The migration of high level manpower from developing to developed countries [Reprint 2019 ed.] 9783111586281, 9783111212845

Citation preview

THE MIGRATION OF HIGH LEVEL MANPOWER FROM DEVELOPING TO DEVELOPED COUNTRIES

PUBLICATIONS OF THE INSTITUTE OF SOCIAL

PAPERBACK

STUDIES

SERIES

I

PROCULCERNENS

INTERNATIONAAL VOOR

SOCIALE

INSTITUUT

STUDlfiN - 'S-GRAVENHAGE 1970

THE MIGRATION OF HIGH LEVEL MANPOWER FROM DEVELOPING TO DEVELOPED COUNTRIES

by

F. J. VAN HOEK

1970

MOUTON THE H A G U E • PARIS

© Copyright 1970 Mouton & Co., Publishers, The Hague, The Netherlands. N o part of this book m a y be translated or reproduced in any form, by print, photoprint, microfilm, or any other means, without written permission from the publishers. The responsibility for works published in the series "Publications of the Institute of Social Studies" rests with the authors; publication of a work in this series does not commit the Institute of Social Studies to any opinions stated therein.

P R I N T E D IN H U N G A R Y

PREFACE

This study was made by Mr. van Hoek at my suggestion when he was attached to m y office in t h e OECD. The subject is much talked about, b u t far too little is known of its nature, its causes and its dimensions. Consequently, measures to improve t h e p a t t e r n of movements of competent people between rich and poor countries can only be devised on t h e basis of a thorough understanding of t h e problems involved. Mr. van Hoek's work is a valuable contribution to t h e research now going on in this field. I t contains some interesting considerations and presents a useful starting point for those who w a n t to do f u r t h e r work on the subject. Thorkil

Kristensen

former Secretary-General, Organisation for Economic Cooperation and Development Copenhagen, 28th November 1969

CONTENTS

Preface I. Introduction and Summary of Policy Conclusions II. The Size and Nature of Migration

5 9 15

I I I . Motivations and Incentives for Migration

24

IV. Evaluating the Effect of the Brain Drain on Development

34

V. Possible Action to be Taken Bibliography

39 50

I INTRODUCTION AND SUMMARY OF POLICY CONCLUSIONS

Since the early history of mankind, there has always been a certain migratory movement of talented people. In some cases political evolutions may have played a role in this respect, in others a mere quest for a better life. In general, however, this international movement of talented people was based on the desire for a crosscultural exchange of knowledge and experience and was limited in size. Parallel with this migratory movement of talented people, fairly massive migrations of unskilled or semi-skilled labour have been observed on various occasions. These migrants sought better employment opportunities abroad on a permanent or temporary basis. I n recent years, a considerable change has taken place in these migratory flows. Technological and scientific developments have led to a growing emphasis on science-based capital formation as opposed to the earlier massive labour-based capital formation. This change led to a rapid increase in the demand for skilled personnel. As institutions in the technologically and scientifically more advanced countries have been unable to respond to the increased demand for high-level personnel, the historical exchange of knowledge and experience has become a net outflow of educated human resources from the less developed to the more advanced countries. This also holds true for the industrialised countries of Europe which are faced with an exodus of high-level manpower to the United States. However, these countries have human and financial resources t h a t can help them reduce the impact of such an outflow. Moreover, they benefit from a compensatory inflow from less developed countries. In contrast, less developed countries do not have the same human and financial resources for the production of knowledge; moreover,

