Social Studies, 12.09.2021 08:10 myiacoykendall

Brain drain is one of the problem for the pace of development explain

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Answer from: amandasantiago2001

Brain drain and the economic development of home countries are two interdependent processes. First, a brain drain affects development, and its effect becomes unambiguously negative when the emigration rate is high. Second, a lack of economic growth motivates college graduates to emigrate. Interactions between these two variables can be the source of vicious and virtuous circles linked to individual decisions to migrate.

Once a significant brain drain gets under way, it can have damaging effects on the economy that induce further waves of emigration by high-skilled workers (Iran after the 1978–1979 revolution, the Irish crisis of the early 1980s, the ex-USSR republics after 1991). But when a return is significant, it gives incentives to other waves of returnees to come home (Ireland after the fiscal reform of 1987, Taiwan in the 1980s).

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Once a significant brain drain gets under way, it can have damaging effects on the economy that induce further waves of emigration by high-skilled workers. But when a return is significant, it gives incentives to other waves of returnees to come home (Ireland after the fiscal reform of 1987, Taiwan in the 1980s).

Human capital accumulation and development slow with the brain drain, the “skill-setting curve,” and the brain drain slows with development, the “migration-setting curve” . An intersection between these two downward-sloping curves represents an equilibrium. The system may generate multiple equilibria: countries that share similar characteristics may end up in a favorable equilibrium with low poverty and a low brain drain, or an unfavorable one with high poverty and a high brain drain.In the majority of developing countries, the favorable equilibrium prevails, and the observed level of brain drain should be seen as an inevitable by-product of poverty. But in about 50% of small developing countries—those with fewer than one million working-age adults—the unfavorable equilibrium prevails, implying that poverty and brain drain could be reduced if individual emigration decisions were coordinated. This is the case with small countries such as Cape Verde, Grenada, Guyana, Haiti, Jamaica, Mauritius, Saint Vincent and the Grenadines, and Suriname.

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