China´S Reverse Brain Drain

CHINA´S REVERSE BRAIN DRAIN

EXECUTIVE SUMMARY

China is now repatriating talent for around the world in order to reach their objective to become the first economy of the world by 2020. Until the 1990s, there was a massive leak of talent from China because the political situation and the low opportunities in the country. But now, as they are close to become the most powerful country in the world, talents are coming back because they see a lot of opportunities for their development.

In this essay we will take a look of the situation in China before the 1990s, how it grew in the last two decades and the government plan to get back the talents to face the next decade.

Finally, we will show our own conclusions.

INTRODUCTION – BRAIN DRAIN

During the 1980s, a lot of Chinese students decided to go to college outside China, because of the situation in the country: political instability, very little opportunities, lack of freedom, etc (See table 1 to get the whole ranking of reasons). Most of this students never came back to China and, most of all, did wonderful achievements abroad, even winning Noble Prizes. They were much esteemed and this made them to stay abroad (see table 2 for the amount of Chinese students in the US) for good. This was called the Brain Drain.

But in 1990s, the Chinese government began a change in their economic policies and other state reforms, in order to become an open market country and have the highest GDP growth rate in the world.

CHINA´S DEVELOPMENT FROM 1990 TO 2010

In the 90´s the Chinese economy regained momentum. In 1992 there were made some political pronouncements to give more push to the economic reform. The main goal was to create a socialist market economy in the 1990s. During 1993, there was a process of increasing prices and therefore, inflation, which led the state to reinforce control over the financial system by increasing interest rates which made inflation decrease from 17% in 1995 to 8% in 1996.

During the next...