Tag Archive for: education

Andrew Stegmann

WEF’s 2019 Global Competitiveness Report: Singapore Overtakes USA for Number 1 Spot. Where Does SA Stand?

Ten years on from the global financial crisis, the world economy remains locked in a cycle of low or flat productivity growth despite the injection of more than $10 trillion by central banks. The latest Global Competitiveness Report paints a gloomy picture, yet it also shows that those countries with a holistic approach to socio-economic challenges, look set to get ahead in the race to the frontier.

The World Economic Forum‘s (WEF) latest Global Competitiveness Report 2019 showed that Singapore has overtaken the United States to become the most competitive nation in the world. The US is losing ground in measures such as “healthy life expectancy” and preparedness for the future skills needed in the 21st century, the report says.

Some of this year’s better performers appear to be benefiting from the trade feud between China and the US, including Singapore and Vietnam. Led by Singapore, the East Asia and the Pacific
region is the most competitive in the world.

Covering 141 economies, the index measures national competitiveness—defined as the set of institutions, policies and factors that determine the level of productivity and long-term economic growth.

The report measures the strength of 103 key indicators, such as inflation, digital skills and trade tariffs, arranged into 12 pillars. Each indicator, or ‘pillar’ uses a scale from 0 to 100, to show how close an economy is to the ideal state or ‘frontier’ of competitiveness in that area. With a score of 84.8, Singapore is the world’s most competitive economy in 2019, overtaking the US, which falls to second place. Hong Kong SAR, Netherlands and Switzerland round up the top five.

Top 10 performers on the 2019 WEF Global Competitiveness Report.

“The world is at a social, environmental and economic tipping point. Subdued growth, rising inequalities and accelerating climate change provide the context for a backlash against capitalism, globalization, technology, and elites,” the WEF warned.

“There is gridlock in the international governance system and escalating trade and geopolitical tensions are fueling uncertainty. “This holds back investment and increases the risk of supply shocks: disruptions to global supply chains, sudden price spikes or interruptions in the availability of key resources,” it said.

Singapore

Singapore has long been a thriving global financial center, and has built itself up despite limited land. After early years of turbulence and despite lacking natural resources and a hinterland, the nation developed rapidly as an Asian Tiger economy, based on external trade and its workforce.

The city-state is classified as an Alpha+ global city, indicating its influence on the global economy. Singapore is the only country in Asia with an AAA sovereign rating from all major rating agencies, and one of 11 worldwide. Singapore is a highly developed country and is ranked 9th on the UN Human Development Index, the highest in Asia for a sovereign state, with the 3rd highest GDP per capita in the world. It was ranked the most expensive city to live in from 2013 to 2019 by the Economist, and is identified as a tax haven.

Along with benefits from the ongoing US-China trade war, Singapore’s financial system and macroeconomic stability raised its rating.

Singapore ranked 2nd overall in the 2018 report. This year, the country ranks first in terms of infrastructure, health, labor market functioning, and financial system.

While Hong Kong was penalized in points for their lacking worker protection (scoring only 10 points, and ranking 116th in the category), Singapore ranked well, scoring 89 points, and ranking 18th for worker protection.

Singapore improves from an already high base on 10 of the 12 pillars, and its score on every pillar is between 4 and 19 points higher than the OECD average. The country ranks first on the Infrastructure pillar (95.4), where it also ranks first for road quality infrastructure, efficiency of seaport and airport services, and sea transport connectivity. It also tops the Health (100), Labor market (81.2) and Financial system pillars (+2.0 points, 91.3), and achieves a nearly perfect score for Macroeconomic stability (+7.1, 99.7, 38th).

Performance in terms of market efficiency (81.2, 2nd behind Hong Kong SAR) is driven by the fact that Singapore is the most open economy in the world. Singapore ranks 2nd (80.4) for the quality of public institutions, behind Finland, but its performance is undermined by limited checks and balances (65.9, 23rd)—Singapore notably ranks 124th on the Freedom of the Press Index—and lack of commitment to sustainability (63.5, 66th). Going forward, in order to become a global innovation hub, Singapore will need to promote entrepreneurship and further improve its skills base, albeit from a relatively high base (78.8, 19th).

