue their careers in foreign countries due to economic crisis and terrorism in the here.

SO-CALLED EXPERTS IN RESPECTIVE FIELDS:

An additional problem is that advancement for the highly skilled is limited in a system where individuals often gain jobs and other opportunities through personal contacts versus merit. This also fuels a frustration with the system. This also leads to Pakistan's professionals leaving the country for one in which their skills and talents will be rewarded properly, based on what they do, not who they know.

Table 3: Highly-Qualified and Highly-Skilled Pakistani Migrants by Professional Category, 2001-

As a result Pakistani companies have been hiring foreign experts for consulting their problems they are facing during their businesses, productions and other issues which causing huge loss of foreign exchange as the foreign consultants send back the money to their native countries.

Danger of the brain drain to Pakistan is clear, a large part of the problem is that there are not enough opportunities offered to the country's highly skilled labor for contribution and advancement opportunities. Educated unemployment is very high and salary levels for skilled workers (relative to unskilled workers) are often kept forcibly low by governments to maintain a democratic income policy.

If Pakistan is serious about stemming its alarming brain drain, it must provide better job opportunities that properly remunerate workers based on their skills and talents.

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INJUSTICE:

Injustice is very much common in Pakistan. Our judicial system only knows how to fight for their own rights and defend their seats. Where you are fighting for your rights and are cent percent right according to rules of court but you still never know you have been awarded with bail or a heavy punishment just because the judge is well wisher of the opposition or has been bribed by him as a result you are inn and he is out to do more corruptions in society.

POLITICAL INSTABILITY:

Our leaders often deliver lengthy speeches in number of seminars, that are held from time to time in various parts of the country on the subject of brain drain, but no positive steps have been taken as yet by the government of Pakistan to stop the brain drain, or even our government have not asked Pakistani students to return back and serve their country by offering proper jobs according to their qualifications.

TERRORISM:

Due to terrorism and economic crisis, the highly qualified and brilliant people are forced to leave the country in search of better future in the West. This is disgusting that a medical graduate starts his career with Rs 6,000 salary in Sindh, which is equivalent to the salary of a watchman. Despite the fact that 17-grade salary is recommended for a doctor, there is no implementation. Terrorism and killing of doctors in the country are the main causes behind the rampant brain drain, which is causing great loss to the country.

ISLAMIC FUNDAMENTALISM:

The negative role of pro-Government or the so-called “moderate” analysts also created an environment in which any one labeled as anti-American today becomes a “fundamentalist” tomorrow, extremist another day and a friend of Al-Qaeda by the end of the week. This has discouraged bold analysts of the Government policies for fear of being linked with Al-Qaeda and other such groups, which have been proven guilty after a media trial without a shred of evidence produced against them.But every Muslim critic is just another accomplice of “Osama bin Laden”.

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ECONOMIC FUTURE:

The migration of the Pakistani professionals to foreign countries, namely, US, Canada, Australia and New Zealand has increased considerably with young educated and skilled Pakistani such as doctors, IT Experts, scientists and other professional either already gone or planning to leave. Here in Pakistan the value placed for a scientist with an advanced level degree is Grade 17 which comes with a salary that is totally insufficient to meet the basic requirements of a family. So it is no surprise that the advanced countries are exploiting the situation by offering these individuals far more handsome incentives.

The fact that workers from all skill levels are losing or have completely lost faith in the economic future of the country was revealed by the Gallup survey that indicated that even the semi-skilled and unskilled workers want to migrate outside in search of better prospects. percent of the adults who were surveyed expressed the desire to migrate abroad while 38 percent said that they would prefer to settle outside permanently.

HUNGER & POVERTY:

The greatest effect of brain drain on any country is what is seen in Pakistan today; rampant corruption, poor administrations, lack of motivation and a fast diminishing nationalism. Unless there is nationalism there can be no collective progress and poverty and crime will continue to increase under the umbrella of plethoric apathy.

Phillip Bonosky, contributing editor of Political Affairs, writes in his book Afghanistan- Washington’s Secret War.

“Pakistan seems to have nothing but problems. Endemic poverty which was Great imperial gift to the colonial world-a poverty on which the sun never sets-skilled (badly needed in Pakistan itself) abroad in search for jobs. Hardly any country has suffered more from the brain drain than has Pakistan. Nearly 3,000 (annually) graduates of Pakistan’s medical colleges are jobless; most go abroad. The educated see their future not in their home country but in any country but their own”.

Whatever the solution it needs to come fast and it needs to be come now otherwise when the

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students in their official records. Pakistan`s diplomatic missions are unaware of the fact that how many students are studying in which foreign country? In case of any emergency, our diplomatic missions will not be able to extend any help to these students.

