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Reverse Brain Drain to Developing Economies

Discussion in 'World Economy' started by santosh, Apr 12, 2014.

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  1. santosh

    santosh Major SENIOR MEMBER

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    naah, not exactly. India is a country of 350million Middle Class only, as discussed in the post#52. they have to reduce population..... :tup:

    here i think my post as below may also have a place here :tup:

    =>
    Population based on “Resource Sufficiency Evaluation” is Crucial | Indian Defence Forum

    Few Key Points I always mention on this Topic as below:

    these are my own ideas so it does require criticism by other members to make the topic interesting :tup:

    1st; if the poor of India ask the Western nations to share the burden of subsidies then they will simply kick these shiits of India, isn't it? and if its only Indian Middle Class who is generating money and running government and also paying heavy price for the welfare/subsidies for poor, then they do have a right to ask the Indian Government, "to what extent they will have to bear this burden of tax just to feed poor, and whether they will remain capable enough in future also to bear this burden on long run if the government doesn't control the population?????" :facepalm:

    like the news as below, around 50% indian population is based in agriculture only, around 600mil, while even 200mil population may produce the same agriculture output? and the same in cities of India, around 50% people just try to earn a decent salary which they can't, simply because too many mouths and limited resources. and Indian Middle Class is just paying high price to feed these around 600mil 'excess' population, but still there is no effort to have a control on this growing population????

    2nd; here for example of Pakistan and Bangladesh, right now overly populated Pakistan is full of target killings, simply because too many mouth and no resources to feed them. its also similar to 'genocide' itself?????? and Bangladeshis just want to run from Bangladesh, mainly to India. its the worse to see people dying without dignity than controlling population by force........

    3rd; many economists of India advocate "food security"/ "free medicines"/ "right to get a job" etc in India which is not possible until the Indian government may control its population. they simply can't feed 1.2bil population from the limited natural resources they have . USA is 3 times bigger in area than India but population of India is 4 times to USA? and on the top of that, Indian government wants to give welfare/ heavy subsidies to its people? if India face a sudden fall like ASEAN in late 90s and South America like in 80s, all these they will have to withdraw after that so better they keep habit to live in less and get rid off the unnecessary subsidies/welfares . for example, we always find Pakistan increasing petrol and diesel prices as per market prices as they can't afford to give subsidies while the people of Pakistan are poorer than India, but Indian government always hesitate to do so? but the day India will reach level of Pakistan, just one good economic fall is required, and India will learn all by themselves. :wave:

    4th; here we have report from world bank that around 60% people of India are living with income less than $2.0 per day, as below

    here, how is it wise to have high population if you can't give them good life? how is it advisable to have more population this way??? :facepalm:

    => Poverty headcount ratio at $2 a day (PPP) (% of population) | Data | Table

    5th; Population of India was hardly around 341 million at the time of freedom, in 1947, and we can't have more than 700 million people, and we need a national consensus on it. :india:

    and as Overpopulation of India is directly related to consumption of natural resources of the world, high pollution and hence Climate Change due to high consumption of energy. reduced water level has also been caused in India due to the same high population and hence high demand reasons, hence India is directly answerable to the rest of the world about the measures it is adopting to reduce its population to 700 million, say by 2050
    :india:

    we can't let India become one of the reason for the destruction of this world, as the Earth belongs to every person of the world, regardless any nationality :nono:

    6th; and here, first there is no control on the population, as much as India can have, and on the top of that, they want to feed them for nothing too :rofl:

    => At Rs 1,25,000 cr, Food Security Bill largest in world: Implementation a challenge, says Morgan Stanley - Economic Times
     
