BRAIN DRAIN – BRAIN GAIN: United Kingdom 23 3.1.1 AN EXPLANATORY MODEL OF BRAIN DRAIN/GAIN A more contemporary approach to migratory processes considers brain drain as the outflow of qualified labour, with reference to both source and destination country(Hartmann and Langthaler 2009). In this case, countries compete for talented workers that leave their countries of origin for a variety of reasons, including personal, professional and environmental. These push/pull forces can be analysed and categorised in an effort to make it easier for the source countries, which suffer from brain drain, to try to attract their diaspora back. On the other hand, the source countries, enjoying a»brain gain«, are likely to make efforts to further enhance incentives to qualified immigration. Apart from the environmental aspects, which can be assessed by the macroeconomic monitoring of the regions, Dustmann et al.(2011) explain the individual motives for migration based on human capital investment. This is important because it highlights that migratory flows are due to decisions based on»capital accumulation«: individuals move where human capital can be acquired more efficiently. The authors bring up the issue of»brain circulation« and the incentives that have to be put in place for such»return« to happen. In this way, apart from learning and skills accumulation, other reasons for return are identified, such as consumption preferences, retirement and purchasing power differences. Finally, while some arguments are given to extend the possibilities of the model, it is pointed out that possible positive externalities may exist in both brain drain and brain gain flows. 3.1.2 POLICY-MAKING IN THE AGE OF BRAIN DRAIN Apparently, on the verge of economic recovery, it seems pressing consider the processes that have led people throughout the European Union to move around it and beyond. However, even today high unemployment rates afflict several EU regions. The situation is particularly severe with regard to young people. Indeed, according to Eurofound(2014), young people are traditionally more affected by unemployment during crises and are more exposed to changes in the environment. Furthermore, the north/south divide – some may argue that there is primarily an east/west divide – still holds, with unemployment rates as high as 26.2 per cent in Greece (Eurostat 2014 – ILO estimate), 25.1 per cent in Spain and 15.4 per cent in Portugal, while the United Kingdom averages 7.2 per cent and Germany 5.2 per cent. In terms of youth unemployment, Spain is worst afflicted at 53.2 per cent, followed by Greece at 52.4 per cent, while the United Kingdom remains at 16.9 per cent and Germany around 7.7 per cent. The EU countries are aware that a»brain drain« exists and have put in place machinery to ameliorate its negative effects. It is important to note the migration flows conceptualised as a»brain drain« apply not only to Europe but also to the United States, Canada and Australia, among other countries. In this framework, it is not surprising that a plethora of policies aimed at reducing the brain drain – or to increase the brain gain – have emerged in Europe. Giannoccolo(2005) has categorised such policies in seven groups: immigration policies, incentives to researchers and relatives, grants and scholarships, tax and wages, investment in research, marketing and recruitment, and studies and analysis of the immigration policies of other countries. At the same time, it is necessary to establish mechanisms of cooperation, such as the»EU Blue Card« directive, adopted in 2009 to attract talent and highly skilled workers. In the United Kingdom, the number of residence permits issued to non-EU students was above 247,000(2011), while the country opted out of existing Directives concerning researchers. It is EU policy to increase R&D investment to 3 per cent of GDP(European Commission 2002). This should had been seen as an opportunity to raise the profile of careers in science and technology, becoming an incentive for change in education, training and mobility conditions in Europe to improve the region’s attractiveness in comparison with competing areas. However, Hartmann and Langthaler(2009) suggest that measures like this one may provoke further brain drain from developing countries as there are no firm statements and measures to ensure this will not happen due to the Directive. Besides, the European Commission has been aware of the situation and the concepts of»circular migration« and »mobility partnerships« were introduced to be incorporated in public policies that benefit both destination and source countries. Recent events indicate that measures are urgently needed, such as the influx of Zambian doctors and nurses to the UK health service(Velde and Grimm 2005). At national level, several countries – in particular southern European ones – which became a net emigration focus, or»brain drain« areas, have rushed to establish policies to reverse outflows and incentivise inflows. Milio et al.(2012) look at the case of Italy, conceptualised as a diaspora, but also at its apparent inability to attract talent to the country, afflicted by a series of ineffective and uncoordinated policies. On the other side, the British and Swiss cases are presented as examples of policies with proven success in curbing the brain drain. In the case of the United Kingdom, a fund was launched in 2000 to attract young foreign scientists and the return of British researchers(one reason given for the increase in university fees since 2009 is increased research funding). Outflows did not stop but the United Kingdom has been successfully replacing them with foreign talent(brain gain), a phenomenon known as»brain circulation«. At European level, in December 2012 the European Commission proposed a Youth Employment Package aimed at reducing high levels of youth unemployment and social exclusion among young people(Eurofound 2014). These measures are supposed to guarantee employment, education, apprenticeships or training to the under 25s within four months of leaving school or becoming unemployed. This initiative is based on the idea of youth transition, especially with regard to the effects of unemployment on mobility – both social and geographical – which is strongly related to the brain drain/ brain gain phenomenon. Even civil society has started to react, for example, the NGO Europatriates, whose stated mission is to provide young Europeans with the feeling that»Europe is doing something for them and that Europe is helping them«. A six-step programme has been articulated(Europatriates, n.d.), which is inspired by the Youth Employment Package and the concept
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Brain drain - brain gain: European labour markets in times of crisis
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