Medical Tourism in Developing Countries
Medical Tourism in Developing Countries Medical Tourism in Developing Countries
Promoting Medical Tourism ● 107Table 5.2 contains data on perceptions of brain drain collected by theWorld Economic Forum. Top business executives were asked to react to thefollowing statement: your country’s talented people: 1 normally leave topursue opportunities in other countries, 7 almost always remain in thecountry. The Philippines, notorious for its brain drain, in fact ranks lowestamong the countries pursuing medical tourism. Chile’s talented people arethought to remain in the country so much so that it ranks eighth in theworld according to that indicator.Brain drain also occurs when doctors and nurses from developing countriestrain abroad and then opt to remain there. Gupta, Goldar, and Mitranoted that only 48 percent of the Indian doctors who trained abroadreturned home. 42 However, they cite a study conducted in 1993 and it islikely that this number has changed given the rise in medical tourism. Andthis leads us to brain gain.Medical tourism has opened up the possibility of brain gain of highlyskilled workers. Such brain gain carries high monetary value as a countryreceives skilled workers (that it didn’t have to train), as well as their productivity,drive, and tax revenue. There are different ways of getting braingain. Some are short term, such as derived from the UNDP program calledTransfer of Knowledge Through Expatriate Nations (TOKEN) that arrangesthat expats return to work on specific programs. Most are more long term,attained both by retention efforts and induced reverse migration.Table 5.2 Brain drain, 2005CountryTalented people stay or leaveArgentina 3.0 (72)Chile 5.3 (8)Costa Rica 4.2 (29)Cuban.a.India 3.6 (47)Jordan 2.6 (87)Malaysia 5.0 (15)South Africa 3.1 (68)Philippines 2.3 (101)Thailand 4.9 (17)USA 6.4 (1)Zimbabwe 1.7 (116)Note : Values range between 1 and 7 (7 is highest), and country rank is inparentheses.Source : World Economic Forum, Global Competitiveness Report 2005–06,(New York: Palgrave Macmillan, 2006), table 4.08.
108 ● Medical Tourism in Developing CountriesThe countries under study are increasingly successful in retaining skilledworkers. Authorities have recognized that they must emphasize retention,since educating people who then leave, taking their skills along, eliminatesthe macroeconomic benefit of expenditure on training. Government policyis thus aimed at providing a vibrant medical tourism industry at home thatcan offset the need to work abroad and thereby helps keep human capitalat home. The importance of a domestic environment that can inducedoctors and nurses to stay at home has been recognized in the literature.David Warner notes that a globalized medical care system (such as the onewhere medical tourism exists) will “help many countries slow or reverse thebrain drain of trained medical personnel who currently emigrate and findit difficult to support themselves if they stay at home.” 43 Similarly, ThomasFriedman claims that outsourcing allows Indians to “compete at the highestlevels, and be decently paid, by staying at home . . . [they] can innovatewithout having to emigrate.” 44In addition to retaining skilled workers, it is also important to inducereverse movements of doctors and medical staff that have been trained inforeign countries. Again, authorities in developing countries have recognizedthis need and have introduced supportive policies, including financialinducements for housing, as well as business credits. Moreover, as economicdevelopment occurs, the lifestyle gap between LDCs and MDCs is nolonger as large as it once was, further inducing reverse migration. Suchincentives have been especially successful in India, where Indians in thediaspora are coming home in droves. According to Nasscom, a trade groupof Indian outsourcing companies, some 30,000 technology professionalshave moved back to India in 18 months in 2004–5. 45 They are buildingcommunities that resemble the suburbs they left behind in the UnitedStates and are actively closing the lifestyle gap. While there is obviously awide range of sentiments that draw expatriates back to their homeland,many are clearly not monetary or quantifiable, but rather have to do withthe spiritual, emotional, and nostalgic dimension associated with homeland,culture, roots, extended family, and belonging. All this is summed up bythe sentiment succinctly expressed by the founder of Escorts Hospitals,Naresh Trehan, who moved from the United States to India to invest inmedical tourism: “I make one tenth of what I was making in the U.S. butI’m ten times happier.” 46 Such anecdotal evidence of reverse migration isbolstered by findings of the National Bureau of Economic Research:“A special counter-flow operating on the U.S. . . . is the tendency of foreignbornAmerican [science] stars to return to their homeland when it developssufficient strength in their area of science and technology.” 47
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Promot<strong>in</strong>g <strong>Medical</strong> <strong>Tourism</strong> ● 107Table 5.2 conta<strong>in</strong>s data on perceptions of bra<strong>in</strong> dra<strong>in</strong> collected by theWorld Economic Forum. Top bus<strong>in</strong>ess executives were asked to react to thefollow<strong>in</strong>g statement: your country’s talented people: 1 normally leave topursue opportunities <strong>in</strong> other countries, 7 almost always rema<strong>in</strong> <strong>in</strong> thecountry. The Philipp<strong>in</strong>es, notorious for its bra<strong>in</strong> dra<strong>in</strong>, <strong>in</strong> fact ranks lowestamong the countries pursu<strong>in</strong>g medical tourism. Chile’s talented people arethought to rema<strong>in</strong> <strong>in</strong> the country so much so that it ranks eighth <strong>in</strong> theworld accord<strong>in</strong>g to that <strong>in</strong>dicator.Bra<strong>in</strong> dra<strong>in</strong> also occurs when doctors and nurses from develop<strong>in</strong>g countriestra<strong>in</strong> abroad and then opt to rema<strong>in</strong> there. Gupta, Goldar, and Mitranoted that only 48 percent of the Indian doctors who tra<strong>in</strong>ed abroadreturned home. 42 However, they cite a study conducted <strong>in</strong> 1993 and it islikely that this number has changed given the rise <strong>in</strong> medical tourism. Andthis leads us to bra<strong>in</strong> ga<strong>in</strong>.<strong>Medical</strong> tourism has opened up the possibility of bra<strong>in</strong> ga<strong>in</strong> of highlyskilled workers. Such bra<strong>in</strong> ga<strong>in</strong> carries high monetary value as a countryreceives skilled workers (that it didn’t have to tra<strong>in</strong>), as well as their productivity,drive, and tax revenue. There are different ways of gett<strong>in</strong>g bra<strong>in</strong>ga<strong>in</strong>. Some are short term, such as derived from the UNDP program calledTransfer of Knowledge Through Expatriate Nations (TOKEN) that arrangesthat expats return to work on specific programs. Most are more long term,atta<strong>in</strong>ed both by retention efforts and <strong>in</strong>duced reverse migration.Table 5.2 Bra<strong>in</strong> dra<strong>in</strong>, 2005CountryTalented people stay or leaveArgent<strong>in</strong>a 3.0 (72)Chile 5.3 (8)Costa Rica 4.2 (29)Cuban.a.India 3.6 (47)Jordan 2.6 (87)Malaysia 5.0 (15)South Africa 3.1 (68)Philipp<strong>in</strong>es 2.3 (101)Thailand 4.9 (17)USA 6.4 (1)Zimbabwe 1.7 (116)Note : Values range between 1 and 7 (7 is highest), and country rank is <strong>in</strong>parentheses.Source : World Economic Forum, Global Competitiveness Report 2005–06,(New York: Palgrave Macmillan, 2006), table 4.08.