  2. santosh

    santosh Major SENIOR MEMBER

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    duplicate post
     
  3. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    India has experienced extraordinary population growth: between 2001 and 2011 India added 181 million people to the world, slightly less than the entire population of Brazil. But 76 per cent of India’s population lives on less than US$2 per day (at purchasing power parity rates). India ranks at the bottom of the pyramid in per capita-level consumption indicators not only in energy or electricity but in almost all other relevant per capita-level consumption indicators, despite high rates of growth in the last decade.
    Much of India’s population increase has occurred among the poorest socio-economic percentile. Relatively socio-economically advanced Indian states had a fertility rate of less than 2.1 in 2009 — less than the level needed to maintain a stable population following infant mortality standards in developed nations. But in poorer states like Bihar, fertility rates were nearer to 4.0.
    Does this growth mean India can rely on the demographic dividendto spur development? This phenomenon, which refers to the period in which a large proportion of a country’s population is of working age,is said to have accounted for between one-fourth and two-fifths of East Asia’s ‘economic miracle’ as observed late last century.
    But India is not East Asia. Its population density is almost three times the average in East Asia and more than eight times the world average of 45 people per square kilometre. If India has anywhere near 1.69 billion people in 2050, it will have more than 500 people per square kilometre. Besides, in terms of infrastructure development India currently is nowhere near where East Asian nations were before their boom. In terms of soft to hard infrastructure, spanning education, healthcare, roads, electricity, housing, employment growth and more, India is visibly strained.
    For example, India has an installed energy capacity of little more than 200 gigawatts; China has more than 1000 gigawatts and aims to generate 600 gigawatts of clean electricity by 2020. To make matters worse, many of the newly installed power stations in India face an acute shortage of coal, and future supply is not guaranteed. China mines close to four billion tonnes of coal per year, which has a negative effect on both local and global air quality. At some stage, it is probably inevitable that India will need much greater capacity than its present rate of mining 600 million tonnes of coal per year, which is also causing local and global pollution levels to rise — parts of India face air quality problems similar to those in China. On oil, India imports close to 80 per cent of its crude oil requirements, while it also runs an unsustainable current account deficit of more than 5 per cent of its GDP, and reserves for new energy sources like shale gas do not look promising either.
    India’s food supply is in an even worse position. As a member of India’s Planning Commission put it,we have a problem and it can be starkly put in the following way: around 2004–2005, our per capita food grains production was back to the 1970s level. In 2005–07, the average Indian consumed only 2,300 calories per day — below the defined poverty line in rural areas of 2,400 calories a day. The trend in recent years is for Indians to eat even less.
    So, for India, treating lightly Malthusian predictions about food supply until 2050 or beyond may not be prudent. Worldwide food prices have been on the rise to unforeseen levels, and India too has been suffering from high food inflation.
    Finally, even if India manages to feed its burgeoning population, its growth may not be ecologically sustainable. The global demand for water in 2050 is projected to be more than 50 per cent of what it was in 2000, and demand for food will double. On average, a thousand tons of water is required to produce one ton of food grains. It’s not surprising, then, that international disputes about water have increasingly been replicated among states in India, where the Supreme Court is frequently asked to intervene.
    So have the policy responses been proportional to the gravity of the demographic, ecological and developmental problems facing India?
    The probable answer is that policy makers have failed miserably on all measurable counts. If one compares India to China this becomes clear. While China’s one-child policy has been criticised as against human dignity and rights — and there is no denying that such measures should be avoided as far as possible — the history of human civilization teaches us that extreme situations call for extreme actions. There will be ample time for multiple schools to have their post-mortems on the success and failure of the one-child policy, but it has helped China to control its population by a possible 400 million people.
    The US Census Bureau estimated in 2010 that China will hit its peak population of 1.4 billion in around 2026. China’s fertility rate has been lower than the replacement rate for more than two decades now. That means the one-child policy will have taken nearly 40 years to stabilise or reverse China’s population trend. How long will India take to get to that stage?
    There is a distinct possibility of irreversible and unsustainable population growth and big question marks remain over how India will provide nearly 1.7 billion people with their basic minimum demands. In this environment to raise an alarm that turns out to be false is better than relying on comfortable slogans like the demographic dividend. The longer India delays acknowledging the severity of these problems and dealing with them head on, the graver the consequences are likely to be.
     
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  4. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    In the next 50 years India is going to add another billion people half of whom are going to have an IQ of 80 or less and about 2000 people per every square mile.



