Select Committee on International Development Minutes of Evidence


Examination of Witnesses (Questions 200 - 219)

TUESDAY 9 MARCH 2004

PROFESSOR JAMES BUCHAN, MR WINSTON COX AND MR DUNCAN HINDLE

  Q200  Tony Worthington: Can I welcome you all to this meeting. I have apologies to put forward from the Chair, Tony Baldry, who is in Sierra Leone today. So apologies because he cannot be with you, but a particular welcome to our witnesses on this investigation we are doing into the link between migration and development. We are turning today to a particularly interesting area, about what, in colloquial terms, is called the "brain drain" associated with developing countries. Can we leave it to the witnesses not to feel that they have to respond to every question that we put—each one of you—otherwise we will not get through everything we have to do. Can I start off by looking at this issue of the impact of highly skilled migration on the ability of developing countries to be able to meet the Millennium Development Goals. One of the really distressing situations is to see that a minority of people get up to secondary and higher education standard and then you hear very dramatic statements like "There are more Ghanaian doctors in New York then there are in Ghana" or some statements such as that. Can you, as an opener, give us your reaction to the impact of migration in terms of the intellectual capacity of countries and the ability to reach the Millennium Development Goals? Can I start with Mr Cox?

  Mr Cox: Thank you, Mr Chairman. I think the answer to your question is not a simple one. Probably the direction of causation goes in two ways: first, on the face of it, outward migration will certainly reduce a country's capacity if the migrants are drawn from the skilled groups that are in short supply, and the smaller the country the greater the burden on capacity. To some extent, however, countries are also recipients of migrants, and in the example that you quoted about there being more Ghanaian doctors in New York, another way to phrase the question is: is the supply of doctors in Ghana sufficient to take the Ghanaian health system across the threshold? I think that really is the problem. When migration threatens the integrity of the systems, whether it is the health system or the education system, then, yes, indeed, it will have an adverse impact on the country's ability to meet whatever targets it sets itself, and in the international development context the Millennium Development Goals are the operative targets. Can I stop there?

  Professor Buchan: Just to reinforce what Mr Cox has said, I think it is important to look at the overall issue of capacity to meet the MDGs, or any other particular targets, and if the assessment is that the country will not have the capacity to meet targets the question then is to what extent has migration contributed to that lack of capacity? It is difficult enough, I think, to assess that just in terms of numbers, but if you try and get into skills it becomes even more difficult to assess the relative impact of migration against other forms of outflow from the health workforce, for example.

  Q201  Tony Worthington: It would be helpful if each of you could give specific examples of where out-migration has been a particular factor in hindering the progress to the Millennium Development Goals in your response—particular examples of where it has been severe or is particularly affecting certain service sectors.

  Mr Hindle: I am from South Africa, from the education sector, and let me say that it is perhaps fortunate, at this stage, I do not think the migration patterns have reached a stage where they are likely to compromise the Millennium Development Goals within the context of South Africa. It is perhaps edging closer, certainly in regard to some specific skills, particularly, obviously, maths, and the science and technology areas. Those are the people who are, obviously, eminently recruitable elsewhere and do tend to move. Should that start to affect numeracy and literacy levels in the country we would be concerned about that. At this stage I do not think it is the case and I think it reinforces Mr Cox's point that it is obviously related to the context in the country, the current supply and demand equation, in any professional field.

  Mr Cox: I would have quoted very much the same example from education that Mr Hindle quoted, but I would also say that in the health field meeting the Millennium Development Goals with respect to maternal mortality, for example, can be severely hampered where the recruitment of maternal nurses is particularly heavy. We have found from consultation with a number of partners in the health sector that health education and health care delivered by the nursing—I almost said fraternity, but I suppose that is probably quite correct too—can have a major impact on rates of maternal mortality.

  Q202  Tony Worthington: Can I respond to that? We have recently been to Ethiopia which has something like a $2-a-person-a-year health service, where the figures we were given—and they were old figures, for 1995—show that only 5% of births were attended by skilled, trained people. Five per cent! For Ethiopia to lose any nurses must be very, very bad news, in terms of meeting goals on infant mortality or maternal mortality and so on.

