Globalization and Development

Hargeisa, 2018
 What is Globalization?
• Globalization is a process of economic,
political and cultural integration and
unification.

• It involves many countries and majority of

huge enterprises.
 Cont…
• Globalization is a process that seeks to
eliminate distances between peoples.
– Political,
– Economic
– Cultural, and
– Geographic
 Cont….
• Globalization is a process of interaction and
integration among the:
– People,
– Companies, and
– Governments of different nations
 Cont…
• A process driven by:
– International trade and
– Investment and
– aided by information Technology
 Cont…
• Integration of economies through trade and
financial flows.

• Movement of people (labor)

• Movement of knowledge (technology).

 Cont…
• The process has effects on the:
- environment,
- culture,
- political systems,
- economic development and prosperity,
- human physical well-being in societies around the world
 Cont…
• Cultural diversity and geographic separation
among peoples has been reduced.

• The Internet has shrunk time and distance,

making it possible for instant contact.
 Cont…
• Globalization is making the world smaller in
space and time.

• The world seems to be running out of names,

and globalization is partially to blame.
 Cont…
• Globalization has also affected our tastes for
different products and services.

– Pizza has spread around the world, mainly because

of the migration.
 Cont…
• A greater exposure of developing countries to
products and product innovations.

• Globalization often also entails a change in

preferences among consumers in developing
countries.
 What are it’s defining characteristics?
• Economic growth increasing material
consumption.
• Privatization and commodification of public
services, national and global commons.
• Corporate deregulation and unrestricted
movement of capital across borders.
• Increased corporate concentration.
• Cultural and economic homogenization.
 Components of Globalization
• Free trade in Goods and services
• Integrated Resources Market
• Integrated Financial Market
 Why Is Globalization Important?
• Law of comparative advantage
– Citizens of each nation can gain
• Spend more of their time and resources doing those
things in which they have a relative advantage
– If a good or service can be obtained more
economically through trade
• Trade for it instead of producing it domestically
– How the available resources can be used to obtain
each good at the lowest possible cost

14
 Cont…
• Open economies
– Produce a larger output
– Competition - essential to both innovation and
efficient production
– International competition
• Domestic producers - strong incentive to improve the
quality of their products
• Weakens monopolies

15
 Cont…
• Globalization
– Rapid growth in some countries
• Increased demand for commodities
– Crude oil, cooper, steel - higher prices
• Increased supply of substitutes
– Biodiesel, ethanol
– Domestic economy
• Vulnerable to disturbances initiated overseas
– Increased competition from abroad

16
 Forces Driving Globalization
1. Increase in and application of technology
2. Liberalization of cross-border trade and
resource movements
3. Development of services that support
international business
4. Growth of consumer pressures
5. Increased global competition
6. Changing political situations and government
policies
7. Expanded cross-national cooperation 1-17
 Cont…
– Technological change
– Multilateral trade negotiations
• Continuing liberalization of trade and investment
– Widespread liberalization of investment
transactions
– Development of international financial markets

18
 Costs of Globalization
• Threats to national sovereignty
– lose freedom to “act locally”
• Economic growth and environmental stress
– growth consumes nonrenewable natural resources
and increases environmental damage
• Growing income inequality and personal stress
– promotes global superstars at the expense of others

1-19
 Concerns about Globalization
• Loss of unique cultures
• Short term gains over positive long-term
consequences
• Corporate profits before workers rights.
• Loss of indigenous culture, replaced by
homogeneity
• Loss of jobs because of economic globalization
• Environmental concerns over demands put on
Earth’s resources.
 Cont…
– Damage to the environment
– Exploitation of labour
– Monopoly power
– Economic degradation
– Non-renewable resources
 Cont…
• Accountability of Global businesses?
• Increased gap between rich and poor fuels
potential terrorist reaction
• Ethical responsibility of business?
• Efforts to remove trade barriers
Globalization Origin

II
 When Did Globalization Begin?
• Most agree that globalization is not a recent
phenomenon.

