Chile' Transition to a Knowledge Based Economy Role of Chilean professionals abroad

Draft for comments1

Molly Pollack E.

May 2004

Preliminary draft prepared for The World Bank.

INDEX

I. II.

Introduction High skilled migrants abroad as a key resource of knowledge-based economy 1. 2. The knowledge economy Competitiveness: How is Chile doing? a) Institutional framework b) Human capital, technological innovation and diffusion

III.

A snapshot of Chilean professionals abroad A. Quantification and characterization of Chilean professionals abroad 1. 2. B. Educational profile of migrants Chilean Students abroad

Empirical evidence: survey to a sample of high skilled migrants 1. 2. 3. 4. The survey Main obstacles to collaborate with the home country Required conditions to return Actions to be taken a) Actions to change attitudes b) Actions in the job market c) Actions to make more transparent the supply and demand of high skilled migrants d) Economic context e) Institutional arrangements i) Research institutions and universities ii) Government Main areas Chilean professionals could contribute

5.

IV.

Policy implications 1. 2. Are specific policies required in Chile? Proposal of actions a) Networks b) Improving the job matching process

c) d) e)

Insure workers against instability in job market Enhance opportunities for workers To monitor labor policies, enforce regulations and promote harmonious labor relations

ANNEX 1 ANNEX 2 ANNEX 3

Survey to high skilled migrants from Chile Declaracin de Via del Mar High skilled networks

II.

High skilled migrants abroad as a key resource of knowledge-based economy

1.

The knowledge economy

The knowledge economy is a concept made up in recent years to indicate the importance of learning and knowledge in competitiveness in a global world. The notion stresses the role of knowledge as one of the determinants of economic growth2. Still, for a knowledge economy to be successful, the context where it develops should meet certain conditions. i) ii) (i) (ii) An efficient policy framework and strong economic incentives which induce human capital formation and innovation; A high level of human capital to take advantage of scientific and technological progress; An effective innovation system, which adapts existing innovations to the economy and expands the frontier of knowledge, and A high penetration of information and communications technologies, that reduces the costs of transaction and increases the flow of information.

The Chilean economy is to a large extent based on natural resources, notably mining, fishing, forestry and agriculture (Table 1). Copper accounts for more than 10% of GDP and around 40% of export earnings. Industrial exports are also based on natural resources. Thus, 17% of total exports, and 36% of industrial exports correspond to salmon or fishmeal. Table 1 Chile: Exports of Goods Year 2002 Million US$

Goods

Percentage

Source: Central Bank of Chile

2

For a detailed explanation of this concept see The four pillars of the knowledge economy, Dahlman (2000).

Total Mining Copper Others Agriculture, Forestry and Fishing Fruits Others Industry Food (salmon and fishmeal) Beverages and tobacco Forestry and furniture Cellulose and paper derivatives Chemical products Others (metal, electric, basic industry)

100.0 42 37 5 10 9 2 48 17 4 7 7 8 6

The concept of knowledge economy is more related to how the economy produces, than to what produces. Therefore, the application of knowledge is not only important in hightech sectors, but also is meaningful for the exploitation of natural resources3. The empirical evidence shows that productivity gains from technology are equal or more important in natural resource sectors than in manufacturing, whereas science and technology tend to reinforce comparative advantages. In Chile, the natural resource sectors are to some extent based on the application of sophisticated technology. Chile has boosted productivity and output of these sectors by adapting and improving new technologies. A good example in this regard is constituted by the development of the mining sector, which has been benefited by Australian and Canadian know-how and investments. In addition, the fruit sector s success is explained by the incorporation of adapted foreign technologies to local conditions, by private sector entrepreneurs. The significant growth experienced by both sectors show the importance of innovation and technological development (World Bank, 2003). Despite the successful experience of the Chilean economy, there is still need of further development. Chiles manufacturing valued added per capita, although higher than the regional average, is still much lower than that of the OECD countries. This is partly due to the significance of micro, small and medium enterprises in the Chilean economy. This sector is far behind the rest of the economy in terms of technological development and knowledge formation. In the Chilean economy, high-tech products constitute a low share of total export earnings compared to economies such as Argentina, Mexico and Brazil, and growth is based more on factor accumulation than in innovation in production. Therefore, the Chilean economy is in a stage where it is becoming urgent to start considering the knowledge economy as a priority. This is particularly true if Chile is going to continue growing in a competitive world.

From Natural Resources to the Knowledge Economy (World Bank, 2002)

5

2.

How is Chile doing?

Chile is doing better than most Latin American countries, but still is far behind developed countries. According to the Competitiveness Indices elaborated by the IMD and the WEF, the Chilean economy is in a relatively better position than most Latin American countries, but still far away from developed countries. But the relative position of the country regarding the different components of those indicators varies a lot. This is a very important factor that has to be taken into account, if Chile is going to continue growing in a competitive manner. On table 2 a selected set of factors of competitiveness included in the WEF Report is presented. The selection was made considering those factors more directly related to the knowledge economy. The variables are classified into five categories: macroeconomic environment, technological innovation and diffusion, information and communications technology, institutions and laws, and company operations and strategy.

Table 2 Chile: Selected competitiveness indicators 2002 Indicator Rank Score Meaning of score
Macroeconomic environment
Venture capital availability Access to foreign capital markets Financial regulation and supervision 44 48 19 2,9 6,0 5,7 1=no availability 7=availability 1=prohibited 7=free 1=inadequate 7= world' s most stringent

Technological innovation and diffusion Technological sophistication Quality of scientific research institution Company spending on R&D Subsidies for firm-level R&D Tax-credits for firm-level R&D University/industry research collaboration Availability of scientists and engineers Brain drain 25 43 37 40 53 39 65 11 4,6 4,3 3,7 3,1 2,7 3,7 3,6 5,2 1=lags behind most countries 7=among worlds leaders 1=non existent 7=the best in their fields 1=non existent 7=heavy relative to international peers 1= never occur 7=are widespread and large 1= never occur 7=are widespread and large 1=minimal or non existent 7=intensive and ongoing 1= non existent or rare 7=widely available 1=normally leave to pursue opportunities elsewhere 7= almost always remain in the country 1= limited and usually takes place in less important jobs 7= equal to that of man

Women in the economy

65

3,6

Research and Development Spending Skill based exports

35 65

0,68 1,2

Overall R&D spending as a percentage of GDP Average skill based manufactures exports as a percentage of GDP, 1997 to 1999

Information and Communications technology Speed and cost of Internet access 21 5,0 1=slow and expensive 7=as fast and cheap as anywhere in the world 1=very limited 7=prevasive-most people have frequent access 1=must leave the country to find good jobs 7=have their pick of well-paid, desirable jobs within the country 1=not available 7=commonly available Internet users per 10.000 inhabitants, 2000

Public access to Internet

44

3,4

High skilled IT job market

25

5,3

Government on-line services Internet users

14 30

5,3 1155,3

Institutional framework Property rights 26 5,6 Financial assets and wealth are 1=poorly delineated and not protected by law 7=clearly delineated and protected by law 1=weak or non existent 7=equal to the worlds most stringent 1= usually favor well connected firms and individuals 7= are neutral among firms and individuals 1=lower than the private sector 7=higher than the private sector 1=burdensome 7=not burdensome 1= common 7=never 1=extremely difficult 7=easy Considering licence and permit requirements: what is the typical number of days to start a new firm ((median response)

Intellectual property protection Favoritism in decisions of government officials

33 22

4,2 4,0

Competence of public officials Burden of regulation Irregular payments in government procurement Administrative burden for startups Days to start a firm

66 29 13 41 54

2,1 3,3 6,4 4,4 60

Company operations and strategy Nature of competitive advantage 44 3,1 Competitive advantage of companies is due to 1= low cost labor or natural resources 7=unique product and processes Companies obtain technology 1=exclusively from foreign companies 7= by pioneering their own new products or processes Senior manager positions 1=are often held by relatives 7=go only to skill professionals

Capacity for innovation

37

3,6

Reliance on professional managers

32

4,9

Pay and productivity

20

4,5

1=pay not related to productivity 7=strongly related to productivity

Source: WEF (2002)

As explained in a previous section, Chile is doing well in the macroeconomic area, but problems remain in the microeconomic area. For more than two decades the Chilean economy has been subjected to intense international competition. Chile was the first Latin American country to abandon the import substitution strategy and open the economy to foreign trade and investment. In spite of consolidation of the financial markets and the bank system, Chiles insufficient access to risk capital, is considered a significant constraint (Garca and Pollack, 2004). The indicators of venture capital availability and access to foreign capital markets confirm this asseveration.

a) Institutional framework Chile counts with an institutional framework far better than most Latin American countries. In order to illustrate the reasons for this statement, a selected set of components of the Growth Competitiveness Index (WEF) are summarized on table 2. The regulations and legal context is consolidated and property rights are well secured. Among 75 countries considered in the Report, Chile occupies position 26 in the component of property rights4, with a score of 5,6. Likewise, levels of corruption are lower in Chile than in most other LAC countries. Chile ranks number 10 in the ranking of corruption among 75 countries, being in a better position than several European countries, Asian countries and the USA. However, Chile is doing badly in the area of intellectual property rights. Although Chiles intellectual property regime is considered to be one of the best in Latin America, the World Economic Forum indicators show that the level of intellectual property protection is still insufficient. Chile is in position 33 among the 75 countries, with a score of 4,2. The existence of administrative barriers constitutes an obstacle to start new businesses, although these obstacles are less prevalent in Chile than in most other LAC countries. The number of days required to accomplish all the legal requirements to start a new business is approximately 60 days. This time compares to 7 days in United Kingdom, 10 in New Zealand, 30 in Japan, USA, Taiwan, Panama, Uruguay and Paraguay, 45 in Argentina and Colombia; 48 in Nicaragua. Chile shares the same position with Bolivia, Brazil, Costa Rica, Ecuador, Peru and Venezuela. The only Latin American countries that surpass the 60 days to start a business are Honduras (75 days) and Mexico (90 days). The time and the cost of business registration far exceed the OECD average. b) Human capital, technological innovation and diffusion

Chile scores 5,6 in this indicator, where financial assets and wealth are 1= poorly delineated and not protected by law, 7=clearly delineated and protected by law.

