How do Expats contribute to Human Development Index
Reading through the recent Human Development Index (HDI) report it came as no surprise to me that the HDI across the world continues to improve. There are now 59 countries in the very high human development group, an improvement of 13 in the last 8 years. Whilst reading through, I questioned to myself what impact expats are having on this data. You could say that they are helping to boost the Gross National Income per Capita in their host countries or you could go on the flip side and consider that they are having a negative impact on their home country by leaving. This led me to research what impact expats do have on society as a whole and how they are contributing to the HDI.
The recent 2018 Expat Insider Survey showed that Vietnam ranked in the top 3 countries for career prospects yet in the HDI they ranked 116 out of 189. A third of expats in Vietnam are working as teachers, academic staff, or researchers so it’s interesting to see that the average mean of school years has gone from 8.0 in 2016 to 8.2 in 2018. A small increase that may have been due to the expats working in schools out there.
Let’s talk about the benefits that come with hiring expats. Not only do they bring with them their skills but they also bring in opportunity. Whether that’s a fresh approach, diversity to your team or knowledge from working in a country that’s further ahead in the game than you are.
In my opinion more companies need to tap into the talent pools around the world. Take for example, Canada. A recent study shows that Canada is one of the many countries facing a Tech skills deficit. They are facing a potential shortage of 216,000 workers by 2021. How do we fix that? Hire expats. There are thousands of skilled workers around the world who would jump at the opportunity.
On top of that the average expat can earn an extra $21,000 a year by working overseas. Good for them and good for the economy. Higher wages means more revenue is going into the economy though taxes. It seems like a win win to me.
This leads me on to inward investments. Earlier this year studies showed that the UK remained the number one destination for inward investment and that investment resulted in bringing 1,500 new jobs a week to the country. That’s great for developed countries but what about the countries whose economies aren’t thriving?
Inward investments are critical for these developing and emerging market countries. The investment in infrastructure, energy and water will not only improve quality of life but will also provide jobs and better wages. I would be really interested to find out just exactly what impact expats have on a countries GDP. I think it might be more than we anticipate especially as we are now witnessing the highest levels of movement on record.
I always find it interesting to hear the reasons why people are moving overseas. Nine times out of ten, people tell me it’s because of a job opportunity. However there is always a yearning for the experience and a new way of life. That’s why I decided to transform the Expatland book into the Expatland Global Network. To make that process as smooth as possible. A network to provide expats with assistance from skilled professionals who can help them every step of the way.