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Human Capital Flight

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Migration of workers is indications of social, economic, political and environmental problems. High rates of unemployment, low wages, and poor working conditions are symptoms of an imbalance in the labour market that is prevalent in troubled economies. International migration of workers can be a short term benefit for the sending countries as it can help reduce poverty and increase economic growth. However, the long term consequences of a net outflow of skilled workers should be a concern as it deprives a developing country of its value asset of human capital. This can cause a deficiency in services in education, health care and economic productivity. Foreign remittances are very important income sources that contribute to a nation’s GDP and provide resources for families back home but does this justify the long term harm that losing human capital will do to the economical developments?

One major problem preventing undeveloped countries from advancing is their human capital deficiency. What is contributing to this continual deficiency is the migration of skilled workers who leave their home country to worker abroad. This phenomenon has been a long existing problem which economist have termed “brain drain”. The depressing reality that is the impetus for this “brain drain” is the simple fact that local jobs cannot satisfy the higher salaries that these skill workers demand. Talented workers with years of experience migrate to better paying jobs abroad and their positions simply cannot be filled by new graduates entering the work force. Furthermore, new graduates with little work experience are sometimes lured away also by the prospect of better paying jobs that may be underutilizing their education. The human flight does irreversible harm to the local exporting country because its economy cannot flourish with just unskilled workers. The investment in education and vocational training is an enormous monetary burden for the government which is wasted every time a skilled worker is poached by a foreign employer to worker abroad. The talent gap caused by migrations of professional and skilled workers becomes a void in the local economy that keeps it from taking flight. The country suffering from brain drain will find itself uncompetitive against neigbouring countries. Apart from the economic devastation, this brain drain also adversely impacts the welfare of the remaining citizens. Some of the highly sought after migrant workers are healthcare professionals whose exodus is causing a deteriorating healthcare system in their own country. Along with healthcare, schools, airlines, businesses, and the financial system of a country are all depressed.
A second problem from the migration of professional and skilled workers is the breakdown of the traditional family structure. There is an underappreciated social problem of entire generations of children who will grow up without one or both parents present. Studies have shown that children from single families are six times more likely to be poor and they are more likely to be poor longer. (Whitehead) Children growing up without duel parent guidance are more prone to having social deficiency. A 1988 survey by the National Center for Health Statistics found children without two-parent families are two to three times more likely to have emotional and behavioural problems. The lack of family supervision contributes to violent crimes. Numerous studies find single parent homes are significantly more likely to have children who commit crimes. (Mackey) Therefore, migrant workers create broken families that contribute to a breakdown of society.
In underdeveloped countries, foreign remittances are very important income source and provide short term benefits for the country. Migrant workers will sacrifice and leave their family to work abroad to earn a higher income so they can provide resources for families at home. There is definitely a short term benefit that raises their living standards and probably generates savings for investment and subsequent economic growth. The foreign countries remittances are a valuable contribution to the GDP in developing countries. It alleviates the pressure for local governments to create jobs for the unemployed and the establishment of welfare programs for the poor. The infusion of currency increases the consumption power o f the economy which helps local businesses. It is estimated that nearly US$500 billion in hard currency are remitted back to developing-nation by their workers around the globe each year to support banks, fills government coffers and boosts sectors such as telecommunications, retail, transportation and real estate. It is easy to see this trend of shipping out their citizens to work abroad has become a dangerous and unconscionable addiction for these countries. Leaders of these countries find this to be much simpler than to take on vested interests and generate opportunities at home. Even though there is a short term gain from receiving foreign remittance from their migrate workers, the long term damage that this gap in human capital creates in their own country shackles their economy to being a third world country.
The time to act is now for those leaders who want to break this vicious circle of dependences on foreign remittance to maintain their economy. Efforts must be made to create higher paying jobs so professionals and skill workers do not need to search for work abroad to help provide for their families. Higher paying jobs will elevate the living standards of the country and keep the brightest and most skilled workers from taking their talents elsewhere. For leaders who care for their country and its citizens, it is time to take action to keep families together and keep your professionals and experienced workers so they can help build the infrastructure that will allow your country to compete globally.

http://www.dikseo.teimes.gr/spoudastirio/E-NOTES/S/SingleParent_Families_Viewpoints.pdf http://gulfnews.com/opinions/columnists/torture-is-the-result-of-exporting-people-1.1285910 http://www.oecd.org/dac/povertyreduction/43280513.pdf

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