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The negative impact of the brain drain on the development of source confer certain benefits, including increased trade, remittances, knowledge, foreign.
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South-South remittance flows are particularly important to LDCs. In , it was estimated that as much as two-thirds of their recorded remittances originated in other Southern countries. For nine LDCs, remittance flows exceeded receipts of both foreign direct investment FDI and official development assistance from to In , LDCs grew by 4.


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Overall, LDCs' merchandise trade shifted into surplus in after two years of deficits. More than half of LDC exports were destined for developing countries in China accounted for more than one quarter of these, surpassing both the EU and the US.

Oil generates 46 percent of LDCs' total export revenues. LDC exports also benefited from higher international commodity prices. In the summer of , food prices, in particular for maize and wheat, were once again on the rise due to drought in major producing countries. However, higher prices will negatively affect many poor people in LDCs, who generally spend 50 to 80 percent of their income on food. The situation in some parts of Africa is critical, as food insecurity threatens the lives of hundreds of thousands. In nominal terms, aid inflows were 3. While data for are not yet available, there are signs of a decrease in ODA from some donor countries.

Next year, however, look less promising. As of mid, economic activity has slowed in many parts of the world.

The Indian government has contributed to the emergence of these private networks through legislative and tax rules that encourage remittances and investment from Indians abroad. The diaspora idea has been put to work by advanced countries too, like Switzerland, whose online network, Swiss-List.

The International Migration of Knowledge Workers: When is Brain Drain Beneficial?

Governments can do quite a lot to address the causes of the brain drain. Science and technology policies are key in this regard. Developing centres of excellence for scientific research and framing the conditions for innovation and high tech entrepreneurship can make a country attractive to highly skilled workers, both from within the country and from outside.

China has recently launched a project to develop universities into world-class institutions that not only provide higher education training, but also academic employment and research opportunities. In France, some 7 teaching-researcher posts have been created since to retain talent and encourage the return of post-doctorates working abroad. The risk of a brain drain is real.

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Yet countries can create opportunities for research, innovation and entrepreneurship at home and stimulate a return flow of migrants and capital, as well as win access to international innovation networks. See also: www. Follow us.


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The brain drain: Old myths, new realities. Directorate for Science, Technology and Industry. Brain drain - Click bigger. Related articles. Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :.

The brain drain from developing countries

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Is the brain drain always negative?

Indeed, higher rates of migration reduce the costs of moving overseas and allow poorer and less-educated workers to seek new economic opportunities abroad—which not only equalizes economic success and opportunity, but helps to counteract the unbalanced effects of the brain drain. The World Bank concludes that higher rates of international migration are inevitable: the phenomenon a result of demographic trends that create a high demand for certain forms of labor in the developed world and a high supply of that labor in developing nations, and of declining communication and transportation costs.

Moreover, international migration is desirable: developed nations can hope to profit from a "brain gain" opposite the developing world's "brain drain," while developing nations enjoy the economic network benefits that their expatriates send home.

International Migration and Human Development

It is important, reports the World Bank, that developed and developing nations improve their cooperation on the issue—especially so that developing nations are not unnecessarily hurt by a brain drain of skilled workers who then go underappreciated in the developed world. Neither group can hope to stop international migration, but, if they play their cards right, both can hope to benefit from it.

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