Over the past four decades, governments in the least developed countries (LDCs – a categorization adopted by the United Nations) have been attempting to improve the skills and knowledge of their public servants by providing local and international training programs. Despite these training activities, however, many LDCs continue to experience acute shortages of high‐level technical and managerial skills. This is because LDCs are increasingly unable to retain trained personnel employed in the public sector, resulting in a ‘brain‐drain’. The present study critically assesses that part of a major human resource development project implemented in Eritrea, an LDC, between 1998 and 2005, which provided overseas scholarships for 674 public servants. Almost two‐thirds did not return to Eritrea, and the study seeks to establish the reasons for nonreturn. It identifies from the literature five factors that appear to influence return and examines the relationship between these and nonreturn. Economic and political conditions and lack of peace and stability were significant in explaining changes in nonreturn. The results point to the areas of change needed to enable LDCs to retain highly qualified nationals. These areas involve significant changes in government policy, but training providers themselves may be able to take some steps to minimize the lack of benefit from their human resource development investment. The conclusion is that the retention and effective utilization of trained people by LDCs remains challenging. In theoretical terms, the concern of this study can be seen as a macro‐level expression of the transfer problem.