10

INTRODUCTION

the inflow from more advanced countries is relatively limited, notwithstanding public and private, national and international, financial and technical assistance. The basic problem in these countries seems to be t h a t human capital grows far more rapidly than physical capital. Industrialised countries have faced the same problem, but in their case this unbalanced growth of human and physical capital has often led to the creation of demand for industrial or other sectoral developments. This is illustrated, for example, by the German chemical industry, whose creation and expansion was strongly influenced by the availability of an increasing number of chemical engineers. This phenomenon does not seem to have arisen in less or semi-developed countries for a variety of reasons, such as the absence or weakness of a physical and administrative infrastructure and the lack of managerial talent at various levels, or because of stagnation in the growth process of certain semi-industrialised countries, for example in Latin America. Several other developing countries are faced with the problem of how to absorb an increasing amount of high-level manpower and consequently with the unilateral migratory movement towards more rapidly growing and more advanced countries. A final group includes those countries where shortage of talent is such that, at least for the moment, they do not suffer from an exodus of highlevel manpower. The purpose of this study is to analyse the various aspects of the so-called brain drain from less developed to more advanced countries. Many publications have seen the light in recent years on this subject, b u t most of them seem to approach the problem from a specific angle, such as t h a t of statistical data, motivation or the economic aspects. Very few have tried to p u t the problem in the wider context of economic development, taking into account a series of policy issues concerning both developed and developing countries. We do not claim to have been successful in this respect, more time and resources than were available being necessary to make an overall and yet detailed examination of the problem in its wider perspective. However, it is hoped t h a t this study will contribute to the identification of areas of research and will provide some guidance for action by both developed and developing countries. A more thorough analysis of the problem would also benefit by the elaboration of a few case studies. These would provide better insight into the problem so t h a t governments could

INTRODUCTION

11

adopt more appropriate policies for its alleviation while awaiting the time when accelerated and continuous growth will lead to a more lasting solution. At various places in this study, suggestions and recommendations are made for improving our knowledge about high-level manpower migration from less developed to more advanced countries, and regarding the kind of action t h a t could slow down this unilateral movement of human resources. These recommendations are addressed to governments in developing and developed countries and sometimes call for closer cooperation between the two. I t is generally recognised t h a t available data do not permit a detailed quantitative analysis of the flow of high-level manpower between developing and developed countries. Although some effort should be made in this respect by the less advanced countries, it would probably be more efficient, given the present state of affairs, if the industrialised nations were asked to elaborate and publish the data needed for further analysis of the brain-drain problem. D a t a should be provided on a flow concept as this would provide a better picture of the situation t h a n data based on a stock concept. Agreement should also be reached regarding the appropriate professional breakdown and the time concept (in order to distinguish between permanent and temporary migration). If possible, the data should also distinguish between senior and junior, or "accomplished" and "potential" high-level manpower. The preparation and implementation of measures t h a t could help alleviate the problem need not await the achievement of this statistical work, however. The following analysis of the brain-drain problem appears to confirm once again the need for a better educational policy in relation to manpower needs in both developing and developed countries. This should not be interpreted as indicating t h a t educational and manpower planning could be a panacea for all evils, particularly at the present level of development of techniques for such planning. For the less developed countries such planning could induce the setting-up of more appropriate training programmes and the concentration of financial and intellectual efforts on the disciplines and specialisations most required for a smoother development process. For the developed countries, improved educational policies in relation to manpower needs would help reduce the gap between domestic supply and demand in certain

12

INTRODUCTION

categories of high-level manpower. The shortage or supply faced by developed countries in this respect seems to be at the root of the problem under consideration. As regards the need for institution building in developing countries, it seems appropriate to underline at least a few aspects which are not always touched upon in discussions of this subject. Firstly, aid donors and developing countries should embark on further cooperative research on educational innovation in order to determine more clearly the role, function and programmes of institutions of higher learning in less developed countries and regions. So far, there has been a tendency to follow the well-beaten track which has been largely determined by the needs and environment of industrialised countries. Secondly, it should be realised t h a t one of the purposes of cooperation in institution building is the development of a scientific community and environment in less developed countries and t h e establishment of a well-functioning administrative set-up. In view of the shortage of qualified personnel in all countries and the sometimes very heavy financial consequences of a too nationalistic educational policy, governments in developing areas should give more serious consideration to closer regional or sub-regional cooperation; aid donors should support initiatives of this kind and promote the establishment of regional or sub-regional "centres of excellence". These centres, together with some national research institutes in developing countries, could participate in research sponsored by aid donors more often than has been the case in t h e past. Subsidising such local research would help to overcome certain income differential obstacles on the one hand, and on the other hand, would be less costly for aid donors than sending experts or financing the same research by institutions in donor countries. Thirdly and in the same line of reasoning, donor countries should consider the possibility of more intensive use of local talent — living in developing countries or in the donor country — in t h e framework of their programmes of technical cooperation. Such a positive attitude may also help to increase the return flow of experienced high-level manpower from the host countiy to the country of origin and thus contribute to the development of a scientific community and environment.