• There is no real consensus about the time

when globalization began.
 Origin
• Trace back to earlier civilization of:
– Sumer (Iraq)
– Indus Valley ( areas overlap with India and
Pakistan)
– Trade link of ancient world “silk road” connect
china to ancient Europe.
 Recent History
• British had a successful in globalizing
financial capital.
– Huge investment
– Sizable economic base of colony
– Industrialization and commercialization turn it in
to power house.
 Cont…
• 16th c transportation cost drop
• First successful transatlantic telegraph cable in
1866.
• Providing a real-time communications link
between Europe and North America.
• Transformed the information environment.
• Some argue that globalization took off
between 1875 and 1925.
 Cont…
• Others argue that there was just as much
globalization in the 19th century as there is
today.
• The work force is actually less mobile today
than in the 19th century.
• For example:
– There was no need for passports, and most people
moved freely from one country to another.
 Cont…
• In the 1860s and 1870s, many goods were
traded freely.

• For example, 95 percent of German imports

were free of duty.
Cont…
 Stage I 1870 to 1913
• The entire process was commanded by
Britannia.
• Controlling the essential pieces of
globalization :
– Technological progress
– Financial capital flow
– Trade in goods and services
 Feature of the Period
• Britain was the only big economy to maintain
open trade policy for long period.

• The imperial power of Britain achieve

complete market integration.

• The US protect itself with a very steep tariffs

on manufactured import.
 Cont…
– Decreases in tariff barriers & new technologies
• Declining transportation costs
– Shift from sail to steamships; Railways
– Driven by European and American businesses and
individuals

33
 Cont…
– Exports as a share of world income
• Nearly doubled to 8%
– Per capita incomes increased 1.3% per year
• Previous 50 years: 0.5% per year
– Countries that actively participated in globalization
• Became the richest countries in the world
– Brought to an end by World War I

34
 Cont…
• Great Depression of the 1930s
– Governments – protectionism
• Tariffs on imports
– Try to shift demand into domestic markets
» Promote sales for domestic companies
» Promote jobs for domestic workers
– Exports as a share of national income
• Falls to 5%

35
 Stage II Post WWII (1945-1971)
• Trade and market linkage become highly
politicized.
• Affluent nation look inward.

• Give top priority to their domestic concern

regarding full employment and economic
growth and the welfare state.
 Cont…
Horrors of the retreat into nationalism
– Falling transportation costs
– Decrease previously established trade barriers
– Trade liberalization – discrimination
• Which countries participated
• Which products were included

37
 Cont…
• Trade liberalization – discrimination
– Developed countries, manufactured goods
• Largely freed of barriers
– Greatly increased the exchange of manufactured goods
– Raise the incomes of developed countries
– Developing countries
• Eliminate barriers only for those agricultural products
that did not compete with agriculture in developed
countries
• Manufactured goods - sizable barriers

38
 Cont….
– New kind of trade
• Rich country specialization in manufacturing niches
– Gained productivity through agglomeration economies
» Firms clustered together
» Some clusters produced the same product
» Others were connected by vertical linkages
– Agglomeration economies
• Benefit those in the clusters
• Bad news for those who are left out

39
 Cont…
– Most developing countries
• Did not participate in the growth of global trade in
manufacturing and services
– Continuing trade barriers in developed countries
– Unfavorable investment climates
– Antitrade policies in developing countries
• Dependence on agricultural and natural-resource
products

40
 Cont…
– Increased per capita incomes within the developed
countries
– Developing countries as a group were being left
behind
– World inequality

41
 Cont…
• Three key institution were charged with
overseeing the globalization dynamics.

– International Monetary Fund

– The World Bank
– General Agreement on Trade and Tariff

Economic growth continued

 Stage III: 1980S ON
• Remarkable advance in the process of
industrialization.

• A health amount of global inflation that keeps

profit high.

• Stable monetary value secured by the US

dollar.
 Cont…
– A large number of developing countries
• China, India, and Brazil
• Broke into the world markets for manufacturers
– Other developing countries
• Increasingly marginalized in the world economy
• Decreasing incomes
• Increasing poverty
– Significant international capital movements

44
 Cont…
– Some developing countries
• Competitive advantage in labor-intensive manufacturing
– Bangladesh, Malaysia, Turkey, Mexico, Hungary, Indonesia,
Sri Lanka, Thailand, and the Philippines
– Tariff cuts
– Lower barriers to foreign investment
– Technological progress in transportation and communications
– Protectionist policies in developed countries

45
 Cont…
– World
• More globalized - international trade, capital flows
• Less globalization - labor flows
– Foreign outsourcing
• Certain aspects of a product’s manufacture are
performed in more than one country
• Manufacturing - moved to wherever costs were the
lowest
– Job losses for blue-collar workers
– Cries for the passage of laws to restrict outsourcing