    Mental Retardation begins in childhood or adolescence before the age of 18. Inmost cases, it persists throughout adult life. A diagnosis is mental retardation ismade if an individual has an intellectual functioning level well below average, aswell as significant limitations in two or more adaptive skill areas. Intellectualfunctioning level is defined by standardized tests that measure the ability toreason in terms of mental age (intellectual quotient or IQ). Mental Retardation isdefined as an IQ score below 70-75. Adaptive skills is a term that refers to skillsneeded for daily life. Such skills include the ability to produce and understandlanguage (communication); home-living skills; use of community resources;health, safety, leisure, self-care, and social skills; self-direction; functionalacademic skills (reading, writing, and arithmetic); and job-related skills.In general, mentally retarded children reach such developmental milestones aswalking and talking much later than the children in the general population.Symptoms of mental retardation may appear at birth or later in childhood. Thechild's age at onset depends on the suspected of the disability. Some cases of mildmental retardation are not diagnosed before the child enters preschool or kindergarten.These children typically have difficulties with social, communication, andfunctional academic skills. Children who have a neurological disorder or illnesssuch as encephalitis or meningitis may suddenly show signs of cognitiveimpairment and adaptive difficulties.Mental Retardation varies in severity. The
    Diagnostic and Statistical Manual of Mental Disorders,
    fourth edition, text version (DSM-IV-TR), which is thediagnostic standard for mental health care professionals in the United States,classifies four different degrees of mental retardation: mild, moderate, severe, and profound. These categories are based on the person’s level of functioning.
    Mild mental retardation
    Approximately 85% of the mentally retarded population is in the mildly retardedcategory. Their IQ score ranges from 50-70, and they can often acquire academicskills up to about the sixth-grade level. They can become fairly self-sufficient andin some cases live independently, with community and social support.
     
  5. Gessler

    Gessler BANNED BANNED

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    You have a problem with Indians, I presume?

    Infact I think you have a problem with everyone who is not American.
     
  6. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    None at all, no one seems to have a problem pointing American problems, they should not have a problem with some on pointing out Indias problems.

    As a fact India's problem is America's problem since hundreds of millions of Indians want to come here.
     
  7. forjeet

    forjeet Lieutenant FULL MEMBER

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  8. santosh

    santosh Major SENIOR MEMBER

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    Younger CEOs paid more in India than US

    MUMBAI: A new breed of younger Indian CEOs is rewriting the rules of the compensation game. In the process, they are topping their American and European peers to stand out as the highest paid executives globally, something which was once the exclusive preserve of executives from companies based outside India.

    The average annual salary for an Indian CEO below the age of 50 years now stands at Rs 7.9 crore. Compared with the Rs 7.3 crore that American corner office occupants earn and Rs 7.8 crore pocketed by European bosses, it highlights the rising salaries of younger CEOs, especially in promoter-run firms in India.

    Younger Indian CEOs may have stolen a march over their global peers in the salary sweepstakes but overall, Indian CEO salaries are substantially lower than their international counterparts. This was revealed in a study by global recruitment firm Randstad, which was commissioned by TOI to compare the differentials that exist between salaries of Indian CEOs vis-a-vis their western counterparts.

    The compensation of Indian CEOs, though growing sharply, is still 45% lower than their American peers and 21 % lower than European CEOs. However, the gap in salaries when compared to European CEOs is shrinking faster, especially in the manufacturing, energy and infrastructure segments, the study points out. Indian CEOs received an average salary of Rs 6.3 crore.


    The study is based on conversion of international salaries to Indian rupees by applying a Purchasing Power Parity (PPP) conversion factor of 20.224. This basically means that the exchange rate is adjusted so that identical goods in two different countries have the same price when expressed in the same currency. As a representative sample, Randstad took into consideration companies that form the BSE100 (for India), FT100 (for Europe) and S&P100 (for US) indices as of August 20, 2012. All long-term benefits like stock options were excluded.

    "With current levels of inflation, and if India's GDP shows higher growth, the gap between salaries in India will come closer to the levels of the western world. The younger Indian CEOs are compensated better, because there is a higher concentration of promoter CEOs in this group. We can see that in sectors like manufacturing, energy and infrastructure, first-generation promoters are passing on the CEO mantle to their heirs and other family members," says Balaji E, MD & CEO, Randstad India.