Human capital is an essential part of the knowledge economy. A constant flow of skilled workers is a necessity if an economy is to take full advantage of constantly improving technologies. Moreover, Chiles policy framework and incentives for innovation and human capital formation are halfway operating in some areas. These constraints are confirmed by the WEF indicators. The stock of scientists and engineers is low. The Chilean system suffers from a lack of research personnel. The supply of PhDs is very low compared to leading Latin American economies. There is still a need for a critical mass of highly skilled scientists. The annual PhD production has been increasing over the last years, but the number of doctoral graduates in engineering and technology is significantly behind the levels of countries such as Argentina, Cuba and Mexico. Consequently, the attempts to increase the stock of PhDs need to be further supported if Chile is to develop a critical mass of researchers and scientists. Inadequate human capital decreases the knowledge absorptive capacity of Chilean firms and their tendency to collaborate in R&D, which impede innovation. Weak links between universities and industry to undertake applied research. There is almost a complete separation between research institutes and industry. A few attempts have been undertaken, but still this links have to be strengthened. Low women participation in the labor market. Chile is characterized by one of the lowest participation rates of women in economic activity. Women participation is only 37%, the lowest among Latin American countries, and much lower than all developed countries. Skilled based exports. As stated before, Chiles exports are concentrated mainly in natural resources. This is corroborated by the WEB index on the proportion of skill based exports in GDP. Chile is in position 65 among the 75 countries included in the WEF report. Low professional level of S&T teachers in basic education. Chile is among the regional leaders as regards years of schooling of teachers in basic education (World Bank, 1999). Accordingly, Chile has experienced substantial improvement of student performance in mathematics and science during the last decades. Quality and relevance of tertiary education varies considerably. As pointed out in World Bank (1998) the quality of tertiary education differs substantially in Chile with public universities generally ahead of private universities. Local variations notwithstanding, it remains without doubt that the quality of Chilean tertiary education lags far behind the levels of OECD countries. University education in Chile meets the needs of a competitive economy to a higher degree than in other LAC countries such as Mexico, Brazil and Argentina (IMD, 2001). Still, the relevance of Chilean higher education is far behind countries such as Israel, Finland, Ireland and USA. Moreover, Chile has been relatively unsuccessful in supplying skills for the knowledge economy and fall behind with regard to the development of "hard" skills (science and

engineering). Previous studies show that the lack of hard skills constitutes a major bottleneck to the development of the Chilean economy (Brunner 2001). According to these studies, Chile has concentrated in "soft" skills (such as journalism and laws). Total R&D expenditures lag OECD levels. A precondition for an effective innovation system is the availability of sufficient resources. In the case of Chile, expenditures for R&D do not only lag behind most developed countries, but are also behind a number of countries in the region. Hence, Chile spends less than both Brazil and Costa Rica in terms of expenditures as share of GDP, and is even further behind countries such as the United States and Korea, which on average spend around 3% of GDP on R&D, whereas Chile spends 0.5% of GDP. Quality of research is inadequate. Chilean researchers are considered among the best in certain areas. However, while progress has been substantial it has not been sufficient for the countrys aspirations and still a lot remains to be done. Firm level data suggest that the quality of Chiles scientific institutions is lower than countries such as Korea and India and far behind, for example, Finland and the United States (Maloney, 2003). Low quality of science reduces incentives for the competing private sector to cooperate with public researchers and consequently diminishes innovation. Low participation in international networks. The Chilean trade and investment regime provides for a considerable transfer of technology from international trade and investment partners. As already indicated, this has played an important role in developing the natural resource-based sectors in Chile. Despite its integration into the world economy, Chile is yet to take full advantage of international knowledge networks as a source of innovation (Maloney, 2003). The number of Chilean scientific articles with international co-authorship has grown in recent year, indicating a rising level of international cooperation by the academia in Chile. Research no relevant for policies. Chiles public R&D system has been relatively successful. Chile scores higher than other Latin American countries in terms of scientific publications per resident. Still, the added value of this research remains questionable and has been of little use to the private sector, directly and indirectly. The number of resident patent applications, for example, has remained low throughout the 1990s. This reflects the inward orientation of the academic personnel, which traditionally has paid little attention to the needs of the enterprise sector (Lundvall, 2002). Collaboration among stakeholders of the Chilean innovation system has been very scarce. Although this is changing, partnerships and joint ventures are yet not as relevant as should be to push firms and research centers to work jointly. Limited private sector R&D. Presently, the bulk of Chilean research is financed by the Government and carried out by public research institutions and universities. The private sector is responsible for executing only about 10% of the total R&D expenditures in Chile, a share, which is significantly lower than that of the private sector in Argentina (29.5%), Brazil (43.5%) and the United States (75%). Thus, there is a considerable potential for improving Chiles innovation system by complementing public research

10

with an expansion in private sector R&D. This constitutes a significant challenge and it may not be sufficient to reform the institutional framework and provide strong economic incentives. A change of mind-set and a stronger knowledge absorption capacity in the private sector may also be warranted.

11

III.

A snapshot of Chilean professionals abroad

A.

Quantitative estimation of Chilean professionals abroad

To estimate the volume of skilled migrants is not an easy task given the limited statistical information available. In the case of Latin America, a project on international migration from Latin American countries (IMILA) has been carried out by CELADE (Latin American Demographic Center). This project has developed a data base which contains some basic information regarding international migration for the countries of the region. However, the available data faces some constraints, considering that IMILA data are gathered from census rounds in the Latin American countries in the USA and Canada. Therefore, there are no information from European countries, Australia and Japan, countries that have attracted Latin American emigrants during the last decades. Furthermore, the IMILA project has not completed yet the processing of the 2000 census round, what makes impossible to present these figures in this version of this paper. In the case of Europe, an important part of Latin American immigration has been the consequence of the regaining of the ancestors citizenship by the descendants of Europeans who migrated to Latin America in the past. As European countries tend to identify the immigrants by their citizenship rather than by their country of birth, it is still more complex to estimate the number of Latin American migrants to those countries. Another restriction to appraise the number and profile of Chilean high skilled migrants is constituted by the existence of different approaches regarding the expression skilled workers, in various countries, and even within the same country, scholars use different perspectives. In a study by Pellegrino and Calvo (2001) they noticed that migration typologies can be set from different perspectives. One based on indicators (economic, political, religious, etc.) and another based on its length (permanent, transitory, circular movements). Additionally, in the case of high skilled migrants, they advised about the importance of considering the institutional insertion of migrants. It is critical to differentiate by labor insertion. They may work in multinational enterprises, or in national firms in the receiving country, in international organizations, in academic or research institutions, or they can be students or even work as independent professionals. Other authors suggest other typologies. Iradale R. (1999) divides migrants into four categories: by motivation, origin and destination of flows, according to migrants incorporation mechanism and the duration of stay. It is important to note that both the identification of the kind of migratory movement and the definition of skilled migrants are two necessary conditions to make serious studies on the impact of high skilled migrants in both the host and the home country. Still, these studies are difficult to undertake due to the lack of reliable data and the heterogeneous character of the existing categorizations.