46
 Cont…
– By the 2000s, foreign outsourcing of white-collar
work
• Information Age
– Digitization, Internet, and high-speed data networks around
the world
• Sending upscale jobs offshore
– Accounting, chip design, engineering, basic research, and
financial analysis
– Foreign outsourcing
• Reduce costs of a given service: 30 to 50%

47
 Cont…
• Globalization is often credited with promoting
huge network of services that include:

– Telecommunication
– Insurance
– Accounting
– Banking and other financial services
– Social networking
 Participants of Globalization

• All of us are influenced in some way by the

process of globalization.
• Global players may be divided into three
categories:
– Leading actors, or global corporations;
– Supporting actors, or international governmental
organizations (IGOs);
– International non-governmental organizations
(NGOs).
 Cont…
• Leading Actors: Global Corporations
– Multinational corporations (MNCs)
– Have their home (or headquarters)
in one country
– Have operations and investments in many
others
• Give Examples?
 Cont…
• Multi-national or trans-national corporations
(MNCs or TNCs).
• Businesses with a headquarters in one country but
with business operations in a number of others.
• Characteristics:
– Expanding revenue
– Lowering costs
– Sourcing raw materials
– Controlling key supplies
– Control of processing
– Global economies of scale
 Cont…
• Supporting Actors: International
Governmental Organizations (IGOs).
– Governmental organizations formed by agreements
or treaties among nations.
– There are about 6,500 IGOs in existence today.
• International Monetary Fund (IMF);
• World Trade Organization (WTO);
• United Nations,
• Asian Development Bank and the European Bank
• North Atlantic Treaty Organization (NATO).
Type of Globalization
 Financial Globalization
- World’s financial systems have become
intimately interconnected.
- Stock market trading in New York stock
exchange can affect Tokyo and Hong Kong
- Wave continues in European markets then
back to American markets
 Economic Globalization
Today corporations are now transnational
Companies move their production and capital
to any market.
It will benefit the company increase profits
and share values.
ie: Coca-Cola has plants in Somaliland
 Cont…
Coca Cola and Nike are all over the world
Supporters: increased global wealth means
increase in standard of living
Detractors - economic globalization tends to
increase difference between the “haves and
have not”
Leads to the corporation having more power
than countries.
 Technological Globalization
Technological revolution has meant the
“Global Village”
growth in travel communication
computer technology,
mobile (smart) phones communications
 I can be around the world live, in 1 second by
internet or smart phone or 12 hours by plane.
 Political Globalization
• As countries become more economically and
technologically interdependent.
• There is pressure to adopt uniform policies
• NAFTA : Free trade between US, Canada &
Mexico is example of free trade and
economics replacing nationalism and
protectionism.
 Cultural Globalization
- Harmonization of worlds cultures at the expense of
distinctly different local cultures.
- We will eventually all listen to the same music, watch
same TV, eat same food, have the same values.
- Loss of worlds cultural diversity, replaced by
primarily Americanized world cultures
- Major issue for cultures where religion is directly
connected to their culture, “western” values can often
come into conflict with tradition religious beliefs
 Sociological Globalization
• Idea that a single “world” society has evolved,
replacing distinct national societies that
previously existed.
• i.e:
– one set of moral beliefs (religious); reaction of the
“west” to Islamic fundamentalist countries and
vice versa.
 Ecological Globalization
The planet must be treated as a single
ecological system (ecosystem) rather than a
collection of separate ecological systems.
Ozone depletion, global warming impacts the
world not just nation that did original damage.
The failed Kyoto Protocol and Montreal
Protocol.
- Part of reason Kyoto failed was because it allowed
the “trading” of “carbon Emissions.
 Geographical Globalization
• Geographers don’t see world in terms of
relationships between countries anymore
i.e. trade, geopolitics, war
• Now see a borderless world, dominated by
worldwide concerns about:
– ecological concerns, politics, culture, economics
and other relationships existing; all influenced by
networks of world cities.
International Trade

IV
 The International Economy
• High degree of economic interdependence
– No nation exists in economic isolation
– All aspects of a nation’s economy are linked to the
economies of its trading partners
– Reflects the historical evolution of the world’s
economic and political order
– Complex and its effects uneven

64
 Cont…
• High degree of economic interdependence
– Steps toward international cooperation
– Mutually advantageous for trading nations
• Specialization, efficiencies of large scale production
• Wider variety of products at lower cost
– Protectionist pressures
– Developing nations
• Liberalized trading system - serves to keep the
developing nations in poverty

