Hi,

http://www.people.hbs.edu/mdesai/publications.html  

I started off to  challenge a Harvard MBA prof's article on how he thinks 
Indian economy was adversely affected when bright young Indians turned up in 
huge numbers in 1990s on H1B visa and post Sep11, 2001  many agencies including 
ILO, DFID (UK) and Harvard's prof's Desai and Kapur and many other US based 
so-called Indians sought to show what they think of it - negative of course.
http://www.ilo.org/public/english/protection/migrant/projects/skillmig/index.htm
All articles about India are researched by so-called Indians or Indian origin. 
Maybe they were under some pressure.
http://www.ilo.org/public/english/protection/migrant/projects/skillmig/index.htm
ILO/DFID 2002

Perhaps they wnated to show they are more Americans than the rest , thus, the 
sudden surge in research on how harmful it is for brown skinned young men to 
come to US - not for US but for India etc . Ofcourse, it might remind some of 
the 1880s US  and Canadian policies preventing East Asians of emigrating to 
these nations - through specific treaties to that effect. Following these 
researches US H1B quota got slashed to a third of its then level - so in 2003 
it dropped from 195,000 to mere 58,000 (another 7,000 reserved for Chile and 
Singapore guys )

Lost Focus:

After reading his artcile I lost focus on what I was planning to say. He seemed 
to be on another planet in another galaxy and which was maybe in another 
universe.So first my rebuttal  or  opinion  on what I thought was the issue.  I 
thought the issue was like all doctors and nurses leave India and come to the 
US/UK then Indians would die of disease or that all the teachers come to the 
developed countries then children would become illiterate - or something like 
that 

Such issues were raised before Bill Gates in 2007  in a US  Congressional 
meeting  on how to make US strong in  technology and  the role of skilled 
workers from abroad.  He said that few doctors actually turn  up from abroad  
and  are helping  design new treatments etc  or transmitting nowledge  back  
home helping patients etc worldwide (including their homeland) .  

KILLER ARGUMENT AGAINST BRAIN DRAIN

That makes sense  since the business model is - get top skilled guys from 
everywhere  (or wherever) and design world class products or services in US and 
sell/market in all nations including developing nations. On that front US is 
having strange policy of allowing Green Card straightaway to foreign nurses - 
but not to engineers . Figure out the reasons. One of my ex-roommates in Boston 
(Harvard area) was civil engineer from Uganda who became a nurse - to get high 
pay and Green Card -after clearing the licensing exams. He asked me to do the 
same - but then what use of getting a Harvard degree in education.

KILLER ARGUMENT KILLED

Now that could very well be a killer argument - that skilled workers leave 
India and not enough are left Indian economy might suffer - but skilled workers 
(like Indian population) are a trainable resource and with Right To Education - 
that trainable pool of wo/manpower  is likely to ensure that India is not going 
to run short of nurses, doctors, teachers, engineers and most other guys and 
gals. What India might need is to recall all the top US profs at Harvard, MIT, 
including Amartya Sen the Nobel Laureate (of Indian origin), so that they can 
teach at Indian univs and act as role models therein :-) .Even the second 
generation Indian Americans should be asked to contribute to the development of 
the land of their fathers and mothers and all previous forefathers (maybe 
including Harvard Prof Desai).

 Of course, many would back out. On the other hand, many skilled workers are 
becoming truly global - just like first Americans in 1700s and 1800s became 
integrated to European economy during the 20th century (incl during the World 
Wars and beyond). Having set up back office operations first in India and now 
throughout the globe  they are  benefiting  the land of their origin. Global 
communications and travel  are increasing  at an increasing rate - thus old 
assumptions that once an Indian leaves India s/he is gone for ever. That is as 
false as saying that any UK/UK citizen expat in an overseas position will never 
return.


DESAI's ARGUMENT

Now what flummoxed me is that his argument was totally on a non issue. He never 
discussed what mighthappen to Indian scene - whether there will be anarchy or 
lack of essential services etc. He never said that because of Brain Drain 
Indian economy would not grow because its brain power is reduced. He based it 
on a completely off the topic issue. 