12

To estimate the volume of Chilean high skilled migrants is a very complex matter, since Chile has not explicitly been included in studies that consider group of countries, such as the existing OECD studies. With the only exception of the IMILA project, which comprises Chilean migrants among others, no studies of skilled migrants from Chile are known. Accordingly, in this study, the data available from the IMILA project is used in order to get a gross estimate of high skilled Chilean migrants living in other Latin American countries, in Canada and in the USA. The last data available from the IMILA project is based on the 1990s censuses. Tables 1 and 2 present interesting information about Chileans living abroad and about professionals and technicians working in other Latin American countries, Canada and the United States. The population born in Chile and living abroad is presented on table 1. Table 1 Population born in Chile and living abroad, by country 1970, 1980 and 1990 1970 1980 207.176 7.508 17.830 1.277 5.747 126 239 12 845 100 476 359 7.525 47 1.006 2.999 263 4.948 209 185 1990 218.219 3.909 20.437 1.496

Host country
Argentina Bolivia Brasil Colombia Costa Rica Cuba Ecuador El Salvador Guatemala Haiti Honduras Mexico Nicaragua Panama Paraguay Peru Dominican Republic Uruguay Venezuela Total Latin America Canada 142.150 1.900 670

3.345 1.163 1.560 5.976 1.439 24.703

2.501 115 975 2.264 4.652 1.726 20.787

158.454

277.987 17.805

282.421

13

United States Total North America Total

15.393 15.393 173.847

35.127 52.932 330.919

50.322 50.322 332.742

Table 2 Percentage of professionals and technicians within economically active population born in Chile and living abroad 1970,1989 and 1990

1970

1980 3,3 15,9 27,3 46,8 37,6

1990 3,9 29,5 24,4

Host country
Argentina Bolivia Brazil Colombia Costa Rica Cuba Ecuador El Salvador Guatemala Haiti Honduras Mexico Nicaragua Panama Paraguay Peru Dominican Republic Uruguay Venezuela Total Latin America Canada United States 2,3

56,1

40,5 14,3 48,0 47,6 36,1 19,3 62,1 33,6

53,8

27,0 38,1 41,5

31,7 17,3

42,2 54,9 32,2 19,4 23,9 15,4 21,2

15,0 23,0

3,4

7,9 18,1

7,9

25,1

19,9

15,7

14

Total North America Total

25,1 5,3

19,3 10,0

15,7 9,1

Source: IMILA, CELADE

In 1990, according to census data, 332.742 Chileans were residing in other Latin American countries, in Canada or in the U.S.A. Comparing this number with the number of Chilean migrants both in 1970 and in 1980, it is perceived that the large expansion occurs in the seventies. During that decade, the number of migrants almost doubled the number of migrants in 1970. Meanwhile, in the eighties the rise in the number of Chileans living abroad was insignificant. Still, it is not only the gross figure that needs to be analyzed. There are other features that distinguish this process that are summarized below. Most Chilean migrants reside in Argentina (66% of total migrants to this group of countries), followed by the USA (15% of this total). Brasil and Venezuela also get 6% of Chilean migrants each. The Latin American region got 85% of Chilean migrants in 1990, down from the 91% in 1970. The USA is becoming an important destiny for Chilean migrants. In 1970 around 9% of total migrants were living in that country, percentage that increased to 11% in 1980 and to 15% in 1990. Table 2 shows the proportion of professionals and technicians within the economically active population (migrants) born in Chile and living abroad. The conclusions of the analysis of these figures are remarkable. In 1990 one out of ten Chilean migrants were professionals or technicians, up from one out of 20 in 1970. The distribution of these professionals and technicians is not homogeneous among countries. The incidence of professionals and technicians is higher among migrants to the U.S.A. than to the Latin American region as an average, but the incidence of this group is higher in most Latin American countries, with the only exception of Argentina. In countries like Mexico, Nicaragua and Ecuador, between 38 and 55% of the migrants to those countries are professionals or technicians. This percentage fluctuates between 15,4% and 32,2% in the other Latin American countries. The proportion of professionals and technicians among Chilean migrants has declined from 25,1% to 15,7%, while this proportion among the Chilean migrants to Latin America stays in 7,9% in 1980 and 1990, down from 3,4% in 1970. It is important to note the significant increase in the proportion of professionals and technicians within the total migrants to Bolivia. One out of three Chilean people migrating to that country belongs to this skilled group. The main conclusion from this table is the high incidence of professionals and technicians among Chilean migrants to this group of countries.

15

1.

Educational profile of migrants

According to data from the National Science Foundation, the educational level of Latin American migrants in the U.S.A. is very heterogeneous. The average Latin American immigrant tended to have a lower educational level than Asian and European immigrants and, therefore, they tend to concentrate in less skilled activities. However, the number of people with post- graduate degrees and those engaged in professional and technical activities was very significant compared to the overall number of people with the same skills in the home countries. In the specific case of migrants from Chile, the percentage of people with PhDs is higher that that of the average foreign population in the USA (Pellegrino 2002). In 1997, eleven Latin American countries were among the 50 countries with the largest number of S&T migrants. Table 3 presents information regarding scientists, engineers, computer experts and social scientists from Latin America living in the USA. Table 3 Number of Scientists and Engineers admitted in the USA according to country of origin (1993)
Home country Total Engineers Natural Scientists Mathematicians and Computer experts Social Scientists

All countries West Europe East Europe Asia Africa

23535 2540 2937 24957 689

14497 1599 1785 9176 418 868 300 121 547 479 72 10 55 9 73 28 97 73 62

3901 463 468 2558 100 150 80 20 50 120 34 1 18 16 19 5 12 10 5

4157 390 213 3061 146 174 103 15 56 136 22 5 34 6 19 3 19 18 10

979 88 471 162 25 140 24 9 107 82 10 2 11 3 26 7 13 5 5

Central and 1432 North America Canada 507 Mexico 165 Others 760 South America Argentina Bolivia Brazil Chile Colombia Ecuador Peru Venezuela Others 817 138 18 118 34 137 43 141 106 82

16

Other Areas

161

72

41

37

11

Source: Pellegrino (2002) from National Science Foundation.

The above table shows that in 1993 there were admitted 34 Chilean Scientists in the USA. This figure is low compared with other countries, but what is important to notice is that most of them belong to the area of Natural Sciences followed by Engineers.

2.

Chilean students abroad

The number of Chilean students in the USA in 1997/1998 reaches, according to a report of the Institute of International Education, to 1146. They are distributed as shown on table 4. Table 4
Chilean students in the USA, according to area of study

1997/ 1998 (%)

Agriculture Business Education Engineering Arts Health Humanities Health and Computer Sciences Physical Sciences Social Sciences Others Survey (sample size)

3,2 17,7 1,6 18,2 5,5 2,2 3,4 5,7 11,8 9,5 21,2 803
17

Students (number)

1146

Source: Pellegrino (2001) from Institute of International Education. Open Doors Report, 1998/ 1999.

. Chilean students in the USA are inserted mostly in three fields of study: Engineering, Business and Physical Sciences. Engineering and Business share 36% of all Chilean students in that country. This is meaningful, whereas those students have the opportunity to stay in the country once they obtain their degrees. Many of them decide to stay longer, what increases the probability of a permanent migration.

3.

Most recent and subtle evidence: Chileans in the USA, Costa Rica and Mexico

The absence of reliable data on Chileans high skilled professionals working in foreign countries is one of the problems faced by studies of this kind. However, by using scant data available in some selected countries we can have an idea of the profile of these migrants. Additionally, some information is available in the USA population census regarding foreign population living in the USA. In this section, data from the 2000 USA Census and the IMILA project are used to get indirect and partial information on Chileans living abroad. a) The profile of foreign born population in the USA in year 2000

Data from the USA Population Census allows us to get the number and the characteristics of foreign born population living in the USA. Unfortunately, it was not possible to get data by country of origin, but only by regions. On figure 1 the foreign born population living in the USA in year 2000 distributed according to home region is presented. As we are interested in high skilled migrants, we present population 25 years and older, by region of birth and educational attainment. There are 1.5 million South Americans 25 years and older living in the USA, what is equivalent to 6% of the foreign population in the USA of this age strata. Latin Americans contribute with half the total foreign population of that age group in that country, and Mexico alone makes up for 25% of that total. But what is important on this figure is the educational profile of the different groups of migrants. 26% of South Americans migrants hold a Bachelor's degree or more and 89% are high school graduated or more. In comparison with migrants from other regions, the South

18

Americans are more educated than the migrants from the rest of the Latin American Region, but less educated than those coming from Europe, Asia or Africa. On Figure 2 we can see that 23,3% of the South Americans living in the USA (16 years and older) hold managerial and professional positions. This is a very high proportion as compares with the situation of the rest of the Latin Americans working in the USA.

Figure 1

Figure 2

During year 2000, a significant number of Chilean non- immigrants were admitted as temporary workers, exchange visitors and intra- company transferees. As Table 5 shows, more than 6,000 Chileans were admitted with temporary workers. More than 2,000 correspond to intra-company transferees. This kind of high-skilled people could make valuable contributions to the Chilean development.

19

Table 5 USA: Chilean nonimmigrants admitted as temporary workers, exchange visitors, and intracompany transferees
Workers with specialty occupations Exchange visitors Intracompany transferees workers with extraordinary ability of achievement Others 1,978 1,488 2,096 732

Total 6,294 Source: 2002 Yearbook of Immigration Statistics

In fact, they work in many fields (Table 6), and they could make contributions from their different perspectives.