Southern Africa

Led by Mauritius (52nd), sub-Saharan Africa is overall the least competitive region, with 25 of the 34 economies assessed this year scoring below 50.

South Africa, the second most competitive in the region, improves to the 60th position, while Namibia (94th), Rwanda (100th), Uganda (115th) and Guinea (122nd) all improve significantly, the WEF showed. Among the other large economies in the region, Kenya (95th) and Nigeria (116th) also improve their performances, but lose some positions, overcome by faster climbers, the report said.

South Africa

South Africa’s competitiveness has regained momentum after the recent political landscape shift and climbed seven places in 2019. The country is a regional financial hub (83.2, 19th), with well-developed equity, insurance and credit markets, all achieving a score of 100, the report said.

South Africa’s WEF Global Competitiveness Report 2019 scores.

It has also developed one of the most advanced transport infrastructures in the region (45th) and is among the top countries in Africa for market size (35th). Beyond these established strengths, health conditions—though starting from a low base (118th)—are better, adding 3.3 years to the average healthy life expectancy since the last assessment. Institutional quality has also improved (55th) but unevenly, the report said.

Some aspects of this category have achieved ‘remarkable progress’, including restored balance of powers across different state’s entities (16th), enhanced administrative efficiency of the public sector (39th) and corporate governance (26th).

Other aspects however, continue to perform poorly: security (135th) remains one of the main restraints to South Africa’s competitiveness, while transparency (62nd) and government adaptability to change (100th) are also below par, the report said.

“Further, South Africa’s competitiveness is being held back by relatively low business dynamism (60th), which is inhibited by insolvency regulation and administrative burdens to start a business, and a persistently insufficient labor market flexibility (111th),” the WEF said.

The report showed that flexibility of wage determination is limited (134th) and hiring foreign labor is difficult (123rd). “South Africa’s sensitivity to exports of mineral resources is likely to hit the country’s economic outlook and will make reducing unemployment (projected above 27%) challenging. “Against this backdrop, structural reforms are needed tore-ignite the economy and offer better opportunities to a larger share of South African citizens.”

How to get to number 1

The index examines the relationship between competitiveness and the two other dimensions of sustainable development – social cohesiveness and environmental sustainability. It shows that there are no inherent trade-offs between competitiveness and sustainability, and between competitiveness and social cohesiveness. This suggests a “win-win” policy space, where a productive, low-carbon, inclusive economy is possible, and it is the only viable option going forward.

  1. Be an all-rounder: The report is a reminder to apply a holistic approach and to better balance short-term considerations against factors whose impact is felt beyond quarterly results and election cycles. For example, the results of the index show that labor and education policies have not been keeping up with the pace of innovation in most countries, including in some of the largest and most innovative economies.
  2. Integrate tech: Governments must better anticipate the unintended consequences of technological integration and implement complementary social policies that support populations through the Fourth Industrial Revolution. The report shows that several economies with strong innovation capability like South Korea, Japan and France, or increasing capability, like China, India and Brazil, must improve their talent base and the functioning of their labor markets.
  3. Education: Talent adaptability is critical. It pays to enable the workforce to contribute to the technology revolution and to be able to cope with its disruptions. Talent adaptability also requires a well-functioning labor market that protects workers, not jobs. Advanced economies such as South Korea, Italy, France and, to some extent, Japan need to develop their skills base and tackle rigidities in their labor markets.

To read the full report, click here.

 

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Sources: [1], [2], [3], [4]. Image sources: [1], [2].

Andrew Stegmann

Challenges of an African education

In addition to immigration complexities, security issues and cultural considerations, families relocating to Africa face the challenge of choosing a suitable education pathway. We look at the options.

