[MUSIC] Welcome to Module 4 of China and the world. This module is entitled, China's Search for Talent and Technology. Now, since 1978, China's leaders have seen the accumulation of talent, particularly people who have worked or studied abroad, as a key component of developing national power. In speeches, in policies, allocation of funding. They see this group of overseas mainlanders as critical for developing China's scientific capability, educating future generations within China, transferring technology. Strengthening the global competition, the capabilities of what we call National Champions by enhancing their management and overall for generating an innovative society and competitive economy. Now, what can states do? Well, there are several things that states can do, from a broad policy environment, perhaps one of the most important things they can do is really improve the policy and then improve the political context in which return migrants must function. Much of the brain drain literature has always attributed people going out and not coming back but going out to political instability. So creating a stable quality. Although not necessarily a democracy Is very important. To get entrepreneurs to return, you need to deregulate the market and promote economic development. Because that really creates the opportunities and confidence among the overseas sojourners that they should come back. Promoting the private sector as compared to the state sector, securing intellectual property rights, these all encourage overseas nationals to come back and establish firms back home. In her own writing, Newland claims that to facilitate circular migration, governments must at a minimum, create an enabling environment in the country of origin. Quote, the most fundamental and most difficult elements of this are establishment of the rule of law. Property rights, open and transparent government, lack of corruption and other attributes of good governance including, she suggest dual citizenship or eliminating VISA requirements for members of the diaspora who are citizens of another country. Now other broad policies that states can do, one that I like to emphasize, is really to cut the bureaucratic predation, corruption, red tape, demands for payoffs and rent seeking behavior. And these are kinds of transaction costs of doing business back in developing countries. The states must also introduce coherent science and technology policy. And they must be willing to invest in science and technology. Now quoting an article by Saravia and Miranda they say, when real opportunity exists within the context of coherent internal policies and investments in science and technology. Returning to the home country becomes an attractive option for the immigrants. Also an article in the OECD observer talked about sending countries developing inadequate scientific technological and business environment that will provide rewarding opportunities for the return of individuals who have upgraded their skills abroad. And a third component for me, I one often look at and we'll talk about later in terms of bias. Cerase emphasized that states must overcome bias against returnees at the national, at the institutional, or at the individual levels. Now some specific policies that states can target at these, this flow of human talent include things like deregulating controls on human movement. As I said lowering the transaction costs of diverse migration. One example may be dual citizenship. Right? Governments can create high tech zones with special tax breaks within these cities and discount, cheap floor space and help these returnees enter the local market. They can use numerous channels to inform the overseas communities of the benefits of return migration, even though much of this information actually travels through personal or professional networks. And they can foster professional networks overseas that will share this information and one thing they can do is they can bring back overseas nationals to see what's going on back home. Let them see first hand the opportunities that await them.