Table 6 USA: H-1B Chilean beneficiaries by occupation * Fiscal year 2002 Computer related Fashion models Managers and Officials n.e.c. Miscelaneous professional and managerial Administrative specialization Architecture, engineering, and surveying Art Education Entertainment and recreation Law and jurisprudence Life sciences Mathematics and physical sciences Medicine and health Museum, library, and archival sciences Religion and Theology Social sciences Writing Unknown Total 43 3 60 19 65 68 10 73 5 6 17 11 13 2 1 16 7 9 428

20

H-1B status: Aliens in specialty occupations approved to work in the United States Source: 2002 Yearbook of immigration statistics, October 2003 (Homeland Security, Office of Immigration Statistics)

b)

Chileans in Costa Rica and Mexico

The IMILA project has processed part of the 2000 census data from the Latin American countries. Using this information, we got evidence on Chilean professionals working in Costa Rica and Mexico in year 2000. There are 288 Chilean professionals in Costa Rica and 880 in Mexico. Most Chilean professionals in Costa Rica are inserted in the area of Teaching and Architecture Engineering and Health. In Mexico they work similar fields, but also a high percentage are engaged in writing activities. Table 7 Chilean professionals working in Costa Rica and Mexico by occupational category Year 2000 Occupation Costa Rica Mexico Architecture and engineering Chemistry Biology Health Teaching Mathematics Law Writing Theology Others Total 42 4 14 32 73 0 16 16 1 90 288 70 8 18 47 251 8 16 185 4 273 880

Source: CELADE, Data Bank, IMILA Project, preliminary figures

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An interesting feature of the Chileans living in Costa Rica is that most of them are high skilled. On table 8 we can see the distribution of the economically active population born in Chile by economic activity and occupation. If we accept that the executives, professionals and technicians can be considered as high-skilled workers, we see that 70% of Chileans working in Costa Rica are high skilled. And this proportion is higher in particular sectors, such as Finance and Services (89% and 83% respectively). If technicians are excluded, the proportion of high skilled workers diminishes to 50% within the total and to 64% and 69% in the two correspondent sectors.

22

Table 8 Costa Rica: Economically active population born in Chile (older than 12 years), by economic activity and occupation Occupation Agriculture Fishing Mining Industry Commerce Finance Services Total

Executives Professional s Technicians Office workers Service workers Workers without qualification Total High skilled workers* (%)

2 2

27 25

39 14

28 62

29 167

132 288

32 3

29 6

34 7

42 18

159 43

15

38

69

36

22

19

125

14

138

148

139

284

816

50

60

55

89

83

70

* High skilled workers include executives, professionals and technicians.

Source: Own elaboration using preliminary data from IMILA project The scarce availability of data on Chileans migrants and the evidence from the Costa Rican figures, confirm the necessity to get an idea of the kind of human resources we are " exporting", and their potential contributions. Additionally, raises the need to make a serious effort to get reliable figures on Chilean migrants, their profile, their interests and their hopes.

23

B. Empirical evidence: survey to a sample of high skilled migrants

1.

The survey

A questionnaire of 23 questions was sent to a sample of 35 Chilean professionals living and working in various developed countries5, and was answered by 26 persons, whose characteristics are presented in the following table.

Table 9 Survey Tabulations

See questionnaire in Annex.

24

Age

30-40 41-50 51+

Professional Activity

13 2 10

Researcher/ scientist/ scholar Student Executive/professional/ technician Business owner Arts and culture Other
III. Main field of study

7 2 14 1 1 1

Social Sciences Management Basic Sciences Information technology Applied Sciences Health
Other

12 7 3 2 1 1 1 2

Academic degree
PhD

M.A. Universitary Technology

Other

12 7 5 1 -

25

IV.

Occupation

Self employed

Owner Employee
Other V. Type of institution

4 1 16 5

Academic

Private enterprise Public enterprise NGO Other (International Organization)

VI. Reason to emigrate

5 11 2 1 6

To study Better economic conditions Enhance professional development Interacting Successful carrer abroad Professional recognition Political reasons
Other

6 6 9 5 4 3 3 6

How long did you expect to stay abroad (years) 1-3 4-5 5+
VII. How long have you stayed abroad (years)

10 7 6

0-1 2-5 6-10 10+

How many countries have you lived on since you left your home country?

5 7 2 11

1
26

2 3
Contacts with home countries

18 6 3

Professional / business level Family and friends Membership of professional associations Membership of other organizations of Chilean nationals
How many visits to the home country per year VIII. Professional

16 24 2 2

0 1-2 3+
IX. Family and friends

16 3 5

0 1-2 3+
X. XI. Professional networks Chilean associations abroad

8 14 3

Yes No
XII. Other networks

2 23

Yes No Have you returning to country?

Yes

6 19 considered your home

4 9 Temporary basis Permanent basis 12

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XIII.

No

How do you get information about opportunities in your home country? Yes Family and friends Research and academic centers Government Internet/ newspapers No
Have you invested in your home country?

13 6 1 10 5

Yes
XIV. No

8 17

Have you been approached by any of the following entities to maintain contact and collaborate with your home country? Yes
National Government or embassy University or research centers Private corporations and firms NGOs Other XV. No What conditions would be required for you to feel encouraged to returning to your home country?

1 6 5 1 13

Competitive salaries

12 5 4

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Job security Possibilities to develop investments Better research facilities Housing facilities/ financing Change of political situation Financial support to start new entrepreneurial ideas Technological opportunities The possibility to work in your residence country and in Chile Other

1 11 8

No

Table 9 shows the characteristics of the sample of professionals. This sample is not statistically representative of the professionals working abroad. Their answers will help us to give a first glance to the reasons high skilled Chileans considered when they took the decision to migrate and what changes they expect to occur in order to be willing to collaborate with their home country. The age distribution of the interviewed shows that half of them belong to the range between 30 and 40 years old and 11 of the 26 are older than 51 years. Most of them expected to stay between 1 and 3 years in the host country, and were prepared to return home afterwards. Only 6 of the professionals included in the survey expected to stay more than 5 years. However, they have stayed for longer periods: 11 out of 26 (42%) have remained in the host country for a period longer that 10 years, and 13 (50 %) have stayed more than 6 years. The former situation could be explained by various reasons. A few of those possible causes are listed below. The sample includes professionals of different fields of expertise, but mainly executives/ professionals, followed by researchers/ scientist/ scholar. There are only two students, and one professional who is a business owner and one that is in the field of Arts and Culture. Regarding their main fields of study, a majority is on Social Sciences, followed by Management, and the remaining are distributed among basic Sciences, Information Technology, Applied Sciences, and Health. Most of them have a very high educational level. Almost half of them hold a PhD. and 7 hold a Masters Degree. Regarding their occupational category, the sample includes 16 employees, 4 self employed and only one owner.
29

They work in different kind of institutions, mainly in the private enterprise, as academics or in international organizations. The reasons to emigrate are very similar in most cases. With only one exception they can be attributed to the need to procure more professional opportunities: professional recognition, successful career abroad, enhance professional development, interacting with peers of international recognition. Another reason mentioned by the professionals in the survey, is the need to pursue studies abroad and to look for better economic conditions. In three cases political reasons were the causes of the migration. This is explained by the political situation in Chile during the seventies. Summarizing, most professional migrants left for a short period and after a while they decided to stay longer. They left with the idea of looking for better professional conditions and stayed longer in that country. The majority of the high skilled migrants have only stayed in one host country (69%) and only 9 of them (35%) have lived in two or three countries since they left Chile. All of the interviewed maintain contact with their home country, especially with family and friends, although most of them also maintain contact at a professional level. Nevertheless, they are not members of networks or associations related to their home country. Only two of the professionals are members of professional associations and two are members of other type of organizations constituted by Chilean nationals. One may conclude that there is a complete lack of incentives to be part of networks or associations that may help to have more interactions among the high skilled migrants and their colleagues in Chile. The former statement is as well sustained by the answers obtained from the professionals when asked about the number of visits they make to Chile periodically. Most of them visit their family and friends. More than half of them visit Chile once or twice a year, but one out of three of them do not travel to Chile at all. Regarding visits related with professional matters, only one out of three of the professionals answered that they travel to Chile between one and three times a year for those reasons. Although they make visits to Chile, half of the professionals have not considered returning to their home country, 35% are considering returning on a permanent basis and 15% are considering to go back to Chile, but only on a temporary basis. They are interested in getting information about their home country, which they get mainly through family and friends, and/ or Internet and newspapers. Academic centers also play certain role in the case of scholars who are living abroad. A remarkable conclusion extracted from the answers to the survey is referred to the poor role played by the Government in the promotion and diffusion of opportunities for high skilled migrants in Chile. Two of the questions in the survey are related to this role. The first one is related to the way in which the migrants get information about opportunities in the home country. The second asks if they have been approached by specific entities to maintain contact and collaborate with the home country. In the first case, only one
30

professional answered that he/she gets information from the Government. In the second question, again, only one professional answered that he/she has been approached by the Government to collaborate with his / her home country. To make a long story short, high skilled Chilean migrants get better opportunities abroad and the motives to return diminish as there is a complete lack of networks, actions, systematic approaches, to offer them incentives to return or contribute with their home country. The incentives to stay abroad exceed the incentives to return. The former conclusion is enforced by the answers to the question about the required conditions to return or collaborate with Chile. Most of them consider that the conditions in the job market should improve, to get better salaries, job security, etc. But what is even more relevant is that 42% of the professionals included in the survey answered that they would like to have the opportunity of working in both countries: their home and their host country. This is a very meaningful result, considering that at present there are no institutional arrangements that make this a real possibility.

2.

Main obstacles to collaborate with the home country

This section includes a brief analysis of the leading factors considered by Chilean professionals living abroad as the main obstacles they face to return or to collaborate with their home country. At first glance, these factors appear as very heterogeneous, but once they are carefully examined, they can be classified into three categories: cultural, economic and institutional. Cultural factors were mentioned by most professionals as having negative impact pn their interest in returning to their home country. In spite of the diversity observed among the answers, most responses share a common denominator: the perception that Chileans residing in Chile are not interested in hiring or working jointly with Chileans who have obtained experience abroad. To illustrate this feeling, some of the most relevant replies are displayed in the table below.