Assignees moving to Africa often find the process uniquely challenging, owing to immigration complexities, security issues and cultural considerations. Those with school-age children face the added challenge of choosing a suitable education pathway. We look at the availability of international schooling in the region, and offer advice to help parents choose a school.With significant economic growth and one African country forming the ‘N’ in MINTs (Mexico, Indonesia, Nigeria and Turkey), the countries expected to become economic powerhouses of the future, the continent of Africa is coming into sharper focus in the world of global mobility as organisations across the world, in search of growth, look to it for new opportunities.The latest reports bear this out. EY’s 2016 Africa Attractiveness survey, Navigating Africa’s Current Uncertainties, found that, despite current uncertainties, the longer-term outlook for economic growth and investment in Africa remained positive.“The next few years will be tough – partly, even largely, as a result of a fragile global economy – but many African economies remain resilient, with two-thirds of sub-Saharan African (SSA) countries still growing at rates above the global average,” said the report.Even though growth across the region is uneven and likely to remain slower in coming years, SSA will continue for the foreseeable future to be the world’s second-fastest-growing region, after emerging Asia. Kenya, Tanzania, Mozambique and Ivory Coast are among 17 economies in the region that are forecast by the International Monetary Fund (IMF) to have grown in 2016.Larger SSA countries, such as Nigeria and Angola, have been particularly affected by lower oil prices, and growth in South Africa remains slow.Foreign direct investment (FDI) projects increased by 7 per cent year on year, from 722 in 2014 to 771 in 2015. Africa is one of only two regions in the world to have seen growth in the number of FDI projects over the past year.

School choice

Luckily, international schooling has also seen something of a boom in the region. According to the latest figures from the International School Consultancy (ISC) Group, there are currently 792 English-medium international schools throughout Africa, between them teaching more than 339,000 students. ISC Research predicts that there will be more than 1,500 such schools by 2025.

Source

Andrew Stegmann

The innovators are offering expats more affordable schools

A few years ago, competition for places in Dubai’s best international schools was so intense that British expat Jemma Schilbach felt she had to get her two children on the waiting lists for her preferred schools before they were even out of nappies.
Work ended up taking the family away from Dubai for a couple of years. When they returned in 2014, they were relieved to discover there were plenty more schools to choose from, but there was another issue: cost.
Both Schilbach and her husband, who’d previously worked in jobs where companies paid for children’s schooling, were now self-employed, and would need to pay for their children’s education themselves.
Schilbach, 43, who now runs expat community website BritishMums.com, enrolled both her children at Foremarke Dubai, which is affiliated with the UK independent school Repton.
She was impressed with the small class sizes and Foremarke’s reputation, but with tuition fees there starting at 65,000 AED ($18,000) a year, it meant the family had to be more careful about spending to ensure they had the money to send their children, aged five and seven, to the school.
“We economise on other costs during the year,” says Schilbach, adding that ordering some household items from the UK and closely watching what the family spends on weekends have helped to save pennies. “In our opinion, the money is better spent on educating our children to a high standard.”

No more bells and whistles

As expatriate contracts change and people accept more flexible benefits, move onto localised employment packages or decide to find their own jobs overseas, finding the money needed for education is a growing challenge for families living abroad. In Dubai, for example, falling oil prices have led to many employers cutting the salaries and benefits packages they are willing to offer their expat staff. It leaves many expats no option but to pay for their children’s schooling themselves, partially or in full.

The cost of education is among the most popular topics of discussion on BritishMums. “It’s an employer’s market,” says Schilbach, who founded the site in 2012. “The old-time expat contracts are few and far between these days.”
This month, in a survey by HSBC involving nearly 8,000 expat parents, 62% said it was more expensive to raise a family overseas than at home. Some 58% mentioned that the cost of childcare, in particular, was more expensive.
A separate survey by Singapore-based advisory service ExpatFinder.com, which covered 98 countries and 707 international schools, found fees rose 3.43% last year compared with the year before.
The most expensive schools for international education were in China – median fees for children aged 11-12 came in at $36,400 a year – followed by Switzerland ($28,300) and Belgium ($27,800), according to the survey. But international education in Britain, Hong Kong, the US, Singapore and Australia also cost more than $20,000 a year. Schools may also charge extra for uniforms, examinations, extra-curricular activities and even books.

