Applying the vulnerability and resilience framework to brain drain in the European Union : the case of Cyprus and Malta

Abstract

Small states tend to suffer from inherent vulnerabilities that expose them to external shocks, due to their high degree of openness even more if they are islands. One such vulnerability is brain drain which could have harmful effects on an economy if left uncontrolled because human capital is an important factor for achieving economic growth. However, many small states, despite their size, have managed to achieve economic growth nonetheless. The vulnerability and resilience framework could be a useful tool for identifying the strengths and weaknesses of a small state for obtaining growth. Therefore, it is noteworthy to see what the small island states of Europe, Malta and Cyprus, are doing to overcome the brain drain vulnerability and what is the role of the European Union in all of this. The answer to these questions could be identified through a qualitative approach encompassing peer reviewed literature to see what researchers have to say on the topics of brain drain and the vulnerability and resilience framework. This was in addition to identifying actual policies implemented that could tackle the issue from online searches and the national budgets of Malta and Cyprus, on a European Union and national level. Statistics for these small island states and the rest of the European Union were also incorporated to have a clearer picture if brain drain is truly an issue within the European Union, Malta and Cyprus, and also whether people have been becoming more skilled than they used to be. Some of the sub-themes that are related to brain drain and frequently came up during the research, especially for the policies that have been implemented were ‘education’, ‘training’, ‘private sector development’ and ‘labour’. In the case of labour the European Union is looking at attracting highly skilled third-country nationals that could stabilise the old-age dependency ratio and the free movement of labour. Even Malta and Cyprus look beyond their borders to attract skilled labour to their territories. In fact the EU and the two small island states currently have a positive net migration pattern. However, if such a strategy is successful it could spark a brain drain phenomenon on third-countries. The policies that could significantly stop brain drain should promote good governance, strengthening institutions, competitive wages, private sector development and public sector reform. Hence, tax incentives have been used, female and youth employment has been encouraged, grants for research and innovation, investing in niche areas that are more service based and thus do not require a lot of input of natural resources, such as tourism and financial services and also investing in education and training is crucial to combat brain drain.