Developed country

Pakistan is one Of the countries where High-skilled emigration rates are very high. While, economic theories suggest that the emigration trend has its own positive impact on the county. This report presents the result of surveys and interviews conducted to study the reasons behind the migration of Qualified Intellectual Professionals and University Students. The result shows that what makes people migrate from Pakistan to abroad.

Although there are many economic benefits of people migrating as they send remittances back home and even make investments here in Pakistan in terms of Properties and businesses but this has considerable knowledge outflow from Our Country to developed countries. In this report we also share experiences of the intellects that went abroad and returned and what problems they faced in the new country they settled and how their expectations paid off as this helped us mom up recommendations to reduce Brain Drain to an acceptable level. TABLE OF CONTENTS Son Description Page no.

Acknowledgement 2 Abstract 3 Introduction 5 Over View Problem Statement 6 Hypothesis Rudy Outline _iterate Review Methodology 17 Data Collection Sampling Limitation 18 Results 19 7 Research Analysis 28 Interview Analysis 29 8 Conclusion 32 9 Recommendations 33 10 References 35 11 Appendix INTRODUCTION In this report we discuss the major reasons for intellects leaving Pakistan to settle abroad, by first through quantitative analysis as what are the reasons n intellect consider before making his decision and how to overcome this trend at least recommending some solution to reduce the Brain Drain problem in Pakistan. . 1 OVERVIEW Brain Drain can be defined as departure of Intellectual manpower from the developing countries to the developed countries. This has become a Global Phenomenon. The migration of Doctors, Engineers, Teachers and other intellects has become a serious concern for the developing countries like Pakistan. Although this phenomenon benefits Pakistan Gross National Product (GNP) in terms of foreign remittances, investment in terms of

Properties and Local Businesses, loss of intellectual Labor is surely negative for a country like Pakistan being in a developing stage and having a semi- industrialized economy. Studies Also Explain that Out of many professional moving abroad for studies don’t comeback after completing their studies and settle abroad permanently. Reason include that the pay scale they get cannot be matched here and even remittances they send back home cannot be managed working here in Pakistan.

The other reason may also include that large number Of students graduating in technical fields for example Petroleum engineering, robotics, mechanization re the fields which does not have industrial approach currently in Pakistan which forces the intellects to migrate and use their qualifications in their respective fields According to the article published in ‘The Express Tribune’ on December 23rd 201 3, 2. 7 million citizen exited Pakistan in last 5 years. According to ministry of Overseas Pakistan 5,873,539 Pakistanis have emigrated from 1 981 to 2012 in which 41 ,498 technical and professional workers left in 2012 alone.

There may be several reasons but Pakistan will lose Human resource if brain drain trend continues with the same rate. 1. 2 PROBLEM STATEMENT: Brain Drain, Emigration of Intellectual work force Of Pakistan to developed countries. 1. 3 HYPOTHESES “Why intellects believe there is no future of Pakistan and opts to migrate? ” The dependent variable is the phenomenon of Brain Drain while the independent variables include all the causes (push & pull factors) of Brain Drain. 1. 4 STUDY OUTLINE The reason of the research is to identify the push factors and pull factors of Brain Drain and effects of Brain Drain.

We study here is Brain Drain a Curse or a Benefit for a Country like Pakistan. LITERATURE REVIEW The term “brain drain” refers to the international transfer of human sources, and it applies mainly to the migration of highly educated individuals from developing to developed countries. In lay usage, the term is generally used in a narrower sense and relates more specifically to the migration of engineers, physicians, scientists, and other highly skilled professionals with university training, often between developed countries.

There is neither a commonly agreed definition of the highly skilled nor is there a standardized treatment of them in the statistics of different countries and organizations. Two measures play a role in practically all definitions of he highly skilled. The first one is prior educational qualification. According to this parameter, persons with a tertiary education qualification count as highly skilled. The second parameter is profession based; the highly skilled are identified by means of the type of work they actually carry out in the destination country.

Though the definition has its limitations as health care professional working as a taxi driver in the host country can be classified as highly skilled only by the first parameter, this definition can present us with a general concept of ‘skilled personnel’. The term Brain Drain is not without controversy. Some scholars such as David Hart (2006) prefer to use the term “High Skill Migration” instead of ‘Brain Drain’. As per Harts definition High Skill Migration is the migration of persons with increased levels of skill and education who, if they stayed could contribute significantly to the development of the country. The question which arises now is that what is the difference been Brain Drain/HAS and general migration? The only separating factor is human capital, skill and expertise that move with migrant. The idea behind brain drain is that when these persons grate, there is a shortage of persons remaining with the ability to adequately develop the source countries. The receiving countries gain skills and resources from the migration while the source countries lose highly skilled human capital.

