the world in 2050 the future of global talent
A Bookazine Edition by
the world in 2050 the future of global talent ana c. rold Editor
diplomatic courier | MEDAURAS GLOBAL washington, dc
A Global Affairs Media Network
Editor-in-Chief Ana C. Rold
Editorial Board Andrew M. Beato Fumbi Chima Sir Ian Forbes Lisa Gable Kirk L. Jowers Mary D. Kane Greg Lebedev Anita McBride
Editors
Alexcia Chambers Kathryn H. Floyd Whitney Grespin Michael Kofman Paul Nash
Creative Director Christian Gilliham
Photographers
Michelle Guillermin Sebastian Rich
Contributors
Akshan de Alwis Madeline Bielski Stacie Nevadomski Berdan Brandon Busteed Bryce Bytheway Fumbi Chima Jim Clifton Jon Clifton Charles Crawford Katie Crawford Vineet Daga Lorna Donatone Gabriel P. Ellsworth Daniella Foster Pauline Gebczak Justin Goldman Allan E. Goodman Kris Gopalakrishnan Whitney Grespin Anders Hedberg Chrisella Herzog Stuart W. Holliday David Iakobachvili Sarah Jones
Julie Kantor Margery Kraus Jack Lester Andrew Mack Bridget McKeogh Oscar Montealegre Paul Nash Arun S. Nair Raphael Obonyo Jan W. Rivkin Richard Rousseau Leigh Morris Sloane Cheryl-Anne Smith Lucian Tarnowski Mary Utermohlen
Editorial Assistants Nadia Asmal Celeste Chance Amar Kakirde Hannah Olivieri Natalya Stanke
Letters to the Editors
Editors@diplomaticourier.org Washington, DC 20036
Copyright Š by Diplomatic Courier/Medauras Global Publishing 2006-2016 All rights reserved under International and Pan-American Copyright Conventions. First Published 2016. Published in the United States by Medauras Global and Diplomatic Courier. 1660 L Street, NW, Suite 501, Washington, D.C., 20036 www.medauras.com | www.diplomaticourier.com Library of Congress Cataloging-in-Publication Data Rold, Ana C 1980The World in 2050: The Future of Global Talent / Ana C. Rold, Editor ISBN: 978-1-942772-07-1 (Digital) ISBN: 978-1-942772-06-4 (Print) 1. Rold, Ana, 1980-. 2. Megatrends. 3. Leadership. 4. Diplomacy. I. Title. NOTICE. No part of this book may be reproduced in any form, except brief excerpts for the purpose of review, without written consent from the publisher and author. Every effort has been made to ensure the accuracy of information in this publication; however, the author, Diplomatic Courier and Medauras Global make no warranties, express or implied, in regards to the information and disclaim all liability for any loss, damages, errors, or omissions. For permissions, email info@medauras.com. editorial. The articles in Diplomatic Courier both in print and online represent the views of their authors and do not reflect those of the editors and the publishers. While the editors assume responsibility for the selection of the articles, the authors are responsible for the facts and interpretations of their articles. Every effort has been made to ensure the accuracy of information in this publication, however, Medauras Global and the Diplomatic Courier make no warranties, express or implied in regards to the information, and disclaim all liability for any loss, damages, errors, or omissions. permissions. None of the articles can be reproduced without their permission and that of the publishers. For permissions please email the editors at: info@medauras.com with your written request.
4 | the world in 2050
ART | PHOTOGRAPHY. All images and photos by Bigstockphotos.
medauras global The future of global talent | 5 publishing
CONTENTS 009
Introduction By Ana C. Rold, Editor
013
Global Joblessness: The Real Number By Jon Clifton
017
youth unemployment and the role of entrepreneurship By Kris Gopalakrishnan
021
GALLUP’s GOOD Jobs report: no change in global unemployment rate since 2009 By Madeline Bielski
025
Talent mobility for the 21st century By Kris Gopalakrishnan
029
The One Thing I’d Fix: America’s Decline in Entrepreneurship By Jim Clifton
033
human capital for emerging markets By David Iakobachvili
037
Curbing the flight of human capital By Oscar Montealegre
041
Egypt’s Generation jobless By Chrisella Herzog
045
how the digital enlightenment has created a new era of talentism By Lucian Tarnowski
049
harnessing human capital: jobs of the future By Pauline Gebczak
051
the future of workplace Generational Views
055
empowering young leaders to bring shared prosperity to america’s cities By Jan W. Rivkin and Gabriel P. Ellsworth
66| |the theworld worldinin2050 2050
CONTENTS 059
Tapping into the global generational talent pool By Cheryl-Anne Smith
063
gender balance: the power of difference What Women Want in Business
067
extreme stakeholder alignment Corporate Democracy anf the Need to Ask “Why? Why? Why�
070
The Future of Microfranchising By Andrew Mack
075
the youth gap in employment: An emerging crisis before the g20 By Akshan de Alwis
078
youth unemployment overshadows economic growth in africa By Raphael Obonyo
080
Innovation Rising: Entrepreneurship in Latin America By Oscar Montealegre
085
the secret to creating a high performance culture By Lorna Donatone
089
value of technology for girls in emerging markets By Fumbi Chima
093
education diplomacy: a way forward for workforce development By Diane Whitehead
097
When a passport teaches more than a diploma By Whitney Grespin
101
Study abroad cultivates global leadership By Allan E. Goodman
104
international education and millennials By Leigh Morris Sloane
The Thefuture futureof ofglobal globaltalent talent| |77
CONTENTS 108
the 100 most international universites in the world By Jack Lester
111
want to keep your millennials? Mentor them By Julie Kantor and Bridget McKeogh
115
How boomers can mentor millennials By Margery Kraus
119
Are College Graduates Equipped For Workplace Success? By Brandon Busteed
123
how millennials are disrupting the workforce By Daniella Foster
129
millennials and the future of american business By Bryce Bytheway
131
The kids aren’t all right By Vineet Daga
135
A Psychological Revolution for China’s Millennials By Paul Nash
141
U.S. Public education and the future of national security By Whitney Grespin
145
so you think you know stem? By Anders Hedberg
149
How to build a stronger global stem talent marketplace By Anders Hedberg
154
Google and gallup address computer science education in the united states By Katie Crawford
157
tomorrow’s global workers need global education today By Stacie Nevadomski Berdan
8 | the world in 2050
introduction by Ana c. rold
F
our years ago, in an article for the G20 Summit magazine (produced by Diplomatic Courier), Kris Gopalakrishnan wrote that businesses and governments across the world are just now beginning to come to terms with the new reality of the post-crisis era. Unlike previous crises, success will be determined not only by the availability of financial capital but increasingly, human capital. This emerging global war for talent involves three key issues: changing demographic profiles, technology development and consequent productivity increase, and skill gaps and demand-supply mismatches. Mr. Gopalakrishnan’s predictions at the Los Cabos Summit in 2012 were spot on. Today, we are dealing with a paradox: 200 million people unemployed worldwide—40 million in the advanced economies and 75 million of which are youth—and global companies still have millions of unfilled positions. So relevant were his findings that they inspired our first Global Talent Summit. In 2013 we gathered at the National Press Club were business and industry leaders, civil society, media personalities, top diplomats, and other influentials looked at the future of jobs. The conversations reverberated at the annual World Economic Forum meeting in Davos a week later, and globally with over 88 million social media impressions—thanks to our broadcasting live to digital influencers in over 140 countries and involving them in the conversation year-round. In 2014, for the second Global Talent Summit, we narrowed our focus to examine the role that Science, Technology, Engineering, and The future of global talent | 9
Math (STEM) will play in narrowing the talent and skills gap. And on our third year of this very popular now convening we are bringing data gurus, innovators, educators and industry leaders to discuss the demands placed on today’s diverse and global workforce with a lens towards the World in 2050. To thrive in a rapidly evolving, technology-focused world, future job seekers must not only possess strong skills in areas such as language arts, mathematics, and science, but also skills such as critical thinking, problem-solving, persistence, collaboration, and curiosity. However, data shows students are not attaining these critical employability skills. This year’s summit’s brain trust, which includes our newest thought partner, Gallup, hope to fill this gap with substantive discussion and brainstorming that shares best practices and innovative ideas. We are excited to announce that the summit’s findings will be synthesized into a post-summit report, which Diplomatic Courier will distribute at major leadership gatherings in 2016, including, the G20/B20 Summits in China, the G7 Summit in Japan, the APEC Summit in Peru, and the World Economic Forum meeting in Davos. A couple of years later, we asked Mr. Gopalakrishan again to reflect on the future of jobs and education with a lens on youth. His piece on youth unemployment expands on his thoughts on global talent mobility offering a fresh perspective on the issue that plagues most governments in the world today. We then took these concepts and invited industry and thought leaders to contribute to this special bookazine edition of Diplomatic Courier—the first of a series of five keepsake anthologies forecasting to the World in 2050. The other four will be released at our other summits this year: Health and Wellbeing, Global Peace, Cybersecurity, and the Internet of Things. We are excited to show you some of the best—38 to be exact—of a diverse pool of features and mini chapters on the future of jobs, talent, education, the workplace, and the global economy. At our inaugural Global Talent Summit I wrote about my own thoughts about the future of jobs. As an entrepreneur that also happens to be a Millennial, I reflected on a (now established) trend facilitated by the development of technology and the Internet. We’ve coined it the Gig Economy and it is a workforce evolution. Since the global financial crisis commenced in 2008, more and more people have turned to freelancing, which allows them the flexibility to work from home, learn and adapt in their own space, and even make decent earnings. Digital freelancers, according to an Accenture study, represent a growing portion of American workers today—almost 20 percent. Another group, Freelancers Union, puts 10 | the world in 2050
the figure at 42 million. Other studies show the numbers are growing. The internet and technology developments have made this sector a viable opportunity both for freelancers—who may not be able to find steady employment—and for companies that are able to reduce overall labor costs and attract talent wherever they can find it across the globe. Gig seeking freelancers range from graphic designers to lawyers and in this system they compete with counterparts around the world. It is a fascinating sector to watch as these freelancers have already managed to break down immigration barriers and are employable across borders. I am proud to present this anthology at the 2016 Global Talent Summit—a gift to our participants and our global audience from our team at Diplomatic Courier. You will find valuable musings on what the future holds for education, jobs and job creation from the perspectives of business leaders of global companies, civil society, and top diplomats representing nations that are leading the way in prosperity. And if you could not attend in person, all our bookazines as well as regular editions are available online at the newly redesigned www. diplomaticourier.com and on Amazon, iStore, and Google Play if you download our free app. As always, I welcome your thoughts and ideas and look forward to engaging with you as we build a platform for a better world together in 2016 and beyond. Ana C. Rold, Editor Diplomatic Courier Washington, DC January 2016
The future of global talent | 11
Global Joblessness: The Real Number by jon clifton
W
hat the whole world wants is a good job. That was the breakthrough finding from Gallup’s first global survey 10 years ago, and it continues to be true.
However, there is a problem with how the world defines and measures what a good job is. “Unemployment”—the most quoted jobs metric in the world—is misleading, as it grossly underestimates the global jobs problem. According to the International Labour Organization (ILO), global unemployment is 5.9%. That figure by itself suggests there isn’t a global jobs problem. It tells us that of the more than 3 billion job seekers worldwide, only 200 million are “unemployed.” Considering that almost half of the world lives on less than $2 a day, that unemployment figure can’t be right. The problem lies in how unemployment is defined and measured. The ILO recommends a broad framework of labor force statistics to national statistics offices worldwide. Most countries collect these data using a survey. These surveys ask people how many hours they worked in the past week and whether it was for an employer or themselves. If they weren’t employed, people are asked whether they are looking for work. The resulting data are the official employment statistics for the country. You might assume that the world’s poorest countries have the highest unemployment rates and the richest countries have the lowest. Not according to the official unemployment figures. Some poorer countries such
The future of global talent | 13
as India, Cambodia or Belarus boast some of the lowest unemployment rates in the world. Rich countries such as France or the greater eurozone have at least three times the rate of unemployment of those poorer countries. In fact, there is no statistical relationship between GDP per capita and unemployment across all countries. Here is the heart of the problem. Think of subsistence farmers in Africa or people selling trinkets on the street in India. Did they work 30 or more hours in the past week? Absolutely. Although their work is hardly meeting their needs, they still have what global agencies define as work. They are officially “self-employed,” which means they are not “unemployed.” The reason official unemployment figures appear so low in some of these poorer countries is that so many of the truly unemployed are considered self-employed. In the developing world, the self-employed make up roughly 30% of the workforce. This can be confusing because when we hear “self-employed,” things such as “small-business owner” or “entrepreneur” come to mind. However, most of those categorized as “self-employed” in the developing world aren’t small-business owners or entrepreneurs. When you look at who lives on less than $2 a day, the selfemployed appear almost identical to the unemployed. This is because most of these self-employed jobs aren’t really jobs.
Let’s consider a real job or a good job—the type of job the whole world wants—as 30+ hours per week of consistent work with a paycheck from an employer. Based on this definition, Gallup projects that 1.3 billion out of the world’s roughly 5 billion adults have a good job. So who are the other 3.7 billion? About 1 billion people are self-employed; about 400 million work part time and do not want full-time work; about 300 million work part time but want full-time work; 250 million are unemployed; and the rest are out of the workforce. Not all of the self-employed are hopelessly unemployed, but we can conservatively estimate 14 | the world in 2050
that at least half of them are. Those 500 million added to the 300 million part-time workers who want full-time work and the unemployed total roughly 1 billion people who are truly unemployed. That figure of about 1 billion, which is just shy of one-third of the entire world’s adult workforce of 3.2 billion, would put global unemployment closer to 32% than to the 5.9% that the International Labour Organization estimates. There is another problem with current jobs metrics: there is no figure that measures the quality of people’s jobs. I recently spoke with a global economist about measuring the quality of jobs. She told me her organization was hoping to accomplish this using two metrics: pay and benefits. The problem is that neither metric measures whether people love or hate their job. This is important because people who have a full-time job spend most of their waking hours there. When people have a job they hate, they are more likely to rate their lives worse than people who do not work at all. One way to help quantify those intangibles is through a metric known as employee engagement. This is calculated based on the question items Gallup discovered that categorize workers into engaged, not engaged or — worst of all—actively disengaged. People who are engaged at work use their strengths, know what’s expected of them and believe their job matters. Gallup asks our engagement questions worldwide and found that between 2012 and 2015, only 12% of people with good jobs are also engaged. They have great jobs. But these figures vary substantially by country. In the U.S., for example, 29% of those with good jobs have great jobs, and in China, 5% do. Out of 5 billion adults on this planet, 1.3 billion have a good job. Of these 1.3 billion, roughly 12% are engaged. Out of a global workforce of an estimated 3.2 billion adults who are working or looking for work, then, only 5% or 161 million people have a great job. This means just short of 3 billion people who want a great job don’t have one. The dream of men and women around the world is to have a good job and, ultimately, a great job. Yet only 161 million people are realizing this dream. Global leaders need to make “great job” creation a top priority. Using better metrics to understand the real jobs situation is a start. This report—Gallup Global Report: Where the Great Jobs Are—offers a first look at the real jobs situation in 138 countries, revealing where the good—and great—jobs are, and where the greatest deficits remain. About the author: Jon Clifton is Managing Director of Global Analytics at Gallup. The piece was originally published by Gallup and Diplomatic Courier on the G20 Summit Magazine. Republished with permission. The future of global talent | 15
Youth unemployment and the role of Entrepreneurship By Kris Gopalakrishnan
T
he global economy is still reeling under the impact of the recent financial crisis. Advanced and developing economies alike are grappling with the fact that the global economic recovery has not only been a jobless recovery but also a weakening one. Although each region has its unique challenges, a common threat, which the global economy at large is facing, is the rising unemployment—particularly youth unemployment. The International Labor Organization recently published its Global Employment Trends for Youth 2013 report. According to the report, the global youth unemployment rate was estimated at around 12.6% in 2013, which is close to the peak crisis-level unemployment. An estimated 73 million youth, aged 15-24 were unemployed in 2013. The challenge is not limited to developing economies alone, which is home to close to 90% of the global youth population. In developed economies and the European Union too, youth unemployment was estimated to have increased by as much as 24.9% between 2008 and 2012. It is without doubt that an entire generation, across developed and developing economies alike is facing the risk of lifetime unemployment with no access to an acceptable standard of living. Needless to say, this unprecedented crisis severely impacts the competitiveness and socio-economic growth prospects of nations at large. The scale of the problem is too huge and too complex for any single stakeholder to work in isolation and hope to move the needle. Busi-
The future of global talent | 17
nesses, societies and governments across the world must act together and act now to address the challenge. The challenge is not limited to employment but also employability. On the one hand, the slowing economic recovery is not creating enough ‘new’ jobs to cater to the large number of youth graduating every year and joining the ‘employable labor force’. On the other hand however, contrary to popular belief, millions of ‘existing jobs’ go unfilled due to the growing skills mismatch. In the U.S. alone, which is home to 11 million unemployed people, there are an estimated 4 million unfilled jobs, in view of the ‘employability’ challenge of the available talent. Governments across the world have acknowledged the severity of the crisis and are working to alleviate the situation. The G20 nations to begin with, are looking at tackling the unemployment challenge as one of the key priorities in their agenda. Businesses from within the G20 nations, which have formed the B20 coalition, are working closely with the G20 governments to develop business-led solutions to address the challenge. The short-term focus of these efforts is to foster job creation through economic growth and conducive macro-economic and labor market policies. There is a concerted effort to promote apprenticeships and foster talent mobility at the inter-governmental level. National governments are focused on creating networks comprising the government, policy makers, business leaders, financial institutions, academia, training providers and citizens. These networks enable all stakeholders to work together to cater to aspects such as – reskilling and continuous skilling, aligning the skill sets of the labor force to the needs of the industry, providing unemployed youth the support needed to find suitable apprenticeships and jobs and also providing small and medium enterprises with access to credit which will allow them to scale their business and create more jobs. In the long-term, in addition to all these efforts at the global and national levels, there is a strong need to promote the culture of entrepreneurship. Creating entrepreneurs allows job seekers to become job creators. Entrepreneurs also have the ability to leverage emerging trends to create business value and in the process, create more jobs. However, this is easier said than done. Governments, businesses and academia need to work together to provide the conducive eco-system that promotes entrepreneurship. There are several interventions needed. For instance, Tier I and Tier II cities need to create entrepreneurship incubators supported by the government (conducive policies), businesses (technical and process expertise) and financial institutions (access to credit and angel investments) catering to the needs of budding entrepreneurs. To provide scale to the efforts of spreading the entrepreneurship culture, academic universities need to embrace and promote entrepreneurship. In emerging economies like India and China in 18 | the world in 2050
particular, such interventions will play a crucial role in leveraging their demographic dividend, which would otherwise become a potential demographic burden. The early signs are extremely positive. In India for instance, in several states, including the southern state of Kerala, universities have been actively promoting the entrepreneurship culture amongst its students. The Kerala University set up the Entrepreneurship Development Cell in its campus as early as in 2007 to create enthusiasm in entrepreneurship and also to provide a platform which brings the supporting stakeholders on board. The state government also announced the setting up of a state-of-the-art Technology Innovation Zone in the country’s first telecom business incubator—the Startup Village. The government has also allocated funds to support its flagship programme, Startup Village to Silicon Valley, which aims to build a bridge between the state and Silicon Valley. These are only a few examples from the several pockets of excellence that exist across developing and developed economies. These early signs are very encouraging and are a step in the right direction. We certainly have a long way to go in our pursuit of addressing the challenge of structural global unemployment. There are no easy answers and one size certainly does not fit all. However, we need to continue our concerted efforts across and within governments with all stakeholders playing their part. This is the only way we can ensure that the youth of today’s generation get an opportunity to scripting and benefit from the growth story of the global economy. About the author: S. Gopalakrishnan (Kris) is Executive Co-Chairman and one of the co-founders of Infosys. Kris has been voted top CEO (IT Services category) in Institutional Investor’s inaugural ranking of Asia’s Top Executives; selected as a winner of the 2nd Asian Corporate Director Recognition Awards by Corporate Governance Asia and was selected to Thinkers 50, an elite list of global business thinkers. In January 2011, the Government of India awarded Kris the Padma Bhushan, India’s third highest civilian honor.
The future of global talent | 19
Gallup’s Good Jobs Report: No Change in Global Unemployment Rate Since 2009 By Madeline Bielski
T
he global payroll to population rate remains at 26%, not having grown since 2011, according to Gallup’s recently released Good Jobs 2014 report.
The annual report focuses on the payroll to population rate (P2P), which measures the amount of adults employed full-time by an employer for at least 30 hours a week. The measurement leaves out individuals who work part-time, are self-employed or unemployed, or are out of the workforce. The P2P rate is not seasonally adjusted. The report’s data was collected through 182,000 interviews in 144 countries. The P2P metric aims to analyze an economy’s health in a different way than traditional measurements of unemployment by focusing on the number of people in good jobs rather than subsistence jobs, which do little to alleviate poverty. P2P also has a positive relationship with GDP per capita and has been linked to measurements like quality of life. “Worldwide, P2P rates in 2014 ranged from lows in the single digits in countries with large informal economies and high self-employment to about half of the population in some wealthier countries with relatively low unemployment and higher formal economic employment and workforce participation,” Gallup reported.
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This year’s report showed Qatar and the United Arab Emirates topping the list for the highest P2P rates with 62 percent and 61 percent, respectively. Qatar and the UAE’s high P2P rates are likely related to the states’ small populations and large number of expatriates. The United States was also on the list of high P2P countries with a rate of 44 percent. On the other end of the spectrum, many countries in sub-Saharan Africa made up the list of the countries with the lowest P2P rates. Liberia claimed the lowest rate with only 3% of the state’s adults in the workforce being employed full-time by an employer. This low P2P is seen to reflect the state’s struggle with Ebola this past year, which had detrimental effects on the Liberian economy. Regionally, Northern Europe and the Former Soviet Union saw their P2P rates drop by 2 percent.
According to the report, 19 percent of adults across the globe are selfemployed. High rates of self-employment are often associated with low economic performance as those who work for themselves are three times more likely to be living on less than 2 USD a day. Self-employment was highest in regions like East and Southeast Asia. Gallup’s Good Jobs report also made interesting observations on the gender gap worldwide. The report found that globally men are more likely to be employed full-time by an employer than women. Worldwide, men had a measured P2P rate of 33 percent, while women had a P2P rate of only 19 percent, marking a 14-point gap between the genders. The report noted that this gap has been fairly stagnant, only dropping one point since 2009.
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Men and women are found to have approximately the same chance of being employed part-time globally. However, women are more likely to just be out of the workforce.
Women’s deficit was largest in regions like Southeast Asia and the Middle East and North Africa (MENA) where many women are not in the workforce due to political and cultural reasons. Due in part to less female participation, MENA also had the lowest workforce participation. Belarus was the best country for women in terms of P2P, with 48 percent of adult women being fully employed by an employer. The P2P rate for women did not exceed 50 percent in any nation in the world, while men had a P2P rate of 50 percent or higher in 13 countries. Gallup also reported no change in global unemployment since 2013. The world remained at 8 percent unemployment. About the author: Madeline Bielski is a Contributor at Diplomatic Courier.
The future of global talent | 23
Talent Mobility for the 21st Century By Kris Gopalakrishan
B
usinesses and governments across the world are just beginning to come to terms with the new reality of the postcrisis era. On the one hand, we are grappling with the challenges of operating in an environment of macro-economic uncertainty. On the other hand, we are striving to leverage emerging trends in business, technology and society to build our enterprises and economies of tomorrow. Unlike earlier crises, our success will be determined not only by the availability of financial capital but increasingly—human capital. The services sector, which is an important engine of job creation, continues to play a key role in most economies. This will require a large workforce that is highly skilled in newer skills like IT, Healthcare, Customer Service etc. Given this increasing demand, there is a global war for talent and at the heart of it are three key issues:
Changing demographic profiles Emerging economies like India and China are increasingly becoming the new hubs for talent due to their large demographic dividend. Advanced economies like Japan, the U.S. and also several European countries on the other hand are facing challenges of an aging workforce. By 2050, it is estimated that the percentage of population above the age of 65 will be close to 67% in Japan, 53% in Germany and 39% in the US. India on the contrast will have only 19% above the age of 65. These disparities are causing a talent imbalance with surplus in a few countries and shortages in others. The future of global talent | 25
Technology development and a consequent productivity increase Advances in technology, especially Information Technology, will disrupt societies faster in the coming years. Cloud, mobile technology, social network and collaboration technologies and big data will provide almost infinite computing, infinite storage and infinite bandwidth at very low cost in the hands of individuals. This will increase the amount of innovation in every sector and aspect of our lives. These developments are redefining jobs of the future and with it, the talent needed for the future.