  Mr Cox: Indeed. However, at $2 per head per year for health care there must be lots of other critical components that are missing as well. So the nursing care is only one. Obviously, it is the focus of our attention here but there would be other critical components that would be missing at that level of expenditure per capita on health care.

  Q203  Tony Worthington: Another area that we have got very interested in is the business of remittances. Certainly a point that had not occurred to me before was that I think we were all astonished by the scale of remittances, dwarfing in some cases the amount of development assistance going to those countries. We have heard it put forward that if you are exporting skilled labour, going to developed countries, earning wages in those countries, that is an effective way or it is an important contributory way towards giving development assistance to those countries. Have you any views on that? Can you think of any countries where, in fact, that has been a major contribution to their development?

  Mr Cox: Yes, Mr Chairman. There is a particularly interesting issue of comparative advantage in training that could be applied to provide an answer to your question. Let me begin by saying that I think there are very few developing countries that train skilled people for the export market. I think India is probably one country that comes to mind where there is a fairly conscious policy of training large numbers of individuals with the export market in mind. However, in many developing countries the resources to be applied to the training of skilled individuals are scarce resources and the training is not done with remittances as the objective. In the teaching profession, for example, the training is done with the objective of delivering quality education to the citizens, and similarly in the health sector. There are other ways of exporting those services where, for example in health, tourists may visit a country and have certain procedures done there. That is virtually the same as remittances; that is there are substantial earnings from non-residents, but those services are delivered in the country where the professionals have been trained and where they reside, so they are not lost to the system, they are serving a much larger community. There have been times in the development cycle of many countries—small countries in the Caribbean are a good example of this—where a number of skilled workers have left and have provided substantial remittances. However, these were not, very often, people who had been trained to the skill level where they were teachers and nurses, doctors and engineers and the other types of professionals that any developing country needs if it is to move forward at this stage in the cycle of development; these were very often mechanics and other types of workers, many of whom migrated to England, provided remittances back to the Caribbean and helped to build up an economy, improving the quality of housing and improving the quality of education, in particular. Therefore, there is indeed a strong link between remittances and development impact. I know that there is a debate about the quality of expenditure, whether it is conspicuous consumption or whether it is productive investment, and there is debate about how such remittances can be harnessed better to ensure that they are spent on productive investment. In the training of health service workers and in the training of education system workers I think the fundamental issue for most countries is the integrity of the systems to meet the commitment to the local population rather than a source of remittances. There are other areas where this is very important. I believe on an earlier occasion reference was made to the work of Professor Winters on Mode 4 in the WTO, which can provide—as demonstrated by his work—substantial benefits to the countries from which people employed in industry—in the service industry, the hotel industry and various other types of activities—can make a substantial contribution. So it is, perhaps, a bit of a two-edged sword, one could say. Yes, there are benefits but they have to be very carefully calibrated and we have to be sure that they do not undermine the integrity of the systems from which the individuals are drawn.

  Mr Hindle: Can I add on that, I think one of the questions would be about the status of the migrant, as it were. Clearly, where they are a breadwinner and they have left a family, perhaps, back in the home country, remittances probably would go back, but to a large extent many of the young professionals that are recruited tend to be single individuals and, therefore, very little of that income is remitted back to the source country. Certainly in the case of teachers, dominantly they are coming here straight after training, mostly for a two-year period, but very little of the income earned in that period is, in fact, coming back. Some might come back with them when they return but not during the course of their service in the host country.

  Professor Buchan: On the issue of training for export, I think, there is one other obvious example, which is the Philippines. In many ways it is unusual, if not unique, in the sense that the nurses are trained in the private sector and pay for their training. So that, unlike most other developing countries, it is been very much established as a mechanism for export. I think the other point to make, reinforcing what has already been said, is that I do not know of any detailed work that has been done on the issue of remittances from health workers. The World Health Organisation has currently commissioned some work in Ghana to look at that issue, but the evidence I have seen suggests that, for example, doctors are more likely from Ghana to move and take their families with them and, therefore, the remittances back to the country may be less than is anticipated compared to nurses, who are often moving but leaving their family and, therefore, more likely to remit.