Researchers argue that skilled and highly skilled migrants do jobs in advanced countries at high wages and send remittances to their native countries which to some extent compensate brain drain loss and contribute to economic activity. But their opponents stress that international migration of high skilled labor is a contributing factor to deteriorating international income distribution. The rich countries get richer and poor countries become poorer due to brain drain. This suggests that rich countries develop their economies at the cost of poor countries.

The Brain Drain phenomenon is not a new one. As early as 1973, the U. N General Assembly requested the Secretary General prepare a report on how the world could deal with this problem of the outflow of trained or skilled personnel from developing to developed countries 1. This global issue did seem to disappear following the Vietnam War but reemerged two decades later. Previously this international flow of human capital was overlooked because people and governments alike, attributed this migration to voluntary exile, political and religious conflict or involuntary flight from persecution.

Research points that people mostly belonging to the middle class and professionals such as educators, health care workers, scientists, engineers, professors and political reformers, are most likely to migrate to the more developed areas of the world. The reasons why people go abroad can generally be classified into categories, the Push factors and the Pull factors. As far as pull factors are concerned, economic and labor-market-related aspects are in a top position.

The absence of economic opportunities in the home country works as push factor whereas considerably higher salary levels and a high level of employment in the destination country and the expectation of their existence in the potential destination country, as pull factors. Social security issues and costs of living also translate into push and pull factors. Personal relationships, I. E. Families, friends and relatives, freedom of intellectual thought, presence of a rich scientific and technological culture also represent push and pull factors, too. Language plays a role too, gain as an influencing element rather than as an absolute pull.

Mastery of the language of the destination country, or the conviction to be able to learn it fast or easily, are usually a condition for labor-market access and thus reduce the risk of failure. It also facilitates access to vital information necessary for the choice of the destination country, and thus a realistic assessment of the benefits and disadvantages of migration 5. Push factors can include De-motivating working conditions, low salaries, and lack of research facilities, desire for more recognition, qualification and a desire to dad a better life.

Political instability in home countries make people lose confidence in their governments and future prospects of a better life. Individuals may face hardships due to their ethnic, cultural, religious affiliations or because of their membership in any opposing political party. Apart from these rational causes, research clearly shows that a person’s decision to migrate is also based on his perception of his native land as well as his perception of the host country. Consequences of Brain Drain Brain Drain is a growing global phenomenon having dual impact.

Brain Drain dads to certain positive as well as negative outcomes. 1 The pursuit of economic advantage is a major driver of migration. Most of the people send remittances back home Remittances, which replenishes the stock of human capital that may have been depleted in the home country by the brain drain. In the absence of surveys that match sending and receiving households, it remains difficult to quantify the effect of high-skilled migrant remittances on investment, poverty, inequality and lack of justice in the home country.

The economic consequences of remittances likely vary across home countries. Trained educated personnel return home bringing back years of expertise which they can use for the betterment of their countries. Proponents of brain drain argue that even in the poorest Of countries (Cuba may well be a good example); the prospect of being able to emigrate may increase incentives to acquire education and skills and induce additional investment in education. When this domestic “brain gain” is greater than the ‘brain drain,” the net impact on welfare and growth may well be positive 6. Other advantages of brain drain include inward investment; transfer of genealogy, increased trade flows, and charitable activities of Diaspora communities etc. Make this phenomenon more positive. 4 The progress of developing countries further slows down, in fact all the developed world’s efforts to aid these countries may not matter if the local personnel required to implement development programs are absent. 5 Some of those who move from a developing country receive education in the host country.

By staying there after they finish studying these students may not fulfill the potential contribution they could make to their countries. Brain Drain: Pakistanis Dilemma Pakistan has been facing the problem of brain drain for last three decades and this situation has become worse in recent years. According to Pakistanis Overseas Employment Corporation almost 36, DOD professionals (per year) such as doctors, engineers and teachers (professors) moved to advanced countries over the last 30 years for better employment opportunities.