Skill gaps and Demand-Supply mismatches It is ironic that at a time when close to 200 million people across the world (40 million of which are in the advanced economies alone) are unemployed, global businesses are still struggling with jobs that remain vacant. Moreover, 75 million of these unemployed are youth. The inability to fill jobs despite huge unemployment is not only due to geographic imbalances in demand and supply but also due to large skill gaps between the needs of the industry and the output of the education systems. It is evident that the talent challenge of the 21st century is global and that each country has its regional peculiarities. It is also clear that the scope of the problem is so diverse and complex that no single stakeholder can address it. Therefore, there is an impending need for collaborative, multi-stakeholder and systemic interventions by governments, industry and academia across advanced and developing nations to overcome the talent challenge. Long-term and sustainable solutions will require structural and systemic interventions. Governments have to make strategic investments in improving the basic educational infrastructure needed to produce highskill talent on a large-scale and in a sustainable manner. Businesses have to work with the academia to ensure that the talent output is relevant to the needs of the industry and therefore more employable. However, while these are much needed, they require a substantial lead-time to produce the desired results. This is where talent mobility plays a critical role in addressing the current talent challenges in the short to medium term. To begin with, demographic profiles cannot be changed in the short term to cater to the needs of the industry. Secondly, addressing the academia-industry skill-gap challenge also requires long-term collaboration between the industry, academia and the governments. Therefore, mobility of talent between countries (of surplus and shortage of talent) as well as mobility of talent within countries provides a feasible alternative. Con-
26 | the world in 2050
trary to popular belief, research indicates that talent mobility benefits nations of surplus such as India as much as it benefits nations that receive this talent like Europe, the U.S. and other advanced economies. Finally, the challenges of skill redundancy due to technology developments and productivity improvements impact advanced economies as much as, if not more than developing economies. Countries like India and China have been consistently producing large-scale, high-skilled talent in recent years. Advanced economies can and should tap into this pool in the short-term until they are able to scale their own educational infrastructure to cater to the changing needs of their industries in the long-term. Moreover, talent mobility also provides competitive advantages to both the countries of surplus and countries of shortage. Highly skilled immigrants contribute to the competitiveness and productivity of countries that they migrate to. When they return to their home countries, they leverage the business and technological skills that they have gained abroad. However, effective talent mobility requires concerted efforts between governments and businesses across countries sending and receiving talent. Multilateral agreements are needed that foster labor market reforms and allow easy recognition of skills across countries. Pre-requisite to it all is the need for businesses and governments to assess current skill shortages and also to anticipate potential needs of the future. Businesses have to find means to attract, train and retain the right talent themselves and foster talent mobility within. Finally, student mobility should be promoted as a stepping-stone to talent mobility. Talent Mobility is not the solution to some of the most pressing challenges in the need for large-scale, high-skill talent. It also brings with it a fair share of challenges, particularly in seamless implementation. However, talent mobility is an ideal and much-needed alternative in the interim until the long-term structural reforms in education and labor markets reap its dividends. This is critical not only to stimulate economic growth but also to foster long-term, sustainable growth and human capital strategies. About the author: S. Gopalakrishnan (Kris) is Executive Co-Chairman and one of the co-founders of Infosys. Kris has been voted top CEO (IT Services category) in Institutional Investor’s inaugural ranking of Asia’s Top Executives; selected as a winner of the 2nd Asian Corporate Director Recognition Awards by Corporate Governance Asia and was selected to Thinkers 50, an elite list of global business thinkers. In January 2011, the Government of India awarded Kris the Padma Bhushan, India’s third highest civilian honor.
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The One Thing I’d Fix: America’s Decline in Entrepreneurship by Jim Clifton
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merica’s biggest problem is that we don’t have enough good jobs. Yes, unemployment has gone “down” to 5.9%, according to the U.S. Department of Labor. But that percentage is almost meaningless, as it doesn’t count people who’ve quit looking for work. A staggering 20 million people or more are still jobless or grossly underemployed, and many are deeply frustrated or depressed—they’re not celebrating “declining” unemployment. More troubling, Gallup Analytics finds U.S. underemployment above 15% and only about 45% of adults employed in full-time jobs with at least 30 hours per week of work and a paycheck from a real organization. According to the Labor Department, the number of full-time jobs as a percent of the adult population remains at one of the lowest levels since they began measuring this. The one thing I’d fix right away is this super serious jobs problem, because if we don’t, we might lose our republic and our way of life. And I wouldn’t fix it with more government “shovel-ready” jobs or free money from the Federal Reserve. I’d fix it with millions of new startup companies and by reviving the spirit of entrepreneurship. We’ve got our work cut out for us. In 2008, the total number of new business startups and business closures per year—the birth and The future of global talent | 29
death rates of American companies—crossed for the first time since the measurement began, according to the U.S. Census Bureau. (Here, I am referring to employer businesses, those with one or more employees.) Four hundred thousand new businesses are now being born annually nationwide, while 470,000 are dying annually—we are at minus 70,000 business survival per year. This is hugely significant, because small businesses are the main source of new good jobs and new economic energy. Up to 50% of all jobs are in small businesses and approximately 65% of all new good jobs are created by them, according to the Small Business Administration. Also significant: A shortage of good jobs leads to social unrest. This is true especially when young males are affected, because joblessness destroys their self-concept, makes them feel depressed, humiliated, and hopeless. Why was there such unrest in Ferguson, Missouri, this past summer? You could say it was a problem between cops and minorities, but I’d argue this was a jobs problem. As The Washington Post reported, “The unemployment and poverty rates for blacks in St. Louis County are consistently higher than those rates for white residents.” If all those young men in Ferguson had a good job to go to each morning—one where they could feel pride in themselves, feel productive, and be doing something that matters—do you think they would be in the streets, protesting, rioting, and looting? Probably not. The fix: American business leaders in cities across the country, as well as local elected officials, must begin right away to find and nurture tomorrow’s most successful entrepreneurs in their communities. America needs at least a million more startups fast. This means being as serious and intentional about the early identification and development of entrepreneurs as you are about finding star athletes and kids with high IQs. And the talent is out there, waiting to be found. There are nearly 30 million students in U.S. middle and high schools right now. Early Gallup research reports that about five in 1,000 working-age adults in the U.S. possess the rare talents of entrepreneurship, so that means there are about 150,000 future blue-chip entrepreneurs in fifth through 12th grade now, more in college, and tens of thousands more high- potential adult business builders out there. City leaders should find them all and make their entrepreneurial growth as systematic and intentional as intellectual and athletic growth are. Great business builders are like great scientists or great quarterbacks—they will respond and accelerate with special attention. Furthermore, without it, their potential is at risk of being underdeveloped, or worse, never developed at all.
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Americans have accomplished much harder tasks. We mobilized the whole country to win World War II. We put a man on the moon. Good Lord, we ignited the dot-com boom that revolutionized business and led to one of the greatest bull markets in history. We can turn the American economy around. But we had better get on this one fast, because we need millions of good jobs right now. About the author: Jim Clifton is Chairman and CEO of Gallup. Clifton is author of The Coming Jobs War and co-author of Entrepreneurial StrengthsFinder. Originally published by Gallup, this piece has been republished by Diplomatic Courier with permission.
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HUMAN CAPITAL FOR EMERGING MARKETS by David Iakobachvili
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ith sustainable, well-balanced and inclusive growth at the top of the global leaders’ agenda, it must be subject to coordinated efforts by the state, business and civil society on all the core directions of social and economic development. In industry, the success of such efforts depends on the efficient synthesis of fixed assets (industrial buildings, machinery and equipment) with financial and human capital. It’s hard to say which of those components is more important; it is without doubt, however that human capital reproduction (and moreover its upgraded reproduction) is the most complicated process. Human capital deficit, measured by quality rather than quantity, at the times of transition to new technological set-up is experienced by many countries, but the emerging market economies suffer from such a deficit more than others. Besides general problems, they are facing additional challenges related to transitional character of their economy and the past times heavy legacy. Long lasting “brain drain” to so-called “mature economies” is among such challenges. Their full spectrum is reflected not only in the partially successful 15 year Millennium Development Goals (MDG) program but also in its updated version: the Sustainable Development Goals (SDG) to run until 2030, most recently approved by the UN.
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The experience obtained in the chair of B20 Job Creation, Employment and Investment in Human Capital Task Force, whilst Russia held the G20 presidency, and the follow-up activities in the same direction during the Australian and Turkish presidency, cause a desire to share some conclusions and observations with the colleagues in B20 - G20 process. The work of international business community on the most pressing issues under the Turkish presidency focused on small and medium enterprise (SME) development, has led to the set of 19 B20 policy recommendations “to support the G20 leaders in their ongoing mission to implement structural reforms and to ensure strong, sustainable and balanced growth”. At least 3 of those recommendations are directly related to human capital development and amongst them is one calling to “develop and finance programs aimed at reducing skills mismatches, in particular technical, managerial, and entrepreneurial skills”. This is worth particular attention. The role of human capital for SME development with regards to sustainable and inclusive growth is equally important compared to adequate financing. The September meeting of the G20 Ministers of Labor and Ministers of Finance in Ankara, in parallel with the final B20 conference, has confirmed this. Innovative development, most probably among the priorities for the forthcoming PRC G20 presidency, is also hardly possible without a proper human capital development. Business is unable to secure an adequate supply of human capital for modern industries while acting alone, as well as the State acting separately from the business. Such problems can only be solved via the synergy of public-private partnership (PPP), when basic education and productive skills form a starting point for the all-inclusive lifetime learning and training system (or retraining when necessary). This goal is of primary economic social importance. When undertaking innovative development, China mustn’t ignore the role of human capital. According to PRC Prime Minister Li Keqiang, the future economy will be fueled by two “engines”: entrepreneurship and innovation. China is promoting start-ups, stimulating banks and other financial institutions to support SMEs. The Chinese government has allocated around US$57billion, via more than 1000 investment agencies to boost entrepreneurship. An ambitious goal was set to transfer the Chinese economy in 2020 to an innovative development way. The World Economic Forum last year rated China to be 33rd in the global ranking for innovation, although there is little doubt they will reach their goal. Even now, enormous resources are being invested in human capital. China has more than 2,600 universities, and over 30 million school graduates are fighting each year for entrance to them. For the past 5 years, Chinese parents have spent about US$40million per annum to cover the costs of their youngsters studying abroad. 34 | the world in 2050
A lot of attention is paid to human capital development in Russia. In his address last September to investors at the Eastern Economic Forum on Russkiy Island (where the 2012 APEC Leaders’ Summit was held), President Putin called for the creation of a network of international education centers in the Asia-Pacific region, together with world-class research and industrial cooperation laboratories. The region best-known as the “global workshop”, with its fast growing education system, universities, engineering centers and high-tech manufacturing -what we call “economy of knowledge and intellect” - is building up mighty megascience research and development (R&D) platforms capable of leading to real breakthroughs. Such a platform is already being developed in the Russian Far East. As has been said: “today, together with colleagues from China, Japan, India and other Asia-Pacific counties, supported by business, fundamental and applied research is actively carried out here”. People are coming to study and work. “The Far East is in need of qualified specialists, scientists, engineers, managers, production process organizers, workers with unique skills and qualifications. And the Agency for Human Capital Development specially created in the Far East would take care searching and attracting such people”. Would educate and train people of the region, thus secure the human capital development. One may suppose that the future belongs to such R&D + Production (RDP) platforms, mega-centers and PPP-based agencies for human capital development with their networks around the world, equally covering emerging and mature market economies. It makes sense to expand the possibilities to form such a network under the auspices of a global hub, similar to that established in Sydney for infrastructure investment as per the G20 Brisbane decisions. There is only one precondition: the Human Capital Development Hub should be established in an emerging market economy country. About the author: David Iakobachvili is the President of Orion Heritage Ltd, joint proprietor of Petrocas Energy Holding Ltd. and a Deputy Chairman of the Board of Sistema Group. He is Vice President and Executive Board Member of the Russian Union of Industrialists and Entrepreneurs (RSPP), Head of RSPP Committee on Corporate Social Responsibility and Demographic Policy.
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Curbing the Flight of Human Capital By Oscar Montealegre
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pain in the first decade of the new millennium was the land of opportunity for many Latin Americans. At one point during the early 2000’s, Spain was considered one of the top ten largest economies of the world, thus it became a logical and hopeful alternative for Spanish-speaking workers throughout the Americas. Droves of people immigrated from Ecuador, Colombia, and Venezuela. For many the dream did become a reality, and Spain was basking in its novel place of economic stability and might, until the construction boom in Spain popped in 2008-2009, bringing Spanish banks to their knees and spurring a deep recession that is to this date still dragging the Spanish economy to subzero growth. Since 2008, 3.8 million Spanish jobs have been lost, rendering a Spanish economy with an unemployment rate of 26 percent. To give the high unemployment some context, during the U.S. Great Depression in the 1930’s, unemployment peaked at approximately 25 percent, which was considered an economic calamity. To make matters even bleaker for Spanish workers, the International Monetary Fund published a report forecasting that it is very possible that Spain will be combating high unemployment of 25 percent until 2018. And if that wasn’t enough bad news, 56 percent of Spain’s youth is unemployed, with an estimated total of 1 million university graduates without jobs. The future of global talent | 37
Spain by no means has exclusivity on being saddled with high unemployment and meager economic growth; Greece, Ireland and Portugal are on the same boat. In the periphery, France and Italy are not too far behind dealing with high unemployment, especially amongst the young adults. But despite the obvious issue that jobs must be created to reduce the unemployment number, often a separate but related matter of equal importance goes unnoticed or perhaps discounted, the flight of human capital, or as many experts have coined it, brain drain. The theory behind brain drain is that a country loses its talent pool to other countries due to lack of opportunity and economic and political instability, or in much worse cases, political oppression. Consequently, countries will struggle to recover from the economic crisis due to the qualified talent pool fleeing the country. In Spain the flight of talent has begun in earnest, kindling a debate whether this is simply good or bad for Spain in the short and long term. Germany is the main recipient in Europe of qualified Spanish labor migration. And it makes sense: Germany is the strongest and largest economy in the Union compared to the other EU members, and it’s been no secret that Germany has been tackling qualified labor shortages for quite some time. However, most surprising are the new lands of opportunity receiving qualified Spanish labor, namely Chile, Colombia, Brazil, and Mexico. In Europe, it is forecasted that the EU will contract by 0.2 percent; while in Latin American economies the forecast is further growth, expected at around 3.6 percent. Spaniards have taken notice; between 2007-2012, the number of Spaniards immigrating to Brazil rose 227 percent, Chile 144 percent, Mexico 129 percent and Ecuador 467 percent. It must be noted that the majority of Spaniards relocating to Ecuador are Ecuadorian citizens returning to their home country but became naturalized as Spaniards while working and living in Spain. In the last two years, behind the backdrop of Mexico’s recent emergence, Spaniards have been flocking to the country due to the ease of getting a working visa. Currently, there are 4,500 Spanish companies in Mexico, and in 2012, Mexico’s immigration office reported that 7,630 work permits were granted to Spaniards—not accounting the unknown Spanish tourists who outstay their visitor visa in pursuit of employment. Mexico, like many countries in Latin America, has suddenly and surprisingly become both a launching pad and a landing pad for working immigrants of all skills levels. Countries in Latin and North America and Europe are attracting much-needed Spanish doctors, nurses, engineers, architects, marketing professional and IT professionals. Yet, there are struggles. For instance, too much red tape in Latin America makes it difficult for Spanish aspiring workers wanting to enter the job market. A lost opportunity for Latin 38 | the world in 2050
America, but on a side note, an opportunity for another country such as the U.S., if immigration were to ease towards foreign skilled labor. An interesting positive effect from Spaniards finding employment in foreign countries is remittances. Remittances are a valuable stream of monetary inflows towards GDP in developing countries; now it is equally important for the fourth largest economy of the EU, Spain. In Spain, remittances between 2007-2011 rose by 7.5 percent or $7.4 billion. According to The Economist, remittances from Brazil to Portugal are greater than Portugal to Brazil; in addition, Spaniards in Argentina wire an approximate $1 billion a year to Spain. What’s astonishing is that Argentina is considered one of the most worrisome economies and governments in the Americas, yet by only viewing remittances, it does more for Spain than vice versa. Spanish immigration has certain benefits for Spain. First, it relieves pressure on the Spanish government in creating jobs for the unemployed; second, less Spaniards will depend on the welfare state for benefits; and third, through remittances, Spain is gaining market share of much needed foreign money. The million-dollar question remains: What will happen when Spain recovers? Will the talent pool that left Spain return? Migration patterns have been radically altered in the last ten years— sounds cliché and lazy—but the world is definitely changing. No longer can they been seen as developed and developing: emerging markets are hotspots for growth and employment, and countries such as Spain and France are desperately trying to persuade their citizens that Europe can no longer depend on the comforts of a welfare state. In order to stop the exodus, Spain must reform labor laws that make it easier to hire and lay off employees. In addition, an emphasis on growth and entrepreneurship must be implemented. Spain’s Prime Minister Rajoy is on the record pledging job creation being his main goal for 2014, backed by the Spanish government’s planned investment of $1.79 billion to combat unemployment; as a signal to young Spaniards that there is a future in Spain. The last time there was a flight of human capital, it was more than 60 years ago during the Spanish Civil War 1936-1939. Spaniards leaving Spain is new and confusing for today’s Spain. Interestingly, another new development for Spain is that it produces an above average number of graduates compared to the EU, respectively 40 percent to EU’s 34 percent, making this generation Spain’s most qualified in their history. Unfortunately, while this generation is not able to currently reap the benefits now, with execution of much needed reforms, the brain drain can be a short term movement, giving Spain a chance to become at least a shadow of the booming Spain of the 2000’s. About the author: Oscar Montealegre is Diplomatic Courier’s Senior Latin America Correspondent. The future of global talent | 39
Egypt’s Generation Jobless By Chrisella Herzog
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hile the global economy seems to have found slightly more steady footing, and has shown some signs of tentative growth, it is not enough for the hundreds of thousands of unemployed youth facing challenges of basic survival every day. In lesser developed countries, a young woman between the ages of 16 to 25 will enter the workforce with no skills and little to no education; if she is able to avoid pregnancy (a scenario that will almost certainly force her to drop out of the formal economy without maternal support programs), she will find herself in a maze of confused communications between the public and private sector. If she is able to find a job in that maze, the chances are high it will be a low quality one, as growth has stagnated for good quality jobs that offer benefits, decent pay, and stability. “Generation Jobless,” Guy Ryder, Director-General of the International Labour Organization, argued at a panel in New York City in September 2013, may already be a lost cause. The United Nations’ push for the post-2015 goals will come too late for many under the age of 25, a group that makes up a staggering 43 percent of the world’s population. The Millennium Development Goals had two flaws: no focus on global employment and increasing quality jobs and an emphasis on quantity over quality. These mistakes cannot be repeated.
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North Africa, thrown into political and economic chaos just three years ago with Arab Spring revolutions in Tunisia, Libya, and Egypt, still faces the challenges brought about by the upheavals. Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS) reported in December 2012, youth aged 20 to 24 face an unemployment rate of 39 percent; among women of the same age group, that number skyrockets to 60.5 percent. When these statistics are expanded to include those who have dropped out of the job search, the numbers are even worse. In 2009, the Human Development Report estimated that joblessness for Egyptians aged 15 to 29 reached 60 percent. With twothirds of the nation’s youth without either a job or school to go to, not only is the political instability of the past few years better understood, but it should raise large warning flags in any plans for Egypt’s future. Egyptian youth are generally handling this in one of several ways. First, they are joining the informal economy in droves. In this job sector, youth very often have no social or legal protections. Work in the informal sector blocks access to health insurance or social protections when they are injured or ill; when they reach retirement, if they have remained in the informal sector, they will have lost access to social security benefits. A 2012 report by the International Labour Organization found that 51.2 percent of non-agricultural employment falls within the informal economy. A survey done by the Population Council and the Information Decision Support Center found that only 15.7 percent of young workers have a contract signed with their employer, and only 14.8 percent have social insurance benefits. Frustrated youth looking for stable jobs turn their hopes to the government, which since the 1960s has consistently offered better pay and benefits than the majority of private sector jobs. In an interview with The Cairo Review of Global Affairs, Amr Hamid stated that his dream job was to work in government, which would offer a fixed salary, a pension, vacation days, and health insurance. Without these benefits, he explained, he would not be able to get married and start a family. However, Amr is not alone in his dream—thousands of people vie for these positions, making any government job nearly impossible to get without personal connections. As youth are cut off from being able to access one of the only good jobs available, they perceive government corruption as being the source of their troubles. Other Egyptians are choosing to simply leave. Arab nations have traditionally been the main destination for Egyptian workers—making Egypt the 14th highest receiver of remittances—but as countries like Saudi Arabia begin to turn more to Asian countries for low skilled workers, migrants have turned their sights to Europe. Highly skilled or educated youth have an easier time making the move to Europe due to restrictive immigration policies, creating a ‘brain drain’ effect in Egypt. The European Union has begun to consider Mobility Partnerships with 42 | the world in 2050
MENA nations to allow for better integration of workers and exchange of skilled laborers; however, only Morocco has an established program so far. The Egyptian Government realizes the lost potential of this jobless generation, and since the Revolution, has begun to focus specifically on projects targeting them. In a conversation with the Diplomatic Courier in New York City, Deputy Minister of Youth Khalid Tallima described the public-private partnerships the Egyptian government is seeking to foster in order to guide youth from school to employment. Working with an array of organizations—from NGOs to domestic businesses to MNCs like Samsung—Tallima said the long-term goal is to use these partnerships to improve education systems from grade school to university, encourage entrepreneurship, and bring reforms to the requirements for starting a business. Despite the string of discouraging statistics, Tallima—a young man himself—was hopeful. He explained the number of advantages Egypt has that should attract foreign investment—natural resources and cheap energy—and seemed confident that when the workforce was provided with the skills needed to compete in a global economy, Egypt would prosper. The upcoming elections “will be a good start,” he said; most important, “the Egyptian people are not afraid anymore.” About the author: Chrisella Herzog is Founder and Editor-in-Chief of WhiteHat Magazine. Previously, she was Diplomatic Courier’s Managing Editor.
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How the Digital Enlightenment Has Created a New Era of Talentism By Lucian Tarnowski
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ark Twain once said, “History does not repeat itself, but it rhymes.” Let’s recognize the unique moment in history that we currently find ourselves. We are experiencing the Second Human Potential Movement, and this time it has the potential to be much more inclusive. The first Human Potential Movement started in the 1960’s with places like Esalen in Big Sur and people like Aldous Huxley, Abraham Maslow, and Alan Watts. It was formed around the belief that humans have extraordinary untapped potential that can be cultivated to enable our lives to be filled with happiness, creativity, and fulfillment. Now we are experiencing a similar Enlightenment moment. However, there is something historically unique about this moment–technology is democratizing access to it. The Internet is enabling much larger numbers than ever before to benefit from this “Digital Enlightenment” period, which is giving birth to the Second Human Potential Movement.
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Not all moments throughout history were equally important. We see moments that matter, moments that shaped the arc of history. When one studies those moments we notice two things in particular: 1. Location matters. All enlightenment periods happened in a geographically hyper-located place. Think Rome, Athens, Venice, Florence, London, and so on. 2. Community matters. When we look through the history of any moment that mattered, we see that every person that played a role in shaping the time somehow was friends with all the other influential people of their time. Think about Socrates, Plato, and Aristotle. Think Da Vinci, Michelangelo, and the Medici’s. Think Freud and Jung. Think of Paris in the 1920’s with Hemingway, Picasso, Fitzgerald, Dali, and Stein. Throughout history we can see these two points as a constant. This leads to the question–Why would this Enlightenment period be any different? I would argue that its not. We still have a small number of individuals that are writing the history of our time–people like Bill Gates, Steve Jobs, Mark Zuckerberg, and Elon Musk. Notice how they also all know each other, and location remains equally important. The difference is that the fruits of their creations are now accessible to billions of people. We are experiencing the most inclusive Enlightenment period in history. What is the impact of this Enlightenment period on our lives? As we enter a Machine Age, we need to ask whether we are creating a positive, abundant world or if we are in danger of creating a negative and destructive world. Are we creating something the dystopian futurist writers warned us about—are we creating an Elysium, a Brave New World, or something like 1984? We are experiencing an era of unprecedented wealth creation, but unfortunately it is not as inclusive as it should be. The prospect of machines taking over the jobs of billions of people is a very real one, and one that we need to be extremely cognizant of. Professor Klaus Schwab, Creator of the World Economic Forum, has argued that the leading economic ideology is shifting from Capitalism to Talentism—a new era where human capital has become more important to countries, cities, and companies than financial capital. Professor Schwab argued, “Capital is being superseded by creativity and the ability to innovate—and therefore by human talents—as the most important factors of production. If talent is becoming the decisive competitive factor, we can be confident in stating that capitalism is being replaced by “Talentism.” Just as capital replaced manual trades during the process of industrialization, capital is now giving way to human talent.” 46 | the world in 2050
I remain optimistic that as our primary economic ideology shifts to “Talentism,” we are in fact giving birth to a Second Human Potential Movement. But as with any other major society shift throughout history there are winners and losers. Change gives birth to opportunity, but it is important to be on the right side of change. Humans have always made sense of the world in which we find ourselves through the communities we belong to. In many ways technology has had a destructive impact on our communities and has left people searching for the meaning behind it all. It is my hope that we will “go back to the future” and see a re-emergence of strong and supportive communities both offline and online. It is through our communities that we can provide ourselves with the context and knowledge with which to stay relevant and be on the right side of this change. The choices society makes about how we leverage technology, artificial intelligence, and the Machine Age will shape the whether the future of our world will be a positive or a negative experience. As Franklin D. Roosevelt said, “The test of our progress is not whether we add more to the abundance of those who have much it is whether we provide enough for those who have little.” The Second Human Potential Movement should provide an opportunity to create a more inclusive and abundant world. About the author: Lucian Tarnowski is the Founder and CEO of BraveNewTalent. He was recognized by the World Economic Forum as a Young Global Leader.
