Brain Drain

Reviewed by Vineeth | Updated on Sep 28, 2020

Introduction

Brain drain is a term which indicates a significant movement (emigration) of knowledgeable individuals from a country or an organisation. Brain drain may result from internal conflicts or troubles within a country or company.

Generally, brain drain results when professionals receive better offers from another organisation, and they feel it is best to move from the professional growth and development point of view. Better offer, here, means that they will be entitled to a higher pay along with additional perks and benefits or upward movement in their career.

Also, the brain drain from the viewpoint of countries happens when individuals find an opportunity to work in a much-developed country.

Latest News

India loses out many skilled individuals every year when they seek better opportunities in the west and middle-east. Brain drain is highly prevalent in underdeveloped and developing countries. Individuals from these countries emigrate to those countries where there are better opportunities. However, the brain drain is not restricted only to an underdeveloped country.

Why Brain Drain is Important?

Brain drain results in a country losing skilled individuals. It takes years of hard work and is never guaranteed to replace the same. Hence, the government should ensure that qualified individuals are given the right opportunities and treatment so that there are no brain drains and its repercussions.

Industry Impact

A brain drain from any sector will impact its industry significantly. For instance, if IT employees in a particular country get lucrative offers from another country, there would be emigration of such individuals. This will erode the workforce in the home country, and the industry will fall short of human resources and can result in decreased production. This will result in an economic crisis and can have long-term effects.

Conclusion

Brain drain can be due to talented individuals finding a better opportunity in a different country/company. Sometimes, the brain drain can be due to dropping standard of living in the home country or organisation. Brain drain will result in a particular sector of a country or organisation losing out the required expertise.

Related Terms

  • Financial Sector

    The financial sector is a segment of the economy composed of companies and institutions that provide commercial and retail customers with financial services.   Read more


  • Narrow Money

    Narrow money refers to a category of money supply that includes all the real money held by the central bank.   Read more


  • Emigration

    Emigration refers to the relocation of people from one country to another country for permanent settlement.   Read more


  • Reasonable Doubt

    Beyond a reasonable doubt is a substantive standard of proof which is required to justify a criminal conviction in most adversarial justice systems.   Read more


  • Labour Force Participation Rate

    The labour force participation rate is the portion of the working population in the 16-64 years' age group in the economy currently in employment or seeking employment.   Read more


  • Supranational

    A supranational entity is an international group or alliance in which member states' power and influence transcend national boundaries or interests to engage in decision-making and to vote on collective body matters.   Read more


Recent Terms