Interviews :

Q & A: Brain Gain and Sustainable Development

(01.06.11 )

In this interview, Jide Akintunde, discusses with

Chinedu Moghalu, on 'Brain Gain', as development
professionals continue to define the roles people in
the Diaspora can play in their countries of origin. Mr
Moghalu is a communication and programme expert
with over ten years experience, at the United Nations'
International Labour Organisation. He recently
joined the Nigerian Export-Import Bank (NEXIM
Bank) as the Head of Corporate Communications.

As global recovery from the last recession is

becoming more entrenched, discussions on the
role professionals in Diaspora can play in
developing their countries of origin are back on
the table. By taking up a job at Nigeria's trade
Chinedu Moghalu, Head, Corporate Communication, policy bank from a position
Nigerian Export-Import Bank
at the United Nations, one might think you are persuaded by the brain gain argument. Can
we have a broad sense of promoting development with your kind of return?

Incidentally, it is in the developing countries that we could say without much controversy that
the recovery from the last financial crisis is firming. That includes the global emerging markets
and Africa's frontier emerging markets. Recovery in the OECD countries is still wobbly, but
generally the world economy is seen to be better than it was two years ago. However, there are
still some concerns across the markets. A fear of double-deep recession is not completely allayed
in the United States and Europe. Rising oil prices, food inflation and political crisis are big
concerns for Africa. In these contexts, it is important that concerted efforts aimed at stabilizing
the economies and stimulating growth remain steady.

Before now, the roles diasporic people have been playing in reducing poverty in their countries
of origin have been well recognized. Remittance flows to developing countries have overtaken
Overseas Development Assistance (ODA). In fact, Migrant Revenue Remittance (MRR) is doing
more than boost consumption; it is also recognized as an important source of financing for both
new and existing investments in the recipient countries.

In spite of these, I strongly believe that a country like Nigeria needs to draw from the pool of her
talents abroad to fill crucial positions in government, regulation and of course the private sector.
The country needs to leverage development by attracting its world-class professionals abroad to
help improve policies, build wider networks for governments and businesses and share global
best practices with their counter-parts in the country. In my case, it fits into my passion for
development to leave a job with a United Nations Agency - International Labour Organization -
to join a specialized bank operated by government to finance economic diversification,
particularly non-oil export, and bring more prosperity to Nigerian businesses.
Perhaps it can be a valid basis for generalisation, would you like to make a case with your
personal example why hiring citizens with work experience in global institutions might be
vital to institutional performance in Nigeria?

It is important to underscore the point that Nigerians working at home have provided the very
basis for our collective aspiration to build a better country where institutions are strong and
performing, infrastructures work, business regulation is effective and sound, and the weak
amongst us are protected. Let me also say that a good number of Nigerian professionals abroad
were hired in the country because they were seen to be smart, globally competitive and quite
knowledgeable in their professions.

That said, what we have begun to see in the last few years is that extra leverage which you get
from Nigerian professionals abroad who have work experiences in the best and biggest global
institutions. We saw how Dr. Ngozi Okonjo-Iweala brought this to bear on public finance
reforms in the country. Finance Minister Olusegun Aganga has been able to quickly move
forward the agenda for setting up a Sovereign Wealth Fund for Nigeria in line with what other
commodity-exporting countries have done quite well over the years. We can also see the capital
market reforms that Ms. Arunma Oteh is spearheading at the Securities and Exchange
Commission (SEC) to build a world-class capital market through effective market regulation and
good corporate governance. In the lower layers of leadership of these institutions and several
others, talented individuals are working to map the work process for more efficiency,
communicate the institutional strategy and goals more effectively and generally improve the
institutional image, output or outcomes that are desired. Quite honestly, it is no longer in few and
isolated cases that some of these change agents have had years of exposure in international
environments where you are propelled mainly by your competency, very high standards of
integrity, fairness, passion and ability to manage diversity.

Your work experience includes developing social safety net programmes. In the context of
Nigeria where social protection institutions and policies are very weak, what specific ways
do you suggest the country can smoothen development as Nigeria targets a middle income
status with the Vision 20:2020 programme?

Social safety net or in simpler terms social protection has always been a very interesting area to
me. Significant part of my career in the ILO was devoted to programmes and projects aimed at
improving policies that would lead to improvement in social security in Member States. I relish
some of the works I spearheaded for Africa in this regard. For instance, in July 2004, I came to
Nigeria from the Regional Office of the ILO in Abidjan, Cote d'Ivoire, on an official mission to
conduct an eight-week long study in social protection and community-based health insurance
systems. The study took me to various states and local governments in the country after which I
produced the "Social Protection Profile for Nigeria", which was an ILO working paper. Let me
state immediately that access to adequate social protection is recognized by International Labour
Standards and the UN as a basic right. It is considered to be instrumental in promoting human
welfare, social stability and economic performance.