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HARNESSING HUMAN CAPITAL: JOBS OF THE FUTURE By Pauline Gebczak
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n 2020, 40 percent of people will be working for themselves”. Howard Tullman, the CEO of 1871 threw out this statistic during a recent panel discussion on “Collective Entrepreneurial Creativity” held by The Executives’ Club of Chicago. Although many recognize the changing landscape of today’s workforce, what does it really mean? Is “collective entrepreneurial creativity” the future of innovation? The global marketplace for remote workers, oDesk, came out with an eye-opening study about entrepreneurship, freelancers, and millennials. This study was done in collaboration with Millennial Branding, a research and consulting firm dedicated to Gen Y employees. An increase in freelance jobs may be the answer to many problems, leading the next generation with solutions through innovation. By working for themselves and not being constrained by corporations, individuals may be able to work more creatively and come up with innovative ideas. More so, the community of freelancers can come together to share their ideas and collaborate. This shift in the workforce means an increase in the rise of startups, but also dissatisfaction with the corporate environment. oDesk found The future of global talent | 49
that 72 percent of entrepreneurs at “regular� jobs mean to quit and become entirely independent. The study also showed that the top reason for workers setting out on their own was for the freedom and flexibility. oDesk also looked at how workers relate to the word entrepreneur, showing that 90 percent of workers associate the phrase with having a certain mindset rather than just the action of starting a company. This particular statistic is quite telling of why freelancers and entrepreneurs may be the change needed to solve some of today’s challenges. The mindset of creativity, seeking out solutions, and collaborating by connecting with other people with the same goals, is a powerful force. Sixty nine percent of those surveyed responded that they believe freelance work is more interesting. Passionate people who believe in their work will be able to broaden their horizons and generate new ideas. Many college graduates are faced with a poor job market but the good news is that many employers are looking to hire freelancers. Economic Modeling Specialists reported that in the last four years, 15 percent of job growth across the United States and 40 percent of new jobs came from work done by freelancers. Unlike past generations, Millennials are not as set on finding one career for life or staying with one company throughout their professional lives. In fact, 82 percent of those surveyed, from multiple generations, said that having one employer for life was not appealing. While the benefits of becoming an entrepreneur and pursuing a freelance position are rewarding, there are also many uncertainties that come along with choosing this career path. Hard work and complete self-reliance does not seem to inhibit the ambitions of the millennial generation. Growing up in an uncertain world where a college degree did not necessarily mean success, self-reliance may just be the highlight of being a freelancer. Organizations like the Freelancers Union are quickly springing up and providing support to a growing community of freelancers and entrepreneurs. The world is becoming smaller through technology and the ability to stay interconnected. At the same time the world has become a much bigger place with a growing number of people pursuing their passions and creating a huge market for ideas and innovation. Celebrating individuality and unique points of view will nurture the future of freelancers so that our global community of innovators continues to grow. While corporations still provide millions of jobs across the globe, the circumstances in which we live and the realities of those now entering the workforce are rapidly changing. The global market of workers is looking for new opportunities that fit their individual wants and needs, and it may just end up creating a new generation of innovation. 50 | the world in 2050
The Future of Workplace: Generational Views
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ow do leaders from different generations view the future of the workplace? What are the differences in their priorities and attitudes, particularly with respect to quality of life considerations? These subjects were up for debate this year at an international thought leadership conference around the subject of Quality of Life, hosted by Sodexo. On the” Discussion Between Generations” panel were three “future” leaders: Celine Göbel, Esther Soma, and Paras Fatnani. Along with their older counterparts, they responded to thought-provoking questions from Matthew Bishop of The Economist magazine. The three “contemporary” leaders on the panel were accomplished leaders in advertising, Shelly Lazarus; research science, Dr. Sanjeev Sahni; and healthcare, Kristy Waters. Generational Views The panelists discussed what they liked most and least about their own generation’s idiosyncrasies. What do today’s leaders like and dislike the most? Today’s leaders were given kudos for opening minds to what disenfranchised segments of society could achieve. They paved the way for women and minorities to do things they previously couldn’t, such as lead large corporations. However, Boomers have also forged strong
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social support systems. And while they didn’t do too well at achieving work/life balance, they introduced the aspiration of “having it all.” Today’s leaders as a group tend to be workaholics. Particularly now with 24/7 connectivity, they have forgotten how to relax. Their personal quality of life has taken a back seat to the priorities of their organizations and careers. Their self-described generational flaws included precisely the workaholic, unbalanced lifestyles from which the young leaders recoil. What do future leaders like and dislike the most? Future leaders are passionate, creative, entrepreneurial, and full of belief in themselves. They see what is possible in ways that older generations couldn’t. They are using today’s technology to create new types of businesses and solve problems in innovative ways. Their entrepreneurial start-ups will be tomorrow’s major corporations. As for what they dislike: Each young leader offered a different negative. Millennials tend to be impatient, looking for instant gratification; and are immersed in technology; Millennials sometimes lose sight of personal values. The next generation of leaders prioritizes quality of life Polls reveal that younger and older generations think differently about the components of organizational success. While 69% of young future leaders said they “totally agree that improving quality of life would have an important impact on the performance of their organization,” only 57% of current leaders do. Asked to rank seven corporate priorities that affect performance, quality of life topped the list for future leaders, but came in fifth for current leaders. Attitudes about quality of life already are changing how corporations operate Shelly Lazarus presides over Ogilvy & Mather, a firm with 20,000 employees, more than half under the age of 30. They care greatly about personal work/life balance, which is an important aspect of quality of life. But what they really seek is freedom to live the lives they want. The firm tries to provide that, but it is not always easy. How can an organization give employees the freedom to do what is important to them and still meet corporate objectives? Google has it right, said Ms. Lazarus. A Millennial-style company, Google would never order people to put in long hours. But by offering lavish free meals, the company accomplishes the same result. Some employees rarely leave, and lots of creative collaboration is accomplished over 52 | the world in 2050
meals. Employees’ personal and professional lives are happily melded, and they feel in control of their own work/life balance. Kristy Waters explains that Tenet Healthcare has made operational adjustments in the interest of its doctors’ quality of life. To allow doctors more time off than was typical, patients are often seen by multiple doctors. Quality and continuity of care are maintained because doctors stay in close communication, aided by technology (such as electronic health records). Recent years have also seen a paradigm change in healthcare toward promoting patient wellness and quality of life. Sanjeev Sahni researches biofeedback, specifically how people can increase their own happiness by controlling stress via relaxation techniques. In his view, what employees—particularly those shouldering family responsibilities—most want from their organizations is freedom from anxiety. In India, many middle-aged workers have two big anxieties: 1) their children’s education; 2) good hospitals for their parents. To the extent that companies can address employees’ family-related anxieties, they will promote employee happiness. Recognition for work well done is another major factor in eliminating stress at work, said Dr. Sahni. Incentive bonuses and benefits, therefore, may be more important than salary in promoting employee happiness and quality of life. Millennials look for employers that offer the flexibility and resources to work in their own ways, entrepreneurial fashion, within an organizational structure. Many Millennials are eschewing corporate life entirely in favor of starting their own companies, since little start-up capital is required in the Internet age. About the contributors: This synthesis feature was adapted from the inaugural Quality of Life conference report. The contributors served on the panel “A Discussion Between Generations”, which included Earvin “Magic” Johnson, Founder, Magic Johnson Foundation; Matthew Bishop, Globalization Editor, The Economist; Paras Fatnani, Global Ambassador of Project Chirag and Ambassador for India, One Young World; Celine Göbel, Student, HEC Paris School of Management; Shelly Lazarus, Chairman Emeritus, Ogilvy & Mather; Dr. Sanjeev Sahni, Principal Director, Jindal Institute of Behavioral Sciences; Esther Soma, Student, Yale University; and, Kristy Waters, Senior Vice President, Performance Management and Innovation, Tenet Healthcare Corp.
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Empowering Young Leaders to Bring Shared Prosperity to America’s Cities By Jan W. Rivkin & Gabriel P. Ellsworth
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ith American corporate profits at an all-time high, it would be easy to celebrate the success of the U.S. economy. Yet the sad fact is that the American economy is doing only half its job. Yes, large U.S.-based companies are thriving, as are the welloff individuals who run them and invest in them. But working- and middle-class Americans are struggling with stagnant incomes, weak job prospects, and deep economic insecurity. Prosperity in America is not being shared. This divergence in America’s economy has many causes. Some causes will be hard to reverse. For example, globalization and technological change have put American workers in competition with skilled workers around the world and with automation that can complete routine tasks. Those genies are out of the bottle and are not going back in. But other causes of the divergence are unnecessary, self-inflicted wounds. In particular, U.S. society has systematically underinvested in the shared resources that underpin working- and middle-class prosperity: our education system, the skills of our workforce, our infrastructure, our basic R&D and supply networks. And Washington is too paralyzed by partisanship to do much about it.
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The good news is that in cities and towns across the U.S., local policymakers, businesspeople, educators, nonprofit leaders, labor leaders, clergy, and others are coming together across sectors to restore and reinvent these shared resources. To mention just a few examples, we see: • Community colleges working with companies to train the graduates that employers want to hire; • Elected officials and university leaders partnering to get ideas out of laboratories and into startups faster; • Educators partnering with businesses and nonprofits to transform school systems; and • Coalitions of leaders coming together to upgrade critical infrastructure. Such efforts share a few traits: they are local, they span sectors, they produce shared prosperity, and they are long-term. Eager to fan the flames of these local sparks, a faculty team at Harvard Business School has partnered with civic leaders across the country to launch the Young American Leaders Program. In late 2014 and early 2015, we asked senior champions in each of nine cities to identify ten individuals who they believed would help lead the city in the future. Importantly, each ten-person team reflected the rich diversity of its city: participants came from government, business, educational institutions, nonprofits, the press, and other sectors. Then in June 2015, we gathered the 90 young leaders on the HBS campus for, in essence, a boot camp in cross-sector collaboration for shared prosperity. For three intense days, the group learned about best and worst practices from across the country and around the globe. They assessed the shared resources in their communities and envisioned collaborations that might improve them. Perhaps most importantly, they connected with one another, shared their experiences, and taught our faculty about the realities of collaboration. Young leaders hailed from Boston, Massachusetts; Chattanooga, Tennessee; Columbus, Ohio; Detroit, Michigan; Miami, Florida; Minneapolis-Saint Paul, Minnesota; Nashville, Tennessee; Salt Lake City, Utah; and Seattle, Washington. Why these cities? In each of them, we found senior leaders who are shaping their communities today and who collectively have a broad view of, and credibility with, the next generation. These local champions helped us to identify up-and-comers who are energetic, creative, positive, and collaborative, with a track record of civic engagement.
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While our program focuses on the United States, the challenges we examine have global relevance. Nearly every community in the world is struggling to share prosperity widely. Many of the lessons we have learned apply to cities everywhere; indeed, in some cases they were drawn directly from the experiences of cities outside the United States. After the immersion on campus, we are encouraging each city team to apply what they have learned to benefit their hometown. We will keep the young leaders connected to each other, to us, and to future cohorts. Over time, we aim to develop a cadre of young leaders who have the will, the skill, and the connections to work across traditional boundaries to help their communities thrive. This is a model, we believe, that can work in cities across the country and around the world. About the authors: Jan W. Rivkin is the Bruce V. Rauner Professor and Gabriel P. Ellsworth is a Research Associate at Harvard Business School. The authors are grateful to the Young American Leaders Program’s faculty team, including Rebecca Henderson, Rosabeth Moss Kanter, Karen Mills, Gary Pisano, Michael Porter, and Mitch Weiss. This editorial was first published on the 2015 Global Action Report, a joint project of the Global Action Platform and Diplomatic Courier.
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Tapping Into the Global Generational Talent Pool By Cheryl-Anne Smith
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imes are changing and the competition between businesses for the brightest and talent is going to get fiercer in the coming years. As many economies face declining birth-rates and aging populations, the shortage of skilled workers is set to rise. This means that companies who intend expanding and sustaining their competitive advantage on a global scale will increasingly have to battle it out to attract the best up-and-coming talent in the harshest talent climate. To access the best from the global generational talent pool, businesses should be prepared to understand what makes each generation unique, employ innovative strategies such as virtual platforms, and have the ability to manage flexible teams of remote employees.
Understanding generational needs Working abroad still remains a driving factor for many talented individuals aiming to enhance their career development. However, understanding what makes each generation unique could better prepare recruiters and organizations to source the best of the best talent. In a report released by PricewaterhouseCoopers on Talent Mobility by 2020 , three generation of workers be it the Baby Boomers, Generation Xers and Millennials, will have various career and remuneration expectations that will result in their different mobility practices. The future of global talent | 59
According to the report, by 2020, Baby Boomers would have realized their career objectives. Yet as the rate of life expectancy increases, this group will be more than willing to continue working in a bid to accumulate more income that could see them through to retirement. Their decision to relocate abroad for a job opportunity will stem from the long-term financial package offered, the location, or opportunity. Generation Xers on the other hand will be more selective of international job offers by 2020. This generation will be near, or at the height of their earning potential and careers. They will be concerned about job security, pension entitlements and financial stability that will allow them to support their children’s educational needs. Accepting an international job offer with the intent on relocating will more than likely occur if it is a senior position and a long-term job offer. An international job offer will also have to include benefits and allowances or flexible travel arrangements to balance this group’s private and working life. By 2020, Millenials will be the generation eager and more inclined to accept international job offers and relocate. Not only do they think differently but they view the world and the organizations they work for differently. If employment prospects are better abroad, they will not hesitate to start their careers far from home. They are more flexible and more willing to move from one opportunity to another, across multiple cultures and economies, pursuing well-paid opportunities abroad and for various lengths of time. However, they will also be much more demanding when it comes to their earning potential and their career advancement. Yet not every individual will be willing to board a plane to a foreign country. This could be related to costs of international deployment, fear of new locations, breaking family and social networks or regulatory barriers such as awaiting work permits that could take unusually long and end up deterring prospective employees from wanting to leave at all etc. Where such cases exists, companies should consider accessing talented individuals eager for global experiences but yet not willing to relocate, by means of delivering international work opportunities in innovative and alternative ways. This can be accomplished by making use of technology, such as broadband, cloud computing or online collaboration tools that incorporate virtual teams operating on virtual platforms. Such virtual platforms will allow individuals to work effectively from their home-base with their employees in initial host countries. The advantage to companies means no costs incurred for redeployment and accessing a wider variety of global talent from across the generational divide. This trend seems to be taking off according to KPMGs report on Rethinking Human Resources in a Changing World. Their findings indicate that 60% of businesses surveyed have incorporated virtual workspaces and 72% maintain that increases in both virtual and flexible workers are required.
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Nevertheless, challenges do exist when companies opt to go virtual. The challenge is retaining remote employees. Monetary rewards and incentives will have to be adjusted in a bid to keep remote employees loyal and highly productive. Companies will also have to be prepared to invest in training and development to make workers feel included in their organizational culture, as well as, continuously engage with remote workers via other technological tools, such as, video conferencing and instant messaging as a means of building and maintaining relationships. Yet, as Professor Ulrich states, “employees want to do work that is meaningful. If remote work is meaningful, people will stay.�
Managing remote flexible teams McKinsey indicates that in Preparing for a New Era of Work, jobs can be broken up into compartments, while others can be virtualized. In so doing, companies stand a better chance of accessing a wide variety of highly skilled global generational talent. However, according to KMPG, only 24% of businesses indicate that their HR departments are equipped in dealing with and supporting an increase of both virtual and flexible workers. This means that companies will have to rethink how they intend managing a flexible remote workforce. As such, McKinsey recommends that managers become coordinators and coaches that ensure information gets dispersed to groups or individuals effectively. Over communicating is also stressed, so that employees have clear roles. Furthermore, managers should be willing to define objectives, observe and listen to employees and then be willing to get out of their employees’ way so that they can get the job done. There is no doubt that the needs of generations will change over the course of time. Yet companies that are prepared to go the extra mile and think-out-of-the-box by making use of technological tools and managing remote teams of employees will be at the forefront of tapping into the best generational talent pool the world has to offer. About the author: Cheryl-Anne Smith is a Cape Town, South Africa based researcher for Wikistrat. She holds a Masters of Philosophy degree specialising in Public Policy and Administration, an Honours degree in International Relations, and an undergraduate degree in Political Studies and Governance from the University of Cape Town.
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Gender Balance: The Power of Difference What Women Want in Business
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hat’s the largest emerging market in the world? Many would respond with China. However, Sylvia Ann Hewlett, CEO of the Center for Talent Innovation, has a relatively unconventional answer to this question.
At the inaugural Quality of Life conference hosted by Sodexo, Hewlett gave a presentation where she argued that women are in fact the largest emerging market. She explored how to get women involved in business by analyzing the factors that motivate and inspire them. Hewlett began her talk with an anecdote about Rajasjree Nambiar, the first woman to serve as head of branch banking in India. Nambiar, displeased with the condescending attitudes of her male banker colleagues, chose to open two bank branches in India primarily run by women. Nambiar worked to add quality of life to her branches, with services like babysitting and a coffee bar. Nambiar also understood that women want to connect their work with their life’s meaning. This understanding proved successful for Nambiar as these became the two most profitable branches in Asia. The future of global talent | 63
This idea that women want to find meaning and purpose in their work was a consistent theme in Hewlett’s presentation. The industry is out of touch with women’s needs and that is a costly oversight. Consider a study that looks at seven growth markets, which found that 66 percent of investible assets in these countries were in the hands of women. Yet, many of these women did not retain a financial advisor, because of the perception that the financial services world lacked a focus on meaning and purpose. As a result, $4 billion are not being invested. Hewlett also analyzed a study entitled “Women Want Five Things”, which looked at 35-50 year old women and what really inspired them to become truly engaged in their careers. Women were similar to men in two motivating factors: the desire to excel and the desire to earn well. However, three other factors set women apart. The study found that women want to flourish in their work. For Hewlett the word flourish, had impactful meaning. “[Flourish] means wellbeing, it means self-actualization in all three arenas of your life, your community, your personal life and work, and they’re very intermingled these days. This flourishing thing [is] huge. It’s a much bigger concept than work life balance. It’s very forward thrusting. It’s very exhilarating. It involves control in agency, all those great things. It’s huge for women,” Hewlett said. The study also found that women want to empower others. More importantly, they want to align their beliefs with their work. This has far-reaching implications for employers; when companies tap into their employees’ sense of meaning and purpose, they have the opportunity to see real engagement on the part of their employees. Hewlett offered an anecdote where Moody’s Investors Service went through a period of reinvention following the financial crisis, and saw their employees become incredibly involved. The business started working at improving a ratings tool for micro finance. The employees, especially the female employees, became highly involved in the project, offering their free time to work on the tool. They invested personal time because they saw this project as a way of using their skills to alleviate poverty and ultimately contribute to the greater good. Hewlett also highlighted the lack of women in the top ranks of industry. She argued that to get women into positions of leadership is not to give them more training, but offer them sponsorship. “Sponsorship is how power is transferred in organizations and left to itself it’s a mini me situation. Because it’s much easier to trust someone who has the same background,” Hewlett said. 64 | the world in 2050
However, women are currently half as likely to have a sponsor as their male counterparts. Instead, women have more mentors, which is beneficial in some ways, but does not offer the same opportunities to rise up the ladder of industry as sponsorship does. In the end, if companies take women’s motivations into account they will not only improve the quality of life for their female employees, but also see benefits themselves, as the women become more engaged in their work. About the Contributor: This synthesis feature was adapted from the inaugural Quality of Life conference report by Sodexo. The contributor, Sylvia Ann Hewlett, CEO, Center for Talent Innovation, gave a presentation on gender balance in the workplace.
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Extreme Stakeholder Alignment Corporate Democracy and the Need to Ask “Why? Why? Why?”
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typical work-day for most Americans includes arriving to work in a suit or equally formal outfit no later than nine o’clock in the morning, obliging a brief lunch break, and leaving no earlier than five o’clock in the evening, all while following rigid business standards. Although customary, Ricardo Semler, CEO of Semco, questions cookie-cutter organization frameworks that companies often enlist when managing their businesses. At a presentation during the inaugural Quality of Life conference hosted by Sodexo, Semler advised companies to take a different view of recognition in the workplace, notably by granting employees independence and providing more inter-business transparency. According to Semler, there is a conflicting coalition of high unemployment rates and plentiful unfilled positions. Typically, positions that remain available for extended periods are best suited for young people. But, because organizations have not adapted to the young workforce’s needs, employing this group is challenging. Numerical proof of this dilemma is exhibited by the employment rates of a Swiss temp compaThe future of global talent | 67
ny. The temp company has approximately 700,000 people searching for employment every day. Each available job listed by the temp company has an average of 112 applicants. Although the number of applicants is immensely higher than the number of available jobs, 87,000 of these jobs appear unemployable and remain unfilled for extended lengths of time. Semler suggests that companies are failing to attract necessary employees because they have not updated their policies for over a century. Companies set schedules, indicate allotted vacation days, select supervisors, and virtually define all elements of business in an effort to improve performance. Companies wishfully expect growth by approaching business the exact same way failed businesses did before them. He went as far as comparing modern business models to the 1908 Henry Ford assembly line. Semler juxtaposed the rigid organization of assembly lines to the sharp duties and protocols in businesses today. Though many companies expect inflexible business standards to increase productivity, these protocols are largely ineffective. Failure of traditional business models is showcased by the alarming statistic that 92.9 percent of companies do not survive 20 years. When Semler accepted leadership of his father’s company, he initiated a new business model. He retired the idea of conducting business like an assembly line, where each employee is treated equally and functions in nearly identical capacities. He introduced independence and flexibility to his company. Semler abandoned the idea of his business working as a familial unit because he did not want employees relying on the company to monitor how hard they are working, their schedule, or their health. Instead, his employees are given tasks and deadlines. They work on their own schedule. They have nearly complete control over their work environment. They even choose their supervisors. Employees can complete their work in any capacity, with completion of tasks existing as the only requirement. Extending independence, scheduling is in the hands of the employee. Employees do not need to schedule vacation days or attend meetings they are not interested in. The company encourages its employees to approach work in ways that best suit them. Employee satisfaction in response to this approach results in higher productivity and a minimal two percent personnel turnover per year. Semler allows employees such extensive freedom that if a task is so unrewarding that no employee wants to do it, the company will reevaluate the work to determine if it is actually crucial. If it is determined unnecessary, the task is abandoned in favor of more important duties.
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Semler’s business is thriving. It has survived 30 years under this model and will predictably continue expanding. Semler initiated this change by asking, “Why?” three times of business practices in the company. If the third questioned, “why?” was not followed by a logical answer, the policy was amended. With this technique, Semler created a business that functions for its employees and whose employees effectively output sharp, prompt work. For Semler, the first step in business reform is asking, “Why? Why? Why?” About the Contributor: This synthesis feature was adapted from the inaugural Quality of Life conference report by Sodexo. The contributor, Ricardo Semler, President, Semco S/A, gave a presentation on recognition in the workplace.
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The future of microfranchising By Andrew Mack
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outh unemployment around the world is a full-blown crisis. Young adults 18-25 make up some 40 percent of world’s unemployed, with jobless rates over 50 percent in countries as diverse as South Africa and Spain. By all accounts, the lack of work is a major driver of gang violence and extremism, and a major cause of migration for young adults in developing nations from Central America to West Africa and the Middle East. Still, our current challenges are nothing like the crisis to come: a virtual tsunami of new job applicants–literally hundreds of millions of new job seekers that will need to find work in the next 15 years–and we are unprepared. We need a new way of looking at employment based not on preparing young adults to join our current way of work–which values experience and age–but a new dynamic structure based on youth that values the capacities and energy they bring; an accessible system that is for the large number of new entrants that are coming soon. That system is microfranchising. Why not stick with past approaches to job creation? We know the next generation of jobs can’t–and shouldn’t–come from government. Large-scale government employment comes in two forms: bullets (the military) or bureaucracy, and both are problematic. 70 | the world in 2050
Experience shows that a reliance on either can stunt economic growth. At the same time, while major multinationals and large regional companies are expanding in the global south, their actual employment footprint is (and is likely to remain) limited. Around the world executives get rewarded for cutting–not increasing–headcount, and MNCs are investing massively in technology, from factory automation to drones, to data systems. They are moving away from hiring large numbers of people, especially young, relatively less skilled, workers. Consider the oil and gas sector, one of the most dominant forces in the world economy for generations today employs by most estimates less than 40 million people. Now compare this to new job seekers in just 3 countries–Nigeria, Ethiopia, and the Democratic Republic of the Congo–whose population aged 10-24 is estimated at over 108 million. If employment through government and large companies isn’t a solution, what about small business? Focusing on entrepreneurship makes sense, after all it fits the culture–some might even say the cult– of entrepreneurship in the global north. It values initiative, and it has a rich panoply of high visibility heroes, from Bill Gates, to Richard Branson, to the founder of Apple, whose name was, well…JOBS. Still, we’ve seen hundreds of millions spent promoting entrepreneurship from donors and foundations–prizes, contests, grants, training and lots of press…but with limited results. Why? Because the programs simply don’t scale fast enough. Because in most markets, even with training, the obstacles to entrepreneurship are simply too great. And because of one simple fact–though most youth are entrepreneurial, very few are real entrepreneurs. Why Microfranchising? And why now? We know that franchises work in nations with high youth unemployment like South Africa, Tunisia, and Egypt, and that franchises generally succeed at a much higher rate than other businesses around the world. Franchises don’t rely on age or experience–and are perfect for people with drive and the ability to follow a plan. And they can scale quickly. Franchising works because it is built on a powerful mix, designed to help the franchisee and the whole ecosystem create value and reward effort: System + Training + Branding + Help with Finance + Teaming and Mentorship Still, most franchises are significantly too expensive for young adults, and in any case, having more KFC outlets will hardly create sustainable growth around the world. In its basic form, a microfranchise is like a franchise, just smaller. The future of global talent | 71
And there are a number of small microfranchises out in the marketplace already–selling eyeglasses and medicines in Uganda, beauty products in India. Most have some connection to a charity or NGO, or some sort of donor. Many focus on reaching clients in rural or other underserved areas, but none has reached the kind of scale we need–or know is possible. We know from the headlines that microfranchising can work. ISIS, Boko Haram, MS-13 and other Central American drug gangs–these are all thriving microfranchises aimed at youth, providing training, tools and branding, and help with finance. It is time to compete, building microfranchises that work for the good guys. Creating a Microfranchise Revolution What would a next generation Microfranchise look like? The goal would be to create a series of microbusiness systems accessible to nearly anyone–based on a powerful partnership with the most interested parties–the young adults themselves. The buy-in for each microfranchise might be as low as $2,000, and come with technology, tools, and training to launch and manage the business. Microfranchises could focus on underserved regions, rural areas, and slums where larger companies typically don’t and can’t go, using simple technology–especially the cellphone–as the key component for management, service delivery, and data collection. We could further reduce barriers to entry through cofinancing, by re-targeting CSR, foundation, donor funding to help cover part of start up cost, and by encouraging banks to provide special financing windows for microfranchisees–because trained microfranchisees would be legitimately better risks. Importantly, microfranchising can do more than just provide a better burger. It can solve real societal problems and unlock new markets. • In Agriculture–by providing ag extension services of all sorts, helping test soil, choose crops, or improve the use of water or fertilizer • In Education–offering tutoring, test prep, financial advising, and tax services • In Healthcare–from eyeglasses to heart monitoring, blood tests– especially with chronic conditions like heart disease and diabetes that are exploding in countries around the developing world The key lies in capturing money wasted today–days of work missed through poor healthcare, lower crop yields, time, money, and danger 72 | the world in 2050
involved in traveling to wait for often inadequate government services. Bringing service to the underserved can be good business and create the conditions for future employment and growth. What’s different today? Five years ago microfranchising was a great idea. Today it can be so much more. Improved technology, connectivity, infrastructure, and new sources of finance can help make microfranchises successful and scalable like never before. Marketers and policymakers need the kind of data that microfranchisees could generate about citizen consumers they want to reach at the end of the road. Today we face a global crisis around employment. To solve it we must redefine the model, reshaping the way we look at employment. No combination of immigration and simple growth will provide enough places at the economic table for tomorrow’s millions of new job seekers. The choices are stark: will tomorrow’s young adults be future markets or future migrants? In five years, will they be working in tourism or terrorism? Its time for a microfranchising revolution. About the author: Andrew Mack is Principal of AMGlobal Consulting, a specialized Washington, DC-based consulting firm that helps companies and NGOs do more business in Emerging Markets. A former World Bank project manager and banker with experience in more than 80 countries, Mack is internationally-recognized for his work on economic development issues and technology policy in Africa, Latin America, and other underserved regions.