He said that because these guys and some gals selft for foreign shores (he 
specifically singled out NRIs in USA) India loses tax revenue to the tune of 
).58% of its GDP (basing his argument on the fact that NRIs in US though only 1 
million [as per him] earn ten percent of what billion strong Indians earn in 
India. It is always damaging to have a narrow perspective - but if one has 
never worked in India and never paid taxes there one can never know how paltry 
are Indian salaries and how difficult it is to get jobs in India since for 
every job there are so many more applicants, 

CALCULATIONS WRONG
Thus, his calculation that if an NRI were back in India his/her tax amount 
would be one third of that s/he pays in the US. He also takes into account the 
lifestyle of that individual in US and similar one in India. Off the cuff I 
would say that to maintain similar lifetsyle (ofcourse you cannot have same 
quality water or air or aircondtioned bungalows) you would certainly need to 
earn more n India - if you were settled in the US for long. But if you were 
here for less than 7-8 years you would be hand to mouth - compared to lifestyle 
back in India. I know guys and gals who worked with Infosys, Tata Consultancy 
Services and Wipro in India - who after two years got Rs3 lakh per annum or 
US$7,000) , which is one tenth of what the get in the US - at the minimum 
prevailing wage rate in the US.

Anyway, even if these guys were earning in India as much as they are earning in 
the US so what!!?  SO what India if not getting their tax revenue (the learned 
prof even asks India govt to tax the NRIs (see Sep 2004 article - thats when I 
came to US/Harvard http://www.people.hbs.edu/mdesai/publications.html ) . There 
are scores of others who are taking there place and new people are getting jos 
-- decades of under-employment is getting abolished ( I wonder if has read 
anything on Indian economy's under-employment - must have since he was a 
Fulbright scholar to India - but perhaps Indians did not treat him well there)

I think there is no reason to go on - there is nothing left to argument 
against. 
Assam should have more skilled citizens/entrepreneurs (not just workers or 
skilled labor as ILO says).

Even Harvard professors at Harvard Business School do not earn as much as many 
of the Brain Drain workers in  other fields such as IT, medicine. That may be 
one reason for the obsession with the salaries and qualifications seen  Desai's 
article -- no mention of Indian economy at all.  Locals against outsiders - 
haven't we seen that in many parts of India - like Maharashtra recently. 
Ofcourse, all fingers of a hand are not alike - as the Indian saying goes.

Any comments

Umesh


PS: The background:
http://hbswk.hbs.edu/item/5888.html

A recent article by Harvard Business School Professor Mihir Desai (a Gujarati 
of Indian origin - maybe migrated from India to US like many 8,000 other 
professors in various  US univs  )  about how  the  emigration or migration  of 
skilled workers in 2001  adversely affected  Indian economy to the tune of 0.5% 
 of India's GDP has made me realize the double edged sword that is 
globalization. One man's meat can be another man's poison.   

As per the logic so great was the exodus that Indian economy did not grow as 
much as it could have - just the same logic given by many communists in India 
and also by India nationalists who promote the age old tradition of 
ex-communicating anyone (including Mahatma Gandhi) for traveling overseas.

 Going abroad is bad -- Desai must know - he hails from the land where Gandhi 
was excommunicated - Gujarat. However, Gujaratis form the largest contingent of 
Indian Americans so perhaps he has a skewed perspective. Maybe from Gujarat too 
many people are migrating westwards - as the saying goes -- If one Patel gets 
the US GreenCard then another 99 follow on it. Patels are from Gujarat - like  
Prof Desai. Gujarat's state capital - Ahmedabad - has one of the the busiest  
US  consulates in India  despite Gujarat  being no center of IT technology . In 
fact, no renowned engg or medical college exists in Gujarat. To be fair 
Gujaratis have not been making beeline for foreign shores recently - but since 
before Mahatma Gandhi have traveled and lived across Africa , Europe and now 
America. 



I just checked Prof Desai's  webpage http://www.people.hbs.edu/mdesai/
He doesn't seem to be biased against Indians, though not an Indian by birth or 
growth. Infact he has only written one paper (actually two - one is to advise 
Indian govt to tax Indians working abroad)   on Brian Drain in his entire 
career  (in 2002) - so perhaps venturing into an area of political economy ( 
his PhD in this field - in international finance)  which is new to him. Always 
good to try new areas. He can also .

      

Umesh Sharma

Washington D.C. 

1-202-215-4328 [Cell]

Ed.M. - International Education Policy
Harvard Graduate School of Education,
Harvard University,
Class of 2005

http://www.uknow.gse.harvard.edu/index.html (Edu info)

http://hbswk.hbs.edu/ (Management Info)




www.gse.harvard.edu/iep  (where the above 2 are used )
http://harvardscience.harvard.edu/



http://jaipurschool.bihu.in/
       
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