Main obstacles perceived by Chileans abroad to collaborate with home country Lack of interest from institutions and individuals Chileans feel threatened Message sent by Chilean professionals in Chile: we do not need your help Lack of interest in employing Chileans with experience abroad No real interest in professional cooperation I don't think that Chileans residing in Chile are really interested in developing close contacts with colleagues from abroad.

31

This list of answers reflects the feeling that many professionals who have returned to Chile have experienced. It is well known that in Chile the contacts (family or friends) 6 are more relevant at the time of looking for a job, get promotions or making a career, than the experience and/or academic degrees. Furthermore, the fact that they return to the country with more credentials (education and experience abroad) in many cases is not considered a plus but a minus at the time of interacting with peers. Chileans professional who have never left the country really feel threatened. Most Chilean professionals, as one of the interviewed clearly stated, do not speak any other language than Spanish. This is becoming a constraint in a global world. However, this is still not considered a plus when negotiating salaries. Another negative feeling mentioned by the professionals is the attitude that exists among peers when one of them excels in his/her work or studies. The others try to find him/ her all kind of defects in order to downgrade the quality of his/her job.7 The two previous explanations about are important to understand the perceptions of professionals living abroad, when trying to interact with colleagues residing in Chile. These institutions are extremely critical when dealing with people with experience abroad. They will have to face hostile attitudes towards them, especially if they come from developed countries. Chileans always feel they know more than people who have been working in foreign countries. Accordingly, these cultural factors and attitudes make out the context where high skilled professionals living abroad should insert when returning home, if no actions are taken to change and make this scenario more friendly. A complete different attitude is observed among professionals who have lived and studied or worked abroad and have returned to Chile. This group of professionals is not only willing to work with Chileans living abroad or who have returned to the country, but they also try to maintain their contacts with universities, research centers or private enterprises in the countries they used to live. This fact should be taken into account in any formulation of policies or programs dealing with the promotion of an increase in contacts and collaboration among Chilean high skilled migrants and Chilean residents.

3.

Required conditions to return

In this section a list of the more significant conditions the interviewed considered as requirements to return or collaborate with their home country is presented. In an attempt to simplify and systematize the answers, the suggestions can be classified into five categories:
6

The Pituto is more important than any other kind of credential workers may hold. This institution (pituto) is the explanation for this feeling among the interviewed. They have left the country and they have stayed without labor connections for a certain period. In this case, their possibilities of having contacts with the Chilean labor market that could be used as a pituto to help in the finding of a reasonable job diminish, and sometimes becomes null

This Chilean attitude that contributes to diminish the incentives to return or to collaborate of Chilean high skilled migrants with the home country, is known as the institution of "chaqueteo.

32

Chilean living in the country should recognize the potential valuable contributions of those Chileans living abroad. Change in the job market: more competitive and stable Less bureaucracy Institutional arrangements to facilitate the return of professionals Others (free flow of ideas, no travel restrictions, democratic government, free access to financial markets) The above list can be categorized into two main groups. One group of modifications makes reference to the attitudes observed among Chileans living in Chile with respect to Chileans who reside or used to live in foreign countries. A second group of changes are required to take place in the labor market, and they point out to increase job opportunities in equal conditions. These changes are difficult but they are no impossible, in particular if a political decision to attract professionals abroad to contribute with the home country is taken. In the following table a number of answers are presented in order to get to understand the migrants perceptions of the key changes required to be willing to return on a part time or permanent basis.

I.

Required conditions More interest in using Chileans living abroad as consultants as opposed to using foreigners would probably benefit the industry because Chileans are aware of the limitations and local culture. Its hard to expect to reach similar living conditions as in developed countries, so the objective should be to get as much know how as possible without expecting Chileans to return permanently. In the situation experienced by professionals living in exile for 17 years, the main hurdle for returning is that after such long time the sons and daughters did not feel that they could adapt successfully in Chile and did not want to return. For the parents the return would have meant living thousands of miles from their families. More over, there have been no initiatives that I know off to attract this young people to the point that their own children, born abroad, are not granted Chilean nationality unless they go to live in Chile for a year. This happens while most countries in the world practice jus sanguinis. Chile should be a safer and equitable country. The attitude of many Chileans toward those who left the country should change ( I think that often those who never left Chile look at us as traitors because we did not experience either the political or the economic problems of the 70s and 80s.) The institutional arrangements must change in order to facilitate the return of professionals,
Job market competitive and stable Non-bureaucratic infrastructure Free flow of ideas No travel restrictions

33

Free access to financial markets

Democracy Better salaries, working conditions and labor laws.

4. Actions to be taken When reviewing the answers to the survey, a list of proposals for actions required to incentive the collaboration of high skilled migrants with their home country emerges. First, they consider that there are basic conditions that need to be changed, already explained in the above section. Moreover, they perceive that no interest in getting their contribution, what is reflected, according to their perception, in negative and hostile attitudes from their peers residing in Chile. Additionally, they notice the lack of networks, of joint projects, and what is even more serious, the absence of laws dealing with facilitating the re insertion of high skilled migrants in the Chilean labor market. In this context, they make many suggestions of actions oriented to facilitate their collaboration with their home country. In this section, we make an attempt to classify the list of actions required. In the table below a list of some of the original answers is presented.

34

Suggestions of actions to be taken

Start a more open mind education for children (avoid excess of influence of the catholic church in education) Increase security in the larger cities Competitive salaries, job stability and a very receptive environment and support from the Chilean establishment to those professionals that are willing to share their knowledge and expertise As far as the government is concerned, they should be able to give financial support to those professionals and provide through universities the facilities to conduct research At an academic level, I think that it would help to have more joint research programs between universities. Collect database about Chileans abroad. Make contact with them. Clearly state the needs of the country and the commitment of the government to use them My university in Chile (at least, in my time) did not have an alumni network. The one I am familiar with from my studies at the University of Maryland is very active, and this model of the alumni associations could play a very significant role to help alumni abroad to network with their colleagues and the universities they studied in Chile. Create institutions that bring professionals living abroad to consult in Chile on a regular basis. To survey professionals living abroad and offer them some opportunities to contribute to Chile in terms of a match between the country needs and the person skills In my case to offer work in the form of consultant or short term work contracts
Maintain a two ways communications and information exchange system that encourages cooperation.

To still increasing the commerce and financial relations with other countries and in general the country globalization. To make legal recognition of professional degrees To develop temporary labor opportunities Enhance cultural development Recognition, media exposure trough documentaries, that may develop some interest in the Chilean Industry to make the first contact, (I did try few times calling the media to show whats going on in my area, but there is not interest from them, I can not see why I would be calling the industry to go back there, if Im not in a really apprehensive situation here).
To incentive small investments in Chile (US$5 15millones) tax incentives are required. In the building industry, rapid approval of projects, tax exemption for at least 10 years, liberalization of capital markets (registration of investments in Chile and right to transfer interests, capital and profits in the same way as in the USA)

To create a curricula book based on the curriculum of the people that is leaving abroad. For that purpose the embassies or consulates should ask for that to the people that is leaving in their countries asking for interest areas in case of having the chance of coming back to Chile. This curricula book should be distributed to the
35

most important companies in Chile and associations that look for Chileans with International experience, skills, etc. (I got my University degree and MBA in Adolfo Ibaez University and that Curricula book was the base of the University contacts with the companies).

The actions required can be categorized into five groups: actions to change attitudes, actions to change the job market, actions to make more transparent the demand and supply of high skilled migrants, actions to improve the economic and the institutional context.

a)

Actions to change attitudes

The negative attitudes observed by high skilled migrants in Chileans residing in Chile regarding their possible collaboration, is a cultural problem whose change would take a long time. They suggest the introduction of modifications to the educational system, meaning a more open mind education for children. They agree in the need to enhance cultural development in order to sensitize the population about the benefits of getting contributions from high skilled migrants. Among the specific actions proposed by the professionals, the following are the more relevant: Media exposure through documentaries, about the experiences of professionals living abroad International interchange of students at high school level. The experience acquired by students in developed countries make them more willing to work in joint projects with foreigners and with Chileans living abroad English should be considered as a requisite to study at universities in Chile. The knowledge of English would help Chilean professionals to be more open to foreign ideas and projects. As one of the professionals stated: Many times, Chilean professionals who do not speak English avoid contacts with English speaking people and try not to joint in projects where English is required. This obviously constitutes a serious limitation to undertake joint projects between foreign research centers and Chileans residing in Chile.

b)

Actions in the job market

As stated previously, most professionals consider that the job market in Chile is not competitive, but based on factors as contacts, and they note a complete lack of
36

opportunities of joint projects that allow them to reside abroad working both in their home and their host country. Many of them consider that salaries should increase and job stability is considered a must. Actions that should be undertaken to improve the dynamic of the labor market can be summarized as follows: The Government should give financial support to professionals living abroad interested in contributing with their knowledge and experience. Universities should implement joint research programs with universities abroad. They should privilege the insertion of Chileans working abroad, since their experience and understanding of the Chilean idiosyncrasy makes them a valuable resource. Government and universities should promote the creation of networks, alumni associations, and other kind of organizations which maintain professionals and students living abroad informed about the possibilities of work (temporary or permanent) in Chile. In the same direction, a data file, including possibilities of consultant work or short term contracts, should be available in the Internet.