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The Youth Gap in Employment: An Emerging Crisis before the G20 By Akshan de Alwis
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he history of Ankara may serve as exemplar for this year’s G20 leaders—it was a town of little importance in the early 1900s, and in 50 years it had become an economic powerhouse. As growth slows throughout the Eurozone and much of Asia, some G20 leaders may look to the past of Ankara for guidance. However, a more important and alarming lesson from Ankara can be found in the present: according to a joint report by the United Nations and the Turkish Employment Organization, Ankara has a youth unemployment rate of 26.1 percent, one of the highest in the country. Ankara is not the only region plagued by youth unemployment. Recent reports indicate that the entirety of Turkey is in a crisis of youth unemployment and poverty. In the three months between February and June this year, youth unemployment rocketed from 16.7 percent to 18.9 percent - an increase of 1.9 percentage points. The Organization for Economic Cooperation and Development (OECD) announced in May that Turkey was home to some of the highest income inequality in the organization, with a poverty rate of nearly 20. In comparison, the average for an OECD nation was just over 11 percent. Youth were revealed to be the worst effected by this rampant The future of global talent | 75
inequality, with Turkey having the highest poverty rate for children in the entire supranational league. It was under the leadership of President Erdoğan’s AKP party that Turkey managed to recover from a crippling financial crisis and recession in 2001. Erdoğan was even able to help Turkey weather the 2008 global financial crisis, with Turkey being slated as one of the prime investment spots in the world. Recently, however, an over-reliance on foreign investment, foreign exchange pressure, and short-term economic measures like loose monetary policy have left a bleak economic outlook. Turkey’s economy is on a downward spiral, and the youth are facing the worst of the consequences. The most visible indicator of Turkey’s youth dire economic state has been the major bouts of discontent within the country. Two summers ago, thousands of young people took part in the Gezi Park protests, marking the strongest challenge to date of Erdoğan’s ten year rule. While the central concerns of the protest were the increasingly autocratic rule of Erdoğan, the dwindling economic opportunities for the country’s youth were major factors in the demonstrations. Instead of attempting to create financial policy to address the economic inequality, Erdoğan has repeatedly explained his desire to cultivate a “pious generation,” and opined that “this country’s youth are not the vandals at Gezi.” In this year’s parliamentary elections, the ruling AKP party lost its majority in parliament for the first time since 2002 - and the youth seemed to have played a vital role Erdoğan’s AKP party’s downfall. According to an opinion poll conducted right before the election, only 29.5 percent of voters below the age of 23 backed the AKP. The leftist Kurdishmajority Peoples’ Democratic Party (HDP) made major gains with the backing of the youth, collecting 13 percent of the total votes, and receiving the support of 23.8 percent of youth. This years election results are an undeniable clarion call to address the plight of Turkey’s youth. Turkey isn’t alone in this growing youth unemployment predicament; it’s one that all of the G20 have to wrestle with. As a result of the global financial and economic crisis, the unemployment rate for youth rose substantially in most G20 countries – notably, France, Italy, Spain, the United Kingdom, and the United States – and still has not returned to pre-crisis levels. An even greater problem is rampant inactivity, where young people are not engaged in education or training and risk social or economic exclusion. In countries like South Africa, Indonesia, and Turkey, inactivity rates reach over 30 percent of youths. Finally, youth in G20 countries often find jobs of poor quality, thus compromising their future career prospects. Youth are often forced to take up employment with limited labour market stability, social protection, opportunities for training, and career progression. 76 | the world in 2050
While youth unemployment has garnered headlines in the Eurozone, it’s a latent force across the globe, from South America to Asia. G20 leaders will have to work together to find some way to disarm this ticking time bomb within many of the developing economies. Key to the youth employment dilemma has been creating better mechanisms for students transitioning into the work force. One of the prime experts in this area has been Germany, which has developed a long-standing dual system that couples strong vocational education with traditional academic education. Creating specific measures to support apprentices and strengthening vocational education routes needs to be a primary goal of the G20 countries. On a more basic level, countries can support education programs by raising the compulsory age of schooling. However, when it comes to the faltering Turkey, the solutions may need to be more complex. Speaking with Ural Aküzüm, founding chairperson of the Ari Movement, one of the largest non-partisan youth movements in Turkey, he explained: “The rate of youth unemployment in Turkey is more than twice the world average according to ILO numbers. Turkey needs a new approach and policy on education sector with a digital vision. The dynamic Turkish youth is very open minded on digital innovations and policy makers should encourage them on software development and digital production with a new mid-term education policy.” Capitalizing on a new digital economy is the kind of innovations that developing G20 countries around the world will need in the 21st century. Hopefully, the backdrop of Ankara will serve as a vital reminder to the G20 leaders that the current course needs to be corrected. The uneasy status of youth employment around the world is forming the brittle foundations of our world economy, and must be addressed. About the author: Akshan de Alwis is Diplomatic Courier’s UN Correspondent based at the United Nations’ headquarters in New York City.
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Youth Unemployment Overshadows Economic Growth in Africa by Raphael Obonyo
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here is something distressing about Africa. Seven of the world’s 10 fastest-expanding economies are on the continent, yet the nations are not creating jobs for their young people at a rate commensurate with their growth.
The continent has an unemployment time bomb of sorts, which in the past, has exploded with devastating results. This situation is disastrous, for Africa is considered the youngest continent, with youth making up 70 percent of the population. The problem of youth unemployment is a complex one and more than a simple matter of educational shortcomings. It is a question of economic opportunity, which is lacking throughout Africa. Employment prospects for young people leaving college remain very slim, and many struggle to find jobs that pay well enough to earn a decent living. Roughly 70 percent of African citizens live on less than US$2 a day. Africa’s youth unemployment is five times the global rate. Today, 60 percent of those aged 15 to 24 have no job and the figure is higher if you include those between 25 and 35. 78 | the world in 2050
Over the years, successive governments in several African states have developed programs to tackle the issue. Some fail due to the sheer magnitude of the problem, while others from mismanagement or corruption. Critics have rightly blamed African governments for their lack of creativity in addressing joblessness. Some governments, for instance, provide assistance to those with work experience but neglect graduates with fresh and exceptional talents. Africa’s unemployment crisis is becoming painfully apparent. More and more, young people commit acts of delinquency, crime, violence and others that threaten social cohesion and political or economic stability. Youth unemployment has also been cited as a contributing factor in the growth of rebel movements that have plagued some African countries for decades. It is worth noting, too, that most of the instances of election violence and civil unrest, including the Arab Spring movements in parts of Africa, are fueled by youth unemployment. But all is not lost for a continent whose unexploited economic potential has caught the world’s attention. Some countries have attempted to develop more robust programs for others to emulate. Rwanda is a case in point, having established an impressive national youth policy. According to the policy, 5 percent of the national budget is allocated to the ministry of youth and the ministry of information, communication and technology. The goal is to help these ministries create opportunities for young people to start their own enterprises. It is incumbent upon all African governments to make good use of their demographic dividend: their deep pool of youth, talent and creativity. It is imperative that they provide young people with opportunities to build decent livelihoods and be integrated into Africa’s growing economies. It is encouraging that African leaders have declared 2009-18 the “Africa Youth Decade,” pledging to create new employment opportunities for young people. But they must do more than pay lip service to the problem—they must match words with action.
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Innovation Rising: A Snapshot of Entrepreneurship in Latin America By Oscar Montealegre
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l Boom, as Latin Americans coin their sensational economic renaissance of the last decade or so, has been triggered mainly commodities exports such as oil and copper to Europe, the U.S., and of course, commodity-hungry China. However, the region cannot wholly depend on their raw materials to sustain a vibrant economy for the long-term; Latin American leaders and politicians need to be cognizant that alternative courses of action need to be implemented to remain viable and diverse in the global economy. Enter entrepreneurship. Entrepreneurship and the successful creation of enterprises is the catalyst of spreading wealth, upward social mobility, job creation, technological innovation, and improvement of living standards. There is one caveat that is attached with pursuing an entrepreneurial endeavor: the willingness to take risks. Therein lies one of many Latin American obstacles when implementing an entrepreneurial environment. Risk taking in Latin America is shunned; Latin Americans opt to seek safer routes in their careers, either in large corporations or government work, instead of taking calculated risks in the market. Colombia’s former finance secretary, Rudolph Hommes, pinpointed the situation as such: “[Latin American countries] lack the entrepre80 | the world in 2050
neurial spirit that is the lifeblood of the American economy…citizens often value a steady job above the risks and rewards of owning a business.” The sentiment characterized by Mr. Rudolph Hommes is correct, but, albeit sluggishly, the Latin American psyche is changing for the better. Entrepreneurship in Latin America is being embraced with an unprecedented fervor, from technological clusters in Brazil, to venture capitalists in Colombia, and top-down start-up programs in Chile. In Recife, Brazil, Porto Digital harnesses the entrepreneurship drive through a technological and innovation cluster. The novelty behind Porto Digital is that it acts as a technological urban park, home to 200 businesses in the fields of gaming, cinema, video, multimedia, animation, music, and design. In 2010, Porto Digital businesses generated approximately $500 million in revenues, impressively bringing 70 percentfrom contracts outside of Recife. As businesses transcend borders in the digital age, market share in the global economic pie grows. ICare Games, a development company based out of Porto Digital, specializes in games that promote social responsibility. One of their games revolves around safe driving and managing one’s behavior during stressful auto traffic. It is a niche-tailored business, but with social responsibility always being a headline in many sectors, ICare Games can market their services to schools, corporations, government agencies, and non-profits. Also ICare Games’ target market is threefold— Spanish, English, and Portuguese speaker countries, giving ICare a comparative advantage. ICare’s Sales Manager, Edmilson Rodrigues, said that there are many companies in Brazil that share the same drive, “The entrepreneurial environment here [Porto Digital] is boiling with new entrepreneurs and ideas.” The same is happening in Colombia—one can sense the entrepreneurial buzz that is being enthused. Colombia is fertile ground for entrepreneurs due to a loosening of credit, rising consumer confidence, and most importantly, an instinct to survive under horrendous circumstances, i.e., the drug war, narco-guerilla insurrection, and paramilitary violence from the past decades. In Colombia, entrepreneurship is being stimulated by both top-down and bottom-up strategies. A bottom-up example is Endeavor Global, which has so far helped Colombian entrepreneurs create more than 6,000 jobs. Endeavor Global’s raison d’être is to support high-impact entrepreneurs in emerging markets, such as Uruguay, Egypt, Indonesia, and South Africa. “High-impact entrepreneurs” see opportunities in these markets that have the potential to translate into large growth and long-term sustainability. In Colombia, Endeavor’s multi-tiered focus is to support entrepreneurs in breaking down barriers, thinking big, and The future of global talent | 81
demonstrating that Colombia’s high impact entrepreneurs are world class. Currently, Endeavor is in collaboration with twenty-seven entrepreneurs in further developing 18 business ventures. Now here lies the interesting fact about entrepreneurship about in Latin America; subtly, entrepreneurship has always been widely practiced. According to a study conducted by Cristian Larroulet and Juan Pablo Couyoumdjian, Latin America has the second-highest rates of entrepreneurship in the world. From 2000 to 2007, 18 percent of Latin Americans were involved in some type of entrepreneurial venture. A paradox indeed; but as the study further states, the difference between entrepreneurship in Latin America versus the U.S. or Europe is that a considerable size of Latin American entrepreneurship is based on necessity rather than opportunity. Entrepreneurship based on necessity tends not to go far, as it is pursued primarily because of the lack of opportunities—making the best of a bad situation. Obviously, entrepreneurship moved by opportunity is the ideal situation. However, a multitude of challenges in Latin America exist that prevent entrepreneurship from reaching total optimization—the cost of failure (cultural), lack of role models or mentors, the lack of contracts and enforcement (rule of law), limited management experience (educational opportunities), limited access to financing (economic), and lack of trust. Fragile property rights, excessive regulation, high taxes—the list of challenges that impede entrepreneurial development goes on and on. On the bright side, Latin America is no longer dealing with entrepreneurship killers, such as monetary instability and shortages of the most basic items, an achievement that cannot be understated. The political and regulatory climate in Latin America does not do any favors for new enterprises. No Latin American country is in the top 30 of the World Bank Group’s ranking of countries where it is easy to do business. Chile is the highest ranked Latin American nation (39), followed by Peru (41) and Colombia (42). It is no coincidence that these three countries are also aggressively pursuing open trade and growth, typified by the integration of all three respective stock markets (MILA), while Mercosur (Brazil, Uruguay, Argentina, Paraguay) are occupied in allowing Venezuela join their economic and political trade group. The logic behind Venezuela’s inclusion is uncertain, but it appears the trade bloc has become more political than economical. According to a 2010 Gallup Poll, Latin Americans are the most likely to see government as a liability rather than as an asset when starting a business. Also, when asked if they can trust the government to allow their business to make a lot of money, 34 percent of Latin American respondents said yes, while 50 percent said no, once again the highest mark in a poll of the world’s regions. Of course we should not be too surprised about the results of this poll; the bureaucracy and 82 | the world in 2050
red tape in Brazil is touted as a nightmarish labyrinth and Argentina’s President Fernandez de Kirchner is doing everything in her power to stifle entrepreneurship. Entrepreneurs in Latin America, compared to their peers in the U.S., have limited access to capital. In most cases, Latin American entrepreneurs, faced with a scarcity of bank loans, lines of credit, venture capitalists, and private investors, begin to search for capital and outside investors through family and friends. According to the South American Business Forum, 80 percent of entrepreneurs surveyed use personal or family savings as a source of initial funding; less than 40 percemt had access to banks for startup loans; and less than 5 percent relied on venture capital or private investors. The notion of good debt versus bad debt is not a fully mature idea in Latin America. Being liable for a debt obligation combined with the possibility of a failed business endeavor can be too daunting for many. However, there are some bright spots. From 2009 to 2010, funding for private equity and venture capital in Latin America more than doubled, reaching $8.1 billion. According to the Latin American Venture Capital Association, technology deals funded in the first half of 2011 increased by 133 percent compared to the previous year. Gradually, access to much needed capital is improving for Latin American entrepreneurs, reflecting a stable macro-business environment. Compared to other regions, Latin America possesses concrete promise in achieving further economic growth. Collectively, the economies of Latin America boast a GDP of $5 trillion—impressive, but it pales beside the U.S.’ GDP of approximately $15 billion. This comparison can give Latin Americans incentive to achieve more progress, but politics and business must be in relative unison. Luis Alberto Moreno, President of the Inter-American Development Bank, wrote in his book, The Latin American Decade, “The new generation of businessmen [in Latin America] is not only more educated and less dependent on the state, but also more connected to the world…” Latin America faces an incredible opportunity to diversify economies and avoid the web of the Dutch Disease. It can be accomplished in many ways, but one variable cannot be omitted—the spirit of the entrepreneur. About the author: Oscar Montealegre is Diplomatic Courier’s Senior Latin America Correspondent.
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The Secret to Creating a High Performance Culture By Lorna Donatone
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hat accounts for the difference between companies that can hit the ball out of the park and those that are merely staying in the game? How can a handful of organizations deliver operating profit margins that are 50-150 percent above the industry average? Why is it that even fewer can increase market share and maximize profit simultaneously? According to Swiss research and consulting firm Egon Zehnder select companies enjoy superior growth, increase profitability, better utilize capital and, therefore, escalate market capitalization because they maintain a high performance culture that drives vision, purpose, action and finally, results. Culture acts as the “central operating system” for an organization. It guides the business, holds leadership accountable and gives employees a roadmap for the attitudes and actions expected of them. One of most effective ways to ensure sustainable growth is to create a culture based on high performance. A well-defined—and frankly, incentivized —culture provides the collective architecture that guides organizational development and strategic planning. The key to creating a high performance culture seems almost self-evident—deliberately think through what you want to achieve and how you want to achieve it. In other words, what is your organizational ambition and what are the The future of global talent | 85
elements you simply must have in place to attain it? There are three key components to consider when creating a high performance culture. People – Workforce Development Great performance is the result of talented people working in a culture that encourages and challenges them, and perhaps even demands that they excel. Every business leader can attest that higher performance and lower costs are driven by identifying, developing and retaining the best talent. A recent case study featured in the Ivey Business Journal, found that employees at a U.S.-based mortgage banking company who are actively engaged outperformed the competition by 20 percent, earn more than their peer firms and are 2.1 percent above financial industry benchmarks. Simply put, your people are the straightest line to creating a high performance culture and thus, growing your business. Attracting and then selecting the right people are undeniably Step 1 and Step 2 toward high performance culture creation. A Gallup report on the State of the Global Workplace shows that 63 percent of employees are not engaged at work and 24 percent are actively disengaged, leaving a mere 13 percent of workers who are engaged in the work that they do (for you, and your customers, every day). With the wrong people, great strategy, superior technique and maximum effort are reduced to academic exercises with little chance of making a real difference. Skill-set is just part of selecting the right talent—attitude, personality, ambition and integrity are perhaps even more important assets because they cannot be taught. Once you have the right people in place, you have to support their growth and development. Workforce development can feel like a buzzword, but in short, is based on the simple premise that the better educated a workforce is, the more likely they will deliver increased organizational success. Workforce development initiatives build employee knowledge, expertise and confidence, which equates to more productivity and engagement at work. Revenues increased by an average of 22.2 percent for the 2014 Fortune 100 Best Companies to Work For, which places a strong emphasis on workforce development. And according to the Bureau of Labor Statistics, these same companies added new employees at a rate that was five times higher than the national average. More self-evident business logic; companies that invest in the skills and abilities of their workforce are investing in their future competitiveness. So, what’s at the core of the ‘people’ problem? Identifying and developing the best people only works if you can retain them. A Columbia University Study shows that the likelihood of job turnover at an organization where there is a culture of autonomy is less than 14 percent, whereas the probability of job turnover at an 86 | the world in 2050
organization with a more rigid culture is 48 percent. whereas the probability of job turnover in low context cultures is 48 percent. It is a truism that ‘people do what they are incentivized to do’—and therefore, recognition is a key engagement driver for most people, particularly in cultures based on high performance. Employees need to feel their contributions are being acknowledged, appreciated and are adding to the company’s success. Getting the best performance out of your employees comes down to proper incentives and appropriate recognition— the combination of which keeps them engaged. Progress – Innovation, Ideas & Opportunities Progress is the means by which an organization moves toward its ambition. Worldwide, 2015 research and development spending by the Global Innovation 1000 companies—the 1,000 public corporations worldwide that spent the most on researching and developing products and services—rose more than five percent to nearly $700 billion, the strongest increase in the last three years. But how do companies deliver tangible, viable progress? To create a high performance culture, progress must consist of innovation, ideas and opportunities. Innovation: A characteristic of any high performance culture is the ability to regularly deliver incremental innovations that keep operations, products and services fresh. Innovation is much more a trial and error, small-steps process than a single ‘giant leap.’ Did you know that companies like 3M and Google consider innovation so important to their business that they require employees to dedicate 10 percent of their time to exploration and experimentation? The ability to look forward and the capacity to envision the future are powerful stimulus in a high performance culture. Whether it is losing ground to competitors, not being able to attract top talent, operating inefficiently or simply not reaching their full potential, companies that do not relentlessly focus on aspects of innovation become irrelevant over time. Ideas: An Accenture study found nine in 10 respondents say an entrepreneurial attitude can lead to new ideas that promote growth in a tough economy and more than 60 percent believe collaborative thinking is the best source for new ideas. Idea-sharing is energizing and motivating—new ideas create vitality, focus momentum and define purpose—action on ideas help align and guide a company’s people and priorities. Ideas solve problems and lead to continuous improvements. Whether it is the little ideas that pop up to address everyday challenges or the ‘next big idea’ that occasionally appears as an aha moment, high performance cultures share the characteristic of supporting idea generation at every level. Opportunities: The best opportunities don’t always knock. Sometimes organizations have to seek out, be able to recognize or creThe future of global talent | 87
ate a solid prospect in order to take advantage of it. High performance culture businesses don’t wait for things to happen, they make things happen. Is there risk involved in doing something new? Of course. But the reward is there too—and the reward aligns to the goal of growth. Partnerships – Creating Shared Value Creating a high performance culture is about more than products and profits. Strategic business partnerships can give companies the edge in a competitive marketplace. A 2013 Cone Communication Study found that, given comparable price and quality, 89 percent of U.S. consumers are likely to switch brands to one associated with a cause. And a 2014 Nielsen Study found that 42 percent of participants reported they would pay more for products and services from companies committed to positive social and environmental impact. Very few opportunities in business today offer as much economic and social benefit as strategic partnerships between with the nonprofit, education or government sectors. Savvy organizations engage in longterm, multi-faceted, value-driven partnerships that meet their objectives and deliver mutual value. Organizations that make giving back to the communities where they live, work and serve a priority reap many rewards including increased sales, enhanced employee engagement, brand loyalty, relationship development and meaningful team building. High performance culture organizations generally practice good corporate citizenship, and understand that what is good for the local community is also good for business. In summary, at the heart of any successful business you’ll find a positive cultural dynamic. Organizational cultures based on high performance inspire employees to assume success—to look for and create opportunities, anticipate needs, be informed and get involved, identify solutions and strive for excellence, even when no one is looking. And, they continuously raise the bar by encouraging, incentivizing and recognizing higher individual and collective achievement. Creating and maintaining a high performance culture is certainly not easy and is definitely challenging—but can you really afford not to? About the author: Lorna Donatone is the President of Sodexo North America and the CEO of Sodexo Schools Worldwide. Ms. Donatone was honored with the 2015 Trailblazer Award from the Women’s Foodservice Forum and is Vice Chair of the National Restaurant Association Education Foundation. She is on the Board of Directors of Jamba Juice, is a trustee of the Culinary Institute of America, serves on the Tulane Business School Council and Chairs the TCU Business School Board.
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VALUE OF TECHNOLOGY FOR GIRLS IN EMERGING MARKETS By Fumbi Chima
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he most recent Global Gender Gap report by the World Economic Forum highlighted which countries continued to make strides towards ending gender inequality. Iceland, Finland, Norway, Sweden, Belgium, Nicaragua, the Philippines and Rwanda were all top performers. The report also revealed that 35 countries have closed the health and survival gap entirely and 25 countries have closed the educational attainment gap. Despite the positive news, too many countries still lag behind, particularly emerging or developing countries. Women in developing countries spend a great deal of time taking care of their families and on commercial activities in communities. These communities can serve as incubators for positive change and governments and civil societies should support programs, centers for community development and social activities that empower women and help to bridge the gender gap. At the heart of the solution is technology. Technology plays an increasingly important role as part of the equation in alleviating gender inequality. Simply put, technology and access to technology can liberate women from isolation. There are many organizations recently that are championing this and have demonstrated the power. For example, The future of global talent | 89
expanding women’s use of mobile telephones enables their access to information for healthcare, legal rights, security and banking, offering women de facto independence. However, barriers such as gender discrimination, lack of confidence, language difficulties, low literacy and lack of time and money continue to prevent girls and young women from taking full advantage of technology. OVERCOMING THE BARRIERS The solutions start at school. Educational establishments need to encourage critical thinking and innovation; they need to accommodate ways for girls to participate in extra-curricular activities in order to stimulate new ways of thinking which can help these girls gain skills for jobs in the IT sector. The solutions also come from the government and private industries if they work together. We need greater advocacy and support policies to make internet more accessible and affordable to girls in the developing countries. Offering opportunities such as tools for engaging students in the classroom, making teaching more participatory would encourage student-led research and builds media and digital literacy skills in the process. Most importantly to ensure that girls have equal access to the equipment. In instances where these girls do not have access to the classroom and or school, it can be brought to them through vocational training or extra-curricular activities. A growing number of countries are including gender as a key component of their National Broadband Plans, for example Nigeria has recently implemented plans that promotes access and incentives for training women to use internet. Education and awareness with the family is critical. Men and boys need to be engaged as allies in the process. Their behaviors have to change. When fathers, brothers and male peers are aware, engaged and supportive of the girls’ development and rights, they will be instrumental in changing broader perceptions. GIRLS NEED TO HAVE ACCESS TO FEMALE ROLE MODELS A recent example comes to mind. A woman in the Philippines went from being a domestic helper to running her own graphic design company. As a result her children now have choices and opportunities she never had. We often hear stories of rare women at the top of their profession, such as Nombulelo Moholi; Thoko Mokgosi-Mwantembe or Doreen Ramphaleng-Motlaleng and we celebrate their unique stories. But we need to start celebrating women because of their capabilities, not because they are an exception to the rule.