INTRODUCTION

13

To this end, the private sector could also make a more positive contribution by establishing research and development units in developing countries. Governments of these countries should consider granting tax exemptions or other fiscal advantages in order t o attract such plants, which would employ local technical and scientific staff. Aid donors, on their side, should consider the possibility of encouraging the establishment of research and development plants in less developed countries rather than only production subsidiaries. I t seems justifiable to envisage, the setting-up of bilateral agreements by which to regulate the transfer of part of the fiscal revenues deriving from income tax paid by "imported" high-level manpower, and of part of the emoluments paid to these immigrants. Such transfers would partly compensate the expense incurred by the developing country in replacing the emigrant; they would also establish an "enforced" savings account in the country of origin which would be beneficial to t h a t country, and also offer some incentive for the migrant's return. Experience has shown t h a t potential high-level manpower sent abroad for further study and specialisation frequently fails to return. Special attention should therefore be paid to problems connected with study abroad. This is part and parcel of a better educational policy in relation to manpower needs and imposes a fairly strict selection policy on governments of developing countries, both in respect of students financed under bilateral and multilateral aid programmes and of those whose foreign studies are financed from national governmental sources. Aid donors, on their side, should be prepared to exercise stricter control over the return of students to less developed countries, whether they hold official scholarships or not. Moreover, it seems appropriate to stress the need for careful evaluation of the kind of training programmes offered, and to envisage their gradual change towards programmes particularly aimed at "training the trainers". This would be consistent with the earlier mentioned policy of institution building in less developed countries. Last but not least, this study reveals once more the discrepancy between aid policies of donor countries and their domestic economic and social policies. If aid policies are really inspired by a desire to promote growth in the less developed countries — to the final

14

INTRODUCTION

benefit of all — there is an evident need for reconsideration of the immigration policies and legislation of many industrialised countries. As far as conclusions can be drawn from the available data, it would seem correct to state t h a t the significance of the present "drain" varies considerably from one country to another, but t h a t it affects relatively few countries of origin or of immigration. Provisional action on a bilateral basis should therefore be possible while awaiting the moment when international cooperation will find a more lasting solution to a problem which is likely to become much more serious. I n considering the appropriate measures to be taken by both aid-receiving and aid-supplying countries, a decision should be taken in each case as to whether the problem is the creation of new and better employment opportunities for those already trained or undergoing training, or the creation of new and better training opportunities to overcome the shortage of supply of well-trained personnel.

II T H E SIZE AND NATURE OF MIGRATION

Any examination of the size and nature of the migration of highlevel manpower from developing to developed countries immediately encounters two obstacles. Firstly, the shortage of reliable statistical data for an investigation of this kind, be it in the countries of origin or of destination. Secondly, the definition and consequently the content of any data differ widely, and thus do not permit the completion of an overall quantitative picture of the situation. I n most cases, it is necessary to rely on official migration statistics which usually lack suitable breakdown by occupation or by training and/or education. If such a breakdown exists, its accuracy is often questionable (e.g. what is an "engineer"?). In addition, no distinction is usually made between permanent and temporary immigration. I n many instances, permanent immigration starts as temporary and turns into permanent immigration only after the lapse of a certain period of time. 1 I n some industrialised countries, residents of previous or present overseas territories are not subject to the legislation concerning foreigners, and thus are not included in the already fairly loose immigration data. As these migrants sometimes do not even need a labour permit, the statistics of national employment services are of no great help towards acquiring 1

Acute manpower shortages in many developing countries may cause even temporary emigration — although beneficial in the long run — to be detrimental. This is particularly so in countries where the turnover of such movements is fairly high and consequently deprives the home country of the effective services of these temporary emigrants. The difficulty is to establish a yardstick with which to determine the period after which an emigrant might be considered a "drained brain". Experience shows that for some people a short study visit abroad represents an opportunity to emigrate, while others go abroad for further study under a pluri-annual doctoral programme but with the firm intention to return.