c)

Actions to make more transparent the demand and supply of high skilled migrants

The purpose of this group of actions is to increase the knowledge of Chileans abroad, regarding their opportunities in Chile; but also the knowledge of different Chilean institutions on the profile of high skilled professionals living abroad who would be willing to work or collaborate in joint projects in Chile. The actions mentioned in the survey are oriented towards the building of a data base of the high skilled people living abroad. First a complete listing of all professional residing abroad is required. This list should include the individual characteristics of migrants, their educational profile and the experience, their availability, and their willingness to work in Chile if they have the chance to. A second step considers the creation of a curricula book based on the curriculum of the professionals living and working abroad. This book would be distributed to companies, universities, professional associations, and to governmental institutions, that could require professionals with special abilities and experience. Another action that should be simultaneously considered is a study to determine skill requirements in Chile, in order to match these needs with the availability of skills determined by the data base.

d)

Economic context

37

Some modifications in the economic context were already suggested as conditions that high skilled migrants consider as requirements to be willing to return or collaborate with their home country. A few of the actions mentioned by the professionals deal with the need to give them incentives to invest in Chile while living abroad. Mostly they complain about the bureaucracy, and the lack of incentives for small investments (tax incentives, lack of venture capital, etc). These problems are also faced by Chileans living in Chile. Therefore, a change in these matters will benefit the economy not only as a consequence of investments from people living abroad, but also from Chileans living in Chile. Summarizing, in order to increase the willingness of high skilled professionals abroad to invest in Chile some kind of incentives, such as tax incentives should be given to them.

e)

Institutional arrangements

In this section a systematization of the answers to the issue of the required institutional arrangements suggested by the high skilled migrants included in the survey is attempted The answers were mixed up with the answers to former question on actions recommended. However, it is still interesting to note that they insist in some of the suggestions, which are summarized below. They are grouped into two categories, according to the kind of institution. The first group corresponds to research institutions and universities. The second group, to Government institutions. i) Research institutions and universities

Regarding these institutions, they recommend three kind of actions. The first is related to the improvement of working conditions in these institutions: by paying higher salaries and giving financial support to joint projects between Chilean and foreign universities. A second group of actions is oriented towards the creation of mechanisms to facilitate the contacts among Chilean residing abroad and Chileans living in Chile. These mechanisms could consist on seminars, networks of professionals and meetings, with active participation of Chilean professionals living abroad. A third group of actions includes the financial support to joint projects. In the table below, a list of main answers to this issue is presented.

Suggestions of actions dealing with reducing the institutional constraints

Educational exchanges, meetings, access to professional journals and publications, to

38

students and professionals through universities and libraries, and the opportunity to publish in such journals should be encouraged and promoted. Invitations to professional seminars and/or to speak to students of their universities in their home countries. With an adequate network, those activities could be organized without cost for the academic institution hosting the event, since they could be combined with visits to their home country already planned by those Chileans living abroad. Invitations extended by those Chileans living abroad to their skilled counterparts who live in Chile to attend professional seminars or lectures that they organize in their countries of residence. Invitations to participate in joint research projects (if the project is carried out by an institution in Chile, by inviting Chileans working on those fields abroad; if the project is carried out by a Chilean working in an institution abroad, by inviting their Chilean colleagues to cooperate). Government or Professional association sponsored events that bring Chileans back to Chile to consult in different topics To develop academic, financial and in general all kind of cooperation between institutions

ii)

Government
One of the institutional proposals is to promote decentralization. They consider that services in the regions outside Santiago need to be increased and improved. They especially mention health, education and entertainment. An active role should play Consulates and Embassies in helping to create a data file with all professionals living abroad. Finally, the Government should create a fund to finance activities of the high skilled migrants and to motivate their collaboration.

A list of a sample of the answers is presented in the table below.

Meetings and informational exchange at the Consulates level, or other organizations. The institutional arrangements must change in order to facilitate the return of professionals, i.e. possibility of bringing household items without paying taxes; certification in professional associations who often do not recognize a degree from a non-Chilean university, etc Some sort of newsletter about interactions which are already taking place and other

39

possible areas of co-operation Meetings with visiting Chilean professionals and opportunities to visit them in Chile, or an electronic forum/ message board. More investment in I+D, Exchange programs, as an example: rural communitys development may need some help to build up sustainable ways of improving agriculture based on proven models developed by U.S.
To increase the interaction of embassies and consulates abroad with students in those areas and create some kind of network or centralized information system to help them to interact with the rest. (When I was abroad, the contact with the consulate was very limited) Create some kind of fund to support students living abroad in exchange of our participation in their current projects.

5.

Main areas Chilean professionals could contribute

The answers to this question let the impression that Chilean professionals abroad could make contributions in any area. Three of the interviewed consider that those professionals can contribute in any area as the table below shows, and one considers that Chilean professionals abroad can contribute in all hard sciences. A number of them consider they could make contributions in the educational area, and another number consider that the main contribution could be in scientific, social and technological development. Economics and management are also mentioned. One of the interviewed mentioned that in winemaking, specifically in the know-how and the use of machinery to increase efficiency, Chileans migrants could make a valuable contribution.

Main areas Chileans professionals living abroad could make contributions to the home country Education & business Transfer of knowledge and productive investment in start-up firms. Education, Health, Technology. Academic: Researcher, Scientist, Scholar Education, health, technology, create organizations abroad to promote Chile All hard science fields (Medicine, Biology, Physics, Chemistry, Astronomy, Mathematics) and their applications to the specific conditions in Chile. Specifically in Winemaking, know - how .and use of machinery to increase efficiencies.

40

Training in specific areas Any!! Highly skilled emigrants could contribute to the economic and scientific development of the country. Furthermore, they could contribute to the transformation of Chilean society which often appears to be guided by 19th century principles and ideas. Scientific, social, technologic and financial knowledge Scientific development Every area Agriculture, Administration, Construction It is plenty of areas Mainly technological areas.(These areas do not have good job opportunities in Chile and, most of the time they stay abroad when they graduate) Education-Economics

41

IV. 1.

Policy implications Are specific policies required in Chile?

The trends observed in high skilled migration raise the question of whether Chile should implement policies and programs to attempt to reverse the flows or at least detect mechanisms that promote the creation of some kind of knowledge networks. As mentioned before, human capital is the most important form of wealth in a competitive country. The empirical evidence shows that countries with abundance of intellectual resources achieve the highest rates of economic growth and the fastest development in science and technology. This fact has urged many countries to include as a priority the implementation of policies aimed at attracting highly skilled immigrants. Among the most relevant we can mention the United States, the United Kingdom, Canada, Germany, Japan, Singapore, Hong Kong and Australia. Political action aimed at correcting this situation is required at both the national and international level. For some developing countries, Taiwan could offer a useful model for long-term management of brain drain. National policies are clearly essential to addressing this issue. The fundamental obstacle to initiating such approaches is the lack of political will at both national and international levels. But without action, the highly skilled in science and technology will continue to move on to more developed and wealthier economies. According to Eric Goles, President of the National Commission of Scientific and Technological Research: It is necessary to cultivate Science. He thinks that Chile requires critic mass of PhD.s in practically all disciplines, because we are very few; we need a conscience about intellectual property and patents and we need to stimulate firms to contribute to the incorporation of scientists to applied research and development (El Mercurio ...). He considers that Chile needs to train at least 500 scientists with PhD. degree yearly. At present we have 3500 good scientists, and we have been able to face the challenges of today, and we are exporting copper, fruit, agricultural and fish products. But we need more in technology if we want to continue growing.

Taiwan: a successful experience As its economy took off in the 1980s, Taiwan started to attract back skilled emigrants. Between the 1950s and the 1990s, around 20 per cent of student emigrants returned. They were encouraged by a range of policies from providing incentives and covering the costs of moving back, to support for business development, such as the creation of science parks that form hubs of innovative, cutting-edge technology and manufacturing.
42

The 1990s saw the full opening up of the countrys economy. Returnees have helped change its culture into one that is dynamic, open and less bureaucratic. There has been a growing realization that returnees faced by excessive bureaucracy, poor equipment and working conditions, and unfavorable social environments, are unlikely to stay. And there is more awareness that Taiwans returnees want to keep in touch with their business and professional colleagues overseas. The countrys experience shows that relevant policies must be wide-ranging, covering economic, environmental, social and political aspects. And strategies need to be developed for making knowledge networks more productive for countries whose skilled professionals leave to work overseas.