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We hear it time and again: to empower a woman is to empower a nation. You invest in a woman and she will invest in her family and her community. It goes without saying that women who have access to an education are more likely to contribute to economic growth as well as make better decisions on health and wealth management. Awareness, advocacy and the education of women is essential if we have any hope of empowering girls in patriarchal societies that traditionally do not treat women as equals. According to a 2010 report by the GSMA and the Cherie Blair Foundation, mobile phone ownership can transform the lives of women in the developing world: Of the more than 2,000 women surveyed from four low- to middle-income countries (Bolivia, Egypt, India, and Kenya,) 41 percent of women reported increased income or professional opportunities, 85 percent reported higher independence, and 93 percent reported feeling safer because of mobile phone ownership. Similarly, Intel’s Women and the Web study—which surveyed 2,200 women from India, Egypt, Mexico, and Uganda—reports that 77 percent of the women surveyed used the internet to further their education. Among other examples, 54 percent of women surveyed in India used the internet for financial services and banking, and 68 percent of women surveyed in Egypt reported that they felt access to the internet gave them greater freedom. These studies have demonstrated the importance for women to be able to understand and use technologies, can have a positive impact on women’s freedom of expression, education and employment opportunities. The business opportunity for getting women and girls online and connected is huge. For example the Women and Web report showed that with 150 millions girls and women being online it would create approximately between US$50 Billion and US$70 Billion market opportunity and could contribute to an estimated US$13 Billion to US$18 Billion annually to developing countries’ GDP. The potential for technology to improve lives of women and girls is too large an opportunity to miss. The failure to make use of women’s talent will continue to undermine emerging markets economic development. About the author: Fumbi Chima is a top executive whose career spans the technology, innovation, and global affairs sphere. In addition to her role as the Chief Information Officer of Burberry, she also serves on the boards of Global Affairs Council in Washington, DC and the Diplomatic Courier Global Affairs Media Network. Ms. Chima has been honored with many awards, including the 2015 Trailblazer Award by the Faceto-Face Africa and as one of the Top 100 Women in STEM.
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Education Diplomacy: A Way Forward for Workforce Development By Diane Whitehead
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orkforce development has traditionally been viewed as a way to strengthen human resource capacity in order to boost the economic development of nations. However, as concerns for promoting economic equity has grown, workforce development has been considered increasingly important in the area of human rights. Today, expanding the opportunities for workforce participation is recognized as a way to address a wider range of human needs, particularly poverty reduction. Therefore, workforce development has taken on a role of increasing importance in the 21st century. Education is widely regarded as the primary vehicle for developing a skilled and competent workforce. Higher levels of education can increase a nation’s productivity in considerable ways, while also improving citizen participation rates and engagement with human rights. Through education, individuals gain a greater sense of inclusion, feel more respected for the skills and knowledge they possess, and can translate their skills into work opportunities. Individuals who feel included in the workforce of a nation often have a greater sense of commitment to ensuring the success of that nation; therefore, education may boost civic participation. Networks of regionally and locally based universities, human service organizations, and community-based The future of global talent | 93
agencies are often involved in the education and training of workers which can have an added benefit of strengthening regional and community knowledge sharing infrastructure. Workforce development is a vital component of the success of nations that goes beyond economic development, and education is the best conduit available for increasing worker skills and knowledge. In the dialogue surrounding the newly adopted United Nations Sustainable Development Goals (SDGs), education is being elevated to a position of primary importance as it is viewed as fundamental to achieving the SDG goals and supporting critical global efforts, including workforce development of nations. However, in order to advance education in the 21st century, we need new methods of advocating for, and promoting, the value of education. The Center for Education Diplomacy, begun by ACEI in 2012, outlines a new approach for promoting and securing access to quality education. This new approach is called Education Diplomacy and it is designed specifically for addressing 21st century education needs and for addressing broader development goals as well that rely on education, such as achievement of the SDG goals. It should be noted that education diplomacy has a dual role to play as both a tool to advance education more broadly, for purposes such as workforce development, and as a workforce advancement opportunity itself for those who wish to expand and enhance their skills in the constantly changing field of education. Since Education Diplomacy is a new concept, there is no one fixed definition. One suggested definition is as follows: Education Diplomacy cultivates trust to achieve mutual benefits in the pursuit of context-specific education goals using negotiation and other diplomatic skills to communicate across regional or national boundaries or with local communities responsible for education delivery. The practice of Education Diplomacy can encompass interactions with multiple actors at multiple levels that aim to shape a positive policy environment for education and manage issues of education on a local, bilateral, regional, or global level. Education Diplomacy goes beyond typical approaches to education advocacy and leadership. It employs a broader set of diplomatic skills to reach agreement and find solutions to education challenges. Education Diplomacy always takes place between at least two actors and it has both conceptual and practical value. In practice, Education Diplomacy can be used to negotiate agreements between parties, which can help parties to reach consensus and develop collaborative relationships that expand opportunities in the education sector. This form of “new diplomacy� borrows skills from traditional diplomacy, but applies 94 | the world in 2050
those skills beyond a narrow conception of foreign policy and international relations to a broader set of issues and actors. Education Diplomacy can be employed at the international level to formulate global initiatives and movements, or at the national and local levels to translate international policies into appropriate local practice. Alternatively, Education Diplomacy can be used at local levels to educate those operating at international and national levels about local education needs and challenges. This interplay illustrates the broad scope of Education Diplomacy in practice. In order to advance education in innovative ways, educators today need to be well versed in strategies that go beyond typical education advocacy and leadership methods. Education Diplomacy is a new strategy that will help educators everywhere to design and implement education in exciting, yet appropriate and effective, ways. Understanding and cultivating a disposition of diplomatic engagement moves educators to a new place where they can be even more successful in establishing partnerships, mediating differences, negotiating agreements, developing meaningful and contextualized education goals, designing suitable measures of education achievement, increasing access to education, and ensuring that education remains relevant to critical issues including ever-changing workforce development needs. Education Diplomacy has the potential to serve as the leading approach to dynamic education change in this century. Among other critical issues, Education Diplomacy can be used to effectively promote issues relating to workforce development, such as improving skills and opportunities. It can also be used for the purposes of enhancing education as a human right or as the vehicle for expanding the knowledge that will be needed to resolve other crucial international development challenges. Education Diplomacy is a new strategy for new times. About the author: Diane Whitehead is the Executive Director of the Association for Childhood Education International and leads the development of the Center for Education Diplomacy. To learn more about Education Diplomacy visit the Center for Education Diplomacy at www. educationdiplomacy.org.
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When a Passport Teaches More Than a Diploma BY Whitney Grespin
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f a picture is worth a thousand words, then it must be nearly impossible to articulate the value of an experience. In a world that is increasingly interconnected though globalization that now touches every aspect of our lives, the importance of having an informed global frame of reference is important to individuals who identify themselves as global citizens. The standards and values that pervade American culture do not easily translate and, in some cases, are unintelligible to citizens of other countries. In an interconnected and globalized world, understanding of these different worldviews is critical to diplomacy and commerce at the individual, community, and national levels. Spending time overseas during the early years of adulthood is fast gaining popularity as a rite of passage. From study abroad programs at universities to independent providers, passports are becoming as necessary a credential as diplomas. As Americans, most of these young adults are used to looking at the outside world from a singular point of view—an American one. Paul Burnore, Managing Director of the disaster relief organization All Hands, articulated this point succinctly, “Every American citizen, regardless of demographic circumstance, runs the risk of presuming their own economic situation, values, and viewpoints are the only ones worth thinking about or contributing to if they are never exposed to other cultures, ways of living, and belief systems.” A structured international experience—or anything more intentionally engaging than a The future of global talent | 97
touristy pass-through of a community—allows individuals to learn about communities in ways that may otherwise prove to be inaccessible. The takeaways of structured or facilitated international experiences— be they ecotourism, service-learning, or small scale business incubation programs—inherently inform a global citizenry. Experiential learning engages minds and shapes outcomes to a degree that no other form of learning does, and facilitated programs have measurable outcomes that are often unattainable through independent travel alone. While independent travel is also educational—indeed, any experience abroad is going to be transformational in some way—there is indisputably value added by programs that integrate intentional reflection and learning. Longtime international educator Dr. Eric Hartman, Visiting Assistant Professor of Global Studies at Providence College and lead author for the forthcoming Building a Better World: The Pedagogy and Practice of Global Service-Learning, summed up the value of facilitated programs with his observation, “Educational, reflective international experiences have profound power to unsettle assumptions and have participants look anew at the world around them. It is not the case, however, that crossing borders alone leads to greater acceptance of others, embrace of global social responsibility, or interest in peace.” The most effective processes encourage provocative reflection to derive the greatest takeaways. Often it is a rude awakening for young Americans going abroad that the autonomous nature of American lifestyles is not the base unit of societal function elsewhere in the world. The community often emerges as the basic unit of society—be that a community of family (either immediate or extended), or a community of neighbors who share everything but DNA. This is important when students grow to be businesspeople and politicians, as it serves as a reminder that what we think is normal as Americans is not necessarily the standard elsewhere. Ironically, as these experiences readjust perceptions beyond the individual level, that is where most of the learning occurs for the traveler. They realize that they are a being that is independent of where they have grown up and what they are used to, and in that way can realize the value of the privilege of self-determination that they may have never been conscious of before. They know that they can go back home and step outside a comfort zone they thought (knowingly or unknowingly) they were confined to, and they know that they will be fine. Participants in international service and education programs learn adaptability, responsiveness, and maturity that is nearly impossible to learn in a traditional educational experience. Sara Noel, Outreach Director of the service-learning organization Amizade, observed, “When students return from an experience like this they are intimately connected with the countries and communities they visit. 98 | the world in 2050
A protest, a war, an election, or a famine are no longer, ‘Terrible things that happen over there;’ they become real events that happened to your friends and [host] family… even if no one they knew was directly impacted by the event, it is the community that they are connected to. This can affect how they vote, the causes they support, and the direction their careers may take.” In America it often seems that narrow-mindedness is easy to understand and hard to fix until there is personal exposure to foreign cultures and communities. Dr. Hartman, of Providence College, commented of the vast majority of his students who participated in programs in developing countries, “They wish others could know that many of those people work as hard and dream as beautifully as we do, and that—due to circumstances beyond their control—they nonetheless have far fewer options than we do.” The Kenya-focused service organization Carolina for Kibera has embraced this realization in their slogan, “Talent is universal, opportunity is not.” Young ThinkImpact scholar Becca Liebman’s reflection of her time settling into working in Kenya is insightful: “This week has been shocking and a huge adjustment for everyone; people are people. We are not that different. We use the resources we have to make the best we can. And that’s pretty universal. So there you have it—a diploma would ask me to list differences I have noticed. A passport has taught me that there is no point.” It is the differences between cultures that students prepare for and expect, but more often it’s the nuanced human-level similarities that are the most educational. Those are the most valuable lessons, and they are the ones that cannot be learned in a classroom. About the author: Whitney Grespin is a Senior Contributing Editor at Diplomatic Courier magazine. She holds a post-baccalaureate teaching certification, a Master’s in Public and International Affairs, and has experience managing international education and capacity building initiatives on five continents.
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Study Abroad Cultivates Global Leadership By Allan E. Goodman
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he need for cultivating global leaders whose vision extends beyond the beltway, and indeed, the country, has never been greater than it is today. In order to build inclusive and prosperous communities, our future leaders must possess knowledge, skills, and cultural understanding that can transcend the borders of our interconnected world. At the Institute of International Education we are privileged to work with public and private sector funders who support study abroad and help to make more opportunities available to students. Higher education institutions that are serious about cultivating global leaders are placing greater emphasis on study abroad and finding new ways to help more students take part. The study abroad experience can play a critical role in developing the global mindset needed to balance local and international challenges. Studying in another country opens students’ eyes to a new way of thinking about the world, instilling a more informed approach to problem-solving in cross-cultural contexts. This time overseas can be a transformative experience that pushes students to evaluate their career plans, and may influence their future career goals as they negotiate their place in the world. Through this experience, many students will build personal and professional international networks that will expand their sphere of knowledge and opportunities throughout their lives. The significance of study abroad experiences in shaping a generation of global diplomats and improving international relations was highlighted by The future of global talent | 101
Secretary of State Hillary Clinton in a message aired during the Open Doors 2012 briefing on international educational exchange in Washington D.C. “The ties of friendship and understanding you’re building are the most effective forms of diplomacy,” Clinton told international educators. “They truly will help shape our common future.” Despite the value of study abroad, only about 10 percent of U.S. college students will study abroad during their undergraduate years, and less than two percent of all students enrolled in U.S. higher education are studying abroad in any given academic year. Recent data on study abroad both provide some hope and demonstrate room for growth. A record number of U.S. students are studying abroad, according to the most recent statistics in the Open Doors 2015 report published by the Institute of International Education in partnership with the U.S. Department of State, Bureau of Educational and Cultural Affairs. More than 304,000 Americans received credit for courses and research abroad in the 2013-14 academic year. Furthermore, data show that an increasing number of U.S. students are choosing non-traditional destinations like China, India, and Brazil. Still, the new study abroad totals mark only a five percent increase from the previous year. Much more needs to be done to increase the number of students who participate. The good news is that there are a number of resources available to support the development of our future leaders through funding for study abroad experiences. For instance, Boren Scholarships and Fellowships provide funding for U.S. undergraduate and graduate students to spend significant time overseas studying less commonly taught languages in parts of the world that most Americans do not visit, including Africa, Asia, Central and Eastern Europe, Latin America, and the Middle East. University of Oklahoma President David L. Boren, who as a U.S. Senator was the principal author of the legislation that created the Boren Awards, declared that “Never in our history has it been more important for America’s future leaders to have a deep understanding of the rest of the world. As we seek to lead through partnerships, respect for and understanding of other cultures and languages is absolutely essential.” The awards, which are sponsored by the National Security Education Program and administered by IIE, were created with the goal of enhancing the federal government’s ability to deal effectively with the challenging global issues of the 21st century. Therefore, in exchange for funding, Boren Awards recipients commit to working in a national security position in the federal government for at least one year after graduation. Boren Awards alumni have risen to leadership roles in the federal government as a result of the knowledge and expertise in specific world regions they gained while overseas. Additionally, NSEP’s The Language Flagship prepares students to graduate with the professional level language proficiency needed to lead in the business and government communities by combining intensive language study with an academic year internship and study experience overseas. 102 | the world in 2050
The Benjamin A. Gilman International Scholarship Program, sponsored by the U.S. Department of State’s Bureau of Educational and Cultural Affairs and administered by IIE, broadens the student population that studies abroad by providing scholarships to undergraduates who might not otherwise participate due to financial constraints. The Gilman Program awards over 2,500 scholarships annually, preparing U.S. students from diverse backgrounds, institutions and fields to assume significant roles in an increasingly interdependent world. This crucial support has enabled over 20,000 young and very diverse Americans who receive Pell Grants but would never have the opportunity to leave the United States, to hone a second language, conduct research abroad, and prepare themselves for the global economy while serving as citizen ambassadors in their respective host countries. Upon return to the United States, Gilman Scholars fulfill a service project at their home campus or community to help expand the impact of their overseas experience. The Fulbright Program, a flagship of America’s public-diplomacy efforts which is also sponsored by the U.S. Department of State, is another vital resource that enables U.S. citizens to study, teach, and conduct research in other countries, and brings citizens of other countries to the United States, with the goal of increasing mutual understanding between the people of the United States and the people of other countries. The program has provided approximately 360,000 participants from over 160 countries—chosen for their academic merit and leadership potential—with the opportunity to observe one another’s political, economic and cultural institutions, exchange ideas, and embark on joint ventures of importance to the general welfare of the world’s inhabitants. Many Fulbright Student Program grantees are early-career professionals who will go on to take leadership positions in their home countries. Fulbright U.S. Student alumni play prominent roles in an entire range of professions and include ambassadors, members of Congress, judges, heads of corporations, university presidents, journalists, artists, professors, and teachers. Some 53 have won Nobel prizes for ideas and research they started while studying abroad. In the belief that effectively solving global challenges requires the exchange of ideas and leaders with an international vision, the Institute remains deeply committed to promoting cross-cultural dialogue and experiences. We welcome the active participation of policy makers, educators, diplomats, and future leaders in the United States and abroad in this important endeavor. It may be the best investment any of us have in making the world a less dangerous place. About the Author: Dr. Allan E. Goodman is the President of the Institute of International Education, the leading not-for-profit organization in the field of international educational exchange and development training.
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International Education and Millenials By Leigh Morris Sloane
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mployers today expect more out of their employees than ever before. They want more knowledge, in more areas requiring a multitude of diverse sets of skills.The knowledge economy prizes flexibility, cross functionality and the ability to think broadly. For Millennials interested in establishing a career with an international dimension, flexibility and broad skill sets are an absolute. Most Millennials recognize that to advance in an international affairs career, they will need to pursue a graduate degree. Graduate degrees no longer help a candidate stand out in this arena; they are often the baseline for simply starting the conversation. According to the National Center for Education Statistics, a US government office, graduate enrollment overall in the US rose by approximately 67% between 1985 and 2007. Of course, this degree inflation would not be possible without the significant proliferation of the number of programs from which to obtain a graduate degree. The sea of opportunities is daunting. Graduate school is a serious investment of time and money, and you want to get it right. Most people are quite familiar with some professional degrees such as the MBA or JD. However, within this family of professional degrees lies the professional Masters degree in international affairs about which there is often less clarity. For starters, there is no standardized name for Masters degrees in international affairs - MIA (Master of International Affairs); MALD (Master of Arts in Law and Diplomacy); MSFS (Master of Science in
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Foreign Service); MA in International Relations, to name a few. Nor is there an official accrediting body for schools of international affairs like there is for law schools, business schools and public policy schools. Professional international affairs degrees can be found in autonomous schools, within a university department, or as a cross-disciplinary program housed in a university institute. A professional degree in international affairs is a relatively new genre. As late as the mid 1980s there were only roughly a dozen professional graduate schools of international affairs in the U.S. Most of these schools were established, or propelled forward, generally as a response to World War II and the recognition that the United States needed to have a cadre of citizens who were educated in history, area studies, political systems, law, and economics and could thus manage the U.S.’s new global pre-eminence and fight the Cold War. Today, there are over 30 schools of international affairs and over 40 additional degree programs in the United States alone. There has been a similar dramatic growth outside the US as well in schools or distinct degree programs in international affairs. Many of these also use English as the main language of instruction and have student bodies that are on average 50 percent international. The growth in interest in this type of degree among Millennials often can be attributed to the defining event of their generation to date—the attacks of 9/11. So what are the hallmarks of a professional graduate degree in international affairs? First and foremost, these are interdisciplinary degrees that pull from a range of academic disciplines.The most well-rounded programs will provide students with a solid foundation of knowledge of the international political system, economics, language and area studies, policy analysis and international history. These degrees are characterized by the breadth of knowledge they impart. The overall goal is for students to walk away with a clear understanding of the major forces affecting the workings of the international political, economic and social systems. Students develop the knowledge and tools to see the big picture and analyze large amounts of often disparate information about the facts on the ground and the theoretical underpinnings influencing decision-makers. The strongest programs in international affairs not only provide a significant breadth of knowledge, they are also structured to ensure students develop specialized depth in a particular functional area. The specializations can cover such traditional topics as foreign policy, international security, intelligence studies, international finance/trade, and international development to relatively newer fields such as human rights, energy security, public diplomacy, human security and global health to name a few. While the core subject areas that define an international affairs degree remain fairly consistent, the growth of functional specialties and sub-fields has significantly expanded.
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As more subject areas become increasingly impacted by global events or policy decisions taken at the international level, new specializations emerge. This trend is leading to the increasing globalization of schools of public policy and causing some of them to fall into the category of an international affairs degree. Likewise, the private sector has also increasingly recognized the value of an international affairs education beyond the traditional international trade and finance specialties. Such areas as political risk assessment, corporate social responsibility, emerging markets and social entrepreneurship are a few growing areas which benefit from the expertise of international affairs graduates. As one graduate recently explained to me, he works as an ‘interpreter’ between the renewable energy private sector which competes in a global market place and the government policy makers who heavily regulate the environmental and energy fields within a given country. He can speak business and policy and explain to each side how their actions will impact one another and not just locally, but at the global level. Just as there is no official accrediting body for professional degrees in international affairs, there is also no serious ranking of this type of degree. While many in academia generally take issue with the methodologies used to rank universities and specialized degree programs (like those done by U.S News and World Report or The Times of London), prospective students are eager to have some guidance as to overall quality as they assess their options. Foreign Policy magazine has published a ranking a few times of the top 20 graduate programs in international relations. The last such ranking was released in February 2009 and based on the results of a survey sent to international relations faculty members in the United States. However, this ranking really does nothing to illuminate why faculty members consider these programs to be the ‘best’. In addition, while this ranking tells you what the academic community of one particular discipline within the panoply of disciplines represented in an international affairs degree (international relations is a subfield of the political science discipline and one specialty within the larger international affairs genre), it does not provide insight into the varying strengths of programs in the wide range of functional specialties that fall under the international affairs rubric. Finally, this list is U.S.-centric and only includes one non-U.S. program despite there being exceptional options around the world. Being fixated on such a ranking or even thinking there are only a handful of ‘best’ programs could do you a great disservice. Undertaking a professional degree in international affairs is about preparing yourself for a career. Ultimately, programs must be evaluated on the merits of how they could fulfill your individual needs and career goals. To be successful professionally requires more than just rigorous academic courses. Choosing the right program requires you to take a very hard look at your current knowledge and skill sets, personality type, areas of interest, and career goals. You must make the investment of time to fully research available programs. The strongest programs will have an even mix of both tradi106 | the world in 2050
tional academics and practitioner scholars, core curricula that provide the breadth of knowledge discussed above and offer a selection of functional specialties; have dedicated career development professionals (who are very knowledgeable about the many career options in the international affairs field) available specifically for students of the school; and have a strong alumni network to tap into when searching for internships and jobs. Professional development activities and career networking should be as important to you as a student as performing well academically. As such, you will want a school that recognizes the necessity of putting serious resources into its career services office. Finally, each school of international affairs often has a few niche programs that separate it from the others. It is essential to assess schools based on the depth of focus they provide in your functional and regional areas of interest. As the global interconnectedness of the public, private and non-profit sectors continue to proliferate, the applicability of a degree in international affairs grows. Gradates of these programs work across all sectors– private, public and non-profit–and in a wide range of fields. If there is one word to remember about this type of degree, it is flexibility. I have seen among the careers of international affairs practitioners the fluidity with which their career paths can navigate among various sectors. A person might leave graduate school for a position within the government, then move on to a private sector company to later find themselves with an NGO. I have seen any combination of cross-sector career paths, and it is this wide variety of options that makes a professional education in international affairs so valuable. About the author: Leigh Morris Sloane is Chief of Staff at Brookings Institution. She previously served as the Executive Director of the Association of Professional Schools of International Affairs (APSIA).
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The 100 Most International Universities in the World By Jack Lester
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hen thinking about the best institutions of higher education, visions of the Ivy League seem to dominate the imagination. But in a global age, how do these schools stack up vis-a-vis their international presence. For 2015, Times Higher Education (THE) has compiled a list of “The 100 most international universities in the world”. A subset of the overall World University Rankings, this list ranks universities from an “international outlook” perspective. With a vast number of schools to choose from, THE utilizes three key factors: The institution’s percentage of international staff; the number of international students attending the school; and the proportion of its research papers co-published with international authors. From these variables, an overall international outlook score is calculated from a possible 100 points. Topping the list are three Swiss institutions, with the École Polytechnique Fédérale de Lausanne retaining the number one ranking form 2014. Impressively hosting over half it’s student body from foreign countries, its strong research pedigree draws a significant international population. Followed closely in the top ten are institutions ranging from Singapore, England and France, as well as Australia. Not surprisingly, each of these 108 | the world in 2050
universities boasts international outlook scores greater than 90. Additionally, the majority of these schools maintained the same or similar rankings from years past, indicating a trend of steady international growth. Dominating the list, with over a third of all institutions in the ranking, England displays a large international presence. With ranked universities ranging from the University of Nottingham with a world ranking of 100, to the prestigious University of Oxford, ranking number five, British institutions show consistent commitment to international participation. Hosting students from more than 120 countries, the highly ranked Imperial College London illustrates the truly global nature of modern education. With such a dominance of European schools, the question must be asked: why is there so little U.S. representation. Although many American schools, such as Harvard, Yale, and Stanford are consistently ranked among the top in the world, they don’t even break the top 100 from an international standpoint. Given that some of the schools ranking highly internationally do not place competitively overall, it is necessary to examine the impact of all the relevant factors. An answer to this question can be partly explained by the geography of many schools on the list. Situated amongst the EU nations, schools in England and Switzerland, count students from neighboring European states in their international attendance. Royal Holloway, University of London, ranking number six on the list, has only just 20% of students from outside the European Union. With immigration such an accessible option for many students and professors, as opposed to the trans-oceanic voyage many U.S.-bound student would make, the origin of this British prevalence becomes more transparent. This phenomenon can also be seen in Australian institutions as well as Singaporean schools. With such an increasingly mobile population, these south pacific schools find substantial international enrollment from nearby countries. However, all these schools, whether European, Asian, Australian, or American, have undoubtedly shown a commitment to global inclusiveness, concentrating on cultivating their international position. By actively promoting a worldwide approach to education, shared research and knowledge is able to transcend physical borders. With an increasingly prevalent culture of international cooperation and collaboration, it becomes apparent that today’s universities are focusing outward to expand the education front. Regions such as the EU and the south pacific, most notably Australia and Singapore, have become bastions for international education and research. A growing population, introducing more and more students to the opportunities of a global education, can only prove beneficial if schools continue the trend of foreign reception. The future of global talent | 109
Want to Keep Your Millennials? Mentor Them By Julie Kantor & Bridget McKeogh
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here seems to be a profound disconnect in the workforce between Millennials (1984-2012), Generation Xers (1965-1983), Baby Boomers (1946-1964) and Greatest Generation/Traditionalists (1930-1946). The complaints are rampant.