16

THE SIZE A N D NATURE OF MIGRATION

a better quantitative insight. This applies in France, for example, while students from cfertain countries of the Commonwealth, if offered a job immediately upon graduation and while still living in the United Kingdom, do not appear on British immigration statistics. Some national services responsible for the registration of immigrants have the appropriate material at their disposal. I n view of the importance of the problem, not only for developing countries but also for the aid-supplying agencies in donor countries, these services should be encouraged to transform this material into the detailed data necessary for an investigation of this kind and should be authorised to publish it. The availability of such data would be very useful for a comparative analysis and might help to eliminate another handicap: the absence of statistical material concerning the return flow from industrialised to less developed countries, the re-migration of temporary migrants from one developed country to another, or the migration movement between less-developed countries. The latter, although relatively small in number, may be more important in specific cases, e.g. in Latin America or in certain petroleumproducing countries such as Saudi Arabia and Kuwait. Whatever efforts may be undertaken by private research institutes to obtain a general picture from the sketchy information available, it seems evident t h a t only government services would be able to provide the necessary data regarding the flow of people and the changes t h a t occur over time in this flow. Flow data would indeed be more helpful for analytical purposes than those presently available; the latter are based mostly on a stock concept, omitting entirely the return flow of people who have increased their knowledge and experience abroad, thus benefiting their country of origin. For the various reasons described above, it is hardly possible for the time being to present a general and objective quantitative picture of the migration movement of high level manpower from developing to developed countries. I t may nevertheless be useful to quote some partial figures t h a t will give an impression of the magnitude of the problem. However, we must once again stress our doubts about the accuracy of the data collected from many sources and the inadequacy or complete absence of definitions which would allow comparisons between professions as well as between flows to

THE SIZE A N D NATURE OF MIGRATION

17

and from different industrialised countries. As data are available in more detail for such industrialised countries as Australia, Canada and the United States, reference will often be made to immigration in these countries. This does not mean that there is no immigration of significance in West European countries such as the Federal Republic of Germany, Prance and the United Kingdom. In addition to Oppenheimer's statement t h a t of all researchers history has known, 90 per cent are still alive, it is interesting to note t h a t in the early 1960s 80 per cent of all researchers of the world (some 1.2 million) worked in the United States, the U.S.S.R., Great Britain, Germany and France. 2 According to data published by the U.S. Department of State, total immigration into the United States in the period 1962 — 66 of engineers, natural scientists, social scientists and doctors, amounted to some 39,000 persons, 16,000 of whom came from developing countries. Moreover, although the absolute number of immigrants from other industrialised countries into the United States exceeds those coming from the less developed countries, the proportion of highly trained manpower is larger in relation to the total number of immigrants for Asia, Africa and Latin America than for Europe, as shown in Table 1. The data provided in this table call for some comment. A first phenomenon is the relatively high number of skilled people from Asia and Africa who originally came to the United States as temporary visitors and later successfully changed their status. This would confirm the statement frequently made about the nonreturn of people originally admitted as students to United States universities, for example. The second remark concerns the origin of the immigrants admitted. As the data are based on the country of last permanent residence, a certain number of those coming from Europe and North America may well be originally from developing countries who, through so-called "step migration", have first emigrated to some European country or to Canada before reaching the United States. 3

2

Alain Biron: "L'accélération du progrès technique et l'inégal développement des sociétés", Développement et civilisation, No. 23, September 1965. 3 It is interesting to note that in 1966, for example, 129 scientists from developing countries with a British Ph. D. were present in the United States, while 4 per cent of Asian immigrant engineers and scientists entering the United States between 1962 and 1964 had last resided in Canada. 2 v—95