Ask most educated Pakistanis today what they want for their future, and you'll find a large number will say: to settle down in America. Pakistanis, especially the professionals, have been leaving the country at an alarming rate in the last three decades as they look for opportunities and benefits outside of their home country.

THE COST OF BRAIN DRAIN TO PAKISTAN

Table 4: Most Important Issues In Pakistan

According to official estimates of Pakistan's Overseas Employment Corporation, close to 36, professionals, including doctors, engineers and teachers, have migrated to other countries in the last 30 years. Interestingly, this number is indicative of only a small proportion of actual migration, since the majority of emigrants do not register.

Overall, estimates from the late 1980s placed the number of South Asians in the United States between 525,000 and 800,000 permanent US residents. Of the migrants who have entered the US

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in the 30 years, two-thirds are college graduates. Once migrants reach here, they tend to do much better on average financially than even locals. For example, the normal income in the late 1970s of Pakistanis was $20,000, which is well above the US national average of $17,000.

Interestingly, most skilled emigrants arriving on America's shores have studied in educational institutions in their home countries, where subsidies are often higher than 90 percent. Thus, the benefits of these subsidies, in the end, go to industrialized countries who have not invested a penny into the education of these skilled individuals.

Apart from a loss of skilled manpower in Pakistan, the brain drain also negatively affects the local economy, in particular, national salary structures. The 'demonstration effect' of foreign salaries artificially inflates local salaries, despite the lower average productivity of labor in the system.

In my opinion if following steps are taken seriously we can escape from this disaster.

3.1 BRAIN GAIN IN PAKISTAN:

  1. Consider a tax policy on Pakistani professionals working in Northern countries that compensates developing countries for their loss of manpower, while discouraging further emigration of skilled labor.

  2. Another option could be of more good options in our country so that youth feels safe and be interested about their future.

  3. The Pakistani government should try to bring back its foreign educated professionals by increasing their salaries, housing and job incentives.

  4. It must provide better job opportunities that properly pay workers based on their skills and talents. Otherwise, it will continue to lose its skilled labor to countries where benefits and opportunities are plentiful and a system based on merit versus contacts is in place.

  5. Pakistan embassies and consulates should have full knowledge about these students and should update their records from time to time. They are supposed to send newsletters to these students studying in various foreign countries. Most of our students are presently unaware

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brain Drain and some development indicators in member countries, it appears that the overall impact of brain-Drain on the development of a nation is negative; the member countries that have the highest rate of brain Drain tend to be less developed. The results also support the conventional view that brain Drain has a detrimental effect on human capital and poverty alleviation.

The subject of Brain-Drain is very vast. In this report a brief description of the main reasons of Brain-Drain and the possible measures to prevent it from countries mainly Pakistan has been given. Pakistani government spent billions of rupees for education of the experts, but unfortunately these people are migrating abroad due to non-existence of the market according to their capabilities.

Although the country has been receiving millions of dollars in shape of remittance which these experts send back to Pakistan every year, these remittance are not a substitute of the expertise of educated and expert people. A large number of Pakistani students securing top positions from different universities had been serving in European companies while many of them have settled there permanently after getting immigration nationality or citizenship of these countries. The expatriate Pakistanis just visit the country to meet their relatives which is very disappointing for the future growth of the country. Developed nations always protect the experts of their country and stop their migrating movement by providing them incentives. There is no shortage of talent and mind in Pakistan but the need is to protect them and control the migration of technical experts, doctors, engineers, economist and others in order to maintain the growth.

The case of Pakistan has also been discussed as this country has recently taken serious steps through its policies being implemented under the Higher Education Commission which have yielded successful results. Some new initiatives of arranging interaction of students/young scholars with Nobel Laureates as an inspirational and motivation step for adoption of scientific careers have given successful results.

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5) REFERENCES:

BBC report on November 17, 2000

Dawn report suggests (17 April, 2002)

YesPakistan.com Staff Writer

Yajnavalka Banerjee, Journal name: Nature Volume: 467, Page: 1047, Date published: ( October 2010), DOI: doi: 10.1038/4671047 c, Published online27, October 2010. Simon Commander, Mari Kangasniemi, L. Alan Winters.

http://en.wikipedia.org/wiki/Brain_drain

http://www.ilaam.net/Intl/BrainDrain.html

http://somana.instablogs.com/entry/brain-drain-in-pakistan/

http://www.yespakistan.com/education/brain_drain.asp

http://www.paktribune.com/news/print.php?id=

http://pakistaniat.com/2008/04/02/pakistans-brain-drain-do-we-not-know-or-do-we-not-care/

http://www.blurtit.com/q634739.html

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Regional/Karachi/

Oct-2008/Economic-woes-cause-brain-drain/