But there is also something pretty clear across the board that we can all own. Every Gallup study shows that the overall workforce is disengaged to some extent. Yes, that means you or someone who works in close proximity to you is likely counting the minutes to five pm. Last week Gallup reported that the U.S employee engagement average for November was 32.1%. That’s one out of every three people! And the number ticks up higher the older you are. In 2014 Gallup reported Traditionalists have 42.2% engagement, 32.7% for Baby boomers, 32.2% for Generation X, and just 28.9% of Millennials report that they are engaged at work. By 2020, Millennials will become the largest generation in the workforce. The future of global talent | 111
Millennials tend to frustrate corporate America with a sense of ‘entitlement.’ It is widely viewed that they are ‘coddled’ by their Baby Boomer parents, told they could be anything, not willing to pay their dues. One friend, an entrepreneur Julie Beck, shared how she had been so ‘Millennialed’ this year, she even coined the phrase. Two Millennials transitioned in unprofessional manners, one by a text message! Don’t they care about having a positive reference? Millennials tend to stay in jobs for under two years and don’t seem as motivated by the career track, raises and other incentives that are the mainstay of corporate America. Over the past few years, I have seen and worked with a great number of Millennials and observed the lack of mentoring the ‘older’ generations are offering them. Why are we not investing? Are we threatened by their confidence, desire to lead? Given our own low engagement scores in the workplace, have we become too cranky? But let’s go deeper into the issues, the problems, and mentoring as part of the solution to train and retain our newer and high-potential talent: According to a key study by Intelligence Group (a division of the Creative Artist Agency), we get some keen insight: Seventy two percent of Millennials would like to be their own boss, but if they have to work for a boss, 79% would want that boss to serve more as a coach or a mentor. The study also shows that 88% of Millennials prefer a collaborative culture over a competitive culture and they are looking to make a difference in their professional lives. I think of Millennials often as the ‘purpose generation’. As the workforce shifts, our society is challenged in finding enough STEM talent. STEM talent refers to skills needed for almost every job (Science, Technology, Engineering, Math). For example, there are millions of unfilled jobs that require STEM skills and STEM jobs tend to pay better (at 40% so it’s a much clearer pathway to the middle class and arguably, the American Dream). Goldman Sachs is among the first put some big cards on the table publicly. On the front page of the Wall Street Journal earlier this month, they asked their Millennials to stay and promised that things will improve by offering clearer paths to promotions, experiences in different banking environments and mandating “No Work Saturdays”. Another solution: creating Mentoring Cultures.This is what we focus on around the clock at Twomentor, LLC. Aligning mentoring to the whole fabric of the company, and part of people’s performance reviews. PGi released a study that dove into the millennial mindset. Of those millennials surveryed, 71% stated that they wanted meaningful connections at work and hope to find a “second family” in their coworkers. 112 | the world in 2050
Additionally, 75% not only want mentors, but deem it crucial for success. In the same survey, 70% of non-millennials say they are open to reverse mentoring. They acknowledge that 20-somethings have first-hand knowledge of social media and other technical practices and older employees want to learn! A majority of Millennials sited “not a good cultural fit” as a reason they left their job in the first three years. To retain the new majority in the workforce, companies need to align culture more to Millennial needs, and perhaps all of our needs to have more meaningful support and connection at work. AN ECONOMIC BURDEN Each time you lose someone good, you lose time and money. Forbes reported that the average cost to replace a millennial is 15k25k. Goldman Sachs isn’t trying to retain Millennials solely out of the goodness of their hearts, retention is an significant economic issue. It’s good for business. Companies pour significant money into recruitment but programing around development and retention is given less attention and some of the behavior patterns of Millennials reflects that. So bottom line, It’s time to get the human back in human capital. Companies are made up of human beings not human doings, and an engaged workforce = ROI for the company and the people who make up the company. The business case for mentoring is so strong that in a Wharton study, people who mentor got promoted 6x more than people who didn’t and mentees were promoted 5x more. And retention was 20% higher in both groups five years later. Most companies have informal mentoring programs or aspirations, if you want to capture ROI, look at metrics that can be captured - after all, you get what you measure. The way we see it, there is no downside to mentoring. Mentors and mentees are more engaged and better positioned for advancement. Engagement equals retention and retention saves time and money. Put in a little time and effort now, to save big headaches later. What is there to lose? About the authors: Julie Kantor is a global speaker on women in STEM, Championing our Millennial Workforce, and building MentoringCultures. She is President & CEO of Twomentor, LLC offering mentor training and strategy to multinational corporations. She is based in Washington, DC. Bridget McKeogh is a Senior Associate at Twomentor, LLC and experienced STEM Teacher with a Masters Degree in Statistics from Georgetown University.
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HOW BOOMERS CAN MENTOR MILLENIALS By Margery Kraus
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s I have often said, I have been fortunate throughout my career. When I started APCO nearly 30 years ago, I had little more than a vision and the courage to pursue it. Nothing quite like APCO had ever really existed before, and starting a business from scratch is especially challenging. Like any person starting down a new path, I needed guidance to help me address things I had never encountered. Fortunately, I have never been afraid to ask for help, and many senior professionals from the Greatest Generation were willing to help me and serve as mentors when I reached out. I learned a lot from being exposed to their thinking and their experience over the years. This is one of the many reasons why I have always valued mentoring as a core priority at APCO. Professional development is an important element for any company, especially for firms dependent on human capital. To build a firm like APCO, you have to continually go out and seek the best and brightest. Cultivating and retaining young professionals and growing them into senior business leaders is the secret to success in any professional services organization. Now, nearly 30 years after I founded the company, I can see how well this investment has paid off. Most of APCO’s senior leaders have been with the firm for many years, and I can see an even greater generation rising within the company. They carry with them not only the skills they developed over the years, but also the culture, which is the glue to our future.
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This is one of the reasons why it is so important for Baby Boomer business leaders to mentor Millennials, who will soon account for nearly half of all employees worldwide. With this generation comes not only a set of new skills for a new age, but also a set of values important to the future of the world. Millennials and Baby Boomers are not the vastly different groups that we often see portrayed in public. Though differences are certainly there, both are determined generations that are constantly seeking to learn. Both generations also grew up in a time of great change and transition. They had values different from the generation before, and brought a new energy and passion to the workplace as well as new demands to society. We have a lot to learn from each other. Being trained as a teacher, I have a special appreciation for this. Baby Boomers have adapted, sometimes more slowly than desired, to the changing technologies and cultures of the world in order to continue succeeding in their careers, rather than being phased out; and they have no intention of quietly retiring any time soon. They are dependent upon the knowledge that Millennials bring to work, especially that special “chip” in their DNA that makes them digital natives. Likewise, Millennials are constantly seeking out new information to maintain their adaptive advantage, while proving the value of their unique insights, and they show no indication of meekly staying out of the limelight. What they lack is experience. Successful leaders will capitalize on these commonalities and mutual needs to mentor this younger generation while inspiring older workers. Mentoring is not a formal process, and it does not happen in regularly scheduled times. Like most relationships in life, it has to be authentic and organically grown. It has to grow out of mutual respect. While the beginning might feel awkward, soon a natural rhythm and comfort can be found. To me, mentoring is a constant process involving everything from showing an employee the edits you made to their document, to convening regular lunch and learn sessions with junior staff, to taking more junior people along to meetings and inviting them to brainstorm at senior level meetings. There also has to be receptivity for the older generations to listen and learn from their younger colleagues. As CEO, I formed a “CEO Council” to ensure that younger employees always have access and an opportunity to interact with APCO’s CEO, and I have the benefit of their thinking and good ideas. Some of the best new ideas in the firm have come from these sessions. At APCO, programs like this help to reinforce our more collegial culture that makes make working across borders, offices and generations more seamless. With age, we become more comfortable with who we are and what we have accomplished. Boomers have learned a lot through our suc116 | the world in 2050
cesses and failures, and we have much to impart to Millennials. We were an optimistic generation that had some hard life lessons. Similarly, Millennials are coming of age in challenging conditions, and they are constantly innovating to make their mark on the world. There is much they can teach us. By being more collegial and candid with Millennials, we can encourage them to make the best choices for themselves, and in turn we can learn a great deal by better understanding their values and aspirations. Indeed, doing this might produce the greatest generation of leaders the world has ever seen. About the author: Margery Kraus, executive chairman of APCO Worldwide, a global consulting firm headquartered in Washington, D.C., specializes in public affairs, communication and business consulting for major multinationals. Ms. Kraus founded APCO in 1984 and transformed it from a company with one small Washington office to a multinational consulting firm in major cities throughout the Americas, Europe, the Middle East, Africa and Asia. In September 2004, Ms. Kraus led a management buy-out of her firm, making APCO one of the largest privately owned communication and public affairs firms in the world.
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Are College Graduates equipped for Workplace Success? By Brandon Busteed
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ost employers hiring college graduates take it for granted that these candidates are more qualified than other potential employees who don’t have a degree. Many job postings emphasize a college degree as a requirement for a position. And there is long-standing evidence that people with college degrees make more money over their lifetime than those without a degree. Employers make a lot of assumptions about the value of a degree. But do they really know how to assess the quality of graduates’ college experiences—or how those experiences influence how prepared these graduates are to be engaged, productive employees?
Graduates’ Current Work Engagement Linked to Key College Experiences Decades of Gallup research have demonstrated that engaged employees are more productive, are less likely to be absent, have lower turnover, have fewer safety incidents and are more productive and profitable. And findings from the Gallup-Purdue Index—a study of more than 30,000 college graduates—reveal some surprising connections between the experiences students have in college and whether they are engaged in their work after college. Graduates who hit the mark on six key collegiate experiences identified in the Gallup-Purdue Index—the “big six”—are about three times more likely to be engaged in their work compared with graduates who missed the mark on all six. The future of global talent | 119
Though college graduates met the academic requirements necessary to receive a diploma, when it comes to the big six, Gallup has found wide variation in the quality of the undergraduate experience. There are also considerable differences in how graduates fare in their engagement after they enter the workplace. Though we don’t know whether the big six college experiences cause graduates to be engaged, there is nonetheless a strong relationship between these experiences in college and workplace engagement after college. In other words, though all graduates come with a diploma, there are substantial differences in how wellequipped each is for success in the workplace.
Experiencing Engagement Why might these experiences in college matter to a student’s workplace engagement after college? Supportive relationships with professors and mentors—and deep learning and experiential opportunities, such as internships and long-term projects that mimic real work environments— may help students develop a clearer sense of what they do best. These experiences also may help them understand and discern the qualities of an engaged workplace or a great manager and build graduates’ self-efficacy as they learn how they can shape their workplace environment. A close look at the Gallup-Purdue Index data in the graph below shows an encouraging trend: As the number of big six experiences increases, engagement increases. Among graduates who didn’t have any of the big six experiences, 25% were engaged on average. But among graduates who had all six of the key experiences, 65% were engaged. But as the graph also shows, employers pay graduates the same salary on average, regardless of the number of big six experiences they had. Now, if you are an employer looking to hire someone—and you had the opportunity to hire employees who have the potential to be more engaged and productive—wouldn’t you want a way to identify candidates like that? There are both simple and more sophisticated ways to find out whether candidates had any of the big six experiences. Unfortunately, these experiences don’t necessarily show up on resumes or in academic transcripts. Hiring managers can see what courses graduates took, what they majored in, what their grades were and perhaps whether they had an internship or not. 120 | the world in 2050
But hiring managers can’t learn from a resume about the nature of the relationships candidates had with their professors, the qualitative learning connections they made in an internship or the depth and meaning they gave to—and got from—their extracurricular activities. These are critically important nuances to understand and they don’t appear in a typical resume or transcript, nor are they asked about in a typical job interview today.
Looking Beyond Grades, Test Scores and Resumes Given that a full 25% of all college graduates in the U.S. missed the mark on all of the big six experiences, it seems that higher education institutions and students aren’t optimizing the college experience. It also seems that employers aren’t optimizing their hiring of college graduates. Perhaps these missing experiences explain why only 11% of C-level executives strongly agree that college graduates have the skills and competencies their business needs. It’s time for us all to dig beneath the surface of resumes, grades and test scores and look to the elements that matter most to workplace success. About the author: Brandon Busteed is Executive Director, Education and Workforce Development at Gallup. The piece was originally published by Gallup and republished by Diplomatic Courier with permission.
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how Millennials are Disrupting the Workforce By Daniella Foster
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he next engineer, software developer, pharmacist or freelance writer you hire will likely be a millennial. With millennials, American adults ages 19-35 in 2016, rapidly surpassing Gen Xers and the Baby Boomer generation as the largest portion of the American workforce, there will be a subtle, but noticeable shift in the way companies attract and retain top talent. Each generation brings with them a set of working preferences—where they want to work, for whom, how they want to work, what they want to work on, and for how much. While investment bankers were icons of success in the 1980s, startups, technology companies and organizations disrupting the status quo, top the list of desirable employers for millennials. As millennials enter the workforce in record numbers, here are three trends to watch that will change the way companies work and shape the future of the job market: 1. Reputation race and the authenticity test We live in an era of crowdsourced reputation, where the collective wisdom of the crowd provides input into everything from the The future of global talent | 123
restaurants where we eat to the products we buy to the professional services we seek and the politicians we vote for. As the first digitally native generation, millennials have grown up networked to social media, online reviews, and instant access to global information. With data easily available, savvy job candidates can quickly learn about everything from an organization’s leadership, mission, and priorities to their reputation, employee experience, salary ranges— and even prospective interview questions. Independent online reviews have become the go-to source for millennials for information about companies, jobs, and bosses. If online reviews from disgruntled restaurant patrons or hotel guests can dissuade future customers, imagine how first-hand reviews from an employee might form a lasting impression about an organization’s reputation, impacting their ability to attract top talent. It’s the organizations that have been at the forefront of the digital evolution that are rapidly adapting and capturing the attention of millennials who use their products or services. Fortune’s first list of the 100 Best Workplaces for Millennials was published in 2015, and the outcomes were surprising. If you expected to see Google top the list, think again—they came in at number 25. The top ten companies earning the great workplace title (and reputational boost) were not the household technology names that have become synonymous with millennial talent—Google, Facebook and Apple. Instead, you’ll find a collection of less-know but authentically rated companies. The inaugural list was determined by employee reviews, providing first-hand insight into the work environment, culture and employee experience. While the list is still in its infancy, the message is clear, this generation of workers can’t be swayed by large salaries and Fortune 500 might alone. They want a working environment suited to their skills, work style, and career goals. Having strong global brand recognition is also not enough to entice millennials. Over half of the companies on the top ten list are private companies and are not well known. The status quo and play it safe mentality that can come with the pressure of public companies may be a barrier for many millennials who are now turning to innovative companies less beholden to the short-term ebbs and flows of quarterly results. Breaking through the constant barrage of information means that organizations can no longer rely solely on professional advertising, marketing or competitive benefits packages to entice top talent. Rather it is the actual experience employees have with the company—and the online reviews they share—that bring authenticity to a company, brand, product or service. Online reviews are the new incarnation of “word of mouth”, providing a window into the employee experience and an aggregate rating of the employer’s rep124 | the world in 2050
utation. While corporate reputation is going to become even more critical for organizations looking to attract top talent, mission statements and corporate branding alone won’t be a draw. Organizations will actually have to live their principles if they are going to pass the authenticity test with millennials. 2. Fewer politics, more flexibility Millennials have witnessed the failure of the some of the largest institutions shaping our modern economy, from the Great Recession and the fall of global banks to the gridlock in Washington and near shutdown of the federal government. The results of the Pew Research Center’s surveys on “Millennials in Adulthood” show that millennials have little faith in traditional institutions, with 83% of millennials agreeing with the following statement: “there is too much power concentrated in the hands of a few big companies.” This coupled with the 2015 Gallup “Confidence in Institutions” survey results show that confidence in corporate American is waning, ranking only slightly higher than congress—slotted in the last place. Millennials have grown up less attached to traditional institutions (whether they be religious or political institutions), and they are leery of investing in the stock market, cynical towards politics, and allergic to hierarchy and bureaucracy. The organizations that millennial talent tends to gravitate towards all have one thing in common: they enable millennials to express themselves. Whether it is through meaningful purpose-driven work or limited bureaucracy and no pressure to conform, millennials want to be themselves, learning and growing with their job. The millennial generation views work through a slightly different lens, opting to first ask: will the working environment be entrepreneurial and unencumbered by politics?; is the work meaningful, societally relevant, or constructively disruptive?; and, is the organization supportive of my growth? As employees, millennials want will gravitate towards environments that enable them to tap into technology and social networks to source new ideas. They want to use their knowledge and networks to tackle problems, leaning on the wisdom of the crowd to help curate opportunities and develop collaborative approaches to intractable problems. Millennials want to work the way they shop—online, anytime, from anywhere, and on their phone (and then they may share their experiences or best practices with their networks). While an open office concept may have been revolutionary in its day, the mobile office (anywhere, anytime) will become the prevailing norm. Work from home options and hoteling offices are already taking over companies—and even government agenThe future of global talent | 125
cies—as lean business models and limited budgets change the way organizations work. Socially conscious, impact-driven millennials will be drawn to companies and jobs that appeal to their sense of purpose, provide them flexible opportunities to grow, and are free from office bureaucracy. 3. “Gig” economics Millennials are at the center of the rapidly growing gig economy, whether as consumers opting out of owning cars in favor of car sharing and bike sharing options, or as freelance workers and entrepreneurs leaving behind traditional office environments in favor of shared working spaces and short-term job assignments. They are fueling a new wave of self-employment that is a response to both a dismal job market and a preference for an entrepreneurial, flexible way of working. Millennials entering the workforce during the great recession (2007-2009) were faced with stagnant wages, layoffs, and dismal job prospects. With the Bureau of Labor Statistics clocking unemployment rates above 10% in 2009, the number of part-time and underemployed workers has been on the rise since the great depression. Limited full-time job options and minimal opportunities for career advancement (despite an increase in student loan debt) have led millennials to embrace short-term gigs, opting to take on short-term assignments and micro-work—or gigs, as they are commonly referred to—to earn a living. With millennials staying at home longer to conserve funds (and for many, to pay off student loan debt), the prospect of working from anywhere, at their own pace, has an appeal. This coupled with the growing number of online businesses that make microwork readily available has fueled the rise of the gig economy. As the job market rebounds, many millennials used to the culture of the gig economy are opting out of a salaried job and all of the benefits that come with it—healthcare, retirement plans, paid time off—to go their own way. Millennials that can’t find organizations free from office politics, confining cubicles, and stagnant thinking, have turned to freelancing, setting their own work environment and schedule. With startups such as Uber and Fiverr, anyone can freelance from almost anywhere, bringing added flexibility to when and where you work. Adapting to disruption Whether it’s finding a new generation of government employees and civil servants to restore trust in government agencies or attracting top MBAs to Fortune 500 companies, the talent war is coming. 126 | the world in 2050
As millennials overtake the American workforce, organizations that embrace the shift and adapt, will survive. And organizations that don’t will lose their appeal and ability to attract top talent. Without a pipeline of top talent to fill leadership roles and future business needs, innovation will slow and bureaucracy will rule. Employers don’t have to philosophically agree with the idiosyncratic way millennials work or with their preferences, but they do have to adapt. And the organizations that are successful at attracting—and retaining—top millennial talent will win the talent war. About the author: Daniella Foster is Co-founder of the Emergent Leaders Network and Director of Corporate Affairs and Science Communications at Mars Symbioscience. Follow her on Twitter @deeindc.
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Millennials and the Future of American Business By Bryce Bytheway
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he American workforce, and the global economy as a whole, is going through a change. Baby Boomers, who have had an astronomical influence on the global economy, are beginning to leave the work force. The Millennial generation—those born within that last thirty years— has begun to exit college and enter the workforce en masse, and soon the world’s business leaders will comprise of this “tech native” group. However, the question has been raised time and time again: are Millennials up to the task? How much confidence do older generations have in this younger generation as the future? How do Millennials view themselves, and their current situation? What is the future of American business? Baby Boomers are a genially stubborn generation; business leaders among them form their own ideas, and then make them happen. Those who work in manufacturing or the trades, as well as the small business owners, are frequently called the backbone of the American economy. Millennials have been raised sitting at their feet, listening to their stories, and learning from their examples; and yet many Boomers are apprehensive about passing the economy into their hands. They watch as their children and grandchildren flitter from one source of amusement to another, all the while their mobile devices are in hand to provide constant amusement, and consequently, distraction.
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In a personal interview discussing his hopes for the future of American business, Ethan, an electrician on the verge of retirement, explained his distrust of big government, and advised Millennials to seek education in trade work. “The older generation has already messed it up,” Ethan explained, “we need the younger generation to step up to the plate to save the economy, and adopting socialist properties will not do it. Look at Europe: the economies within the Euro-zone are failing, and it’s because people want something for nothing.” He further explained his fears for the future saying, “Each country needs a balanced base to support itself. This growing generation all want to be a big boss, nobody wants to learn trades anymore. Not everyone can be the business leaders, you can’t have a top heavy workforce and expect to make it, someone has to do the labor.” Millennials tend to be much more optimistic than Ethan and many other Boomers. Recent research on Millennials shows that 41 percent are satisfied with the direction the country is headed, much higher than the 26 percent of those over age 30. The fears from the recent recession are fading away, and many believe that the economy can still be salvaged. In this technological age, information is just a few finger swipes away, and many are using this accessibility to learn and grow. In a 2011 Kaufman study, 54 percent of Millennials reported the desire to start their own business. The percent of students graduating from college is on the rise as well, as 40 percent of Millennials now attend and graduate from institutions of higher education. However, there is a down side to all of this optimism. Many think that a college degree leads to a dream career, and most Millennials are sure that they will be within the top 20 percent of their trade postgraduation. This optimism is already leading to disappointment. Also, Millennials are willing to enter dramatically into debt to receive an education. On average, students today graduate with student loan debt above $25,000, with some borrowing over $100,000. Included with that dream of a high-level job, is the idea that the debt will be paid off within a few short years. The reality is much different: the percent of Millennials who are underemployed is higher than both Generation X and the Baby Boomers. Notwithstanding these obstacles, nor the doubt of the Boomers, there are great opportunities in the future of American business. Millennials are entering the work force in greater numbers each year, and the optimism and desire for innovation they bring with them has the potential to improve American business astronomically. It is going to take a lot of work, and a willingness to participate proactively in government, as there is a looming threat of economic failure if it is not treated with great care. It is up to the Millennials to learn the facts and work with public and private leaders so business and the economy can thrive once more. 130 | the world in 2050
The Kids Aren’t All Right By Vineet Daga
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ver the past several years, rising powers have been rocked by popular protest movements. India saw massive protests in 2011 over corruption and the unwillingness of authorities to address it, and India’s youth were spurned into action by the perpetual scandals of the ruling politicians. More recently, Turkey and Brazil have been jolted by protests instigated by seemingly mundane events. The proposed construction in a historic Istanbul park and a modest increase in bus fares in Brazil’s cities are unlikely triggers for nationwide protests; nevertheless these events initiated massive protests in each country. The unrest in emerging powers erupted for a variety of reasons, but reflected the disillusionment of the young with the political classes. These movements have shown the power of technology as an organizing tool, and demonstrate that economic growth alone is not enough to satisfy a well-informed and dissatisfied public. The combination of technology and people no longer content solely with economic growth alone gives these protests relevance to numerous developing countries, and these movements represent a profound challenge to governments across the globe. The protests in India and Turkey each had different triggers, but both spread due to middle-class rage with the governing class. Corruption has been rampant in India for decades; however, it has particularly The future of global talent | 131
come into the limelight recently as several multi-billion dollar scams have been revealed over the past several years. Protests began in Delhi and spread to over 50 cities and towns. Millions more supported the movement by participating in online and virtual campaigns in support of anti-corruption measures. The current generation of 20- and 30-somethings who took to the streets rejected the apathy of their parents’ generation, challenging the status quo and demanding change. Protesters in Turkey were driven by varying motives. What united the disparate group of protesters was opposition to Prime Minister Recep Tayyip Erdogan’s policies, which they see as a threat to traditional Turkish secularism. Like the protests in India, the protests in Turkey have been driven by pressing political issues and the strong desire of youth—especially middle class youth—to have their voices heard. Bus fare increases of 20 centavos (nine cents) in major Brazilian cities have caused the most widespread protests in the country in decades. While the fare hikes were unpopular and outraged many over the cost of a shoddy public transportation services, this alone does not explain the protests. Brazilians pay over 30 percent of their incomes in taxes, which is among the highest for developing countries. Public services, from infrastructure to medical care, are seen as subpar, leaving many to question where their money is going and why the government requires such high levels of funding. Perceptions of corruption and poor governance have led people to take to the streets. Economic growth is not enough for the public; the people want more than what their elected leaders are offering. This reaction in Brazil should trouble other emerging countries the most. Brazil is widely seen as a country on the rise. It is the dominant power in South America, and like India, Brazil earned inclusion in the BRICS (Brazil, Russia, India, China, and South Africa). The Brazilian economy has been steadily growing and has lifted millions of people out of poverty and into the middle class. Brazil is the host of the 2014 World Cup and the 2016 Summer Olympics—events that were supposed to serve as a coming out party for the South American giant. If mass protests can erupt in Brazil, it can happen anywhere. One of the factors that has enabled protests to spread is technology. In an era of 24-hour cable news, Facebook, and Twitter, isolated events that once would have taken hours, days, or more to reach a population can spread instantly. In the past it would be difficult to quickly rally people and instigating events could blow over. Now the youth are able to communicate quickly, share grievances, and mobilize in a way the older generations of political elite struggle to understand. Technology has leveled the playing field and taken away the advantages politicians once enjoyed. State-run media may not cover protests or the causes that inspire them, but protestors updating Facebook and Twitter can 132 | the world in 2050
reach a wider, like-minded audience and bring them into the streets. Many authoritarian countries have counted on economic development to placate the public and minimize dissent. Leaders in these countries contend that economic development is more important than democracy or greater individual freedoms and that they are the only ones who can deliver a growing economy. China is the most prominent country in this category. The governing Communist Party’s (CCP) legitimacy is now tied to economic growth rather than maintaining communist doctrine. The notion that expanding economic opportunity is no longer sufficient to satisfy the public is something the Politburo will find alarming. If a democratic country with a growing middle class can have a spontaneous eruption of protests, as has been demonstrated by Brazil, Turkey, and India, the implications for an authoritarian country is far more concerning. In China the Communist Party runs everything and holds total power. Therefore, all complaints held by the public are directed at the CCP. A popular protest movement triggered by a small event could quickly spread to other groups with grievances and easily morph to challenge the legitimacy of the ruling authorities. This is a nightmare scenario with no easy answers for Beijing. There is no turning back on free market reforms, which has led to rampant economic growth; on the other hand, turning to more strident nationalism could quickly grow beyond the control of the authorities. If nationalist sentiments soar among the public it could limit the options of leadership in a crisis with Taiwan, Japan, or the U.S. Maintaining tight controls on internet access and information have become a matter of survival for the CCP—and an ever more important issue in light of recent global protests. The results of the protests in India, Turkey, and Brazil remain to be seen. In India, the politicians ignored the demands for anti-corruption legislation and the protests fizzled over time. The public may yet get the last laugh in upcoming elections as the ruling Congress Party faces the prospect of running against the incorruptible Chief Minister of Gujrat Narendra Modi. Turkish Prime Minister Erdogan’s use of riot police to forcibly remove protesters could impact the future ambitions and legacy of Turkey’s transformational leader. The protesters in Brazil are amorphous and leaderless, but their complaints have already caused the popularity ratings of President Dilma Rousseff to plummet. With the tools of the digital era at their fingertips, youth have shown that they are a force that must be taken seriously—and governments who do not will do so at their own peril.
