َThe paradox of citizens residing abroad lies in its dual impact: on one hand, it can render a country weakened due to brain drain, loss of skilled professionals, and youth as a workforce, while on the other hand, for some developing countries, the remittances sent by their citizens abroad constitute a significant inflow of capital, even becoming the primary source of revenue for some. According to the World Bank’s report in 2023, these remittances, totaling $669 billion globally, play a crucial role in many economies. Here, by remittance, we refer to the money sent by immigrants, specialists, and expatriate workers to their home countries. This non-commercial transfer is mostly utilized to support dependents, purchase necessities, or for savings within the country. However, in some cases, capital transfer also occurs, where individuals who once left their home country return after years with substantial amounts of money, skills, and valuable connections, investing in the country. It’s worth noting that not all forms of capital transfer are considered remittances. This type of money transfer (remittance) is on the rise, with a 3.8% growth in 2023 compared to the previous year. However, this growth is not uniform worldwide. Latin America experienced the highest growth at 8%, followed by South Asia at 7.2%. The Middle East and North Africa witnessed a negative growth of 5.3% in remittances (money transfers by foreign workers to their homeland), while it was 1.4% for Central Asia.
The United States stands as the largest source of such remittances, with $79.5 billion leaving the country in 2023. Following, Saudi Arabia with $39.5 billion, Switzerland with $31.35 billion, and Germany with $25.6 billion rank next in line.
Among developing countries, India leads with $125 billion, followed by Mexico with $62 billion, China with $50 billion, the Philippines with $45 billion, and Egypt with $24 billion as the largest recipients of foreign remittances. Pakistan $29.9 billion, Bangladesh $21.5 billion, and Nigeria $20.1 billion also feature prominently as major recipients.
In terms of countries most reliant on remittance inflows, Tajikistan tops the list. The remittances from its citizens abroad constitute 51% of the country’s total Gross Domestic Product. Following are countries like Tonga (44%), Lebanon (36%), Samoa (34%), Kyrgyzstan (31%), Gambia, Honduras, El Salvador, and Nepal among the leaders in this regard. Indeed, for many countries, the revenue generated from remittances is vital for the survival and relative comfort of a large portion of families, without which, their governments might face bankruptcy. Consequently, some countries including India, Bangladesh, China, Mexico, Syria, and Taiwan have dedicated ministries for their expatriates. These ministries are tasked with engaging with resident expatriates and providing necessary consular facilities and other services.
It is said that remittance inflows to developing countries have surpassed the sum of foreign direct investment and foreign aid in recent years, with this difference increasing annually. It is expected that some countries will utilize this option to reduce their foreign debts.
Afghan migrants, predominantly driven by poverty, insecurity, and political constraints in their country, play a crucial role in providing financial assistance to Afghanistan. According to the World Bank’s report in 2020, the amount of money sent by Afghan expatriates amounted to over $788.9 million, equivalent to 4.8% of the Gross Domestic Product. Afghanistan ranked as the fifth-largest recipient of remittances in South Asia relative to its Gross Domestic Product that year. However, following the Taliban takeover in 2021, the mentioned amount significantly decreased to $300 million (1.5% of Gross Domestic Product). The following year, this figure slightly increased, reaching 2% of the Gross Domestic Product. Afghan nationals working in countries such as those surrounding the Persian Gulf, Pakistan, Iran, Europe, the United States, and Australia have been sending money to their families, relatives, and friends in Afghanistan for years. According to a survey in 2016, remittances from abroad constituted the livelihood of one-tenth of Afghan families, meaning at least 10% of the country’s population relies on remittances from Afghan expatriates.
Aside from the abundant influx of remittances benefiting countries on the development path, another issue that poses a disadvantage to these nations is the migration of educated individuals, scholars, and professionals from one country to another. This phenomenon, often referred to as brain drain, has negative economic and social implications for developing countries. The emigration of educated and skilled individuals from underdeveloped countries to more advanced ones poses a significant setback and hinders progress in economic and other vital sectors since human resources play a pivotal role in development and sustainable growth.