65
 Why we trade?
• Interregional divergence in:
– supply of primary factors
– Technology
– Pattern of demand
 Integration of Economies
• The increasing reliance of economies on each
other
• The opportunities to be able to buy and sell in
any country in the world
• The opportunities for labour and capital to
locate anywhere in the world
• The growth of global markets in finance
 Cont…
• Made possible by:
– Technology
– Communication networks
– Internet access
– Growth of economic cooperation – trading blocs
(EU, NAFTA, etc.)
 Cont…
• Benefits of Trade:
– Increased choice
– Greater potential for growth
– Increase international economies of scale
– Greater employment opportunities
 Cont…
• Disadvantages of trade:
– Increase in gap between the rich and the
poor
– Dominance of global trade by the rich,
northern hemisphere countries
– Lack of opportunities for the poor to be able
to have access to markets
– Exploitation of workers and growers
 Cont…
• These regional economic agreements have
been instrumental in the dramatic increase in
world trade.
• Example
– NAFTA
– TAT
– etc
 Cont…
• World trade
• 80% merchandise
• 20% services
• World output impacts trade
• Growing output = growing trade
• Sluggish output = sluggish trade
• World trade grows faster than world output
 Exchange Rate

• An exchange rate is the ratio at which two

currencies are traded.

• or the price of one currency in terms of

another.
 Trade Barriers

• Governments restrict international trade to

protect domestic producers from competition
by using three main tools:
1. Tariffs
2. Subsidies
3. Quotas
 Cont’d….
• Protection is the practice of shielding a sector of the
economy from foreign competition.
• A tariff is a tax that is imposed by the importing
country when an imported.

• A quota is a limit on the quantity of a good that may

be imported.
 Cont…
• Export subsidies are government payments
made to domestic firms to encourage exports.

• Dumping refers to a firm or industry that sells

products on the world market at prices below
the cost of production.
 Some Terminologies

• Imports: are the goods and services that we buy from

people in other countries.

• Exports: are the goods and services we sell to people

in other countries.

• An infant industry is a young industry that may need

temporary protection from competition.
 Cont…
• Closed Economy is an economy that does not
trade with the rest of the world.

• Open Economy is an economy that trades with

other countries.
 Cont’d….
 Trade Surplus
- When a country exports more than it imports, it runs a trade
surplus.
 Trade Deficit
– is the situation when a country imports more than it
exports.
 Balance of payment
– is the record of all international economic transactions.
 Negative balance of payments
– means that more money is flowing out of the country
than coming in, and vice versa.
 Open Economy
• Trade patterns
– Openness
• Rough measure of the importance of international trade
in a nation’s economy
• Nation’s exports and imports as a percentage of its gross
domestic product (GDP)

Exports + Imports 
Openness =
GDP

80
 Cont…
• Labor and Capital
– Movements in factors of production
• Measure of economic interdependence
• Labor mobility in UAE
– Almost all workers are foreigners

81
The World Trade Organization
WTO
 The World Trade Organization
• A rules-based, member-driven organization.
• “Its main function is to ensure that trade flows as
smoothly, predictably and freely as possible.”
• Created in 1995 by 120 nations
• Now:
– 148 member nations (over 97% of world trade)
 Origin: The General Agreement on
Tariffs and Trade (GATT)
• Before GATT: several joint declarations of free-
trade ideals and failed attempts to create an
international trade institution.
• Under US leadership, the GATT was created in
1947 as a step toward the “ITO.”

• Regulated trade in goods, only

 GATT/WTO: Main Objective
• To provide a legal framework for incorporating the
results of negotiations directed toward

“Reciprocal and mutually advantageous exchange

of market access commitments on a non-
discriminatory basis.”

• Typically, such an outcome is obtained through

reductions of tariffs and other barriers to trade.
 Why is There a Need for Trade
Negotiations?
• Typically, governments care primarily about
the residents of their own country.

Whenever possible, they try to shift the cost
of their policies to other countries.
• This is especially easy to do with trade
policies.
 Cont…
• WTO has no police power to enforce the agreements:
– The WTO cannot send any country to ‘jail.’

• The WTO cannot even indirectly force countries to

abide by previous agreement.
– By suspending loans, for instance, as the IMF can do.

 Agreements need to be self-sustainable.