18

T H E SIZE AND N A T U R E OF MIGRATION TABLE

1

Breakdown by Area and by Admissions and Adjustments of Skilled People who Immigrated into the United States (Fiscal year 1966) Professional, technical and kindred workers Begion

Total Immigrante

Europe

125,023

North and Central America

Total Number

% of Ool. 1

Admitted as Immigrants

% of Col. 1

12,059

9.6

11,175

8.9

Temporary Visitors who Adjusted Status

% of Col. 1

884

0.7 0.2

127,340

8,633

6.8

8,377

6.6

266

Asia

39,878

5,931

14.9

2,369

5.9

3,662

8.9

South America

25,836

2,527

9.8

2,369

9.0

158

0.6

Africa

3,137

598

19.0

437

13.9

161

5.0

Oceania

1,820

291

16.0

226

12.2

65

3.6

323,034

30,039

9.3

24,953

7.7

5,086

1.6

GRAND

TOTAL

Source : Some Facts and Figures on the Migration of Talent and Skills (United States Department of State, Washington D.C., 1967), p. 73.

The relatively high proportion of high-level manpower in the total immigration from Asia, Africa and Latin America is likely to reflect the current United States immigration laws which grant preferential treatment to skilled labour without discrimination, while this does not seem to be the case for low-level manpower. The low absolute figures of immigrants from Africa can probably be explained by the flows to France, the United Kingdom and some other West European countries. Moreover, the brain drain from several African countries may be rather limited, for the time being at least, as a result of the shortage of skilled manpower and the increased advancement opportunities in the public sector arising from recent independence. As the opportunities gradually diminish, more and more university graduates may find it difficult to gain entry to the public service. Emigration may therefore be expected to increase in the near future. More specifically restrictive factors, for example in East Africa, have limited the mobility of students abroad. Finally, some migrants from African countries may have originated in other developing countries such as India and Pakistan. Independence and the Africanisation of the cadres of both public and private sectors may cause them once more to assume the status of emigrant.

19

T H E S I Z E A N D N A T U R E OF M I G R A T I O N

With these comments in mind, it might be interesting to see how the migration of engineers, natural scientists, social scientists and medical personnel has developed over a particular period of time. 4 Table 2 confirms the growing proportion of immigrants from developing countries into the United States, and the effects of legislation concerning immigration of high-level personnel adopted in October 1965. TABLE

2

Immigration into the United States of Scientists, Engineers and Medical Personnel, by Country of Residence (fiscal years) Area

Year

1955/56

1961/62

1962/63

1963/64

1964/65

1965/66

1966/67

All countries

8,539

9,848

12,482

12,323

11,749

13,449

20,760

Total Developing Countries

2,231

3,197

4,344

4,152

3,604

5,540

10,254

Europe (Turkey)

29

79

194

76

74

119

203

Asia

528

829

1,651

1,312

856

2,820

6,391

South America

598

857

1,096

1,283

1,091

984

1,047

North and Central America

1,007

1,347

1,280

1,360

1,475

1,488

2,369

Africa

66

79

108

115

98

122

232

Others

3

6

15

6

10

7

12

Source: The Brain Drain into the United States of Scientists, Engineers and Physicians, a staff s t u d y for t h e R e s e a r c h a n d Technical P r o g r a m m e s SubC o m m i t t e e of t h e Committee on G o v e r n m e n t Operations, U n i t e d S t a t e s H o u s e of Representatives, J u l y 1967. Notes: (1) T h e following professional categories are included Engineers Aeronautical, Chemical, Civil, Electrical, I n d u s t r i a l , Mechanical, Metallurgical a n d Metallurgists, Mining, Sales, Others, Professors a n d I n s t r u c t o r s . Natural

Scientists

Agricultural scientists, Foresters a n d Conservationists, Professors a n d I n s t r u c t o r s Agricultural Science, Biologists, Professors a n d I n s t r u c t o r s Biological Science, Professors a n d I n s t r u c t o r s Medical Science, Chemists, Geologists a n d Geophysicists, Professors a n d I n s t r u c t o r s Geology a n d Geo4