  Q204  Tony Worthington: It is an interesting point about the private sector. Given all the publicity nowadays about falling populations in Europe, for example, and the lack of skills in some areas, do you see a situation occurring where the private sector would say "What we will do is we will go and train in the developing world in order to meet the labour needs of the developed world"? Is that something that might happen or is happening?

  Professor Buchan: I think certainly it is being discussed with some countries. There are issues to consider in terms of regulatory environments and what could be called the cost of entry into the market, and it is from that point of view going to be more profitable to train nurses because they take a lot less cost and time to train before they can then be moved to the destination country. Clearly, if they were looking at training doctors it is a much longer and more time-consuming and costly process.

  Q205  Tony Worthington: A final question I would like to ask, at the moment, is, people might say "Well, of course, skilled personnel will move away from developing countries because of the conditions in which they have to work"—either their wages or the lack of professional satisfaction about having to be in health work without a pharmacy, for example. What do you think happens to migration as countries develop? Does there get to be a slowing down point, or do we need to accept, in fact, that migration, regardless of the state of the country, is something that will be happening for the rest of time, as the world it is?

  Mr Cox: I would say that I would accept that migration would continue irrespective of the state of development of a country. There are times when what one might describe as the "push" factors—ie the domestic conditions in the country from which the migrant comes—may be more predominant (as you described it, their working conditions), and they may deteriorate to the point, also, where the civil liberties etc switches one from being a migrant to being an asylum seeker. So those are the "push" factors operating. However, there will always be "pull" factors as well. So irrespective of the position of a country there will be "pull" factors from other countries. Indeed, the "pull" factors may well be the challenge of working in an under-served community, and that is why you have people who are prepared to work in developing countries and work in development. Another "pull" factor, obviously, may be a more sophisticated laboratory and better equipment with which to work and carry on one's experiments. Nor would I like to see a world in which there is no migration, quite frankly.

  Mr Hindle: I think one would have to say that the circumstances would have to be pretty bad within a country for those "push" factors to be dominant. These, in the end, again, are professionals; they are pretty well at the top of whatever pile there is within that country, so unless the circumstances are really disastrous (and, obviously, in some countries they are) certainly for us, I think, the dominant factor, undoubtedly, is the "pull" factor. In the end, honestly and obviously, it is related to exchange rates and related to the amount that they are able to earn in these countries, I think, more certainly at this stage than the "push" factor.

  Professor Buchan: Within the health sector we also need to factor in that it is evident that most developed countries are projecting a significant increase in requirements for health care provision over the next 10 or 20 years. That means more health care staff. The question then is, to an extent, can these developed countries meet that need from their own sources, or do they take the perspective that recruitment from other countries is actually the most cost-effective way of doing that?

  Q206  Mr Robathan: Can I just tease out something further, Mr Cox? Going back to one of your earlier responses about the Millennium Development Goals, Mr Worthington mentioned Ghana, specifically, and we went there a couple of years ago. We went up to the north of Ghana—and without a map I can't tell you exactly where it was—and I do remember being told in a city in the north that there was one doctor to cover X-number of thousand square miles, which was not satisfactory in a country with a growing population. I particularly remember a minister saying to us as well "We do wish that you would stop shipping"—and I quote—"jumbo jet-loads of nurses to the UK." This was not NHS recruitment, this was something else. It seems to me this must be having a huge impact on MDGs in Ghana, specifically.

  Mr Cox: It would have a very huge impact. The impact would vary from country to country, indeed, but the whole issue of being in an under-served area of Ghana, for example (as you identify) is that these absences will affect the country's ability to achieve Millennium Development Goals. This is why health ministers and education ministers in the Commonwealth have been concerned about recruitment, in the one case, of health service professionals and, in the other case, of teachers, because they recognise that a large outflow of these types of professionals will indeed widen the gap. So I am quite in agreement with you that it will have an adverse impact on a country's ability to meet the Millennium Development Goals. There are also other factors that are important. In the case that the Chairman mentioned, the level of expenditure would obviously imply that there are things other than personnel shortages which are at work as well.

  Q207  Mr Robathan: If you increased expenditure you might be able to pay your doctors and nurses.

  Mr Cox: You might be.