2. Proposal of actions
As explained above, there are different categories of high skilled migrants. The kind of interaction among these migrants and their home country is determined to some extent, by their labor market insertion in the host country. One group of high skilled migrants corresponds to officials of international organizations and employees of multinational enterprises. A second group corresponds to scholars and academics that work at universities and research centers. Students constitute a third group of migrants. To make proposals to promote the interaction among high skill migrants and their home country is very important to consider the kind of labor insertion. For international organizations' officials and multinational enterprises' employees the possibility of interaction is very limited. Corporations do not encourage the exchange of knowledge, and they tend to consider the transfer of technology as an indication of disloyalty to the company. Additionally, the formulation of policies concerning issues such as the role of transnational enterprises, the transfer of technology, regulations on intellectual property and patents are a matter of international arrangements. Within the scientific and academic world the situation in this regard is different, where the transfer of knowledge and scientific and technological exchanges may occur more smoothly. Within this context, collaboration between experts is frequent and still encouraged. a) Networks
43

The implementation of policies dealing with the promotion of links with the country of origin and of "scientific diasporas" is a strategy that has been adopted and has been successful in several countries. By identifying with projects in their countries of origin the members of this diaspora invigorate scientific and economic development, what can be done through long distance collaboration or periodic visits. In South Africa the SANSA network was created and was very successful. India is an example of how different governmental policies have been aimed at stimulating links and networks between private entrepreneurs from inside and outside the country. A record is being kept since 1957 of all the scientists and technicians living in the country and abroad and special efforts are made to establish links with those that have completed or are enrolled in port-graduate studies abroad. In Switzerland a web site, Swiss-List.com, was established to forge links between Swiss scientists residing in the USA and their colleagues in the country of origin. Korea organizes through its consulates periodic meetings with students and scientists in the receiving countries, in order to keep alive their feelings of nationality. Also, associations of Korean scientists residing abroad have been established and attempts made at creating the conditions for their return home, scholarships have been set up and a scientific data base accessible from any part of the world is kept up to date. Taiwan has adopted similar policies (Gaillard and Gaillard, 1999) as it is illustrated on the table below. In Latin America several programs have been implemented to promote mobility for the development of national projects. According to Meyer (1999) there are 41 knowledge exchange networks including expatriates from 30 countries, who in some cases, have more than one network. Meyer's list (1999) includes seven Latin American networks with headquarters in Argentina, Colombia, El Salvador, Uruguay, Peru and Venezuela. A scientific meeting held in Bogota in 1996, "International Scientific Migrations Today. New Problems", (Charum and Meyer, 1998) produced conceptual positions and case studies of scientific communities established as networks, particularly Colombia's Red Caldas, which was one of the first attempts to assemble the scientific "diaspora" in Latin America. The network of Uruguayans abroad is an example of a system of links between the emigrant communities and the national scientific community that stimulated the return of scientists and the creation of the Basic Sciences Development Program (PEDECIBA) following the fall of the military dictatorship in 1985. The need to create programs to attract emigrant scientists and re-establish their ties with local communities in order to promote the growth of the nation's critical mass is a viable project that has proven to be effective. However, its effectiveness will depend to a large extent on the support it receives from national policies. The return of migrants with skills and experiences acquired abroad is an important scheme for obtaining know-how and capital transfers. South East Asian countries' success in achieving economic growth and scientific and
44

technological development has become a paradigm for policies aimed at establishing a critical mass of highly skilled personnel. Korea is an example of successful return policies. Many high skilled migrants returned to their country of origin. This was the result of the improvement in economic conditions and to the policy aimed at stimulating and protecting highly qualified human resources. This policy was implemented jointly by the government and the private sector. The private sector played a key role in hiring nationals residing abroad (Hyaeweol Choi, 1995). In the case of Taiwan, individuals who had returned from the USA initiated half the companies of the Hsinchu technological park. However, as recent successful examples illustrate, it is not enough to rely on "voluntary" actions or to appeal to feelings of national identity. These types of proposals were successful only in those countries that established sound development programs based on local efforts. Even though long-distance work and virtual links are a positive reality, one must not set aside the need to insure that creative, scientific and technological activities be based in less developed countries (laboratories, academic or industrial research centers, high-tech enterprises). The statement that communications' networks have rendered irrelevant the physical source where the information originates is proven false by developed countries' policies aimed at enlisting the most skilled and innovative minds.

b)

Improving the job matching process

A large amount of reallocation creates gaps and lags between firms that seek workers and workers that seek jobs. Policymakers, in partnership with the private sector, could increase the efficiency of the matching process by creating vacancy registries and providing job search assistance. Evaluations in OECD countries suggest that such systems are highly cost-effective mechanisms for putting workers in jobs. Although these policies do not help to create new job vacancies, they reduce frictional unemployment by more quickly filling the available openings. But the main advantage probably lies in the potential to increase the quality and therefore the productivity of job-worker matches. This is because better jobworker matches would likely result in greater investment in training by firms and learning by workers, which are essential for achieving growth in earnings. The reform of these systems requires fostering an appropriate regulatory environment for nonprofit providers, improving information systems, and expanding the range and coverage of the services provided.

c) Insure workers against instability in job market Macroeconomic volatility and vigorous job churning have created strong demand for mechanisms of protection against income loss. This demand has been met by regulating employment stability mechanisms that are more stringent than those encountered in more developed countries. However, such mechanisms constitute a primitive method of
45

insurance and can be costly. In addition, more than half of all workers do not participate in such systems and therefore are not covered against the risk of loss of employment. Most countries in Latin America have reached a level of development that is comparable to the level the developed countries had reached when they implemented unemployment insurance mechanisms.5 However, the creation or expansion of such systems is challenged by the lack of adequate registries of firms and workers, the high degree of informality in the labor market, the small size of the state, and the lack of fiscal room to pursue countercyclical social expenditures.Under these conditions, the type of unemployment insurance systems in place in developed countries may be infeasible in the region. d) Enhance opportunities for workers There is a widespread perception that globalization and trade integration are making training policies more important. At the same time, however, increasing use of temporary contracts and other measures to achieve flexibility are reducing firms and workers incentives to invest in skills. Therefore, any policy that seeks to expand the supply of training must foster a regulatory and institutional environment in which incentives for training exist. In this new paradigm, training reforms go beyond the objective of overhauling public training institutions or making training more responsive to the needs of the market. The reforms involve changes in taxes, regulations, and collective bargaining. The objective is to move away from the direct provision of training and improve the incentives for firms, workers, and training providers to fund, seek, and provide high-quality training. Another promising area for policy is adult education. Although it has been a low priority in most countries, research suggests that bringing adults back to school can be an effective policy for increasing productivity (particularly compared with the results of public job training for unskilled workers). Latin American governments should devise ways to bring adults back to school. Possible measures include issuing tax credits to employers that provide time or resources for employees to attend school or giving tax relief to adult workers while they complete their formal schooling. e) Monitor labor policies, enforce regulations, and promote harmonious labor relations

Countries should invest in developing institutions that collect, analyze, and process information, and those that implement policies and enforce regulations. Assessing the benefits and evaluating the costs of labor policies requires skills that most labor administration authorities (normally the ministry of labor) do not have. Although researchers at universities and specialized firms can perform such monitoring, labor authorities ought to be the ones that contract the analysis, weigh the benefits and costs, and decide on and design the treatments to follow. This requires rebuilding the capacity of the labor administration authority and staffing it to perform such new roles. The tasks of the authorities are challenged by massive noncompliance.

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Recent Chilean initiative

In Chile a new initiative has taken place just recently. The Minister of Foreign Relations, through its Direction for the Chilean Community Abroad (DICOEX) organized, in November 2003, the First Workshop of Scholars and Scientists residing abroad and in Chile. The workshop joined 20 scientists and scholars (10 from abroad and 10 from Chile). Its main objective is the creation of a network of Scientists and Academics residing abroad and in the country. During the meeting the required activities to establish this network were identified. The significance of this workshop is that is the first initiative of this kind in Chile. During the meeting there was agreement about the importance of creating this network and to establish mechanisms that facilitate the return and/ or the collaboration of professionals who reside abroad. Its main conclusions stressed the potential benefits the creation of this network would carry to the Chilean economic and social development: Collaboration to formulate a policy on Science and Technology Increase in technological and scientific capacity Development of human capital More access to financial resources More access to experiences on management of Technology and Science Improvement of communication channels Positive impact on culture Contribution to development of Universities and Research Centers The establishment of good personal relations

The second Workshop will take place in 2004. During the year a list with professionals residing abroad is being prepared by DICOEX. This list is being based in a survey that is taking place through a WEB site.

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ANNEX 1 Survey to high skilled migrants from Chile

1. 2. 3. 4.

Name Date of birth Date of arrival to host country Professional Activity a) b) c) d) e) f) Researcher, scientist, scholar Student Executive/ professional/ technician Business owner Arts and Culture Other (specify)

5.

Main field of study (profession) a) b) c) d) e) f) g) Social Sciences/ Education/ Economics Management/ Administration/ Finance Basic Sciences/ Mathematics, Biology Information technology Applied Sciences Health Other (specify)

6.

Academic degree a) b) c) d) e) Ph.D Master College/ University Technical Other (specify)

7.

Occupation a) Self employed b) Owner c) Employee

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d) Other (specify) 8. Institution (please include name) a) b) c) d) e) 9. Academic Private enterprise Public Non Governmental Organization Other (specify)

Reason to emigrate a) b) c) d) e) f) g) h) To study abroad Better economic conditions abroad (salary and benefits, job stability, others). To enhance professional development Possibility of interacting with peers of international recognition Pursuing a successful career abroad Professional recognition Political reasons Other (specify)

10. 11.

