Brain drain is economic setback in that emigrants take the fraction of the value of government backed training.

New knowledge and its application serve as locomotives that move society forward on the path of progress. However, Nepal, along with many other South Asian nations, has been experiencing massive “brain drain” since 2001, especially after the United States offered the Diversity Visa (DV) programme for the chosen to stay and work there as permanent residents.

Though the US government professes that the DV lottery programme is designed to bring greater racial and ethnic diversity in the US, the criteria for granting it and other visas suggest

otherwise. Apparently, they are designed to mainly procure cheap labour for technical and skilled work force needed in the US labour market.

Nearly 8000 Nepalis have migrated to the US through the DV programme alone since 2001, and more than 1000 Nepalis have won immigrant visas to the United States through the 2007 DV lottery programme. The rate of migration to other countries is also going up. The USA is unusually attractive to immigrants from almost every part of the world for two reasons. First, advocates of American exceptionalism say that economic and political opportunities are many,

and that there is a high degree of social mobility there.

Second, unlike many old world countries, immigrants can become Americans by adopting American culture and values. Critics point out that America is now hardly unique in its appeal to immigrants, and that many countries such Australia, Canada and New Zealand are becoming popular and welcoming to immigrants, too.

To take Nepal’s case, the last couple of years has seen a rapid increase in the number of Nepali citizens migrating abroad. Similarly, the students going abroad for studies too have gone up in number dramatically. Between 1990 and 2005, the number of students going abroad doubled, which means that Nepali students are spending more on their education. Furthermore, most of the college educated professionals from developing countries go to the US, as well as to the European Union, Australia and Canada.

Brain drain, the term coined by the Royal Society to describe the emigration of “scientists and technologists” to North America from post-war Europe, is a massive emigration of individuals with technical skills or knowledge, normally due to conflict, lack of opportunity, political instability, or health risks.

Brain drain is an economic disadvantage in that emigrants usually take with them the fraction of the value of their training sponsored by the government. In comparison, the capital flight or the movement of financial capital is of lesser consequence.

Brain drain in Nepal became noticeable when the government set up a mechanism for international contract work instead of creating a base for opening up more job opportunities within. Many of the highly skilled migrants are forced into low-paying service sector jobs.

Though Nepal produces tens of thousands of graduates every year, many of them move to other countries in search of better opportunities. If this massive brain drain continues for long, Nepal will continue to struggle to maintain its economy to the level desired. Serious and deliberate consideration of this issue focusing on the solution is needed before the problem blows out of proportions.

Human capital refers to the stock of skills and knowledge embodied in the ability to perform labour so as to produce economic value. The acquisition of such talents, by the maintenance of the acquirer during his education, study, or apprenticeship, requires adequate investment. Furthermore, human capital can be acquired through formal schooling and on-the-job training. As per the use of the term in modern neoclassical economic literature, human capital is similar to “physical means of production”, e.g., factories and machines: one can invest in human capital (via education, training, medical treatment) and one’s output depends partly on the rate of return on the human capital one owns. Thus, human capital is a means of production, into which additional investment yields additional output. Human capital is substitutable, but not transferable like land, labour, or fixed capital.

Even though little has been discussed about the effects of brain drain on Nepal, it is believed to be one of the biggest issues plaguing progress in many developing nations. There seems to be not only a lack of consensus on means to deal with the problem, but also the reluctance to acknowledge it. Is it merely money, or perhaps the understanding that their institutions do not invest in them that motivates professionals to leave the country? It is not always about money. Often, it is also about mental sanity. Unless we have a national policy to effectively address youth issues and agendas defining their role in the overall nation building process, we cannot check the increasing rate of migration.

Chalise is a journalist and litterateur