  Q208  Mr Robathan: This leads us straight into recruitment. One of the submissions to our inquiry has referred to this sort of recruitment and the "brain drain" of professional people, particularly public sector workers—doctors, nurses and teachers—as "immoral and imperialistic". Whether or not one agrees with that, would you, or any of the panel, say that developed countries should compensate developing countries that have trained nurses, teachers and others for their loss? If so, how would one estimate that? Do you think there is a moral case for it?

  Mr Cox: Given my history and background, I am not sure I would be quite happy with the term "compensation". I think that a case can be made for countries to arrive at mutually acceptable ways of mitigating the adverse impact of recruitment in the case of developing countries by their more developed neighbours. I think that there are very good grounds for looking at mutually acceptable ways of mitigating the impact. To call it "compensation", I am not exactly comfortable with that term. How can it be done? It could be done by strengthening institutional capacity. There is a suggestion that it may be cheaper and, therefore, there may be a greater comparative advantage, to train some types of professionals in developing countries because it is more cost-effective. If that, indeed, is the case, and an industrial country wishes to take advantage of that situation to supply some of its own shortages, I think that that would be an appropriate situation in which to discuss a mutually acceptable way of strengthening the capacity of the country to produce—ie, if it were teachers, how could the recruiting country help the source country to build up its capacity to train teachers or whatever other type of workers were required? The advantage in helping to build up that capacity would be seen in the level to which the professionals were trained. You could, through that mechanism, ensure that they were trained up to the standard that you expected, which very often is higher than the standard in the source country, but it would automatically also lift the standard in the source country, so that would be a possible spin-off apart from the assistance with capacity building and the strengthening of the institutions. I think those would be more constructive ways of addressing the issue that you define as compensation rather than trying to calculate a monetary amount per head.

  Mr Hindle: Can I just add to that, for a moment? Firstly to say that I think the nature of the recruitment is very important. Your example of the jumbo-loads of nurses is surely an exaggeration but I think—

  Q209  Mr Robathan: It is a quote.

  Mr Hindle: It is different from a case where an individual has made a very definitive career choice and this is part of it, as compared to what we have seen—recruitment agencies effectively camped outside a faculty of education and, on a pretty wholesale basis, taking large numbers. That would be different. On compensation, I think (very much like Mr Cox is saying), that is the wrong word. Certainly I think it builds the wrong sort of expectations. To support the idea of building capacity within the source country is correct. Part of that capacity itself might be the very capacity to, in fact, monitor the supply and demand situation. We have not got very good models for doing that even in South Africa and I am sure many other developing countries are not able to do the planning that would then enable them to manage that better. The other one that I think we have kept on the agenda is the notion that when people are brought across to a developed country what opportunities for professional development do they face within that country? That is perhaps the level at which we can look at seeing how both countries can really benefit from that kind of international movement.

  Q210  Mr Robathan: I have to say I sympathise with your position on compensation, and was interested to hear what you had to say. Leading directly on from what both of you have said, is there anything further that developed countries can do to ensure that recruitment of public sector professionals does not undermine the developing countries' abilities to provide services? Do you think there is any scope for further codes of practice, bilateral agreements or whatever?

  Mr Hindle: Certainly within the Commonwealth we are trying to develop one for education, similar to the health professions, and I think that is necessary. Certainly we appreciate what has been done in the UK here, the development of the quality mark for recruitment agencies to ensure that they act in a more disciplined and proper fashion. I think there are a number of steps like that. I understand, also, that the situation around work permits and the ability to get a work permit while you are employed by an agency is now being cut out. Those sorts of steps can help, but I think it is also a requirement that we give the source country also some form of engagement with these agencies. At the moment, essentially, they operate outside of any sphere of regulation or anything else, and at the very least I think we would ask that, firstly, they effectively announce themselves when they are coming into a country so that we know they are there and that it is their intention to recruit. I do not think it is unfair to ask them to at least report on their success so that we know that so many got recruited in this year and this is who they were. I think it is also about developing that sort of relationship between a country and the agency. There is a debate about whether a source country should ever be able to refuse an agency the right to, in fact, recruit in that country. That is probably a lot more contentious, and I am not sure we can easily continue on that one. Some would certainly argue that there needs to be a right of refusal, almost, to allow that sort of active recruitment. In the end, passive recruitment is going to take place, jobs are advertised on the Internet and elsewhere and people will pick up those options and go, but whether it should involve an agency actively working in a country to pick up professionals is, maybe, another question.