“Schooling has become very expensive over the years,” says Sébastien Deschamps, ExpatFinder’s chief executive and founder. “That’s a challenge not only for the expatriate, but also for HR professionals because they still need to attract foreign talent and find ways to keep them.” He advises parents moving abroad to engage a local specialist and thoroughly research full education costs before agreeing benefits with their employer.

Alternative options

The competition has intensified as international schools are pitched more and more at local families looking to give their children an English-language education set to an international curriculum. That demand, along with the soaring fees, has led many expatriate parents to explore options beyond the traditional – and usually expensive – international schools.
Depending on language and local laws some may be able to send their children to state schools within the country where they’re working. Other possibilities include home-schooling, boarding in their home country or taking short-term or commuter deployments so their children don’t have to move at all.
Mostly, however, families are looking towards more affordable schools.

Emma McHugh, a 39-year-old mother of three and Schilbach’s co-founder at BritishMums, is in the process of returning to Dubai from Abu Dhabi. Her children will start at Safa Community School in September, where tuition fees start at 47,000 AED ($12,800).
While her choice wasn’t all about the cost – Emma felt the school had the feel of a typical UK primary with an emphasis on nurturing and care – discounts for siblings, parental referrals and the lower tuition fees came as a “huge bonus,” she says.
This new demand for affordable schooling options has encouraged some countries with sizeable expat communities to tackle the problem head on. In Malaysia, a deliberate government policy to support the development of international schools, setting aside 777.8 million ringgit ($179 million) for 2013-2015 for the purpose, has created more choices for parents whether foreigners or locals.
There are now 170 international schools across the country, from expensive established institutions such as the Mont Kiara International School, which follows a US curriculum, and the non-profit Alice Smith School, to established local chains and newcomers offering British, Canadian and Australian curricula. More are due to open in 2018.
In Singapore, the opening of Invictus Private School in August last year, founded by a tech entrepreneur with fees of about S$15,000 a year ($10,600), has also focused attention on the need for more affordable education for foreigners.

Since 2008, Singapore’s Economic Development Board has held a series of “Request for Interest” exercises for international schools, offering long-term leases on land. In April, it announced a tender to convert a former government secondary school on the west side of the island into an affordable international school.
“Foreign system schools play a part in strengthening Singapore’s position as an attractive global city,” explains Marcus Dass, director of human capital at the Economic Development Board in a statement. “While many existing foreign system schools in Singapore have been delivering high quality international education, there are requests for more affordable and diverse school options.”

Meeting expectations

Even at schools with lower fees, parents’ expectations remain high.
Many prefer teaching to be led by native English speakers, and International School Consultancy, which tracks the international schools market worldwide, expects demand to intensify for the best and most experienced teachers. With fees generally reflecting teachers’ salaries, and Western-trained, native English speakers in highest demand, schools need to perform a careful balancing act to maintain affordability and attract the best staff.

“The reputation of the international school market is such that schools that severely lack facilities, resources and quality teachers often lose favour and their enrolment declines,” says Richard Gaskell, schools director at ISC Research. “Such schools would [also] struggle to gain any reputable accreditation or quality inspection result, which many parents use to make their selection.”

ISC advises parents to check schools’ accreditation, examination board authorisation and membership of school associations such as the Council of British International School (COBIS), and the Federation of British Schools in Asia (FOBISIA).
For Yvonne McNulty, who’s lived in Singapore for 12 years and is a senior lecturer at Singapore University of Social Sciences specialising in expatriation and HR research, it’s all about “bang for the buck”. McNulty recently moved her children to Dulwich College, which opened in Singapore in 2014, where she feels she gets better value for money than the school where they were previously enrolled.
International schooling is “a hot button issue,” says McNulty. “It’s not just financial, it’s also emotional. There’s a lot of guilt linked to moving abroad so (parents) want to make it up to their children.”

The original article can be viewed here.