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A Psychological Revolution for China’s Millennials By Paul Nash
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nly 30 years ago, when China’s state-owned enterprises began the uncertain process of market-oriented reforms—resulting in large closures, downsizings and mass layoffs—the employment outlook for young people in China promptly clouded over. The world that they once felt was opening wide before them suddenly filled with redundant workers. After years of slow growth and rising prices, many college students found themselves on the cusp of graduating without jobs. Disillusioned with the government’s assurances about a brighter future, they began massing in Tiananmen Square in the spring of 1989 after the death of Hu Yaobang, the popular former party leader who had tried to undo the mistakes of the Mao era and pushed for education reform. Joined by thousands of disaffected laborers and urban professionals, they demonstrated against the continuation of a political regime that seemed to be choking their potential with yet another round of economic experimentation. Past experiments under Mao to modernize industry through an effort of sheer willpower, or to re-engineer the nation’s collective political consciousness, had blighted several generations. Their children and grandchildren inherited the setbacks of the Great Leap Forward and the Cultural Revolution. The protests of 1989 consequently galvanized the discontent of millions in China who, comparing their situation with The future of global talent | 135
America’s ease and prosperity came to believe that their hopes and expectations could only be realized through a Western-style liberal democracy. Today, China’s post-1980 generation, made up largely of those who went through adolescence in the 1990s and 2000s—known as the balinghou—is the first in the history of the People’s Republic to come up amid relative socio-economic stability. With a life experience shaped by the successes of those economic reforms, this generation has grown self-assured in its future. Ideological struggles seem all but forgotten. To the Western world, China’s balinghou is, for the most part, simply a case study in the demographics of consumption. Multinational corporations sponsor research into their “attitudes towards life” abstracted in the statistical terms of mobile phone and internet usage, savings rates, and spending habits. Practical materialism, it seems, in both the East and West, has displaced political ideas. There is a gulf, more than a gap, separating China’s balinghou from previous generations. China’s young people today have never known foreign invasion, civil war, or starvation. Nor have they experienced being “sent down” to the countryside to toil on the land. Instead, millions have come up from the countryside as migrant workers to pursue city ambitions. The quickened growth and development of three decades has lifted hundreds of millions from poverty. More than that, it has put disposable income in the hands of a large proportion of young Chinese for the first time since 1949. It has allowed record numbers to attain a higher education, to enjoy a better livelihood and to travel to far-off places. While they still have to compete for jobs, perhaps more strenuously than before, they have been taught that unemployment is an issue of economics, not politics. And for that reason they generally no longer see themselves as victims of the state. A recent study conducted by Telefónica-Financial Times found that 93 percent of Chinese millennials are optimistic about their future, compared to only 67 percent globally. Confident that Beijing has put their country on track to self-sufficiency and inexorable growth, they show greater concern for recreation, health, and environment problems. Conversation amongst young Chinese today, which twenty years ago would have inevitably turned to politics, is likely to gravitate to other topics such as education, personal relationships, fashion, or the newest smartphone. It is as if China, after 30 years of economic revival, made possible by the struggles and mistakes of the Mao era, has finally come of age. 136 | the world in 2050
The communist party encourages this sense of optimism. In 2009 it funded an epic all-star propaganda film titled The Founding of a Republic to mark the 60th anniversary of the socialist state. The film’s theme is the war of liberation against China’s corrupt Kuomintang-led republican government by Mao’s army, beginning in 1945 after the Second Sino-Japanese war, and culminating in the proclamation of the PRC in 1949, which is portrayed as a new beginning. The Founding of a Republic was an unprecedented box-office hit in China. It was eclipsed only a year later by Aftershock, another statefunded film directed by one of China’s finest directors, Feng Xiaogang, and produced in partnership with IMAX. Aftershock is about the repercussions of the 1976 Tangshan earthquake, which took a quarter of a million lives in Sichuan. The film opens with a scene depicting the quake using special effects rivalling Hollywood, then settles into a heart-rending melodrama following the life of a girl whose mother leaves her for dead in order to preserve the life of her brother. Only after becoming a mother herself, 32 years later, does she understand her mother’s choice and find it in herself to forgive. Some consider Aftershock a political allegory. In one interpretation, its message is an expression of the people’s forgiveness of the communist party’s past errors. A natural disaster substitutes for the devastation wrought by the Great Leap Forward, which claimed tens of millions of lives, and the ordeals of the protagonist represent the nation’s coming of age. Those who grew up during the Cultural Revolution in the 1960s and 70s had their life experiences shaped by revolutionary Maoism. Many never had the opportunity for a higher education. Those who did likely had their studies curtailed when they were forced into the countryside to learn the wisdom of the proletariat. Afterwards they witnessed China’s economic reforms and reintegration with the world following decades of self-imposed isolation. If the children of the Cultural Revolution, among them China’s newly appointed president, despair the political apathy of today’s urban young people, they are not altogether unhappy to say farewell to revolutionary politics. The party, of course, is in no hurry to reinvigorate class consciousness. The contradictions and excesses of some of its own at the top, who have literally embraced the maxim attributed to Deng Xiaoping that “wealth is glorious,” appear in many eyes to have divorced the party from the proletariat it was supposed to represent. From a classical Marxist or Maoist viewpoint, they would require uprooting. The party’s claim to political legitimacy is now largely a question of economic stewardship rather than grassroots representation. The soThe future of global talent | 137
cialist state, acting as the driving force behind marketization, believes that its proficiency in guiding economic reforms serves the universality of interests in China better than any other political configuration, at least at this historical juncture. The parents of China’s millennials, for their part, invest heavily in their children’s education. Education has been regarded as a means of social advancement in China ever since the advent of the Confucian system of imperial examinations more than a thousand years ago. Spending on education now accounts for roughly 4 percent of China’s GDP. It is not unusual for some parents to lay out one-third or more of their household income to put their children through college. Expectations are, naturally, high. But how will the continued economic slowdown in China affect millions of new college graduates? Amongst this group, unemployment is rising. Of the seven million or so students to graduate this year—a record number—only a third have found jobs in their field of study. Unemployment or underemployment in this cohort has not been so high since the years leading up to the Tiananmen tragedy. Could Tiananmen happen all over again? It is a question that Chinese officials are acutely aware of. The party, which has spend more than 20 years studying the causes of the “June 4th incident,” even while disallowing public mention of it, has become worried that graduate unemployment could re-politicize the younger generation, provoking another crisis at a time of economic and social fragility. After the onset of the global financial crisis in 2008, then-premier Wen Jiabao told students at Beijing’s University of Aeronautics and Astronautics: “Your difficulties are my difficulties, and if you are worried, I am more worried than you.” Wen confidently announced that the government was taking steps to deal with the problem. Nearly five years on, the problem has only deepened. A recent editorial in People’s Daily sounds a different note. It suggests that students are making life hard on themselves by holding onto expectations that are simply too high. “Their aspirations are seriously different from their fathers’ generation: they were born in an age of the Internet; they embrace internationalization; they want development and fairness,” it reads. “All in all, they are not simply looking for a job...the problem for university graduates now is not to find a job, but to find a good one.” Policymakers nevertheless hope that a new round of economic reforms will take the pressure out of the situation. China has embarked on its second industrial revolution, beginning the process of lifting industry up the global value chain by incorporating more science and technology into the manufacturing process. While automation and mechanization require fewer workers, new industry will employ more 138 | the world in 2050
college graduates. China is also working to create a climate in which Chinese consume more of what they create. Beijing hopes that this will multiply jobs in the white-collar services sector to absorb surplus graduates. To reduce reliance on export-led growth, China has to continue the process of urbanization while simultaneously rebalancing the workforce and better aligning the education system with the needs of a changing economy. The nation transformed itself into the world’s industrial center by turning peasants into a cheap labour force in the coastal and urban areas, but in doing so it has precipitated a crisis in rural China. Colleges in major cities are now offering cash and additional training to graduating students who return to their hometowns in rural areas to work. It would be difficult to imagine how China’s balinghou might weather a protracted economic downturn. While not possessing the same revolutionary inheritance of their parents’ generation, they are by no means resigned to the acceptance of fate, to things as they are. It would be a mistake to think they do not possess the same will to action and could not trigger widespread political disturbances on a scale comparable to 1989. Even now they participate in small-scale public protests against environmental degradation, corporate abuses and political corruption at the local level. In one way or another, China’s balinghou appear set for a psychological revolution. It is anyone’s guess what direction that might take in a country whose history is the history of one struggle succeeding another. About the author: Dr. Paul Nash is a Toronto based Correspondent and a Senior Contributing Editor of Diplomatic Courier.
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U.S. Public Education and the future of National Security By Whitney Grespin
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lthough the domestic consequences of poor education are relatively well documented, little has been done to investigate in what ways the failings of America’s public school systems will have long term implications for American national security and foreign policy prescriptions.
As a Council on Foreign Relations Task Force Report noted in 2012, “A world-class education system is vital to preserving not just the country’s physical security but also to reinforcing the broader components of American leadership, such as economic dynamism, an informed and active democracy, and a coterie of informed professionals willing and able to live and serve around the world.” Given the increasingly globalized nature of commerce and society, a lack of substantial investment in the intercultural competencies and cultural literacy of American youth will be crippling to U.S. dominance in the future. Taking into consideration that the figure of the American population who has actively participated in the international combat engagements that the U.S. has undertaken since 2001 hovers at around 1% of the American population (and perhaps only slightly more if contracted personnel supporting the Department of Defense are included in that count), it would be difficult to argue that the American public has The future of global talent | 141
widely invested in these fights. Notably, those who are most likely to serve in today’s military come from families of those who have already done so, and while it would be hard to calculate in the broader numbers of American government officials and policy makers who have contributed to the study and execution of American national security objectives overseas, those who have borne the burden of these wars is embarrassingly sad for America as a “world superpower”. As Ray Odierno pointed out during a 2014 speech delivered to the National Press Club, “Over the last ten years, there’s been over 15,000 Awards of Valor given out to U.S. Army soldiers, nine Medals of Honor, almost 30 Distinguished Service Cross, 600 Silver Stars, and many other awards of valor because they did what we asked them to do; go and help provide security for this great nation of ours.” Yet despite these numerous awards, the fact that such a vast majority of the American population has not had direct tie to the application of U.S. foreign policy in the past decade is a topic of great concern. Because of this, many citizens can–and have–divested themselves of accountability to understand foreign policy, both in the shaping of their opinions, as well as in their voting practices. The same 2012 Council on Foreign Relations report warned that, “The lack of preparedness poses threats on five national security fronts: economic growth and competitiveness, physical safety, intellectual property, U.S. global awareness, and U.S. unity and cohesion.” This is not merely a matter of civic engagement, but rather an issue of widespread under-education and lack of exposure to civilian-military cooperation and integration across broad swaths of American society. There is an important but under-resourced imperative that the U.S. cultivates such human capital to reinforce national security, given that military might alone will fail to produce a durable and stable American security. Furthermore, our military may not be as mighty in the future as our national narrative recalls it being in the past. A recent study released by the organization Mission: Readiness assessed that approximately 70% of young Americans cannot serve in the military due to the inability of public education to “provide enough well-educated recruits to staff today’s advanced military.” This dangerous lack of academically qualified military recruits is accompanied by a broader shift in higher educational doctrine away from the humanities and liberal arts, and towards STEM subjects. But STEM does not teach students about hearts and minds, and it does not cultivate multiple intelligences about how to read and react to a variety of environments and circumstances. A USA Today travel article written this past February reported that, “The percentage of Americans with passports is at an all-time high, and at 38%, up from 3% in 1974, that’s something to tweet home 142 | the world in 2050
about.” While this is impressive growth over a 40-year period, this is also representative of a broader trend in American society wherein the other 62% of the population will likely display a broad lack of situational awareness about events of the world that we live in. A flippant but telling quip from a Special Operations Forces conference panelist held that, “War is God’s way of teaching Americans geography.” Relatedly, America cannot continue to produce public secondary school graduates who know appallingly little about our nation’s role in the world. As former Marine Benjamin Luxenberg argued in a January op-ed, with decreased exposure to and understanding of a variety of opposing political views, tolerance shrinks. A once-fluid American society with exposure to different cultures–even if only through strong immigrant communities within our own borders–is stagnating as exposure decreases. In a country where a mere 38% of citizens hold a passport, many may ask what is the value of understanding the world beyond America’s increasingly fortified borders? Well, besides the basic privilege of exposure to art, literature, culture, and historical context exponential to that of America is the derived comparative understanding and appreciation of what our armed forces fight for and (volunteer) to defend. At the 2015 Special Operations/Low Intensity Conflict annual conference, former Special Forces Officer Mike Waltz–who worked with militias in Afghanistan–offered a memorable quote about the duration of the conflicts the American public is currently engaged in. A mullah with whom he worked commented, “Until America is prepared to commit your grandchildren to stand shoulder-to-shoulder with our grandchildren, we cannot work with you.” Though we call them other things (the U.S. hasn’t declared “war” since WWII) the wars that we’re starting to fight these days are generational. Younger generations of students need to know about and understand the world that they’re growing up in so that they’re not playing catch up in their twenties and thirties as they begin voting and becoming active in civic engagement. While most Americans do not share a religion or a culture, public education is part of a broad common identity that most Americans have experienced and identify with. What better common ground to start on? About the author: Whitney Grespin is a Senior Contributing Editor at Diplomatic Courier magazine. She holds a post-baccalaureate teaching certification, a Master’s in Public and International Affairs, and has experience managing international education and capacity building initiatives on five continents.
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So, You Think You Know STEM? By Anders Hedberg
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TEM is hot. Perhaps one of the most talked about issues in education. What is the reason for the meteoritic rise of this concept at this point in time?
More than a catchy acronym—even if sometimes misunderstood to relate to the more contentious topic of stem cell research—for science, technology, engineering and math, “STEM” is primarily grounded in the current education discourse, and most importantly as a driver of critical skill development for our future workforce. Admittedly, the STEM debate is still predominantly a U.S. phenomenon. This fact does not diminish the importance of STEM education as a visionary field of considerable economic importance across the globe. It is the very coincidence of exploding global e-trade, social networking, digital security concerns, homeland (wherever you live) security, and international comparison of educational attainment data that has brought the need for critical competency development into such sharp focus. President Obama’s repeated referral to STEM skill development as essential for the future U.S. economy has helped promote the term into household education jargon in the media. So, STEM news is tweeted, blogged, pod, and web cast daily, commensurate with an The future of global talent | 145
epidemic growth of new STEM education programs and initiatives that are fueled by private and public financing. Wonderful, right? Yes, indeed! The STEM movement has very strong merit, and new and effective programs, even if implemented randomly, will better prepare many students for employment and make a contribution to a stronger economy. But, K-12 educators are justifiably weary of trends aimed at classroom transformation. Their plate is already full as a result of historically conservative policies and testing requirements, and little, if any, discretionary time and resources are available for new activities, regardless of how much sense they make. This is a serious dilemma. Let us explore this further. First, do we all think of the same thing when we use the acronym STEM? Most certainly not. Not even in the education sector, where the term originated is there a common understanding of what it means. To some, it is simply a set of subjects that relate well to each other, and therefore can be conveniently boxed together under a shared department or dean. Others consider the outcomes and see STEM education as a career avenue with separate lanes leading to professions that are linked by their use of knowledge and skills. There is also a more integrative perspective held by some, which approaches the understanding of STEM, more common in the workplace. Employers, perhaps the most important stakeholders of education, have not had good reason to consider the meaning of STEM until they became engaged in the education debate. Driven into the debate by an important business challenge: “How can we strengthen our competitive power in a rapidly changing global economy?” workplace leaders have begun analyzing which new competencies they will need to grow their future business. What has emerged is a list of competencies— which has general validity across all employment sectors—including critical thinking, analytical behavior, problem solving, creativity and innovation, inter-personal, collaborative, and communication skills. This does not surprise anyone. However, behind this introspective analysis lies a deeper and more important realization. Successful global leaders in IT, health, energy, automotive, aviation, etc.—sectors which are traditionally dependent on STEM talent—but also in sectors such as food, finance, retail, manufacturing, hospitality—which are not typically thought of as STEM talent dependent—have a few important things in common. They all use science, technology, engineering, and math to address daily business challenges to meet their objectives. And none of these competencies are independent of the other three. In fact, they are so strongly 146 | the world in 2050
interwoven that employees rarely think about when their use of one transfers into another. Here, STEM defines the everyday practice of task resolution using digital and mechanical tools to access information and to design and apply solutions in general business operations, research and development (R&D), and manufacturing. This is getting to the core of the STEM education debate. While also attaching a handle to a cluster of education subjects, the term has a very specific meaning of integrated knowledge and skills necessary for any successful practitioner of the competency wish list mentioned earlier. The corollary is that in order to impart these competencies, educators must identify with the deep interdependency of the subjects in the workplace and must be able to teach students to become proficient STEM practitioners. Since a critical understanding of STEM resides in the workplace sector, among the users of prepared talent, it is vitally important that a vibrant and continuous exchange is established with the preparers of this talent. Like any functional marketplace, that which deals in talent must be based on a close communication between producers and customers. Considering the deep seated differences in professional culture and business practice between the two talent market partners, only a skilled translator would be able to bridge between the two. Fortunately, such a translator function is now available in the shape of a set of thoughtfully designed K-12 science and engineering standards. Again, the timeliness of this as a part of the STEM “movement” is not entirely coincidental. Let us consider the merits of this convergence of events, but first, a quick step back in time. Since “A Nation At Risk,” science education leaders have worked tirelessly to improve teaching and learning in K-12 classrooms everywhere. By translating the processes of R&D into teaching and learning through questioning and exploration, teachers trained in inquiry-based science education have replaced rote memorization and helped students develop a love for science. This revolutionary transformation was in large part the result of visionary organizations, including the Smithsonian Science Education Center and the National Academies in the U.S., collaborating with their counterparts in national around the world under the Inter Academies Panel, a global network of 119 science and engineering academies. The first National Science Education Standards, released in the U.S. in 1996, stated what students should know and be able to do at each grade level. Then in 2012 came the Next Generation Science Standards (NGSS). NGSS is remarkable because it combines achievement standards for the learning of both science and engineering. Performance expectaThe future of global talent | 147
tions are defined for four grade level bands K-2, 3-5, 6-8, and 9-12 for science and engineering practices, core ideas, and crosscutting concepts. Importantly, the language used throughout the document, and the examples offered, are written with language clearly understood by both educators and other workplace professionals. Further, it strongly emphasizes the applied use of knowledge and skills for creative thinking, analysis, and problem solving. Hence, this document is perfectly suited as a translational tool in the collaboration of educators and employers to match future supply and demand for developed talent. The multidisciplinary team of contributors to NGSS, consisting of professionals from K-12, academia, business/industry, non-governmental organizations, and government is ready and available to chaperone its adoption and implementation. While this scenario is specific to the U.S., other nations are also deeply concerned about the challenge of meeting future talent demands. OECD continues to fuel the global discussion with reports of trends in education and workforce development. Regardless of whether national and international discussions specifically address STEM, the core idea of its use as a multidisciplinary competency with significant value in all areas of the global economy is likely to live on. It is also safe to assume that every country aspiring to global economic competitiveness based on domestic talent development will come to depend on effective collaboration between their education and workplace sectors. About the author: Anders Hedberg, Ph.D., is an experienced pharmaceutical industry executive, who now applies his science and corporate social responsibility expertise to international STEM education. By linking business and education together for better talent preparation, he helps strengthen the global workforce pipeline.
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How to Build a Stronger Global STEM Talent Marketplace By Anders Hedberg
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he STEM talent pipeline starts in the home of pre-K students and ends in the workplace, but much disappears on the way. Prognostics about future talent needs will force us to plug some leaks and increase the flow, particularly with emphasis on K-12 education.
Since 2000, the OECD has provided comparative information about high school graduates’ readiness for life in 60 countries though PISA (Programme for International Student Assessment) reports on student skills in reading, math, science and problem solving, released every three years. TIMSS (Trends in Mathematics and Science Study administered by the National Center for Education Statistics, NCES) adds a picture of progress in 4th and 8th grade student achievement in science and math, also comparing 60 nations, but in four-year increments. Both studies rank countries on all outcomes, and education analysts have flocked to nations that consistently come out on top. Much has therefore been written about Singapore, Japan and Finland, but little about the low performing nations. They are left to figure out how to catch up, which is heavy lifting since the variations are huge. OECD and NCES have helped guide our attention to the importance of knowledge and skills of particular importance for the future workforce, namely Science, Technology, Engineering and Mathematics The future of global talent | 149
(STEM). Pulling in the same direction, Academies of Science in Australia, Chile, France, Sweden, the U.S. and other nations have led IBSE (InquiryBased Science Education) initiatives in partnership with organizations like the US-Mexico Science Foundation (FUMEC), the Smithsonian Institution and a number of multinational corporations with support from EC, NSF and World Bank, among others. It is now widely accepted that IBSE leads to increased student interest and learning of science.
Does this mean that we are beginning to close the workforce skills gap? In one word, no. A recent survey by the OECD of adult skills in 20 countries offers a sobering perspective on literacy, numeracy, and problem solving skills with which 16-65 year-olds are able to contribute to workplace productivity: • Between 5 and 28% of adults are at the lowest literacy skill levels and 8-32% are at the same numeracy skill level. Between 7 and 23% have no experience with, or lack the basic skills needed to use information/communication technology for many everyday tasks. Only 3-9% of adults in technology-rich environments have the highest problem solving skills. • Skill levels in all areas are directly correlated with likelihood of employment and pay level. • Persons with low literacy skills more often report poor health and little impact on the political process. • Poor education and lack of opportunities to improve skills combine to create a vicious cycle in which low proficiency leads to even fewer opportunities and vice versa. Not surprisingly, this skills deficit is reflected in a 2013 survey of Fortune 1000 recruiters. Many report difficulty in finding qualified candidates with a 2-year STEM college degree (55%) or a fouryear degree (50%). Sixty-eight percent have vacant four-year STEM degree positions and 48% report two-year STEM degree vacancies. The majority (75%) project that ten years from now, there will be more new STEM-jobs than non-STEM jobs, leading to a worsening of the talent shortage.
Is STEM education important for workplace skill development and productivity? Innovation is frequently hailed as a driver of business productivity and economic growth. In 1996 OECD stated in its Jobs Strategy: 150 | the world in 2050
Technology, Productivity and Job creation: “To realize the full potential of technological change in improving economy-wide productivity, growth and job creation, governments need to make innovation and technology diffusion policies an integral part of overall economic policy”. The Opportunity Equation, a 2009 call to action by the Carnegie Corporation and the Institute for Advanced Study emphasized the urgency to reform STEM education and strengthen U.S. innovation capacity: “Knowledge and skills from the so-called STEM fields are crucial to virtually every endeavor of individual and community life.” Later that year, President Obama launched the Educate to Innovate Campaign for Excellence in STEM Education: “Reaffirming and strengthening America’s role as the world’s engine of scientific discovery and technological innovation is essential to meeting the challenges of this century. That’s why I am committed to making the improvement of STEM education over the next decade a national priority.” Innovation is now a ubiquitous element in the measurement of productivity, and no longer restricted to economically privileged nations, as shown by the annually published Global Innovation Index, Cornell University, INSEAD, and World Intellectual Property Organization (WIPO). In large part this is attributable to the Global Partnership for Education, funded by the World Bank. Biggest jumps in the GII rankings from 2012 to 2013 (142 Nations) Country GII 2012 GII 2013 Rank Rank
Jump
Uganda 117 89 +28 Costa Rica 60 39 +21 Bolivia 114 95 +19 Cambodia 129 110 +19 Mexico 79 63 +16 Uruguay 67 52 +15 Indonesia 100 85 +15 Ecuador 98 83 +15 The 2013 OECD Science, Technology and Industry Scoreboard reports that nations and people have become more interdependent than ever before. Countries rely increasingly on imports from other nations to maintain or improve their export performance and consumers in one country sustain jobs in countries further up the value chain. International institutional R&D collaboration networks are expanding and researcher mobility is increasing, helping to fuel the innovation power and economic growth in emerging economies. The future of global talent | 151
So, we agree on how to sustain global innovation. What about the early innovation talent pipeline? This intense international collaboration and exchange in advanced talent preparation and innovation stand in stark contrast to the tentative cross-border exchange and collaboration in K-12 education— the early pipeline for innovation talent. Yet, there is a clear positive correlation between domestic spending on primary/secondary education and national wealth, a fact often cited in arguments for urgent improvement of K-12 education in the face of economic challenge. Interest is growing in education practices of leading innovation nations, such as the German apprenticeship model and the Finnish teacher preparation system. However, quick fixes through emulation of these best practices of nurturing talent will be difficult since they are deeply rooted in culture and tradition through many generations with high values of education and mastery of craftsmanship skills . We must not let this discourage us. PISA, TIMSS, and other multinational studies offer priceless guidance. Even in the face of needs for normative change and cultural shift, which takes time, nations that now fail to offer K-12 students effective education, must learn from the global community through collaboration and exchange. This has been done before. The Pollen and Fibonacci Programs, supported by the EC brought best practices in IBSE to lagging European countries with strong results.