This is the registered number of migrants but no statistics are available for unregistered people who migrated to other countries (HRS, 2008). In recent years, human capital flight increased to 45,000 highly skilled and skilled rebellions who traveled to other countries for better carrier opportunities (ibid). This indicates that the situation of brain drain in Pakistan is alarming. From the perspective of Pakistan, brain drain exists due to the following reasons: 1 Deficient economic policies implemented by the government which have left the skilled, educated lot without suitable job opportunities. Lack of coordination between academia and industries. This has led to universities and institutes producing thousands of graduates annually while ignoring the demands of the labor market. The educational system in Pakistan has developed as a response to the growth of those sections of society which can afford to educate their child rather than the demand for and supply of jobs. The lack of integration between education and man power planning is a core cause. 3 Low salary packages as compared to that of advanced countries or even with that Of other countries in region such as India or China. Although the research environment among universities of Pakistan is growing but still the infrastructure is far behind that of developed countries to provide a good environment for researchers and scientists in the country. Hence many Pakistani professors are practicing in Gulf countries as well as other high income countries such as USA and Canada. 5 There may be a Lack of ‘on the job’ self-respect and appreciation of professionals in Pakistan. For example, a software engineer has to follow the orders of his boss, even if his boss does not have appropriate knowledge about IT.

This type of mismatch between boss and subordinate creates problem of adjustments and skilled labor prefer to move abroad where they feel their self-respect is protected. 6 Lack of optimism about the economic future of Pakistan. The relationship twine inflation and brain drain is positive. The salary packages in Pakistan are 30-40 times less than developed countries (HRS, 2008) while the inflation is higher in Pakistan than in other developed countries. In such situation, the real purchasing power Of money has gone down and people have been feeling insecure about their financial status.

Although, every year government of Pakistan raises the salary levels (via annual increments) but this raise does not compensate the inflationary wave in Pakistan. This inflationary wave also intends the high skilled and skilled people to take decision for searching a job n international market according to their nature and WI. 7 Unemployment is also a major cause of brain drain. The electricity crisis in Pakistan for last few years hit Pakistanis economy badly, due to which several industries shut down. This increased unemployment.

Moreover, rise in inflation (and electricity prices) raised cost of production which further raised unemployment rate. Subsequently the skilled and high skilled labor had to move out. 8 Another factor of brain drain is trade openness. Trade openness boosts economic growth via industrialization, transfer of technology and resources, obligation of human resources and foreign direct investment. Multinationals via foreign direct investment hire skilled professionals at attractive salaries plus other incentives. Due to openness, skilled professionals have realized their real demand in developed countries. Hence motivating them to move abroad. The government’s attitude towards brain drain. Pakistanis Governments view migration as a way to ease the country’s two biggest economic issues, unemployment and underemployment. Migration to foreign countries is seen as an effective way to increase foreign exchange reserves of the country. According to Dawn news, as of March 12 2014, the foreign remittances to Pakistan have risen to SIS billion. Since much of the new demand for migrant workers comes from the Middle East Oil Exporting Countries with whom Pakistan wishes to strengthen its ties, no restrictions have been imposed on the outflow of manpower.

The ‘export’ of manpower has thus become a highly profitable business with an assured market. How has Pakistan been affected by ‘Brain Drain’ 1 It is an established norm that before losing the investors the country loses its capital. As per some analysts, this is affecting the value of the rupee in the arrest. All developing countries experience brain drain at some stage, but the investor drain has a long-term devastating effect on this economy. For instance, industrial activity is almost at a standstill, some of the factories are reported to have been converted into warehouses for storing imported goods. Migration on such a large scale had taken place in the 1 sass but overall, it had a beneficial impact on the economy. The manpower migrating at that time was mostly unskilled and semi-skilled and therefore unemployable within the country. The oil boom did not only release pressure on the employment level but brought windfall gains in the shape of huge inflows of petrol dollars and thus helped the balance of payments situation 7 3 Migrants now largely include doctors, engineers, IT specialists and other professionals on whom the nation has invested heavily and who cannot be easily replaced.

Without them, the country is becoming barren of ideas, initiative and enterprise, which are the dominant factors in determining the level and quality of modern development. 4 Many migrants move on a more permanent basis and so do not send back remittance, which is one of the positives of brain drain. Policy Formulation The concern for brain drain has increased in recent years, on account of significant losses, both in quality and quantity of highly skilled persons in almost every profession.

NO serious attempts have been made to Stop this situation. Very few exercises which evaluate all economic aspects of skilled migration have been carried out for different professions. So far it appears that government policies have not been guided by cost-benefit analysis. An attempt by the government to tackle this issue was the Emigration Ordinance 1976, which attempted to rationalize to migration of a variety of highly skilled response and introduce a 20% capitation fees on the foreign earned incomes of migrants.

But this legislation had to be withdrawn in ten days due to strong opposition from professional organizations and vested groups here and abroad. Government should develop all sectors of economy such as agriculture, industry and services sectors on equal basis. This would help in tackling inflation and reducing unemployment in the country which in resulting affects the problem of brain drain. The government must solve governance and security issues to enhance local as well as foreign investment for generating employment opportunities and brain drain will be lowered.