  Mr Cox: I would like to endorse what Mr Hindle has said on this issue, in that we are working very hard to develop a Commonwealth code of practice in the education profession, as we have done in the health profession.[1] On the whole issue of agencies, right now there is a sort of voluntary pressure on agencies to conform to certain types of certain standards—the quality mark, which the UK has introduced. What happens if they are not adhered to on a voluntary basis? I would like to raise the issue, could these be made into a compulsory regulatory framework within which recruitment agencies would operate, as there are other regulatory frameworks for other sectors of the economy, because of the havoc they could cause? I believe that the preference right now is to have this as a voluntary way of behaving which conforms to certain standards. If that can be guaranteed, fine, but if it cannot be then what is the next step?

  Professor Buchan: The first point I would make, and you mentioned it in relation to the public sector, so it is the government as employer or its agencies as employer, is that the government is following good practice in terms of its broad range of recruitment and retention initiatives, so that if it is doing that well it should not have to be over-reliant on active recruitment from other countries. That is placing migration in a broader context. The second point, I think, is in relation to being able to assess how reliant the country is on international recruitment. For example, it is unfortunate that at the moment the NHS cannot say how many internationally recruited nurses it employs. Until we have a clear sense of the proportion and relative importance it is difficult to develop policies beyond that. In relation to the codes of conduct, in terms of the Department of Health code and the Commonwealth one, I think there are at least three aspects to consider. What is its content? What does it say? Secondly, what coverage does it have? Thirdly, what are the issues around compliance? In terms of the Department of Health code, I think the limitations it has are rather in terms of coverage; it does not cover the private sector, which perhaps employs one in four nurses in the UK now. It is only actually the Department of Health in England, so one reading is that the other three UK countries are not covered. In terms of compliance, as I said, it is very difficult to assess. There are, clearly, large numbers of nurses coming into the UK from countries that are on the proscribed list of the code, but it is not possible to demonstrate who actually is recruiting them; the assumption is it is the private sector but we cannot actually prove that.

  Tony Worthington: I am going to ask Quentin to come in now, but I am very conscious that in our responses we are fixated on the public sector, at the moment. That may be because of the questions we have been asking but I do think we ought to, at some stage, be looking at the fact that probably the great majority of migrants work in the private sector in one way or another. So perhaps we could think about that to make it more balanced.

  Q211  Mr Davies: I must say I think we have made a lot of progress this afternoon, because I think the task of this Committee, so far as migration is concerned, was really two-fold: one was to look at the controversy between those who say that migration is a net benefit to the source countries because of remittances and because of the increase in skills for those who return, and those who say that it is actually a net cost to the developing countries, and they are exporting rather cheaply their precious human capital. I think we have made a lot of progress on that, and your views on that have been absolutely plain: you think it is actually a liability rather than an asset for source countries taken as a whole. The second task of this Committee was to decide whether there should be any policy implications from that analysis, whether we should look at legislation, regulation or other policy initiatives. Here we are right into the suggestions you have made this afternoon. You have made a novel one, I think, which is that we should look at investing in training capabilities in the source countries so that there is some benefit from our point of view and from theirs. Then we have looked at the whole business of the regulatory framework, codes of practice, codes of conduct and so forth, and here you seem to be suggesting the idea, at least, of making them potentially compulsory. Can I raise immediately a possible difficulty about that? Supposing you, on a bilateral basis between Great Britain and South Africa, or on a multilateral basis within the Commonwealth or any other regulatory framework, had such an agreement or such a code of conduct that actually became formalised and, maybe, compulsory—a tight regulatory framework. Would that not just displace the problem elsewhere? In other words, if there were strict conditions on which we could recruit teachers from South Africa, would it not simply mean that we would recruit more from elsewhere, from outside the framework of that agreement? Would it be possible for South Africa to replace some of the deficit in teachers by taking teachers from less fortunate countries on your borders? There must be some very good teachers in Zimbabwe but I cannot imagine it is much fun to teach there, any more than doing anything else there, at the present time. When you start looking at regulatory frameworks you immediately want to look at the anomalies that may be created and at the vacuum which may be created outside that particular framework. Have you got any comments on that?