The three crises of the recent past food price, fuel, and near collapse of the international
financial market have underscored the need for focused policies to protect the poorest and most
vulnerable groups in society. We have just gone through general elections successfully. Since
campaign promises are addressed to human and social improvement generally, we should be at a
threshold of policy enactment and implementation as the new governments settle in from May
29. However, it is expedient for the Government to take advantage of the "Social Protection
Floor" (SPF) initiative which was launched in April 2009 by the ILO in collaboration with other
UN agencies at the height of the financial crisis to boost social protection. The SPF aims to
promote a set of basic social rights, services and facilities that the global citizens should enjoy. It
is seen as a core obligation of ensuring the realization of minimum essential levels of rights
embodied in human right treaties. President Goodluck Jonathan has always shown good
judgment in adopting and implementing initiatives of this type.

Since high poverty rate is at the heart of the Arab Spring and social tension everywhere, Nigeria
will have to accelerate on improving economic performances and human development. These are
well stated in the NV20: 2020 document, which the present administration has upheld quite
admirably as opposed to starting a new set of slogans. Where there has been deficiency is in
communicating the programme and mobilizing citizens' participation. These can easily be
addressed.

A few years ago, the administration of President Olusegun Obasanjo attempted to

incentivise the return of Nigerian professionals abroad. The new administration of
President Goodluck Jonathan has plans through the Gas Master Plan, for instance, to
create some highly technical jobs which will target the Diaspora. What advice do you have
to offer the administration on how to attract Nigerian professionals abroad in the
implementation of some of its economic development plans?

The Obasanjo administration took steps to encourage a more constructive engagement with the
Nigerians in the Diaspora. That move was instrumental to the establishment of the Nigerians in
the Diaspora Organisation (NIDO). Today, there are NIDO chapters in Africa, America, Asia
and in Europe. Some of the other targets of that era were not too successful, especially the
attempts to create a Diaspora science and technology cluster. I also think the yearly NIDO parley
with government has been on hold for some time. But these are initial ideas that now need to be
further developed or adapted for more practical situations and outcomes. In that regard, the
highly technical positions that have to be fielded in implementing the Gas Master Plan as
enunciated by President Jonathan will be a magnet. It is such technical, knowledge intensive
sectors like that that are driving the reversed brain-drain in India. If we are able to attract high
tech Nigerian professionals abroad in implementing the GMP, it will deliver a good platform for
sharing best practices and attaining objectives of the Local Content Act. The policy aims to
systemically develop the capacity and capabilities of Nigerians and ensure that the control as
well as benefits of oil and gas discovery, production and distribution are largely domesticated. It
is interesting to see that President Jonathan is backing this initiative with great vigour.

The successful elections have fertilized the ground for optimism on Nigeria. Government will
have to go right ahead to build on it. We have to tackle security issues. I was glad when the
government recently announced award of several road projects across the country. Literally, that
will help us to hit the ground running.
But honestly, I don't believe Nigerians abroad deserve the better of the country than those living
here. Therefore, social amenities improvement should target all needs.

More recently, we are having the discussion on introduction of Diaspora Bond to tap the
financial capital of the Diaspora communities, and I think the African Development Bank
(AfDB) is working on issuances for Nigeria and Rwanda at the moment. Do you see this
kind of initiative to mean lack of agreement on which one is better for the developing
countries: reversed brain drain or migrant revenue remittance (MRR) and financial flow
in the form of investment?

Developing countries need financial flows from the Diaspora. However, some of these
professionals living abroad are needed in their countries of origin. But a proper balance needs to
be maintained. Right now, I think national absorptive capacities to welcome back citizens abroad
are limited. Some of them are neuro-surgeons, nuclear physicists, professional footballers, etc.
The tools for these professions are either absent in the country or they are inadequate. For people
in these types of endeavours, it is better for them to remain abroad (for as long as necessary) and
continue to practice their professions, earn good income and remit money home for their family
consumption need and for investment. In investment terms, the Diaspora bond is a good idea in
restoring confidence into our capital markets in Africa, following the bad experiences in which
portfolio investments were generally lost a few years ago. Bonds are less risky. The muted
Diaspora Bond can become the necessary first step for more direct investment. And in any case,
bond provide long term investible capital, which can be deployed into financing infrastructure
and power two core needs in revamping our domestic markets.

We have seen that some of the Nigerian returnees from the Diaspora fly in with "return
ticket". Was yours a one-way ticket?

An old nursery rhyme says it all, "East or West, home is the best." A lot of returnee Diaspora
professionals, including myself, who have left the UN or other global institutions to take up
employment in Nigeria, are here to stay.

Interviewed by: Jide Akintunde, Managing Editor, Financial Nigeria magazine.

Comment: jide@financialnigeria.com; +234 802 343 9098; 808 177 9576

This article was first published in the June 2011 edition of Financial Nigeria magazine - a
monthly Development & Finance journal. To subscribe to it, click here