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Where the Thunder Dragon Lives: The Case of Human Capital Flight in Bhutan

Subu, Grace
Abstract
Human capital flight (HCF) hinders developing economies striving to escape the middle-income trap by enhancing domestic institutions and improving living standards. Global development literature has focused on creating theoretical frameworks to understand and manage human capital flows. Recent iterations of the human capital flow paradigm have moved beyond the traditional 'brain gain' versus 'brain drain' dichotomy to emphasize the globalized nature of the reciprocity of knowledge and transfer of skill through human capital mobility, highlighting the concept of 'brain circulation.' This paper examines Bhutan's emerging HCF problem as a case study to illustrate these theoretical concepts. Bhutan's unique situation, characterized by self-imposed isolation and limited participation in global markets, provides an exceptional context for observing the interplay of brain gain, brain circulation, and brain drain. This study traces the evolution of Bhutan's planned development policies, particularly in the education sector, from the 1970s to the present. It identifies three phases of HCF in Bhutan: 1) the outsourcing of human capital through globalized education, 2) the outpacing of domestic baccalaureate institutions, and 3) the rise in expatriation. The continuum of HCF in Bhutan is influenced by economic, social, and individual-level factors. Therefore, this case study also includes insights from ten Bhutanese college-aged youth gathered through semi-structured interviews to elucidate the escalating trend of student and professional migration to Australia.
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2024-05-01
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