Last week my post discussed workforce localization trends in developing markets. Although the trend naturally affects the working population, one might expect that it also has an impact on younger generations of farsighted students. Thus, following up on the topic of localized employees, let me review an interesting read on the localization of students.
A New York Times article this month discussed the increasing importance of so called ‘glocal’ students: “people who have global aspirations, but need to stay local.” Referring to developing and emerging nations, and more specifically the BRIC countries, the NYT reports that business schools in developing countries are becoming more popular amongst both domestic and foreign students. For the same reason that multinationals expand into these markets, students seem to share the increased interest in developing and emerging markets based on these markets’ recent economic development and global importance. Seeing better job prospects in their home countries, those who are originally from developing nations do not want to miss out on opportunities while studying abroad; whereas those from abroad perceive studies in BRIC countries as an entry strategy to these markets. The NYT article very well illustrates the latter notion with the following citations:
“The economy here is booming and changing so fast — I was afraid I would lose so much if I left for so long” (Chinese student in China)
“For me and for a lot of foreign students, it is the entry strategy into this market. India is a tough place to show up from the outside and try to do business. So much of business and daily life here depends on relationships” (American student in India)
Apart from better job prospects, the main reason for studying in developing and emerging countries, students are also attracted by MBA programs that are more affordable than in developed nations. For example, the article suggests that American business schools may charge three times more than Indian business schools.
Although the trend towards localization in BRIC countries seems to accelerate, the top MBA destinations for students from developing countries remain in the US. This may be attributed to the long lasting tradition of an exodus from developing nations to the West, as well as the well-established brands of Western universities and business schools. However, there is also evidence for the improving quality of MBA programs in developing nations. Compared to the situation in 1999, when no BRIC countries were present in the top 25 of The Financial Times ranking of MBA programs, today there are four programs that make the cut. Dr. DeKrey, senior associate dean at The Hong Kong University of Science and Technology, argues that Asian schools are beginning to achieve a brand status that is comparable to Western schools, which means that the former are increasingly on the radar of the best applicants.
Thus, the factors of better career prospects, affordability and competitive quality add to a rise in numbers of local and western students in developing countries. A few additional stats provided in the article sum it all up: The number of student applications to BRIC nations from the US, Canada and West European countries has increased from 381 in 2007 to 639 in 2011. Similarly, the amount of applications sent by prospective students from BRIC countries to home country programs grew by 50 percent within the same period.