Human Invest Newsletter nr. 20 - november 2009
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Strategic Analysis:
• Reverse brain drain
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STRATEGIC ANALYSIS - Reverse brain drain
Emi Beteringhe Trainer
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I'm sure that the concept of "brain drain" isn't anything new to most of us. There are very few people however that understand the magnitude this phenomenon has in Romania.

There are a series of factors - with a more direct or subtle impact that successfully converge towards increasing the number of those who opt for an international education (as their first choice) at the cost of a local one:

- a huge decrease in the quality of the academic Romanian education. Facilities, teachers, courses - they all suffer. You can find proof of this in any university ranking - where you won't find any Romanian university higher then the 530th position
- decent tuition taxes - in the case of European universities especially. A lot of universities from the northern countries, France, Italy, Spain, Benelux or even Great Britain have tuition fees that are close to those of our Romanian universities or, in any case, fees that many can afford
- an increase in the number of educational agents present in Romania. A lot of international universities have developed their own networks aimed at presenting the opportunities they offer to young people all over Romania

One of the more subtle factors which, from discussions I've had with various people, influence young people in their decision to go to another country in search of a better future is the idea of numerous possibilities. Unfortunately (again) the image that young people develop about future possibilities is mostly decided by the media - which rarely talks about how much certain companies invest in young people, the meritocracy present in the corporate environment - and decides to focus on the public sector (with its various problems) or spectacular exceptions from the rule - in the case of private companies.

All these reasons (in combination with others, on a case by case basis) form the backbone of a growing movement of young people that go off to study in a foreign university. The phenomenon isn't new that is for sure. But it has gathered momentum once Romania joined the EU (due to equal tuition taxes for all EU citizens) and the information regarding international institutions has permeated almost every walk of life. It's relatively easy to understand why a young person would choose to spend 3000 euro per year as opposed to 1500 and go to a school, that not being Oxford or Sorbonne, has a formula one car, a wind tunnel and a professor nominated for the Noble prize.

Not even the economic recession doesn't seem to have affected this tendency very much - because even though the buying power of many parents has diminished the schools have reacted to it - most of them have lowered tuition fees or diversified their study loans.

So brain drain does exist, to a high degree and there are a series of factors that share this responsibility - or more correctly the irresponsibility of such a phenomenon (the state, Romanian universities, the media and even private companies). More and more young people are looking towards international education. Which is somewhat normal in the context of a competitive educational market.

Based on this fact, what can be done?

It's called "reverse brain drain".

Who?

In my opinion this question is more or less rhetorical. From my experience working in the educational field, the state has been, up till now, both incoherent as well as incapable. The "Romanian Government Special Scholarship" - the only program that offered funds to talented young people in order to study abroad on the condition that they return and work in Romania in the public sector is filled with examples of exceptional failures - program administrators failed in managing to understand the value of the abilities and knowledge of the people they financed. Thus they were unable to place them in a position where they could put everything they learned into practice - so that they could make a difference.

So those that should work in this direction are private companies - mostly international corporations present in Romania.

Why?

This is where the key for the entire intercession lies in. And I believe there are a series of pragmatic arguments that support this.

1. Because repatriation is a real option for many of those that decide to study abroad.

A brain drain process implies two decisions that have to be taken by a young person:

a. I choose to conduct my studies at an international university
b. I choose that after my studies are over to stay and work in that country for an indeterminate period of time

In the mind of many young people that are studying abroad there is no link between these two. In the first instance it becomes obvious that "it's good to have a quality education - if I can afford it". The second decision depends a lot more on all the variables in place: the country I am in, the way I'm treated, the opportunities I have created, the opportunities I might have somewhere else, the relation I have with my family.

So there is a significant percentage that study abroad and want to come back after they've finished. Another large part doesn't even think about this situation and decide somewhere along the way - depending on the factors stated above- and there are also those that would like to stay but haven't managed to find a satisfactory job. I would dare to appreciate that the total of those that consider coming back a serious alternative is around 50%.

2. Because it would be an excellent opportunity for companies

I was recently invited to a conference where different representatives of HR departments were put face to face with members of the academic environment. One of the questions that HR representatives were asked was "What abilities do you expect to find in a university graduate?" Their answer was "PC operating abilities and at least one foreign language." For me, the answer was more than relevant - compared with the way most Romanian universities train young people.

This is where, in my opinion we can find the difference between graduates from Romanian universities and international ones.

Out of the triad composed of "knowledge-abilities-attitude" of which most HR people would like to find as much of the three as possible in a graduate - so that company investment is low- most Romanian universities only focus on knowledge. Even in this case, in more that 50% of situations these aren't updated, or have no practical relevance (taking into consideration that there are very few business people that have a teaching position in universities). It we get down to the practical side, things are much more tragic. Compulsory practice for many students simply means a certificate from their parents' firm or the xeroxes and coffees they made at a certain company (this is the corporate environment's blame).

Without referring to top universities - because any comparison would be useless- there are a consistent number of such international institutions - we might say they are in the second league - that have excellent facilities, they are organized and have graduates which are more than equipped to enter the job market. Many work in close contact with private enterprises - and this means information and case studies taken from current business realities, it means teachers that have practiced what they preach, it means internships in partner companies. Their facilities are exceptional so that students are equipped with practical abilities when they graduate.

Their knowledge assessments - at least in the Anglo-Saxon system as well as the northern countries and Benelux relies on projects, presentations and constant benchmarks throughout the year.

In addition the experience of living in an international environment for 4 or 5 years is in itself a very valuable experience and obviously very useful for future responsibilities in a multinational company.

To conclude the first part of this article, most graduates of international universities are very well equipped and represent high potential employees. In the second part of the article we will look at costs as well as the how's and when's.
 
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