  Mr Cox: I will leave the specific issues on South Africa to Mr Hindle, but I say you are absolutely right, it is like squeezing a balloon when you get into the business of regulation. You can always fall to the lowest hurdle, that is the one on which you concentrate and that is where you get your skills. However, it seems to me that there is an express preference for teachers from certain regions in the education sector—the Caribbean and South Africa; ie, from English-speaking countries. Therefore, that is where the Commonwealth comes together. We exclude from that framework that other large, English-speaking country, the United States, and that in itself is a problem. Regulation, of course, is never the complete answer. It certainly has to rely on the goodwill of the people operating the system. Irrespective of regulation, if there is goodwill to make it work and if there is a sense that there are mutual benefits to be obtained then a lot more will be invested in making the system work, which will take you beyond the confines of regulation. If there are strict regulations and there is considerable doubt about the goodwill of those operating the system, then the level of investment will diminish, the willingness to be at the table and to have discussions that lead to win-win situations will disappear because you are always looking over your shoulder wondering what is the next trick that is coming down the pipe. You certainly do not want that kind of situation, and you cannot eliminate that by regulation. You can control it to some extent but I think a much better approach to the problem is to have a situation in which both parties are satisfied that there is mutual benefit to them in the process of international recruitment.

  Mr Hindle: I would certainly concur with that. I think we have to be very careful of what could be unintended consequences, and these sorts of things might flow out of it. I think this debate is almost characterised by that recognition, in the sense that perhaps two or three years ago the automatic response of, certainly, any developing country—certainly that of South Africa—would have been a very negative one: "No. Stop this. We don't like it, it is debilitating our country and the sooner we can put a halt to this thing the better." I think the debate has moved on since then. I think there is a recognition that there are indeed potential benefits to be derived from it. Certainly for us the undoubtedly dominant pattern is that our teachers are coming here, as I said, recruited mostly at the beginning of their career. They tend to come on two-year work holiday permits and then come back.

  Q212  Mr Davies: What proportion come back?

  Mr Hindle: We do not know. That is part of the difficulty. The difficulty is because they are leaving straight from university they never come on to our books, as such, so the first time we see them, in fact, is when they come back and apply. I think that is part of the need to develop capacities within countries to better monitor this information. Anecdotally, a high proportion of them do indeed come back, partly because they have to after the two years anyway, and without doubt they come back as better teachers; they have experienced the world and, with respect, some of them, I think, come back saying "Our schools look pretty good in comparison, too". There is that unintended consequence that we get. You mention the case of Zimbabwe, and undoubtedly there are good teachers there; they are lining up on the border, they are keen to come and teach in South Africa, they are well-trained in maths and science, apart from anything else, but we are a little bit hands-off at this stage because we do still have some unemployed teachers in our country so we are holding off. I think it is an understanding of this as a bigger, global migration of teachers and not just a one-way flow out of developing countries into developed countries. Certainly, if we can mutually benefit from that kind of exchange of teachers, that must be a good thing. I think that is where we are now.

  Q213  Mr Davies: Just so there is no misunderstanding, I think perhaps I misrepresented you earlier because you now seem to be saying that you see the present situation, so far as South Africa and teachers are concerned—your particular field—as being of net benefit to South Africa, in other words a net asset and more of a helpful solution than a problem. Is that right? I misrepresented you, perhaps, in suggesting that you were drawing the reverse conclusion.

  Mr Hindle: I do not know that we can conclude that it is a net benefit. I believe there are potential benefits that can be derived. Whether the loss is more than the gain, as I say, we do not know.

  Q214  Mr Davies: There can be nobody on the face of the earth better able to assess this matter in relation just to South Africa and just to teachers. If you cannot come to some conclusion as to where the weight of the argument lies in that particular matter, what hope is there for us as a Committee to try to reach a kind of global sense of where the balance of advantage lies?

  Mr Hindle: Then I would be forced to the side of saying there is value in it, but again to recognise that, because of the circumstances, we do not have a shortage of teachers at the moment. If that were to change then certainly the cost would be much greater.