    However, the trend of promoter CEOs earning more than professional CEOs is not restricted to the younger lot. Across India Inc, promoter CEOs earn 53% higher than professional CEOs, the study revealed.

    While professional Indian CEOs still need to catch up with their international peers, the gap in the average salary is highest in the information technology, telecom and communications, finance, retail, media and entertainment sectors, closely followed by the consumer goods industry. In the manufacturing, energy and infrastructure segments, the compensation of Indian CEOs is at par with the European CEOs due to the higher concentration of promoter CEOs in these two segments.

    "Today, more and more Indian CEOs get compensated at world-class levels. This trend is driven by several factors. Firstly, it speaks of the professionalization of management and secondly, the most critical constraint to growth is the availability of general managers. It is just pure supply and demand. Finally, professional managers have a considerable set of opportunities to choose from. The broad implication is that, going forward, India cannot become competitive by playing cost arbitrage but has to master the innovation game," says Vijay Govindarajan, professor at Tuck School of Business at Dartmouth College and a part of the celebrated Thinkers 50 group.

    Some Indian executives, however, think that the differences in the way salaries are structured for Indian CEOs compared to their western counterparts would continue for a while. "There is a difference between CEO compensation in India as compared to the US and Europe. American CEOs, in particular, and businesses have much greater risks attached to them. The stress that leaders undergo makes them demand far greater compensations whereas in the Indian context, the time lines for performance and the risk factor is much lesser," says Hari T, chief people officer at IT services major Mahindra Satyam.

    Indian CEOs from the manufacturing segment earned the highest at Rs 8.7 crore, followed by CEOs from consumer goods with an average salary of Rs 5.6 crore.:coffee: The other significant point to have emerged from the study is that private sector CEOs are compensated 21 times more than public sector CEOs. With an average salary of Rs 6.3 crore, private sector CEOs are compensated far better than their public sector counterparts, who earn an average compensation of Rs 0.3 crore. The salaries of CEOs of the public sector do not include benefits and perquisites provided to those in the private sector.

    Rajeev Chopra, CEO and MD, Philips Electronics India, is more pragmatic and refuses to buy into the euphoria over increasing salaries of Indian CEOs. "Broadly speaking, compensation has always been and will continue to be a function of a myriad factors, such as the prevailing salary structure in the country's job market, the specific industry, the business situation a particular company finds itself in, etc. Therefore, clearly, a 'one size fits all approach' has not worked and may not work in the context of global salaries."

    Be that as it may, due to the increasing complexities of Indian businesses, salaries can only go up.

    Besides, comparisons would never cease considering salaries remain the biggest point of discussion across management levels in global businesses.

    Younger CEOs paid more in India than US - The Times of India
     
  9. santosh

    santosh Major SENIOR MEMBER

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    double post
     
  10. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    Kind of doubt India is going to solve their problems by trying to drain brains back in once they have drained them out.
     
  11. santosh

    santosh Major SENIOR MEMBER

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    @Picdelamirand-oil
    @Averageamerican

    in the above news, we have a laughing emotion on the last line, which is because of the comment, "a similar news" :tsk:

    and its because, the above Mr Gowadia wasn't working for Chinese government, he wasn't on a paid job for Chinese government. but he came to US to study and then worked for defence industry of US. and after his retirement, he started his own consultancy company in US itself. and we find, he might be paying tax on his earning to US's government while based there too, including on his earning through the Chinese sources :coffee:

    he wasn't a spy, but he did sell the secrets, even if he himself designed those secrets. and here, how a defence professional was allowed to run an open consultancy company in US?
     
  12. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    He violated the law and is paying the price, helps as a deterrent to the next person that wants to do the same.
     
  13. santosh

    santosh Major SENIOR MEMBER

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    yes thats true. but first question is, 'generally' a defence professional isn't allowed to open any private consultancy firm after his retirement with defence industry's experience :tup:

    @Averageamerican
    @Picdelamirand-oil

    is this B-2 bomber, the first stealth aircraft of USA? :coffee:
     
  14. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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  15. santosh

    santosh Major SENIOR MEMBER

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    NRIs moving from the US to India: How much salary to expect

    That story probably made news only because of its star power. The fact that NRIs from the US are moving back to India is no shocking development. NRIs have, in the last few years, been relocating to India in large numbers, in search of better personal and professional lives. And if you are an NRI considering that move, there is one important thing that you must understand very well: the salary you will get in India.