F o r f u r t h e r c o m m e n t s on t h i s s u b j e c t , see p p . 24—25 2*

20

THE SIZE A N D NATURE OF MIGRATION

physics, Mathematicians, Statisticians and Actuaries, Physicists, Professors and Instructors Physics, Other Natural Scientists, Professors and Instructors Other Natural Sciences. Social

Scientists

Economists, Professors and Instructors Economics, Psychologists, Professors and Instructors Psychology, Other Social Sciences, Professors and Instructors Other Social Sciences Medical

Personnel

Physicians and Surgeons, Dentists, Professional Nurses, Student Nurses. (2) These numbers do not include those professionals who take up employment with the United Nations and other official international organisations located in the United States.

A closer look at Canadian immigration statistics shows an increasing share of high-level manpower from developing countries in total immigration. Table 3 shows both the increase in the percentage and the share of high-level manpower from developing countries in the total immigration by occupation. I n 1967, almost 50 per cent of the immigrating doctors and dentists came from less advanced countries. Much less data are available concerning flows between developing and European countries. However, it seems generally true t h a t in the United Kingdom there are more specialists of all kinds from Commonwealth countries t h a n there are British specialists active in those countries. I t is estimated t h a t each year some 5,000 qualified persons from the developing Commonwealth countries establish themselves in the United Kingdom, as against an annual recruitment for service overseas of roughly 3,000.5 This also seems to hold for many countries of French-speaking Africa in relation to France. 6 No data are available to confirm the generally held impression t h a t a constantly growing number of university students from developing countries are successful in their efforts to remain in the Federal Republic of Germany after studying there.

5 Nations Unies, Exode du personnel qualifié des pays en voie de développement (Document A/7294, 5th November 1968). 8 This evidently depends on the definition accepted for technical assistance. If cultural assistance (i.e. primary and secondary school teachers) is included, the picture will differ, certainly in the case of France. However, it would seem incorrect to adopt this very extended definition in this case.

T H E SIZE AND NATURE OF MIGRATION TABLE

21

3

Immigration into Canada by Intended Occupation and Area of Last Residence (developing countries in percentage of total)

Total

Total Immigration

Developing countries (Commonwealth) (1)

5.2 6.1 7.1 5.3

Other developing countries (2)

Total developing countries

%

number

12.8 14.9 15.3 12.3

11,924 16,782 22,473 23,539

1963 1964 1965 1966 1967

100 100 100 100 100

—

—

—

Professional and technical professions

1963 1964 1965 1966 1967

100 100 100 100 100

9.4 8.8 10.3 10.3 13.2

7.5 8.6 12.7 13.6 12.9

16.9 17.4 23.0 23.9 26.1

1,630 2,086 3,836 5,657 8,069

Engineers

1963 1964 1965 1966 1967

100 100 100 100 100

10.8 11.2 13.6 13.4 17.4

7.3 7.1 10.0 10.5 11.5

18.1 18.3 23.6 23.9 28.9

217 271 532 766 1,069

Natural Scientists

1963 1964 1965 1966 1967

100 100 100 100 100

14.0 11.9 14.9 12.9 16.1

4.7 6.9 7.5 8.8 9.9

18.7 18.8 22.4 21.7 26.0

83 120 213 272 437

Doctors and Dentists

1963 1964 1965 1966 1967

100 100 100 100 100

9.6 12.7 14.6 16.4 24.0

17.6 17.0 24.7 23.8 23.4

27.2 29.7 39.3 40.2 47.4

199 215 335 432 622

7.6 8.8 8.2 7.0

—

(1) Including Hong Kong, India, Malta and West Indies only. (2) Including U.A.R., Lebanon, Israel, Mexico and those not mentioned elsewhere (except European developing countries). Movement Source : F r o m — The International Annex 1, Table I I , O.E.C.D, Paris, 1969.

of Scientists

and

Engineers,

The alarming situation is also illustrated by case studies undertaken in some developing countries.