How long did you expect to stay abroad (approximately) at your arrival? How long have you been effectively abroad on a continuos basis? a) 0-1 year b) 2-5 years c) 6-10 years d) More than 10 years How many countries have you lived on since you left your home country? Do you maintain contacts with your home country? a) b) c) d) 14. At professional/ business level Contacts with family and friends Membership of professional associations Membership of other organizations of Chilean nationals How many visits to the home country you make per year?

12. 13.

a) Professional i) None ii) 1-2 iii) 3 or more b) Family and friends i) None
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ii) 1-2 iii) 3 or more

15.

Professional networks a) Do you belong to Chilean professional associations abroad (networks)? Yes (specify) No b) To other networks? Yes (specify) No

16.

Have you considered returning (to work or retire) to your home country? a) Yes On temporary basis On permanent basis b) No

17.

How do you get information about opportunities in your home country? (Technological, business, academic) a) b) c) d) Family and friends Research or academic centers Government Internet or newspapers

18. 19.

Have you invested in your home country? Have you been approached by any of the following entities to maintain contact and collaborate with your home country? a) b) c) d) e) National government or embassy Universities or research centers Private corporations and firms Non governmental organizations Other (specify)

20.

What are the main obstacles you perceive for increasing professional contact with your home country? What conditions would be required for you to feel encouraged to returning to your home country (Chile)?

21.

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a) b) c) d) e) f) g) h) i) j) 22.

Competitive salaries Job security Possibilities to develop investments Better research facilities Housing facilities/ financing Change of political situation Financial support to start new entrepreneurial ideas Technological opportunities The possibility to work in your residence country and in Chile. Other (specify)

General recommendations a) What actions would you recommend to be taken by government and other institutions to attract high skilled Chileans abroad to increase contact/return to Chile? b) What kind of institutional arrangements could help high skilled Chileans abroad to increase professional interactions with their connationals? c) In which areas high skilled emigrants could make their main contributions to their home country?

23.

General Comments (not included in previous sections)

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ANEXO 2 Declaracin de Via del Mar Taller Preparatorio de la Red de Colaboracin entre acadmicos y cientficos de Chile en el exterior y los residentes en el pas

En la ciudad de Via del Mar durante los das 4 y 5 de Noviembre del ao 2003, un grupo de acadmicos y cientficos residentes en Chile y en el exterior, convocado por los Ministerios de Educacin y de Relaciones Exteriores, ha sentado las bases para un proyecto de cooperacin que se integre al desarrollo del pas. El propsito de los chilenos residentes en el exterior de aportar efectivamente con sus capacidades al desarrollo cientfico, tecnolgico y humano de la nacin, coincide con la igual finalidad de los residentes en el pas de acoger este esfuerzo en un proyecto comn. Esta doble voluntad se expresa hoy en la creacin de una red llamada RAYC-Chile que permita emprender una serie de iniciativas conjuntas. El enorme avance que la ciencia y la tecnologa han experimentado en las ltimas dcadas obliga al pas a sumarse a este proceso de evolucin mundial. Han existido expectativas latentes de incorporar al desarrollo de Chile a los cientficos residentes fuera del pas, las que no pudieron concretarse oportunamente. Sin embargo, en los ltimos aos el pas ha destinado importantes recursos para la investigacin lo que refleja un compromiso de parte del Estado y crea las condiciones adecuadas para que RAYC-Chile fructifique y perdure en el tiempo. Los activos del pas comprenden no slo los recursos naturales, sino esencialmente sus recursos humanos. La sociedad actual es, cada vez ms, una Sociedad del Conocimiento, por lo tanto es necesario que los generadores del saber puedan hacer un aporte sustantivo al desarrollo del pas. La investigacin cientfica que se realiza en Chile se beneficiar con el trabajo y la experiencia acumulada de los acadmicos y cientficos en el exterior para que este esfuerzo vaya en beneficio del desarrollo de Chile. El Taller Preparatorio de la Red de Cooperacin entre Acadmicos y Cientficos de Chile Residentes en el Exterior y en el Pas, auspiciado por la Direccin Para las Comunidades Chilenas en el Exterior del Ministerio de Relaciones Exteriores (DICOEX) y el Programa para el Mejoramiento de la Calidad y Equidad de la Educacin Superior del Ministerio de Educacin (MECESUP), nos motiva a realizar como primera accin- un encuentro en Chile el prximo ao para reunir al mayor nmero posible de cientficos y acadmicos. El objetivo de este encuentro ser el de reflexionar acerca del estado del arte de las actividades cientficas y tcnicas con un sentido crtico y constructivo, crear vnculos entre los acadmicos y cientficos, as como tambin el de programar las actividades frituras de RAYS-Chile, todo ello, pensando en un mejor futuro para Chile.

Firman:

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Sandor Arancibia

Tania Bedrax-Weiss Patricio A. Bernal

Ma. Fernanda Contreras

Carlos Fortn Lautaro Nez

Aldo Gonzlez Ricardo Oliva Jaime Oyarzo

Pedro Labarca Juan Orellana Peralta Giovanni Parodi

Jorge Litvak Leo Orellana Hernn

Omar R. Ortiz Troncoso Peredo Jacobo Rapaport

Guillermo Schmeda Andrs Solimano

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ANNEX 3
HIGH SKILLED NETWORKS

Country

Type of Network

Name of Network
Arab Countries Argentina The Network of Arab Scientists and Technologists Abroad (ASTA) Programa para la Vinculacion con Cientificos y Tcnicos Argentinos en el Exterior (Program for the Linkage of Argentine Scientists and Technologists Abroad) (PROCITEXT) Transfer of Knowledge and Technology to Assam Chinese Scholars Abroad (CHISA) Society of Chinese Bioscientists in America Chinese American Engineers and Scientists Association of Southern California (CESASC) The Colombian Network of Researchers and Engineers Abroad (Red Caldas) Conectandonos al Futuro de El Salvador (Connecting to El Salvodors Future) Intell/Scien Diaspora Network

Developing Intell/Scien Diaspora Network

Assam China

TOKTEN Programme Student/Scholarly Network Local Association of Expatriates Local Association of Expatriates

Colombia

Intell/Scien Diaspora Network

El Salvador

Developing Intell/Scien Diaspora Network

France India

Frognet Silicon Valley Indian Professionals Association (SIPA) Worldwide Indian Network The International Association of Scientists and Engineers and Technologists of Bharatiya Origin Interface for Non Resident Indian Scientists and Technologists Programme (INRIST)

Student/Scholarly Network Local Association of Expatriates Intell/Scien Diaspora Network Developing Intell/Scien Diaspora Network Developing Intell/Scien Diaspora Networks

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Iran Ireland Japan Kenya

The Iranian Scholars Scientific Information Network The Irish Research Scientists Association(IRSA) Japanese Associate Network (JANET) Association of Kenyans Abroad (AKA)

Intell/Scien Diaspora Network Intell/Scien Diaspora Network Student/Scholarly Network Developing Intell/Scien Diaspora Network Local Association of Expatriates Intell/Scien Diaspora Network Intell/Scien Diaspora Network

Korea

Latin America Lebanon Morocco Nigeria Norway Pakistan Palestine Peru

Korean Scientists Engineers Association of Sacramento Valley The Global Korean Network Asociation I.attino-americaine de Scientifiques (Latin American Association of Scientists) (ALAS) TOKTEN for Lebanon Moroccan Association of Researchers and Scholars Abroad (MARS) Association of Nigerians Abroad (A.N.A) Association of Norwegian Students Return of Qualified Expatriate Nationals to Pakistan Programme of Assistance to the Palestine People Red Cientifica Peruana (Peruvian Scientific Network) Brain Gain Network (BGN) The Polish Scientists Abroad The Forum for Science and Reform (FORS) The South African Network of Skills Abroad (SANSA) The Reverse Brain Drain Project(RBD) Association of Thai Professionals in America and Canada (ATPAC) The Association of Thai Professionals in Europe (ATPER)

TOKTEN Programme Student/Scholarly Network Intell/Scien Diaspora Network Student/Scholarly Network TOKTEN Programme TOKTEN Programme Developing Intell/Scien Diaspora Network Intell/Scien Diaspora Network Intell/Scien Diaspora Network Developing Intell/Scien Diaspora Network Intell/Scien Diaspora Network Developing Intell/Scien. Diaspora Network Intell/Scien Diaspora Network Intell/Scien Diaspora Network Intell/Scien Diaspora Network
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Philippin es Poland Romania

South Africa Thailand

The Association of Thai Professionals in Japan (ATPIJ)

Tunisia Uruguay

The Tunisian Scientific Consortium (TSC) Red Academica Uruguaya (Uruguayan Academic Network)

Intell/Scien Diaspora Network Developing Intell/Scien Diaspora Network

Venezuel a

In Contact with Venezuela Developing Intell/Scien Diaspora El Programa Talento Venezolano en el Networks Extrior (Program of Venezuelan Talents Abroad) (TALVEN) The list does not include an Ethiopian network, a Croatian network and a Hungarian network, due to the limited information available on them. Source: Meyer, J-B. And Brown, M. (1999)

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