The International Monetary Fund
 Monetary History
• Throughout 20th century, countries struggled
with various arrangements for the conduct of
international finance.
• None proved satisfactory

– Appears international financial system had a

dynamic of its own

89
 The Gold Standards
• Late 19th and early 20th centuries were characterized
by a highly integrated world economy.

• Supported from approximately 1870 to 1914 by an

international financial arrangement known as the gold
standard.
– Each country defined the value of its currency in terms of
gold
– Most countries also held gold as official reserves

– Since value of each currency was defined in terms of gold,

rates of exchange among the currencies were fixed

90
 Cont…
• World War I began in 1914

• The countries involved in that conflict suspended the

convertibility of their currencies into gold.

– After the war, unsuccessful attempt to return to

gold standard
 Gold-Exchange Standard
• In 1922, there was an attempt to rebuild the pre-World
War I gold standard.

• New gold standard was different from the pre-war

standard due to current gold shortage.
– Countries that were not important financial centers
did not hold gold reserves but instead held gold-
convertible currencies.
– For this reason, the new gold standard was known as
the gold-exchange standard.
• Goal was to set major rates at their pre-war levels,
especially British pound.
92
 Gold-Exchange Standard
• Overall standard was not a success
• Some international economists have even seen it as a
major contributor to Great Depression.
• Combination of both fixed and floating rates:
– Lack of international financial coordination helped contribute
to the economic crisis of the decade
– At the worst of times, countries engaged in a game of
competitive devaluation

93
 The Bretton Woods System
• 1941 is a turning point in the history of global
financial arrangements.
• During World War II, United States and Britain began to
plan for the post-war economic system.
• White and Keynes understood the contribution of
previous breakdown in international economic system to
war
– Hoped to avoid same mistake made after World War I
– White largely got his way during 1944 Bretton Woods
Conference

94
 Cont…
• Two plans were taken up at the Bretton Woods
Conference in July 1944.
• Conference produced a plan that became known as
the Bretton Woods system

– White Plan gained prominence, resulting in

creation of:
• IMF
• WB
 Cont…
• Essence of the system was an adjustable gold peg
– US dollar was to be pegged to gold at $35 per
ounce.
– Other countries of the world were to peg to the
US dollar or directly to gold
Placed the dollar at the center of the new
international financial system.
• Countries were to make their currencies
convertible to US dollars as soon as possible

96
 The Operation of the IMF
• IMF is an international financial organization comprised
of 183 member countries.
• Purposes to:
– Promote international monetary cooperation
– Facilitate the expansion of international trade
– Promote exchange stability and a multilateral system of
payments
– Make temporary financial resources available to members
under “adequate safeguards”
– Reduce the duration and degree of international payments
imbalances

97
 Cont…
• The IMF engages in four areas of activity
– Economic surveillance or monitoring
– Dispensing of policy advice
– Lending
• Perhaps most important
– Technical assistance

98
 Cont…
• IMF exercises a unique function for
developing countries.

– This function is known as ‘lender of last resort

• It is supposed to stop financial crises from

spreading, or even starting in the first place.
 Cont…
• Its governance and institutional design are
particularly vulnerable to political pressures.

• This is because it aggregate the interests and

preferences of 185 states.
 Cont…
• A heated debate exists between those that want
IFIs to become independent of political
influence.

• So they can make better and more consistent

decisions and those who assert that this is less
democratic.
 Cont…
• Existing policies have a profound effect on
borrowing countries.

• In recent years, the scope of conditionality has

expanded far beyond balance of payments
problems meaning political influence.
 Cont…
• IMF members are represented by its Board of
Governors.

• In the broadest sense possible, the Executive

Board is the Fund’s principal.

• Some members have always had more control.

 US Control
• The United States is undisputedly the most
powerful IMF member for a number of
reasons.
• The list of exclusive privileges held by the US
includes strong institutional links between the IMF:
– US Treasury Department
– US Congress,
 The ability to veto all decisions and adjust the
organisation’s budget and quota.
 Cont…
• US influence the content of IMF
arrangements.

