Solving Detroit's Problems

America has several things going for it.  However, I am going to focus on just two things that foreigners salivate about – American education and H-1B visas to work in America.  This will make my job easier in recommending solutions to the Detroit problem. 

Let me first handle American education.  Chinese and Indians are the two largest foreign groups of students making a beeline to US universities in spite of high tuition fees.  So, let me suggest that the Michigan Government decide to offer admission to the first 100,000 undergraduate international student applicants  at a tuition fee of not more than $10,000 per year.  At this tuition rate, getting 100,000 foreign students to the state university of Michigan is not at all a problem.  Every foreign student coming to any of the State Universities of Michigan will spend another $10,000 on living expenses and that is $1 billion of spending that will galvanize the Michigan economy.  Take a surcharge from that to pay Detroit.

The second suggestion is to issue 200,000 H1B visas to foreign employees of IT companies as a one-time emergency measure with 2 conditions – (1) the companies need to pay a surcharge of $10 per hour of work to the Michigan State Government for the first 5 years, and (2) the IT companies should employ these foreign H1B workers only in the state of Michigan for 5 years.   IT companies such as IBM, Accenture, CSC, Capgemini, TCS, Infosys, Cognizant, and, Wipro will gladly grab these H1B visas.  This will fetch $4 billion in such surcharge per year.  The state taxes from the employee income is another $500 million.  These employees will spend on housing and other assets in the state that will also enrich the state economy.  Use a surcharge from this to pay for Detroit.

My job as an academician is to offer suggestions; I have done it now.  Do not ask me how to implement these suggestions.  It is for the Michigan Governor and the Detroit Mayor to figure out; they are the ones who have the mess to clean up.

- Sankaran Raghunathan

Dean, The National Management School

 

Making an American Undergraduate (bachelor’s) education come true – Part 2

The American Undergraduate Degrees and how they are different from the Indian Bachelor’s Degree

In India, a student usually enters a college or university after Plus Two, enrolling into a specific degree with a major, selected at the time of applying to the school. In the three or four years of the bachelor’s degree program, the student takes a predetermined series of courses in a predetermined order. In other words, the student’s college coursework and route to graduation is charted out very clearly at the time of entering the program. At the end of three or four years, the student gets a B.A., B.Sc., B.E., B.Tech., or B.Arch degree.

The American undergraduate program on the other hand is extremely flexible, and can be completed in three to seven years (or more), with the student taking as many courses as they can afford to pay for, in the areas that interest them. Students do not have to declare a major until they have completed two years of college, or some level of basic coursework. The average American undergraduate degree program takes four years, and the student completes around 120 credits of study in subjects that include General Education, Core Requirements, and Free Electives.

Interestingly, a lot of American students do not complete all of their undergraduate coursework at the same institution. They do the courses in multiple institutions. The choice of these institutions is determined by factors like cost, proximity to home town, choice of courses offered, and the ease of getting into the institution. The varieties of institutions that offer college level courses are community colleges, four-year colleges, private and public universities. Community colleges are two year public institutions that offer Associate Degrees. Four year colleges give the two year Associate and the four year Bachelor’s Degrees. Universities can offer the Bachelor’s, Master’s and Doctoral programs and degrees.

This movement from institution to institution is possible because of a concept called “College Credit Transfer”. Any student who applies to a US university will see the following options listed in the choice of programs – First Year student, Transfer Student. This is because a lot of students find it more convenient to study closer to home at a Community College or a 4-year College, and then transfer for the final two years to a four-year College or to a university.

 (See this section on Wikipedia for a concise description of how college transfers work: http://en.wikipedia.org/wiki/College_transfer).

Two year degrees come in a variety of flavors: Associate of Arts, Associate of Science, Associate of Applied Sciences, and very specific two year degrees that train for a specific career or vocation. The two-year Associate of Arts degree is awarded after two years and sixty credits of course work. The course work can be targeted towards a specific major such as sociology or economics, or it can be in General Studies. The course work can be transferred to another institution for a higher level degree, if that institution accepts the level of the coursework.

So while getting an Associate degree, a student who aims for higher education should be smart enough to target the requirements of the next level of study while choosing the coursework for the Associate degree. The structure of the Associate degree starts with the next degree, the Bachelor’s degree, and the major that the student is interested in. This will help the student work backwards and structure the Associate degree to fulfill the requirements of the bachelor’s degree. Knowing which university the student wants to go to makes this process easier, as the student can then tailor the associate degree according to the university’s requirements.

Making an American Undergraduate (bachelor’s) education come true – Part1

An American four-year Bachelor’s degree (undergraduate degree as it is called) is a great educational experience. It combines unique campus experience and quality of teaching found only in US universities. It has content and style.

Indian parents recognize the American bachelor’s degree to have value, but not many families send their children to the USA for a bachelor’s degree. The reasons for this are many:
- A bachelor’s degree in the USA is quite expensive, and not many can afford four years of tuition and hostel expenses
- Parents are not comfortable sending eighteen year old students just out of high school so far away
- Parents may not feel that children are mature enough to handle the transition
- Children may not feel capable of going away from familiar surroundings just yet
- Children may feel doubts about their ability to handle American style teaching, and cope with the cultural changes at the same time

Recognizing these misgivings, many American universities are now entering into collaborations with Indian institutions where students can do two years in India, and then complete the remaining two years in the USA. This collaboration comes mainly in two flavors:
- the 2+2 program where the student gets an Associate degree at the end of the first two years, and then transfers to ANY American university of choice
- the twinning program where the student completes two years in India, and transfers to the specific university with which their institution has a collaboration

The primary differences between these two types of collaborations are:
- at the end of the 2+2 program the student gets a Associate degree; at the end of two years of the twinning program, there is no degree awarded. The degree is awarded only after four years.
- in the 2+2 program, the student can transfer to any American university for which they fulfill the transfer criteria; in the twinning program, the American university is pre-determined

This 2+2 structure is possible because of the nature of the American bachelor’s degree program. Every undergraduate program in the USA requires the student to complete a given number of credits in General Education which covers English Language, Humanities, Social Sciences, Natural Sciences and Quantitative techniques. This is regardless of whether the major is arts, science, business or engineering.

