Topics: Government, Foreign policy, Policy Pages: 4 (1342 words) Published: February 24, 2013
How do the governments of India and China deal with ‘reverse brain drain’?

As stressed, one can notice a ‘reverse brain drain’ in both China and India. This development has several causes like the economic development in these countries. On top of this governments play an important roll in stimulating this ‘reverse brain drain’. They apply several policies like changes in the domestic environment, the freedom to immigrate and emigrate freely, political stability, and changes in how the government uses people. In both India and China one can notice these governments policies to stimulate this process (Saxenian, 2005). In this chapter policies for both countries will be stressed.

Chinese government policies
In first place there are indirect government policies to attract high skilled Chinese and foreign MNCs. One of these policies is shaping the country’s industrial development by technology transfer, taxation etc. In fact, many of the early and today leading ICT enterprising were started up by local governments. This started in the early 1990s. Because of China’s growth and further government policy liberalization, the country became very attractive for foreign MNCs who established themselves particularly in Beijing’s Zhongguancun area, where many government and elite universities are settled. The first high skilled Chinese to return to their mother country were actually employers in many of these MNCs. They were trained by these MNCs to work in their Chinese operations (Kenneya e.a., 2012). Regarding ICT, a primary government goal has been to encourage indigenous technology development. There has been little incentive for MNCs to transfer their most advanced technologies to their Chinese operations, and the Chinese government instead has sought to invest in local companies. By the late 1990s and 2000s, it had become increasingly clear that relying on MNCs as a source of technology was an unsustainable strategy for economic upgrading. So the country has to...
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