Understanding Human Capital Flight: Causes and Effects
Human capital flight, sometimes called brain drain, refers to the emigration of intelligent, well-educated individuals for better pay or conditions, causing their places of origin to lose skilled people, or “brains.” Typically, such emigrating individuals have learned English and have moved to the United Kingdom, the United States, or some other English-speaking country. Brain drain is common in developing nations, particularly in former African colonies of the United Kingdom, the island nations of the Caribbean, and in centralized economies such as the former East Germany and the Soviet Union. China and India have recently topped the list of those nations experiencing an exodus of skills and intelligence through human capital flight.
Brain drain has also been used to refer to situations in which individuals fail to complete given tasks as a result of extreme stress or burnout.
Positive Effects of Brain Drain
- Effect on globalization: Brain drain can have a positive effect on globalization. It helps to connect economies of the world even faster. Economy in the form of money is invested all around the world, which helps poorer nations to develop.
- Equalizing population: One of the major points. If the population is unevenly distributed in two countries, then migration will help equalize the population.
- Better opportunity: People who migrate generally have a better opportunity to express innovative ideas, as American and European nations also cheer innovation and bright minds.
- Benefit to the people: Those who migrate get a better lifestyle and job opportunity. At the same time, their family members are also benefited.
- Take this whole world as a nation to benefit humanity: Many people have a misconception that brain drain hinders one’s own country’s development. But just think, if you serve your nation, then only the people of your nation are benefited, but if you serve the world, the whole of humanity is benefited.
- It is quite a natural phenomenon: Brain drain is not the latest phenomenon. It already existed in the ancient world. For example, the migration of people from rural areas to urban areas is also a kind of brain drain.
Negative Effects of Brain Drain
- Most of the migrants generally migrate to America or Europe. This is because these are such nations who want to spend money to educate the migrants that, in return, will help in their development. This option is not available in our country. That is why our country is lagging behind in terms of innovative ideas.
- We took the education from the government. The government spent billions of rupees on education to get better results and help in development. If you leave your own country after that, it is certainly a betrayal of your own country.
- If brain drain crosses its limit, it will definitely hinder a country’s development. On the other hand, it will excessively benefit the migrating nation.
Steps to Reduce Brain Drain
- Expansion of factories/industries: The government needs to lower tariff taxes on external merchants so that they can set up their industries in India. This will definitely generate employment opportunities. Moreover, MNCs offer better payments, which is the major demand of skilled people.
- Rapid development of the economy: A boost in development will help to boost the economy. A better economy will lead to better salaries for educated employees. Also, it will help many foreign investors to invest in our country. Once our country is fully developed, we will start attracting foreign brain drains!
- Control overpopulation: One of the major steps. Less population will increase the demand for skilled labor.
- Better working conditions: A well-qualified, skilled engineer, doctor, scientist, or economist will definitely demand a better lifestyle. Better working conditions will surely check brain drain.