The global STEM talent marketplace is not defined by equal opportunity. How can we change this? On the demand side, multinational enterprises (MNEs) drive international talent flow by recruiting skilled workers from where in the world they are best trained. But importing talent, with consideration to dual careers, family relocation and assimilation is very expensive. Often, it is cost-effective to simply move a business to where skills are abundant, intensifying the competition for talent among local employers and leaving small business and public services at a disadvantage. On the supply side, it is survival for the fittest. Students at leading STEM high schools have their future careers secured. However, most are at the mercy of public education, which varies greatly between, districts, states and nations. Few can afford to relocate to where education and employment opportunities are better. But STEM education can be strengthened everywhere through IBSE and by increasing proximity to the workplace. An open window be152 | the world in 2050
tween the classroom and the workplace will help teachers and students understand employers’ needs for knowledge and skills and how these needs change with new technology and innovation. Employers gain opportunities to positively influence learning, much to their own advantage. Someday soon, every young person will be able to graduate prepared for the global talent marketplace. This will be made possible by increasing collaboration at the international K-12 level, and between educators and employers everywhere. About the author: Anders Hedberg, Ph.D., is an experienced pharmaceutical industry executive, who now applies his science and corporate social responsibility expertise to international STEM education. By linking business and education together for better talent preparation, he helps strengthen the global workforce pipeline.
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Google and Gallup Address Computer Science Education in the U.S. By Katie Crawford
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xemplifying computer science’s relevance, individuals with this degree enjoy the seventh highest starting salary of all majors with initial wages of $52,237 per year. This endowment boasts significantly higher than the average base income of all college degrees with the average subsiding as $39,045. Further highlighting technology’s influence, computer engineering and computer programming join computer science in the top ten starting salary positions based on major. As such, computer-related fields prove significant and worth researching. Aiming to reduce educational barriers, Google partnered with Gallup to research interest in and exposure to computer science in U.S. schools. Their report, Searching for Computer Science: Access and Barriers in U.S. K-12 Education, explores computer science courses in U.S. schools. This information enables policymakers, employers, and educators to adequately instruct students in computer science. Results emerged via telephone and web surveys completed by students enrolled in seventh through twelfth grade and parents with at least one student in this grade-range. Grade one through grade 12 teachers; principals of elementary, middle, and high schools; and school district superintendents also contributed to the report’s findings. Each participant category amassed more than 1,000 responses. 154 | the world in 2050
Notably, the report addresses society’s high demand for computer science industries and education while noting the availability of technology that supports computer science in students’ homes. The study details inadequate computer science education. Beyond courses foregoing crucial information, complete lack of computer science education proves prominent, especially for low-income and non-White students. Exuding interest in computer science courses, most teachers, parents, principals, and superintendents rank computer science as equally important as required courses, such as English, math, and science. Ninety-one percent of parents responded in support of computer science courses in their child’s school. However, less than 10 percent of educators in leadership positions understand computer science’s high-value to parents. Seemingly, educators overlook parents’ high-demand for computer science education. The vast majority of students, regardless of race, enjoy access to internetenabled computers and cell phones or tablets at home. As such, supplemental computer science materials prove abundant. Despite material availability, approximately 25 percent of students in grade seven through grade 12 report that their schools lack computer science classes. Notably, Black students experience limited access to these classes at higher rates than both Hispanic and White students. Further highlighting insufficient computer science education, 75 percent of principals reported that their schools lack any opportunities to learn computer programming or coding. With these opportunities serving as essential elements of computer science, this reveals deficiencies in available courses. Additionally, 64 percent of principals reported that their schools lack AP computer science classes. Revealing discrepancies, most students enjoy access to computers or similar devices with internet access but apparently lack education supplementing their technology. With most U.S. schools failing to adequately prepare students for future careers and higher education in computer science, students lack preparation for futures in information technology despite possessing the available resources. Interestingly, lower-income households value computer science education more than higher-income homes. However, students from low-income households attend schools with less computer science opportunities, according to survey responses. This reveals a disparity between supply and demand. Heightened exposure to computer science increases confidence in math, science, reading, and writing. Equipped with this knowledge and their report, Google outlined several recommendations aiming to heighten computer science education. These tips include educating teachers about computer science, broadening access to this field of study, and encouraging policymakers to support computer science in schools.
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Tomorrow’s Global Workers Need Global Education Today By Stacie Nevadomski Berdan
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n order for today’s young people to succeed, they must develop the flexible qualities of character and mind necessary to handling the challenges that globalization poses. To become global citizens, they must learn how to communicate and interact with people around the world. Failing to teach them to embrace it for all it is worth will only condemn them to being left further behind since millions of others throughout the rest of the world will. In order to give our young people the best opportunity to thrive in the new global world, we need to give them a global education. A global education provides learners with the opportunity and competencies to reflect and share their own point of view and role with a global, interconnected society, as well as to understand and discuss complex relationships of common social, ecological, political and economic issues, so as to develop new ways of thinking. Global learning should start at a young age, with the introduction of learning foreign languages and about other cultures throughout the K-12 curriculum. And it should extend to the expectation that all college students should be able to have an international experience during their college careers–either study abroad or an international internship, volunteer or experiential learning opportunity. “Young Americans will depend on and most likely work in a world far beyond our borders,” said Dr. Allan E. Goodman, President and CEO of the Institute of International Education. “Early exposure to different The future of global talent | 157
languages and cultures prepares young people for the constant transformation that will be required in their future careers. Acquiring the kind of intercultural communication skills that today’s employers value will offer them an economic, as well as intellectual advantage.” In the words of a Committee for Economic Development Report, “Globalization is driving the demand for a U.S. workforce that possesses knowledge of other countries and cultures and is competent in languages other than English…Most of the growth potential for U.S. businesses lies in overseas markets [while] our own markets are facing greater competition from foreign-owned firms, many of which manufacture products on U.S. soil.” Goldman-Sachs predicts that by 2030, when today’s toddlers are slated to finish college, the four BRIC nations [Brazil, Russia, India, and China] will own more global gross domestic product (GDP) than the G7 [the United States, United Kingdom, France, Germany, Italy, Canada, and Japan]. The National Intelligence Council’s Global Trends Report shows that China will surpass the United States as the world’s largest economy by that same year. PricewaterhouseCoopers predicts that by 2050, the E7 [China, India, Brazil, Russia, Indonesia, Mexico, and Turkey] will be more than 50% larger than the G7 countries when measured by GDP at market exchange rates. Tomorrow’s college graduates are just as likely to compete for jobs in and with people from as far away as Beijing, and Bangalore, as they are from Boston or Boise. But the ability to work across cultures is no longer a nice-to-have skill set for elite executives or diplomats; every year it becomes more essential to finding any job at all. A machine operator at a plant in Wichita that exports aircraft parts to Brazil needs to know how to interact effectively when Brazilian customers visit. A nurse’s aide at a Houston hospital who serves a large Hispanic community has to deal with family members in ways that encourage, rather than discourage, patient compliance with doctor’s orders. A farmer in Western Pennsylvania can open up potentially rich new revenue streams by understanding exactly what qualities in wild-crafted American ginseng appeal most to the Korean market. The examples go on and on. Unfortunately, not enough young Americans have the skills and aptitudes that global organizations feel they need. One HR executive quoted in a Randstad study called American students “strong technically” but “cross-culturally shortchanged” and “linguistically deprived.” “Having the opportunity to learn about other countries at a young age–and even better, to prepare them to study abroad as part of their college education–opens students’ eyes to a new way of thinking about the world, instilling a more informed approach to problem-solving in cross-cultural contexts,” advised Goodman. “Today’s students need as much international exposure as they can get whether they wish to work in business, government, academia or in the not-for-profit sector. Cur158 | the world in 2050
rently, only about 10% of college graduates will have studied abroad by the time they graduate. It is our ambitious goal to double the number of students studying abroad by the end of the decade, in order to be better prepared to succeed in the global economy.” Neither global education nor learning a second language is a component of the standard American school curriculum. Research on global education shows that it benefits general education by supporting critical thinking, especially in terms of encouraging a consideration of multiple perspectives, a skill identified in much research as supporting success across a range of academic disciplines and careers. According to the National Intelligence Council’s (NIC) Global Trends Report, the reflective practices and consideration of varying perspectives that well-designed global education programs foster have been demonstrated to support analytical skills in all areas of education. Global education should begin as early as possible and extend through college or university to include study abroad – study abroad that includes the proper preparation, intervention on the ground and reintegrating guidance once back on campus. Studying abroad takes global learning up a notch in that it requires students to get out of their comfort zones and experience another culture and education system firsthand. Studying abroad shouldn’t be considered as a tangential or separate part of the college education, but as an integral part of it. The landscape of study abroad has changed significantly in recent years. With more flexible and accessible options, the barriers previously posed by disabilities, race and ethnicity, sexual orientation and financial need are crumbling. Scholarships and financial aid make programs more affordable. Excellent, substantive programs and inspiring role models exist for every type of student in all academic fields, and it is important that parents and educators encourage them to take advantage of these opportunities. Study abroad and experiential education abroad should be seen as the capstone experience or culmination of a lifetime of global learning. Clearly, those who are best prepared for the new realities of the job market are the ones most likely to first be hired, and then to succeed. And of course, more than any other kind of work, finding solutions to global problems requires the ability to forge solutions through international dialogue and collaboration. We need global education to develop global workers who will make a positive difference in the world. About the author: Stacie Nevadomski Berdan is a seasoned global executive and award-winning author of four books on the intersection of globalization and careers. A Student Guide to Study Abroad was published by the Institute of International Education (IIE) in 2013.
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The EcoTech Complex Working with Nature By Kevin Harmon CEO, Brisa International
The EcoTech Complex Working with Nature By Kevin Harmon
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n modern times, we face unprecedented challenges in regard to energy, carbon emissions, other greenhouse gases, water supply, and wastewater treatment. In current statistics:
• Worldwide energy consumption has grown to nearly 600 exajoules per year, up from about 350 exajoules in 1980. About 68% of power plants worldwide are fossil fuel plants. • Carbon emissions worldwide have soared to approximately 35 billion tons of carbon dioxide, up from about 19 billion tons in 1980, and continue to increase. • Landfills emit large quantities of methane into the atmosphere worldwide. This gas greatly increases the greenhouse effect, being 30 times more potent than carbon dioxide. • Current water use worldwide is about 4.7 billion cubic meters. That is up from about 2.5 billion cubic meters in 1970. Within the next 40 years, the world’s population is projected to increase by another 40 – 50%. This population growth and increasing demand for water is projected to have serious consequences on society and the environment. Drinking water will dwindle in many locations, and wastewater will increase. In the past, we have used approaches that work against nature and create imbalances in the environment. However, we believe that if we work with nature, and not against it, the detrimental trends above can be slowed and reversed, and the needs of the future in energy, water, and sanitation can be met in abundance, while we also restore the environment. 162 | the world in 2050
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NATURE’S POWERFUL LESSONS When I was a college student, I had a job assisting scientists in evaluating the water quality of rivers and other streams throughout the state of Georgia. Although we took chemical samples from each stream for analysis, we could tell how polluted the stream was without them. With a simple examination of the life growing in a stream, we could instantly get an accurate picture of its water quality. If stonefly larvae, mayfly nymphs and caddisfly larvae were present, we knew the stream was healthy. If none of those species were living in the stream, and we could see only thousands of flatworms, we knew the stream was highly polluted with carbon-based waste of some kind. Once we shut down the polluters, the stream would gradually return to normal. I viewed the situation with the streams as a matter of balance. Human activities had pushed the chemistry of the water out of balance, which had a detrimental effect on the environment – specifically, the ecology of the stream. But nature has a powerful ability to heal when it is not out of balance. I learned to respect that. We are told that the simplest living cell is many orders of magnitude more complex than the entire non-living universe, including all 1080 atoms in existence. Living things are truly a wonder to behold, and there are so many answers we can glean from observing nature in action. But the typical thinking in modern society has been to develop technologies in a vacuum to accomplish a singular goal, without any specific regard to natural processes. This is true of industrial plants and power plants, and even technologies used to remediate their emissions. We try to capture carbon artificially from the air and inject it underground, hoping it never escapes. We capture solar energy using solar panels which are not economical. We use bacteria to treat wastewater in a very carbon-intensive and energy-intensive process. But nature has better ways of doing these things to restore balance and also meet human needs. The plant kingdom, of course, captures carbon dioxide, fixes carbon into its structure, and releases oxygen in nature. The plant kingdom also uses the sun to effectively store energy that we can access in various forms. When wastewater spills into a lake, algae grow and consume the nutrient content in the wastewater. These processes demonstrate the natural mechanisms that we should be paying attention to. At Brisa International, we believe we should be humble in the face of nature. We respect its amazing ability to heal environmental damage. The future of global talent | 163
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We seek to work with nature’s powerful processes, while adding modern, cutting-edge, innovative ways to channel the benefits of these processes. THE ECOTECH COMPLEX Our approach at Brisa is embodied in our newly released inventive technology called the EcoTech Complex. EcoTech is “Ecology United with Technology”, with ecology coming first. What this means is that we study ecology, and then plan and implement technology with innovative approaches to facilitate and compliment the natural and beneficial processes of ecology. That is what the EcoTech Complex is all about. To us, it is not about inventing the greatest technology for doing one thing in a vacuum. Even the best technology will inevitably have undesirable byproducts and side effects. It is about examining all local resources, including water, waste streams and other inputs and outputs of any systems already operating at a site, and designing integrated systems to restore ecological balance using the highly successful solutions in natural systems. Harmful byproducts of one system become beneficial inputs in other systems. Byproducts are turned into catalysts. With the right approaches, we have found that many byproducts or outputs which are generally considered negative, such as carbon dioxide, and wastes, may be turned into positives and used in extremely productive ways, as they are used in nature. We have discovered that we can achieve astounding efficiencies by working the problem this way. The EcoTech Complex brings together many different types of systems in order to provide a comprehensive and synergistic approach to meeting human needs. Some technology examples in the Complex include a power plant, a wastewater treatment plant, a recycling plant, a combustion-based waste-to-energy/biomass plant, a biofuel plant, a refinery, a packaging plant, and optionally a desalination plant. These different systems are brought together, and designed to share inputs, outputs, and infrastructure in ways that greatly increase efficiency and reduce environmental impact. The EcoTech’s many patent pending synergistic connections increase the value and effectiveness of each of these systems. But, in all of the wonder of having so much raw capability, we had to make sure we were operating within our principles of good stewardship of the ecosystem and balance. These different systems grouped together in our plan form an ecosystem. Power plants are, if you will, in the animal kingdom – they uptake oxygen, oxidize organic matter by combustion and output carbon dioxide in the same way animals uptake 164 | the world in 2050
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oxygen and metabolize organic material into carbon dioxide. A wastewater treatment plant uses bacterial processes to break down organic material, releasing carbon dioxide – animal kingdom. A desalination plant requires a large energy input, which is typically generated by a power plant on the grid – animal kingdom. Combustion-based wasteto-energy plants oxidize organic material to generate energy – animal kingdom. The problem in our society is that we have built too many hungry animals, without balancing them out with the plant kingdom. We have reestablished that balance in our EcoTech Complex, by creating an ecosystem involving a symbiotic relationship between the plant and animal kingdoms in these major systems. The EcoTech Complex is a combined biological and mechanical ecosystem. When Brisa International started this project nearly seven years ago, achieving such a balance seemed too futuristic and out of reach. But after years of intense research and inventive efforts in biology, chemistry, and engineering, we have developed the means to restore that balance. And when it is restored, the results are astounding, both environmentally and economically. It is possible to achieve energy independence and low to zero net carbon even with all of these major industrial systems in play. We believe the energy vs. environment paradigm has now changed. We believe there no longer a need for competition between economics and the environment. We believe we have come to the point, due to invention and wise integration of technologies, that the best environmental approaches are also becoming the best economic approaches, if we pay attention to nature, learn its lessons, and implement its wisdom with judicious thinking that is outside the box. THE SOLUTION So how do we restore the balance we need so desperately between the plant and animal kingdoms? Do we go out and plant a tree for every equivalent amount of fossil fuels we use? Of course that is not a real solution. While reforestation efforts are admirable and important, the issue is that arable land often must be used to grow crops or for other uses. Biofuels are a potential answer to replace petro fuels. However, there is still the problem of land use, and competition with food crops. Cellulosic ethanol also has largely fallen short of expectations. There has not been enough efficiency in land use to make biofuels a major factor on the energy landscape. There is only one real solution to the problem – algae. Please note the following comparison.
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The table here presents some astounding results. While all of the plants shown are used commonly for biofuels, algae far outstrips the highest producers in terms of growth. What becomes evident very quickly, is that algae theoretically is the only biofuel crop capable of achieving the land use efficiency necessary to balance human activities. And based on these numbers, algae can accomplish it without even breaking a sweat. It is mainly due to its astounding growth rate, and the ability to grow algae on non-arable land. For example, in the United States, corn has been used extensively to produce ethanol. It has been estimated that in order to replace all of the transportation fuels used in the USA, the amount of corn needed would take twice the total land area of the whole country. However, algae could replace all of the transportation fuel needs of the United States using an area about the size of a single small state – Maryland, according to the US Department of Energy. The high growth rate of algae has been known for more than 30 years. But some major technical barriers needed to be removed in order for algae to realize its potential. Past implementation efforts have been largely misguided. In our view, algae is like a star player on a sports team. It can play a major role, but it needs teammates. In baseball, the ace pitcher performs the most important role. However, the pitcher cannot be expected to also run around the field and catch every ball that is hit, or to hit all of the home runs. Yet in the past, algae has been treated that way. It has not been implemented in efficient ways, and has not been complemented by the right technologies surrounding it and interacting with it to make it successful. The good news is that when given the right context and support systems, algae thrive on all of the waste we humans are trying to get rid of, and return to us what we, in turn, need to thrive. But the real trick is to find the right “teammates” for success. Brisa has spent many years discovering that context, and creating systems to work together to optimize algae. That idea has been a major endeavor for Brisa that has yielded a wealth of exciting and amazing inventive technology. Brisa’s team has removed technical barriers and has integrated this high-potential technology in synergistic ways into the major industrial systems in the EcoTech Complex. With this now accomplished the 166 | the world in 2050
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algae technology has a home and has become a major transformative factor, in conjunction with other technologies in our design. Along with its promise as a biofuel, algae technology can be adapted to provide effective wastewater treatment. In EcoTech’s systems, municipal wastewater or farm runoff can be treated to a higher degree than traditional bacteria-based systems, especially in regard to nutrient removal, and treatment is accomplished using significantly less energy. Also, in contrast to traditional wastewater treatment, an algae treatment process can reach carbon neutrality, and useful biomass is generated, which may then be used as a biofuel or to make an array of non-fuel bio-products. The EcoTech has implemented powerful innovative technology designs in order to effectively use algae in this role. Carbon dioxide has simply gotten well out of balance today, and there are no good solutions on the horizon, except one – algae. If all of the transportation fuels in the US can be grown on non-arable land (even desert) the size of Maryland, using algae as the US DOE has said many times, and technologies like the EcoTech can make it viable, then we have truly found our solution. At present algae consume more carbon dioxide and produce more oxygen than all other plants combined! If we can grow our fuels, sacrificing minimal non-arable land, and have a zero carbon footprint, it is by far the most attainable way to reach renewable energy goals and bring the carbon equation back into balance universally. And as time goes on, the algae technology will get better and better. At the EcoTech, we use algae to consume carbon dioxide from power plants, and waste-to-energy systems. We can then use algae fuel generated as a substitute fuel for power plants, which can then become carbonneutral multi-pass systems. Or algae can be turned into all of the same kinds of transportation fuels and heating fuels we derive from petroleum. If all emission are captured and turned into more permanent products, such as bioplastics, the system becomes carbon negative. In sum, the EcoTech can mitigate power plant and WTE emissions, turn wastewater treatment into a carbon-neutral process, and from those inputs, create carbon-neutral biofuels. These processes can be accomplished with astounding efficiency, creating major economic benefits as well. FLEXIBILITY AND VERSATILITY We believe the EcoTech embodies the best solutions now and for the future, because: It works with completely natural processes that have the power to accomplish the goals society needs in water treatment, water supply, pollution abatement, green energy, biofuels and bio-products. And it works with existing infrastructure and local The future of global talent | 167
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resources. Many times systems are built in isolation. The result is inefficiency and environmental damage. While the EcoTech has cutting-edge designs, it is designed to also fully integrate with any existing technologies. We add new, innovative technologies to existing technologies. For example, any existing combustion-based power plant can serve as the power plant in the EcoTech design, including the most polluting, such as coal or fuel oil, or industrial plants which are major polluters, like cement factories. If some pollutants may become too excessive for the algae, Brisa has designed inventive systems to mitigate and regulate those constituents. We focus on turning harmful outputs of different systems into catalysts in other systems. Where waste streams exist, they will become valuable resource streams in the EcoTech. The EcoTech is flexible as to local resources in the following areas: Water: Input to the EcoTech system may include any water type(s) available locally, including fresh water, wastewater, salt water, or brackish water. No net consumption of water is needed. Water is used to transfer materials through many levels of the design, to carry and transfer heat, to dilute, and in the algae system. All water is conserved and reused in other systems where possible. The EcoTech was designed with the perspective that every drop of water is precious. Land: the configuration and characteristics are very flexible. The algae component is by far the most land efficient biofuel technology in the world, and can utilize non-arable land. Waste Streams: The EcoTech works effectively to turn whatever waste streams are available locally – solid waste, wastewater, carbon dioxide and other harmful emissions from potential negatives to decided positives. All of these waste streams are put to use in creating energy or valuable non-fuel products at low to zero carbon footprint. Climate: Brisa has created breakthrough approaches that enable the algae technology to thrive in just about any climate, even those normally too cold for it. Heat: The EcoTech has the most unique means to conserve and use heat productively ever conceived in any industrial system. That is because heat is another major negative that we can turn into a major positive. In combustion-based power plants, a portion of the heat generated by the fuel is used to perform work to generate power. Another portion of the heat, however, must be removed from the system. The portion of 168 | the world in 2050
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heat that is removed is commonly referred to as “waste heat”. Waste heat comprises approximately 40% to 75% of the heat generated. That is a huge proportion of the fuel value. In many cases, cooling water is drawn into these plants from local sources and heated to unnatural levels, and then discharged back into the environment. This can cause severe damage to the environment. In other systems, heated water is sent to evaporation towers. A portion of the water is evaporated off in order to cool the remaining water. A significant amount of water is lost as this process continues over time. That is not a good solution going forward, as water becomes more and more a critical resource. Recently an article was published about a power plant in the United States which discharged waste heat into a nearby river. The river was heated to a point that unnatural algae blooms occurred for miles downstream of the plant. The power plant’s heated discharge had elevated the water temperature to a level that was in the “sweet spot” for accelerated algae growth. This was considered a problem, and a discussion ensued about how to kill the algae by adding chemicals to the stream. Whoa, Nellie, talk about working against nature! We humans create a problem, and then we propose to fix it with a completely unnatural and probably much more destructive solution. Yes, we will make the stream nice and clean by killing the algae with chemicals, but how many other aspects of that ecosystem have we will also wipe out by further changing the balance of nature with not only heat, but also chemicals? HEAT IN THE ECOTECH But there are very good solutions to this problem. Again if we study the lessons of nature, we will realize that waste heat is a very valuable resource that can be put to good use. With about 40 to 75% of the heat generated in power plants taking the form of waste heat, a huge problem stands to become a huge opportunity. The EcoTech puts heat to use in many innovative and productive ways. In the EcoTech plan, we are intentionally growing algae in controlled systems. Power plant waste heat is used to regulate the temperature of all algae systems using our patent pending processes. This is another example of a teammate coming alongside the algae technology to help it. Algae can normally grow only between approximately 37o N and 37o S latitude, but with much better results in warm, stable climates. This restriction is not due to the sunlight resource, which is sufficient in many locations around the world; rather it is due The future of global talent | 169
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to temperature. But with Brisa’s many designs to deliver waste heat, algae can now be used in a wide range of climates. This provides a huge step forward for the technology. If algae can be grown effectively throughout most of Europe, Asia, and North America, where it would normally be too cold, it greatly multiplies the versatility of the technology. These systems also serve to dissipate the waste heat gradually into the environment, where it can cause no harm. Brisa has developed many other highly innovative ways to use waste heat in the EcoTech. These applications greatly increase the efficiency of the other systems in the design, while mitigating environmental damage. That is turning a negative into a positive! Pollution Control: because the EcoTech uses power plant exhaust to grow algae, and we are interested in capturing emissions, as well as regulating their flows, and treating any pollutants that would harm the algae, Brisa has developed some amazing exhaust gas recovery, treatment, and regulation designs. Some of these designs may be used either with or without algae systems to reduce harmful emissions. In conjunction with algae, the results are very impressive. We feel we will be able to implement major emissions reductions in even the most polluting plants, including coal, fuel oil, incinerators, or other systems. EcoTech can be used as a powerful means to mitigate emissions from existing power or other industrial plants. Brisa is currently in process to begin studies at six international locations where power plant pollution is a crippling issue. In two of the locations, the plants are unable to meet local emissions standards, and have been partially or fully shut down. Brisa anticipates the ability to mitigate all emissions issues at those plants, and to reclaim all of the infrastructure in place that is sitting idle. Over time, inexpensive algae biofuels may be used in the plants to replace the fuels currently causing the emissions issues, and these plants may become energy independent and near zero carbon footprint. Clean burning carbon neutral transportation fuels may also be produced. We at Brisa International are proud to introduce the next generation in pollution control, green energy, water supply, water treatment, and waste treatment, the EcoTech Complex. There are many more features at work in the EcoTech Complex, which we would be glad to discuss. For more information, please visit our website at www.brisainternational.com, or contact us in the USA at (770) 495-2300. 170 | the world in 2050
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