The World is Getting Flatter

I recently finished reading The World Is Flat by New York Times columnist Thomas Friedman. Of the many excellent points that he makes, one of them is that many educated workers in other countries no longer need to come to America to achieve the American Dream.  An article in the Shanghai Daily makes this point. 

The article, titled City Lures Back Overseas Workers, mentions that it is having great success luring back educated Chinese from countries like the United States and Great Britian.  Of the workers returning, 98% have a university degree, 23% have PhD's and 63% have Masters degrees.  It also mentions that private employers are powerful magnets for returning workers.  No longer do they need to leave their home and family to achieve their potential.  Due to China's aggessive entry into world markets, Shanghai is able to offer it's citizens multiple opportunities for professional achievement.

In the coming decades, American companies will have to compete more and more for educated workers.  It has been noted many times that American universities are not churning out near enough scientists and engineers to meet the future demand.  Until now, we've been meeting that need by 'importing' educated workers from countries like China and India.  As more and better opportunities become available to the citizens of those countries, American countries will be left scrambling.

China Growing Faster Than Previously Thought

An interesting report is out that shows China growing faster than previously thought.  That's because they changed the way they count economic growth.  By taking into account emerging service business, China pegged it's 2004 growth rate at 16.8%.  The newly revised figure places China as the world's sixth largest economy.

I don't find these numbers suprising at all.  My recent time in Shanghai revealed a nation determined to move into the pantheon of developed countries.  Investment in basic infrastructure is strong and Chinese universities are producing large numbers of educated workers.

The result of all this is that China is and will continue to be a good choice for multi-national corporations looking for a place to locate Shared Service Centers.  Low cost, the Chinese work ethic, and the country's commitment to economic development should place China on the short list of places to locate workers.