The split program described above allows the student to complete the General Education requirements in India, in a homely atmosphere, with the support of family, and at less expense, and then transfer to an American university for their education in America to complete the major requirements. It allows the student to get familiar with American style curriculum and teaching. It helps the student to do independent research and team collaborations, which are important in an American curriculum. It helps the student handle any weaknesses the student might have in math or sciences or any other subject, here in India, before moving to the USA.

Doing part of the degree in India reduces the cost for families and makes it possible for more students to get an American bachelor’s degree. The tuition cost in the 2+2 program can get reduced by 50% depending on the program and facilities offered.

The 2+2 program enables the students to get American style education, here in India, and facilitates a transfer in the third year, when the student is older, and presumably more mature and capable of being away from home. This program helps students realize their dream of an undergraduate American education

How to save a sinking ship

I was seeing the news about the sinking cruise ship off the shores of Italy and it suddently struck me that this whole episode can teach us lessons on how to handle the sinking European economy.

When the ship got hit on one side and water entered, the ship tipped to that side and started sinking. The other side of the ship lifted up because that side became lighter. There was not enough weight on the other side to lift up the side which had the hole.

Currently with the European countries hit by heavy debt, it is like the side of the ship that has the hole. If we are to prevent the global crisis, then we need to put enough weight on the Asian side of the globe so that we lift up the European side of the ship that is sinking. However, what is happening is that, in fear, investors are pulling out of Asia; this is equivalent to what happened to the ship - the other side lifts up and gets dragged down.

Asian Government have a responsibility not only to their countries but to save the global ship that is sinking. They need to invest heavily in their countries - Government spending has to go up, consumption should be encouraged, and private investment should be encouraged and made easier not only for local investors but also for foreign investors. They should do so by closing the shutters on that side of the ship that has the potential to drag the good side of the ship. This means that Asian Governments should ensure that the contagion that is sinking the European side does not spread to Asia.

India has a tremendous opportunity now to show economic leadership.

Sankaran Raghunathan
Dean of
National Management B School, India 

How to Control Black Money

Prof. P.V. Indiresan, our Chairman, has written a wonderful article on how to control black money. The article appeared in The Hindu BusinessLine in October 2011; the link is here:
http://www.thehindubusinessline.com/opinion/columns/p-v-indiresan/article2559544.ece?homepage=true

I think that it is a great idea to issue a high value currency note, say Rs.500 and Rs.1000 notes, with a time limit. After the expiry, the expired notes have to be deposited in a bank account to gain value. This way, black money in the form of cash stashed away needs to come out in the open through bank accounts.

comments are welcome.

National Management B School in India

Reserve Bank of India raises rates

The Reserve Bank of India has raised the rates once again by 0.5% in the belief that this will curb inflation. This seems to me like the behavior of a student in Economics 101 class who simply and blindly believes that the relationship between interest rate and inflation is so straightforward that he uses interest rate as the only answer to handle inflation. I wish our RBI Governor and the mandarins of our macro economic policy are more creative.

National Management B School, Chennai

India-US Joint Statement - Hillary Clinton and SM Krishna

I post below portions of the statement issued by the Indian External Affairs Minister Mr. Krishna and the US Secretary of State Ms. Hillary Rodham Clinton during her visit to India in July 2011, that are relevant to education:

Education, Innovation, Science and Technology
• The United States and India plan to host a Higher Education Summit in Washington DC on October 13 to highlight and emphasize the many avenues through which the higher education communities in the United States and India collaborate.
• The United States and India plan to expand its higher education dialogue, to be co-chaired by the US Secretary of State and Indian Minister of Human Resource Development to convene annually, incorporating the private/non-governmental sectors and higher education communities to inform government-to-government discussions.
• As part of the Obama-Singh 21st Century Knowledge Initiative (OSI), the two governments announced the publication of their requests for proposals from post-secondary educational institutions that support OSI’s goals of strengthening teaching, research, and administration of both US and Indian institutions through university linkages and junior faculty development.
• The United States created the Passport to India initiative to encourage an increase in the number of American students studying and interning in India. The leaders recognized the great bridge of mutual understanding resulting from the more than 100,000 Indian students studying and interning in the United States.
• The United States’ Department of Energy and India’s Department of Atomic Energy signed an Implementing Agreement on Discovery Science that provide provides the framework for cooperation in accelerator and particle detector research and development at Fermi National Accelerator Laboratory, Thomas Jefferson National Accelerator Facility, and Brookhaven National Laboratory.
• The India-US S&T Endowment Board, established by Secretary Clinton and Minister Krishna in 2009, plans to award nearly $3 million annually to entrepreneurial projects that commercialize technologies to improve health and empower citizens. The two sides are strongly encouraged by the response to this initiative, which attracted over 380 joint India-US proposals. The Endowment plans to announce the first set of grantees by September 2011.
• The India-US S&T Forum, now in its tenth year, has convened activities that have led to the interaction of nearly 10,000 Indian and US scientists and technologists.
• As a follow up to the successful India-US Innovation Roundtable held in September 2010 in New Delhi, the two sides agreed to hold another Innovation Roundtable in early 2012.
• India and the United States plan to host their third annual Women in Science workshop in September 2011.

National Management B School, Chennai