The Global Economy database has researched and ranked the issue of elite emigration. In this ranking, a score of 10 is assigned to countries with the highest level of elite migration, while a score of zero is given to countries with the lowest elite migration. In 2021, out of 173 countries, Samoa ranked at the top with individuals at 9.9%, while Australia ranked at the bottom with a score of 0.5. According to this report, in 2021, the average brain drain among 173 countries was 5.25, and Afghanistan ranked third among Asian countries with a score of 7. The first and second positions in that year were held by Syria and Palestine. Unfortunately, Afghanistan’s position in this ranking is very high, and it faces more brain drain compared to all its neighboring countries. In 2022, brain drain from Afghanistan increased further (8.5), placing our country second among Asian countries. In Asia, only Palestine is in a worse situation than Afghanistan. Among countries worldwide, our country ranks ninth in terms of brain drain.
The reason for this increase in the brain drain rate has been the rule of the Taliban. A large number of media employees, government officials of the Islamic Republic, university professors, employees of foreign institutions, and civil activists have left the country due to the rule of the Taliban and the discrimination, restrictions, and injustices that the group imposes on various segments of society, and they continue to leave. The brain drain contributes to the continuation of the current disastrous situation.
It should be noted that for some countries on the development path, which are better positioned in terms of scientific knowledge and have skilled personnel, the emigration of brains can also have positive outcomes. On one hand, it provides a larger global market for employment opportunities for the human resources of these countries, and on the other hand, the extensive and enduring presence of these individuals leads to the transfer of experiences and technology to the country of origin. Additionally, these individuals indirectly serve as cultural and political ambassadors for their countries and societies abroad, contributing to increased cultural influence and securing political relationships globally in the long run. Especially if these elites become prominent figures in industrialized countries, they will undoubtedly benefit their home countries. India is a successful example of such countries. The Vice President of the United States, the President of the World Bank, and senior executives of several major American companies are of Indian origin. Some prominent artists, journalists, and writers in the Western world also have Indian roots. The current Prime Minister of the United Kingdom and the former Prime Minister of Portugal are also of Indian descent. It is said that about 200 individuals of Indian origin hold leadership positions in 15 countries worldwide, and out of this number, 60 are present in various cabinets of different countries.
As a result, it can be said that migration, especially the migration of skilled professionals and skilled labor from poor countries like Afghanistan, has benefits, but its harms to the economy, politics, and society of the country outweigh its benefits. The benefits of this migration can be significant only if there is a functioning government and institutions within the country and they can capitalize on the presence of skilled labor abroad. Among these, the transfer of technology and knowledge is considered the most significant positive aspect of elite migration. Experts assist in transferring knowledge and technology from advanced countries to developing or underdeveloped countries. As mentioned, this can only happen if expatriate experts are in contact with their counterparts within the country and with private and public institutions in their home country. Many times, these experts return to their home country after a while and contribute to the progress of their countries through investment, business creation, and scientific and technical innovations.
However, the most immediate and widespread benefit of this migration is the increase in foreign income for the countries of origin through sending money to families. As we mentioned at the outset, Afghanistan and some countries in the region heavily rely on this for their citizens who have gone to other countries for work, residency, or investment or have settled there permanently. However, in the long run, these financial benefits are much less than the harms caused by brain drain. The migration of skilled and talented individuals to advanced countries can lead to a shortage of skilled labor in the countries of origin. The migration of skilled and expert personnel, and in general, capable human resources, exacerbates the shortage of effective human resources and exacerbates economic and social crises within the country, especially if this migration is widespread and accompanied by oppression and the consequences of imposed deprivation in the country of origin, as has been repeated many times in Afghanistan over the past five decades and has reached its peak again after the resurgence of the Taliban to power.
You can read the Persian version of this analysis here:
