1. Economics of International Migration5 Jan Brzozowski, PhD Cracow University of Economics

2. The economics of skilled migration Can the brain drain be beneficial for a home country? Brain gain: Operation Paperclip (case study) Brain gain now: OECD medical immigration Brain circulation: Brazilian and Chinese academic programmes

3. Brain drain: classical view 1950s: term coined to describe the outflow of skilled migrants from UK to the US (physycians, engineers and researchers) 1960s: main concern the outflow of skilled migrants from developing to developing countries Developing economies: increased public investments in education, esp. at the tertiary level

4. Bhagwati&Hamada (1974): indicate the detrimental effects of BD Public expenses on education: poor countriees finance the training of skilled personel for the benefit of developed world Distortions on home countries labor markets: pressure to increase wages of skilled workers (up to the level of wages of the developed world) Fiscal losses: skilled migrants contribute to the fiscal system at destination, not in the home country

5. Bhagwati Tax proposal Special tax to be paid by skilled expatriates who work in developed countries „Compensation” for the fiscal losses to developing countries due to skilled mgiration Tax should be collected in developed countries, transferred to UNDP and channelled back to developing economies Main limitation: such regulation (if imposed) would be ruled as non-constitutiona by the US Supreme Court

6. Beneficial (?) Brain Drain Skilled migration must not be detrimental for the sending economy There are potential profits which (when special assumtions are met) might be bigger than losses

7. Potential benefits of brain drain Remittances: as skilled migrants earn more than unskilled, the flow of migrant’s transfers should be increased Brain gain: increase of migration probability might induce higher investments in education up to the social optimum Brain return: skilled migration, if properly managed, might be used for the benefit of home country. Effective diaspora policy can attract returnees, who come back with increased experience, knowledge, financial capital etc.

8. Operation Paperclip 1945: the differences between the US and USSR become more visible Rivalization between East and West starts Germany: during the 2nd WW one of the leaders in military technology (first jet fighter, V1 and V2 rockets)

9. „Race” to attract skilled German researchers in 1945 Ethical concerns less important than political realism German R&D sector during 2nd WW strictly connected to Nazi regime Use of forced/slave labor, concentration camps

10. Wernher von Braun NSDAP and SS member, during 2nd WW director of rocket weapons program (a4/V2 rocket) Mittelbau-Dora concentration camp provided slave workers for Mittelwerk factory, where the V2 rockets have been produced (20,000 casualities) In May 1945 von Braun and his team have surrendered to US Army In the US, von Braun designed Redstone/Jupiter-C rocket He became the director of Marshall Space Flight Center at NASA and was responsible for the development of Saturn rockets and Apollo program

11. Hubertus Strughold „Father of space medicine”, involved in Apollo program Pioneering studies on the physical and psychological effects of manned spaceflight But during the 2nd WW his team conducted human experiments at Dachau concentration camps

12. Kurt Blome High Nazi official and researcher, Director of the Nazi biological warfare program Weapons developed by Blome’s team have been tested on prisoners in Mathausen and Auschwitz-Birkenau Hired by US Army Chemical Corps (work on chemical warfare)

13. Brain gain now: OECD medical immigration

14. OECD Active recruitment policies of medical personel Increasing role of recruiting agencies

15. Where they go? 72% foreign-born nurses stay in Australia, Canada, UK and US 69% foreign-born doctors

16. Monthly salary of a nurse in Philipines is between 58- 115 $, while in the US is up to 5,000 Nurses: top 10 sending countriesDoctors: top 10 sending countries

17. Brain circulation: Brazilian and Chinese programmes Dilma Russeff (Brazilian President) initiative: Science Without Borders programme (2012) 75,000 publicly-financed and 26,00 privatelly- sponsored scholarships for Brazilian students abroad (mostly to the US) Studies in: computer and information technology; mathematics; physics; biology; health science; marine science; industrial and electrical engineering; mining, oil and gas technologies; and systems analysis and industrial design

18. Return migration rate of PhD students in the US after graduation (2001) Finn (2003)

19. Chinese ‘Sea Turtles’ (haigui) Rapid development of Chinese economy attracts Chinese managers and graduates from abroad Those return migrants are attracted both by Chinese government, and private entrepreneurs Sea Turtles understand Chinese culture and know Western habits: they constitute specific ‘bridges’ which help in overseas expansion of Chinese businesses Moreover, they are offered higher wages and better job prospects. Many of sea turtles have reached career ceilings in the West

20. Chinese nationals returning from abroad Wall Street Journal (2014)