  Professor Buchan: I think the issue of which countries are covered or not covered by a code is important. Clearly, the question is, are most that are interconnected covered by the code or are they not? I think the Commonwealth code, if it was fully applied and signed up by all the countries in the Commonwealth would be fairly near complete coverage in terms of the English speaking labour market for health professionals, other than the United States. Clearly, I think there will continue to be an outflow to that one country. On the particular question about whether or not there is a shift of focus in recruitment activity towards countries that are not covered, I can think of one possible example, which is the initial guidelines introduced by the Department of Health in 1999, stipulating there should not be active recruitment from the West Indies or South Africa. In the year after there was a much more significant increase in recruitment activity in other countries in sub-Saharan Africa and in the Philippines, as measured by the number of new nurses being registered by the UK. So it does suggest, perhaps, that there was, if not a complete displacement, at least some refocusing on countries that at that time were not covered by the guidelines.

  Q215  John Barrett: It sounds as if, in theory, the codes are good things, but in practice there are so many loopholes that there is going to be this general knock-on effect in neighbouring countries, and the effectiveness of the code of practice for health employees may be extending to education employees. If this does not cover private agencies—although there may be no active recruitment there is almost inactive recruitment—this recruitment will go on anyway. Is it almost wishful thinking that the codes of practice are going to have the desired effect, or in practical terms there is going to be far freer movement of skilled staff to neighbouring countries—south/south migration and north/south migration as well? Are we whistling in the wind as far as codes of practice go, because there are so many loopholes, and so many agencies that will not be covered by them?

  Mr Cox: I would prefer to operate in a market where there was a code of practice, even if it were honoured more in the breach than in the observance, because at least you have some sort of moral authority to ask for it to be honoured by its observance, rather than to be in a market where there was a free-for-all. In these kinds of issues you always want to be sure that the best does not become the enemy of the good. Therefore, while a code of practice is good, to strive for the best you may have the unintended consequences of pushing a lot of the trade below the scrutiny of the public sector, below the scrutiny of careful regulation and good practice. That is the last thing that you would want to do.

  Q216  John Barrett: Is the follow-up from that and from Quentin that if teachers are coming over, gaining skills and going back, and if nurses are coming over for a relatively short term and then going back to the source country, is the traditional view of this that this is a loss to the developing countries? Is this now changing and more and more people are saying it will depend on whether it is a single individual, or whether it is a head of household? It is a more complicated matter and people are now finding that it is difficult actually to say whether this has been a drain on a developing country or whether it may be a drain for the next two or three years but in the next five or ten years it may actually be a net plus. So that the code of practice you were talking about earlier on may be fine in theory in but practice the codes may have to change in years to come.

  Mr Cox: Sometimes, I suppose, the separation of short-term and long-term effects has to be done, and because you may have waves of recruitment there will be periods in which the short-term effects will be aggravated very severely. You cannot really move to the long term unless you are able to survive the short-term context. So that is part of the problem, that sometimes the short-term impact of heavy recruitment may seem almost capable of overwhelming the system so that it will not survive to benefit from the long-term returns. That is the danger that one wishes to avoid. Therefore, you would ideally like to have a more steady flow in both directions.

  Mr Hindle: I think there is no doubt that these codes need to be supported by rigorous research and monitoring. I think the truth is that that is not on the table at the moment and we do not know the extent of these flows either way, and certainly the more data we can get, I think, will help us understand it. It is more complex, as I say, than we thought it was three years ago, and I think that is the truth. Just to say that our understanding is that the code would certainly cover the private agencies. The country would be expected to put pressure on them to abide by that, so it is more a case of the private agencies recruiting for the public sector schools, so they are still going into the public sector but they are operating as a medium between the teacher and the school. So private sector schools, I think, are a big issue that perhaps we will have to find another mechanism for.

  Q217  Mr Colman: My constituency, Putney, is known, I notice in South African magazines, as "Sandton-on-Thames", which I spotted at the weekend. I have got some 25,000 South Africans there and I am reassured that you have told us today that you do not have in South Africa a shortage of teachers at the moment, which will stop me trying to encourage them to go back. Can I ask, from a South African perspective, what was the motivation behind the signing of the Memorandum of Understanding with the UK? What do you believe is the hope that will come out of this Memorandum of Understanding relating to the migration of health service professionals?