• The existing literature has already documented

its influence over the:
– size,
– odds and frequency of IMF loans to developing
countries
Global Markets Reduced
Inequality
Globalization has promised
• prosperity to poorer countries
– has often delivered: China and India
• to reduce gap between haves and have nots
(inequality) in poorer countries
– has not delivered
• In fact, in many poor countries, inequality
has increased

107
Why does reducing inequality matter?
• eradication of poverty
• political stability

108
• Is increased inequality in poor countries
surprising?
• Yes - contradicts theory of comparative
advantage
– goes back 200 years (David Ricardo)
– has been impressively successful in explaining
international trade patterns
– predicts free trade should reduce inequality in
poor countries

109
Compare rich country with poor country
• Ratio of high-skill to low-skill workers higher
in rich country
• So, rich country has comparative advantage
producing goods requiring high proportion of
high-skill workers -
- e.g., computer software
• Poor country has comparative advantage
producing goods where skill doesn’t matter so
much.
e.g., rice

110
Globalization and Health
 Public Health in a Globalizing World

• Health is on the global policy agenda

• Achievements in health are critical to
Development Goals
• Domestic action alone - no longer sufficient
• New context (rules, actors, markets, tools)
requires new responses)
 Globalization and Risks for Health

• Cross-border transmission of disease

• Marketing of harmful products and unhealthy
behaviours
• Environmental degradation
• Conflict
Globalization and Opportunities for Health
• Wider dissemination of knowledge/technology
• Incentives for R&D for diseases of the poor
• Resources for effective interventions
• New rules to control cross border risks
 Cont...
• Global Health Governance - international collective
action
• Global public goods for health - investments beyond
the means or incentives of any single government -
new vaccine development for neglected diseases
 Health and Trade
• Effects of trade liberalisation on public health
• Trade liberalisation: removal of impediments to
trade in goods and services
• Public health: organised measures (whether public
or private) to prevent disease, promote health or
prolong life of the population as a whole.
 Public health issues and
WTO rules

• Infectious disease control

• Food safety
• Tobacco
• Environment
• Access to drugs
• Health services
• Food security and nutrition
• Emerging issues (biotechnology….)
 Trade in Health Services
Globalization of health

• Cross border delivery- telemedicine; e-health

• Consumption abroad- patients travelling across
borders for diagnosis and treatment
• Commercial presence- establishments of hospitals,
clinics through FDI, joint ventures, alliances,
mergers
• Movement of personnel - doctors and nurses
practising in other countries
 Implication of globalisation of
health services
• Impact of liberalised trade in services on the access to
cost, quality of services
• What policies, regulations should be in place to ensure
that trade in health services increases equity in health
and is in the interest of those in greatest need
• What collective action across countries, at regional
and global level is needed to take advantages of
emerging global opportunities and mitigate potential
risks : promote policy coherence
 Cross border delivery of services
• Shipment of laboratory samples, diagnosis and
clinical consultations -mail
• Electronic delivery of health services
• Telehealth- telediagnostic, surveillance and
consultation services (USA hospitals to CA and
EM)
• Telepathology (India to Bangladesh, Nepal)
• E-health - products and services available over
internet
 Health implications of cross border
delivery of services
Opportunities
• Enable health care delivery to remote and
underserviced areas -promoting equity
• Alleviate some human resource constraints
• Enable more cost -effective surveillance of
diseases
• Improve quality of diagnosis and treatment
• Upgrade skills, disseminate knowledge through
interactive electronic means
 Consumption abroad
• Movements of patients to the country providing the
service for diagnosis and treatment.

• Movement of health professionals for receiving medical

education and training abroad.
 Health Implications of consumption
abroad
Opportunities
For exporting countries
• Generate foreign exchange earnings to increase resources
for health
• Upgrade health infrastructure, knowledge, standards and
quality
For importing countries
• Overcome shortages of physical and human resources in
speciality areas
• Receive more affordable treatment
 Health Implications of
commercial presence
Opportunities
• Generate additional resources for investment in
upgrading of infrastructure and technologies
• Reduce the burden on public resources
• Create employment opportunities
• Raise standards, improve management, quality ,
improve availability, improve education (foreign
commercial presence in medical education sector)
 Movement of Personnel
• Includes:
– doctors,
– nurses,
– paramedics,
– midwives,
– consultants,
– trainers,
– management personnel
 Cont…
• Factors driving cross border movements
 wage differentials between countries
 search for better working conditions and standards of
living
 search for greater exposure, training and improved
qualifications
 demand and supply imbalances between receiving and
sending countries.
 Cont...
Opportunities
From sending country
• Promote exchange of knowledge among professionals
• Upgrade skills and standards (provided service
providers return to the home country)
• Gains from remittances and transfers
From host country
• Meet shortage of health care providers, improve
access, quality and contain cost pressures
 Cont...
Risks
From sending country
• Permanent outflows of skilled personnel -
brain drain
• Loss of subsidised training and financial capital
invested
• Adverse effects on equity, availability and quality
of services
Thank You !!!