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Seminar paper from the year 2005 in the subject Politics - Region: Australia, New Zealand, grade: 1.7, University of Münster, language: English, abstract: Australia is an inclusive and tolerant society, a nation build up by multicultural people from different homelands and cultural backgrounds. It’s national identity is minted by this cultural diversity in all spheres of Australian life. Therefore Australia persues the policy of multiculturalism. Since World War II the former “white australia policy” has disintegrated more and more. So the ethnic-discriminating policy changed into the open minded policy today. “This policy evolved from profound changes to Australian society resulting from a major influx of migrants and has been maintained and furthered on a non-partisan basis by successive governments.” (DIMIA 2001: 1) However even Australia perceives the pressure of Demographic changes. The change in the demographic structure because of declines in fertility rate requires an elementary Impact on Australia's economy. Recent demographic changes have implications for many fields of economic life, including workforce structure, retirement incomes, health expenditures, and consumption of goods and services. (cp. PC-GOV 2004) Like in other Western high-income countries, Australia tries to compensate for some of the problems caused by demographic change by concentrating on (highly-)skilled workers; the magic words are “brain-gain and brain-drain”. Both terms apply to scientists, physicians , medical practitioners, engineers and other professionals from less-developed countries moving to work in high-income countries. The effects of gaining and draining have a positive impact on the affected countries of getting highly-skilled workers or losing the important brains, the “education-sector” invested time and money in. This short report is a preliminary estimate of the Australian brain-gain and tries to give some of the main facts of this recent phenomenon.
Part II examines the consequences of brain drain for the sending countries.
The concept that Australia suffers from a steady net outward flow of scientifically and professionally skilled persons, a so-called brain drain, has been current for decades. This report outlines the outcome of a survey of 174 researchers in universities and other organisations that seeks to shed some light on the issue, particularly as it relates to any loss to overseas of talented research staff, and impediments to the recruitment of adequately qualified scientific and other research staff.
This report assesses the role played by overseas migrants in the mining industry over the past decade and the potential under the existing permanent and temporary entry visa subclasses for migration to contribute to current skill shortages in the industry. Employment in the mining industry has grown by 59 per cent over the period August 2001 to August 2005. This massive growth occurred in a context of rapid growth in construction employment Australia-wide over the same period of 30 per cent â thus putting enormous pressure on skill availability in occupations which both industries depend on (like mobile plant operators). By contrast, overall employment in Australia increased by 10 per cent. [p.ii]
"Based on static partial equilibrium analysis, the "new brain drain" literature argues that, by raising the return to education, a brain drain generates a brain gain that is, under certain conditions, larger than the brain drain itself, and that such a net brain gain results in an increase in welfare and growth due to education's positive externalities. This paper argues that these claims are exaggerated. In the static case, and based on both partial and general equilibrium considerations, the paper shows that (1) the size of the brain gain is smaller than suggested in that literature; (2) the impact on welfare and growth is smaller as well (for any brain gain size); (3) a positive brain gain is likely to result in a smaller, possibly negative human capital gain; (4) an increase in the stock of human capital may have a negative impact on welfare and growth; and (5) in a dynamic framework, the paper shows that the steady-state brain gain is equal to the brain drain so that a "beneficial brain drain" cannot take place, and a net brain loss is likely during the transition.
The worldwide race to attract talents is getting tougher. The US has been leading the race, with its ability to attract PhD candidates and graduates not only from emerging countries, but also from the European Union. However, a growing number of countries have adopted immigration policies specifically aimed at selecting and attracting skilled workers. This book describes the global competition to attract talents. It focuses in particular on two phenomena: the brain gain and brain drain associated with high-skilled migration. Part I provides an overview of immigration policies designed to draw in skilled workers. It describes the economic gains associated with skilled immigration in the destination countries and the main determinants of the inflows of skilled immigrants (such as wage premia on education and R&D spending). It also discusses why skill-selective immigration policies do not find more support in receiving countries and shows that interest groups are actively engaged in affecting policies towards skilled migrants. Part II examines the consequences of brain drain for the sending countries. It reviews the channels through which skilled emigration can affect the source countries and looks at remittances, return migration, diaspora externalities, and network effects that may compensate the sending countries for their loss of human capital. Contrary to traditional wisdom, the results indicate that most developing countries experience a net gain from skilled emigration.
Diasporas play an increasingly prominent role in discussions on foreign assistance and development policy. Governments of migrant-sending countries are working to attract both the talents and resources of emigrants and their descendants while governments of aid-sending countries hope to improve the outcomes of development assistance by engaging the talents and expertise of diasporas. Independently of governments, many diaspora groups or individuals recognize profitable opportunities in their homelands or contribute their time, talents, and resources to improving the quality of life there. This volume examines the development impact of diasporas in six critical areas: entrepreneurship, capital markets, "nostalgia" trade and "heritage" tourism, philanthropy, volunteerism, and advocacy. It is the result of research commissioned by the U.S. Agency for International Development's Office of Poverty Reduction, Diaspora Networks Alliance. Contributors include Roberto Munster, Hiroyuki Tanaka, Carlyanna Taylor, and Aaron Terrazas.