  Mr Hindle: Thanks for that, and certainly we recognise "Sandton-on-Thames" living here, and I would certainly not want to discourage you from getting those teachers, after they have done their stint here, to come back. That is the point, really. One little part that worries me about "Sandton-on-Thames" and one of the concerns we do have—Sandton is a very wealthy area, as you will know—is that there is a sense of cherry-picking that is done. So you have had, in many ways, the elite, the cream, that have been recruited, and probably many of those 25,000 are in that capacity. So one of the concerns we would have is about the nature of recruitment and how fair that was actually managed within the source country. The Memorandum deals with the health sector, so perhaps Professor Buchan would like to comment, but it is really to, again, try and not stop the thing but manage the thing. We see it as the obligation of any country to manage the supply and demand of its professionals, under normal circumstances. What the Memorandum, I think, tries to do is to prevent large-scale recruitment in order to meet what should be seen as normal needs that a country should be managing on its own. So, really, that is the purpose of that MoU. I think, at this stage, the effect of it, again because of the absence of perhaps research data, is unknown—to me, certainly.

  Professor Buchan: I have not seen the MoU so I cannot comment on its content, but there are two points. One: I know that several NHS employers, including one London teaching hospital, have been in discussion with regional government in South Africa about contracting nurses to come here and work for two or three years, which would include an educational component, and then return to South Africa and work for another two or three years. So it would be a kind of combined contract. That may be part of it, or, if not, at least it is parallel to it. The other issue I could comment on is that in terms of the timing of the MoU it has occurred at roughly the same time as the contracts for DTCs have been out—that is the Diagnostic and Treatment Centres in the UK. My understanding is that some South African companies were considering bidding for those, and if they won the contracts they would be, presumably, bringing their medical and nursing staff to the UK for periods of time to provide the care under which the contract had been won.

  Q218  Mr Colman: Can I say that whilst parts of Putney are similar to Sandton, parts are actually not and have significant areas of social housing, particularly in Roehampton, where we have Roehampton University. Also in Putney is the Voluntary Service Organisation, the VSO, and it tells me that it finds it quite difficult to get work permits for health care professionals and others to actually be able to work in South Africa. You pointed out that you do not recruit teachers in from outside South Africa because you have an excess of teachers. You say they are lined up on the border but they cannot get in. To what extent is this true of other professionals that the South African Government does not allow to come in to work, albeit, as I think Mr Cox was saying, people want the challenge of serving in more challenging conditions? Is this something you would like to see encouraged? To what extent do you think South Africa is losing out in terms of not encouraging professionals from Britain and developed countries to come and work there to deal with some of the shortages that they have, particularly in health care?

  Mr Hindle: I am not going to try and speak on behalf of home affairs; it is probably more complicated and I shall stay out of it, except to say that we recently reformed our legislation which used to be called—horrible name—the "Aliens Act" and is now the Immigration Act, and I think it symbolises a sense of being more receptive in this regard. I would be very surprised if any professional were not permitted to work in the country, although, obviously, we do have a position, I think, similar to most that where there is a local resident who can perform that function they should be given the first choice of it. Let me say, however, that we do have foreign teachers teaching in South Africa, so certainly they have come in. Again, it would be on the basis that if a local person was not able to fill the position it would be permitted, and I am sure a work permit would not be refused on that basis.

  Q219  Mr Colman: Would Mr Cox recognise this is a problem in many other developing countries within the Commonwealth, where, in fact, it is difficult for a professional, perhaps from the United Kingdom, to be able to get a work permit to work in a developing Commonwealth country?

  Mr Cox: I would recognise it as a problem if by denying this kind of inward migration the country in question could be seen, in fact, to be holding back its own development. So there are situations where skilled workers from the United Kingdom are readily snapped up in countries where those skills are in short supply. It used to be accountants in my own country until quite recently. Now we tend to provide most of the accountants that we need, although I must say that when you have filled one position as an accountant it tends to increase the demand exponentially, so that we always seem to be running to catch up. Engineers was another one. You are absolutely right that it would be a problem if by so doing the country were denying its development potential.


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