Economics developments in Developing country - Essay Example

Developing countries often lack the technical expertise and technological sophistication to match the degree of competitive advantage achieved by thedeveloped countries. It is because of this reason that we witness phenomenon such as technology transfer and outsourcing where there is a mutual swapping of resources between the countries to help each other in developing their internal capabilities. Similarly, developed countries, in order to strengthen and create the skilled labor force in the developing countries, offer scholarships and other study options to the students from South to study at their educational institutions.

The question that whether the students from developing countries should be sent back to their countries after they graduate need to be analyzed from different perspectives. It is often believed that those students, who have graduated from the universities of the developed world, when return to their countries, often find themselves at odds with the society at large. Since these countries are still on the path to economic development, the environment often fails to support the technological skills acquired by these students.

Their potential can be hardly realized and the result is frustration both on the part of the employer and the employed. This is the main cause of the ensuing brain drain that will also damage the economic progress of the country whose students had gone abroad in quest of knowledge.There is another concern that needs addressing and that is the payback of the investment made by the country that has educated the students and raised their educational and vocational level. Philanthropy apart, some benefit should accrue to them as well.

There are two sides to knowledge acquisition. One is to raise the level of understanding by giving an impetus to intelligence through knowledge. The other is using the product of this effort in building careers as well as contributing to economic progress and prosperity. The obvious answer is that these students ought to be retained by the developed nation and absorbed in its workforce as contributors to its economy. This serves both purposes of offering better career options to those who were educated and payback to the country which had been gracious to offer them this opportunity.

No doubt that these students can become the pillars of the economic future of the host country.However one reality that must be stated here is that the global economy depends equally on both the developed and the developing countries. They cannot survive without each other. Therefore if the first world nations absorb all the educated manpower the development in the developing countries would slow down and may even come to a standstill. The result will be that their markets will shrink and their purchasing power will go down.

This will affect International trade which depends on effective partnerships in the supply chain as well as the consumer market that is available in the developing countries. Eventually both countries will suffer.From the purely economic point of view these students should be sent back to their country of origin for two reasons. Firstly they will form the primary gateway for the economic improvement of the industries they are absorbed in. This will raise the efficiency of the local firms and make them more competitive and offer them opportunity of better trade opportunities with the first world.

This will also raise the prosperity level of the local population making them a better market for the products and services of the first world nations. The return of the students after education will therefore be a sound policy for both countries.