Economist Atanu Dey writes about India’s second quit India movement. This time it is not a struggle to send someone else out of the country but getting out of your own country. Indian parents are saving and borrowing to send their kids out of India to settle in countries like USA, UK, Australia and France.
Quit India version 2 is devastating India because it essentially is forcing capital to exit India. By capital, I mean both human and non-human capital. Capital creates wealth. Capital is mobile and moves to where it is welcome. This is no secret. Countries that welcome capital do better than those that don’t.
The US imports lots of stuff. But its more important import is the immense amounts of human capital. The US exports lots of stuff but exports practically zero human capital. The situation is exactly opposite for India. India does not import any human capital and only exports whatever human capital it has — especially high quality human capital.
When you watch Olympics, Indians feel proud that their women’s hockey team came fourth and celebrate the fact that India’s male hockey team won a bronze after 40 odd years. India won its first track and field medal for the first time in last 100 years.
On other hand when when you watch Americans you see small town girls and boys winning medals in all sort of sports. It is not possible to guess the nationality of these athletes because a lot of the appear to be children of immigrants on immigrants themselves.
Suni Lee is daughter of Taiwanese refugee woman in St. Paul Minnesota. This town has population of 300K and is 63rd largest (?) city in USA by population.
Here is Suni Lee’s family cheering for her. It is near impossible to tell that this is an American athlete looking at these people. But it is simply incredible that human capital USA has accumulateddespite its laws that are hostile to immigrants.
On other hand thanks to Indian government control of India’s medical education, Indians are