Kyiv, September 22. Tthe emigration of highly qualified personnel from developing countries allows these countries to cooperate with developed countries and contributes to economic growth. “Brain drain”, however, may deprive the developing countries of their most valuable human resources, since the brightest and most talented people are usually the ones who are taking the risk, shouldering the responsibility, and leaving their countries. This statement was made by Natalya Izosimova, Director of the Foundation for Effective Governance (FEG) during the debate “Emigration of skilled labour is good for Ukraine's economy”. The event was organized by the FEG in partnership with Britain-based Intelligence Squared.

“In general, the positive effect of emigration can be achieved by the efforts of diasporas and the so-called ‘circulating migration’, when, after working abroad, people come back with new resources, skills and connections. This has been proven by the experiences of Israel, Taiwan and China. That is why the government’s primary task is not to try to keep the best representatives of each generation within the country, but rather to create the conditions that will encourage these people to come home in the future”, she said.

According to Ms. Izosimova, migration is one of the most important factors to consider for the economic reforms in Ukraine: “The government’s policy must focus on attracting those in the middle class who are educated and interested in new opportunities. This lies at the root of success in implementing reforms in our country. However, these reforms are being introduced by authorities who do not have enough people with definite skills, experience and culture. That is why the problem of ‘people as conductors and recipients of reforms’ is among the most complex on our agenda.”

During the debate, advocates for the emigration of skilled labor highlighted how Ukraine may benefit from this phenomenon.
“This may lift off the economic burden”, said Pawel Kaczmarczyk, deputy director of the Center of Migration Research at Warsaw University. “For example, saturation of the labor market is a serious block along the development road. Money transfers may be a source of finances needed for economic development. Moreover, even in the case of constant migration, the potential ties with the diaspora can boost the economy.”

Avetik Chelabyan, partner at McKinsey&Company, noted that in the mean time the brain drain from any developing country is inevitable and can hardly be stopped by one country alone. He also supported the belief that the circulating migration can yield positive results.
“The most successful developing countries were able to turn their brain drain into a continuous brain circulation. These countries reap enormous benefits from faster integration with the world economy through fostering healthy flows, both in and out. The loss turns into a long-term success, when there is a vision, patience and caring. With the right vision, Ukraine should also turn the loss into a real success”, he explained.

However, the speakers who argued against the brain drain claimed that Ukraine suffers from intellectual loss that can never be compensated.

“The most intelligent and educated people leave the country, and they can hardly be substituted”, said Eduard Rubin, CEO of Telesens International Ltd. “This results in the degradation of the nation. People will only return if they feel they will be able to go to the right place.”
Ella Libanova, Director of the Institute for Demography and Social Studies, believes that another side of this problem is the country’s economic losses. The government uses its budget to train qualified specialists, only to see them leave the country before they can return this investment. However, she agreed that temporary migration could have a positive impact on the country’s economy.

“We cannot ignore the fact that globalization shapes a certain transnational labor market. It is indeed important for highly qualified specialists to work in different segments of this market, gaining an opportunity to exchange knowledge and accelerate its application. Consequently, temporary or the so-called circulating migration definitely brings forth positive results for a donor country”, she noted.

About the debates
The debate “Emigration of skilled labour is good for Ukraine's economy” which was held on September 22 in Kyiv is already the sixteenth public debate in Ukraine carried out in the Oxford Union style. The event was organized by the Foundation for Effective Governance in partnership with Britain-based Intelligence Squared. In 2009-2010, the Foundation held a series of debates (debaty.org) on reforming Ukraine’s economy. Debate participants discussed such important topics as agricultural land market, tax reform, Russian-Ukrainian relations, competitiveness of Ukrainian higher education, economic expedience of special economic zones, innovations and new technologies, and the country’s tourism potential.

“The goal of debates is to arrange an informative and efficient conversation on those issues of Ukraine’s economic development on which we do not have a clear and simple answer. At the same time the debates are important both for the present and the future of Ukraine”, states Natalya Izosimova, Director of the FEG. –“However, for us the process of discussion is as important as the content. We’re trying to ensure that arguments in favor of opposing opinions can be expressed in a constructive manner, and that the opposing opinions can be heard.”
A partner of the Intelligence Squared Nick Pisani is confident that such debates can attract attention of the public to culture of political discussions. “The debate helps present and, more importantly, future generations of decision-makers think and act in a different way,” he says.

Profile of FEG
The Foundation for Effective Governance (FEG) www.feg.org.ua was established in 2007 by Rinat Akhmetov with a mission to develop and implement long-term projects and programs which encourage the long-term economic development of Ukraine. FEG is committed to help reach public and political consensus on the key areas of the economic transformation programs.

To reach its objectives, the Foundation attracts leading Ukrainian and international experts with impeccable reputation. An Advisory Board, which includes famous public and political figures from different countries, ensures the Foundation’s independence. Among the board members are former Canadian Prime Minister Kim Campbell, former president of the National Bank of Hungary György Surányi, and General Director of the Ukrainian office of the International Investment Bank Morgan Stanley Igor Mityukov. The International Advisory Board takes an active part in building the Foundation’s strategy, selecting the priority projects and representing FEG both inside and outside Ukraine.

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