manpower capital is utmost importan t to economic increase in modern time s,and it has become the most important strategic capital in know ledge economy age.But,in the develo ping countries shortage of manpower capital exists alongside brain drain.This p aper starts with the characteristic s of manpower capital,and analyses t he reasons from the perspective of supply and demand to explain why developing count ries suffer brain drain and its influ-ence.The paper concludes with recom mendations on developing countries manpower capital policy.