Fighting Mongolia’s brain drain

The economic effects of out-migration have been significantly noted in the studies conducted by international organizations such as the World Bank, IMF and the UN. The scholars of the IR field have also emphasized the effects of remittances on the home countries’ economies. In particular, I will utilize the approaches devised by John McHale, Devesh Kapur and Stuart Brown.

Consequently, in applying their theoretical insights into the issues of remittances and brain in Mongolia, World Bank data is useful. In 2010 Mongolia was included among the top ten remittance recipient countries with USD 0.2 and in 2009 remittance percentage of GDP constituted 4.6%. In 2010 emigrants accounted for 32100 persons, or 1.2% in relation to the total population of Mongolia. According to the World Bank data, the top ten destination countries for Mongolian migrants included developed and developing countries such as the Republic of Korea, Germany, Japan, the US, Hungary, Poland, the UK, the Netherlands and Australia.

Despite this, overseas remittance constitutes an important poverty coping mechanism in Mongolia. Approximately 47-61% of remittances are used for basic consumption. However, the remittance flow into Mongolia does not outweigh the amount of foreign aid as the percentage of out-migrants is still significant, which promoted the Ministry of Foreign Affairs of Mongolia to direct its foreign policy orientations to support the Mongolians abroad as the Minister acknowledged the contributions made by Mongolians abroad and pledged to establish support fund to aid Mongolian citizens living abroad, which will receive the funding from the state budget.

In terms of the brain drain argument for the out-migration, the emigration flow of Mongolians for educational purposes amounts to 1.1%, while emigration of physicians amount to mere 0.3% according to the World Bank data. Therefore, it cannot be stated that there is a significant brain drain experienced due to the out-migration of Mongolians.

As a result, the ‘brain drain’ approach shows the positive effects of outbound migration in terms of its remittances back to Mongolia, human capital development via educational and work experiences abroad.

Despite the fact that such highly skilled people might not return home, their numbers are still low to merit a significant ‘brain drain’ in Mongolia. Most of the Mongolians abroad work in low-skilled sectors. Therefore, economic pull factor or ‘brain drain’ approach was not useful in identifying the causal link between the outbound migration and security in the case of Mongolia.

In 2010 Mongolia amended its National Security Concept (NSC), originally adopted in 1994. For the first time the National Security Concept includes the issue of human security. It defines the basis for human security as: “The provision of favorable healthy and safe living and housing environment of the Mongolian person, improving human security conditions and housing environment, and protect against falling victim to criminal activities”. This definition includes both the ‘freedom from fear’ and ‘freedom from want’ discourses of human security at the policy level.

The NSC provision on the protection of citizens from the transnational organized crimes stated in Article 3.4.4.1 the requirement to “improve the conditions for the protection of citizens from terrorism, transnational organized crimes and violence”, and Article 3.4.4.2 states the need to “improve and strengthen the legal environment to prevent children, women and the general public from becoming victims of human trafficking”.


Despite the positive policy development, the situation in reality constitutes a cause for a concern in terms of increased lack of human security in Mongolia. For example, according to the World Bank studies, Mongolia ranks 59.5 in its financial freedom indicator and 27th in the corruption index, placing its overall world ranking at 94.

In spite of the statistics that in 2011 the GDP has grown up to USD 3841 per capita, Mongolia has become a country, where more than 40% of the population is poor, the unemployment and corruption is widespread, and one with a high rate of informal sector, succumbed to bureaucracy. Therefore, lot of people if given the opportunity to seek employment abroad and some become the victims of human trafficking.

Our economy is largely dependent upon the mineral resources, which constitute 30% of GDP and more than 85% of our exports. However, our government officials instead of developing non-mining sectors of economy with the capital accumulated from the mineral resources are distributing cash handouts, and approved a state budget deficit equaling to 10% of GDP.

Ulaanbaatar ranks top in its state of air pollution in the world. The so-called ‘ger districts’ contribute to 80% of air pollution in the city, which is again related to the level poverty as these people cannot afford to live in flats. The environmental conditions directly affect the health of the people and with such an air quality, the rate of airborne disease is increasing among young and old in UB. Among the most vulnerable group of the society such as children and the elderly, the rate of airborne disease has increased 4.2 times the group of 16-19 year olds.

In recent years, migration flows from Mongolia have increased. Figures from 2006 suggest that approximately 120000 Mongolians reside abroad. Unofficial sources estimate that this figure could be as high as 250000. Most overseas migrants from Mongolia, are young people between 20-35 years old (60-70%).

The labor migration constitutes one of the main factors for increase of outbound migration in Mongolia with the most ending up in South Korea. As most of these people work illegally by overstaying their tourist visas they consequently exploited in cheap labor with the lack of medical care. Such travels also become one of the sources for the spread of the infectious disease in Mongolia by the return of people such as the HIV/AIDS.

The industrial accidents are a frequent occurrence with estimated 72 people dead and 16 Mongolians serving sentence in the Korean prisons. Consequently, the outbound migration bring negative consequences for Mongolia in terms of diminished employment rate of young, healthy people, increased divorce rates and illegal migrants being easily lured into criminal activities, which in the end negatively affect the image of Mongolia abroad. The issue of human security or the lack thereof, particularly, the economic and environment and health security contribute significantly towards the loss of the most educated, healthy and young people abroad.

We must increase real income from the salary of government, non-government and private sectors, where the government should maintain a policy to lower the inflation rate. Additionally there must be an increase in the level of public health services for the general population and improve the maternal health care due to the increase in the number of maternal and infant deaths

As the women are more vulnerable to fall victim to trafficking, it is important to direct efforts towards raising the gender equality of Mongolian women, and offer more economic opportunities to support their families
Attract residents by adequately resolving the issue of air pollution, and aim to decrease the level of air pollution in Ulaanbaatar substantially with next 5 years.

Government policies also need to be directed towards diversification of the economy in order to avoid dependence on the mining sector, in particularly developing the sectors of agriculture, animal husbandry and tourism, in order to avoid “Dutch disease”.

The human security framework was the most successful in providing tools in determining the root causes of outbound migration. If significant efforts are not implemented in order to decrease the levels of human insecurity in all of its dimensions of ‘freedom from fear and want’ Mongolia will continue to experience substantial outflows of young, healthy and educated human capital.

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