    Kris Lakshmikanth, Founder CEO of The Head Hunters India Pvt Ltd. says, "When it comes to compensation, we find that NRIs have inflated expectations. They mainly go by hearsay; their friend or friend's friend who returned to India has told them a tall story about Indian salaries. They want to go by that yard stick."

    USD will not convert to INR

    The first thing to remember is that you will not make the rupee equivalent of your US salary in India. The cost of living in India is significantly lower than that in the US. This also means a lower labour cost in India. These factors will determine your India salary. Seema Nair, Co-Leader India HR Operations of Cisco India explains, "The salary in India (for Cisco employees moving from US to India) is related to local labour market wage rates with a potential premium for critical skill sets."

    Achyut Menon, head of Options Executive Search Pvt Ltd also adds, "In the nineties, people who were posted to India got expat salaries. But those days are over. In the last 10 years, India has become an attractive market for global companies who are not just looking to set up offshore centers here, but also to capitalize on the growing, educated and highly aspirational middle class consumer segment. Added to that is the availability of skilled labour within India itself. Companies no longer need to pay expat salaries."

    Benchmark: What then should be the broad benchmark?

    Both Lakshmikanth and Menon say that while there cannot be a standard formula, the Big Mac Index is a good guideline to calculate salaries. The Big Mac index published by The Economist, is based on the theory of purchasing-power parity (PPP), according to which exchange rates should adjust to equalise the price of a basket of goods and services around the world. The basket in this case being a McDonald's Big Mac.

    Now according to the last available index dated July 2011, a Big Mac costing USD 4.07 in the US costs USD 1.89 in dollar terms in India (Rs 85 converted at an exchange rate of Rs 45). It means that the Big Mac costs 54% less in India; the cost of living is 54% lower in India. Read another way, this means that the rupee is undervalued by 54% to the dollar and that on the basis of PPP, one dollar would actually be worth Rs 21 instead of Rs 45.

    So if you are drawing a salary of USD 100,000 in the US, you can expect to draw Rs 21 lakh in India, give or take. At an exchange rate of Rs 45, that would translate to an Indian salary of USD 46,666 or 46% of the US salary. :coffee:

    "Senior management can expect anywhere between 40% and 70% of their last drawn US salary when they move to India," Menon explains, adding, "At the 70% end would be people who have moved to India to set up a development/ engineering center or to head the global company's India start-up."


    Best career move

    Having set that broad benchmark, the salary would also vary between industries and functions. You would need to choose your profile and company carefully to maximise your salary.

    "Manufacturing would pay less than technology. Within technology, we find that delivery of software is something which Indian companies have become masters in. They don't need to employ people from overseas. In fact, such people from the US are paid less than the person who stayed back in India because those returning from the US have handled fewer people teams as compared to peers in India," Lakshmikanth points out. :cheers:

    Similarly, domestic Indian companies do not usually recruit NRIs for strategic positions if the NRIs are not familiar with the dynamics of the Indian market and work place.

    As an NRI moving back to India, Menon says it would be best to join a company in the US which has plans to start-up/ expand in India. "A lot of US companies across sectors like engineering, legal, analytics, financial services, pharmaceuticals are setting up operations in India. :cheers:

    These companies are happy to send an Indian to India who also has experience of their other markets.
    The employee benefits because he can grow with the company's operations in India. In the beginning, the company will set up a 30-40 staff office and expand going forward. As a member of the start-up, the employee grows as the company grows, making it a win-win for both" he explains.

    Parting shot

    "At the end of the day, come back to India for the same reasons you went abroad: for personal and professional growth and happiness. Come with a long term view in mind and you won't regret it," Menon advices.

    (The author is a chartered accountant and financial writer. She also blogs at blogs.economictimes)

    NRIs moving from the US to India: How much salary to expect - Economic Times
     
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