Tuesday, October 29, 2013

BRAIN DRAIN TAXATION POLICY

                 Immigration comes along due to Push and Pull factors. Pull factors include economic such as high standard of life, and push factor are mostly social and political.
            Without mention the exact numbers of immigrants in different regions, the fact is that, there areas a huge number of immigration being taking place in the World. As we saw in class, the movements of these people have always been advantageous as well as have disadvantages in the country of origin and in the Country of entrance.
            This immigration comes along with both, skilled and unskilled work force that move out of their country of origin due to different ways, either legally or illegal. The entering in the skilled labor of the immigrants may due to schooling in the home country, or coming while already having their career in certain field and go seeking for a good pay, leaving their home country that provided for such knowledge but low pay. This in short affects the home country and benefits the foreign country in general avoiding the unskilled work force that losses job due the coming of the new cheap labor force. And in fact, all the employers of the companies seek cheap labor to minimize cost, so the incoming of the people who seek jobs who come to seek high pay compared to home, are employed even if in a low figure pay so long as they are above their home country. So, according to Bhagwati and Dellalfar in 1973, this skilled labor force that comes, benefits the foreign country and it can leads to economic inequality, and so they proposed a tax income for the professional immigrants particularly for benefiting their original country, whose man power was shipped, technically known as”Brain drain”.
            Therefore, my argument here is that, really the immigration makes some of the countries lose their skilled labor because of the pull of good pay in other countries and this makes those countries in one way or another lag behind in pursuing economic standing and in far touch leads to lose of jobs of other people in the country they go.

            So, my questions are, is this taxation solution to free movement of immigrants? Is this free hiring of the foreign work force really negatively affects the home country, so legalize taxation to boost the economy of their original countries? Also, will the greedy leaders not use this opportunity to ship skilled workforce for their benefit?

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