A recent article on ekantipur.com looks at the growing wave of Nepali students heading overseas to further their education. The most popular destination is Australia with the US in second place. Australian Government statistics tell the same story. Australian Education International statistics show that the number of Nepali students enrolling in Australian institutions between May 2007 and May 2008 was 11,437. This represents a staggering 147.1% growth in the same 12 month period in 2006-07 and puts Nepal at number 7 on the list of countries contributing to international student enrolments in Australia.
The article mentions the familiar push and pull factors underpinning this movement. The perception amongst Nepali students and their families is that education and employment opportinities overseas are better than those at home.
This is all great news for the markets that benefit from it, including Australia and the US, but what are the implications for Nepal? The obvious problem is that students that travel to other countries seeking better opportunities are very likely to stay there. Nepal is losing it best and brightest and the 'brain drain' has an obvious economic down side.
However it is not all doom and gloom for Nepal. The article suggests that Nepal's Government should make a concerted effort to attract expats back to it shores, including by providing opportunities for talented individuals to return and make a contribution to building the country. This is to be strongly supported.
The other thing that Nepal may take at least a small measure of comfort from is that, despite the accepted wisdom, there is research to suggest that the 'brain drain' is not always detrimental to a developing economy.
The bottom line is that Nepal needs to find a way to adapt to the growing exodus of its young people because there is no sign of the trend slowing any time soon.
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