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of 96
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TalenT and human capiTalfor The Brazilian invesTmenTand Business huB eembe / 2011
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TalenT and human capiTal
for The Brazilian invesTmenTand Business huB eembe / 2011
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4 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
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B tt t w q gt w: t t tk gwt -t, t gt g b t t t t gwt.i t w, t t gwt t e at pt b
g t t t tt . T g t t t w t t t & tg bt1 g t tt b t tt tg t t tt tt b b.
T t Bran (B itt ng B itt B) t bt, tg tt t, t b ttt, tt t ttt attt B tt tt b b, b Bran J 2011. i t t tg gt t ttt t B tt , t t b t t w t tg b t q g b
, w t b t B t tt.i g t t, Bran bk t t t b T Bt ctg G, w tw wk wt t gt t t t.T t t, g t ggt g t tt t, w t g t g Bran t gg wt b t tt t tt B t t t tt t b ttt tt tt b b.
Create in 2010, BRAiN aspires to ensure the creation of a multi-sector vision of Latin
America as a regional business hub ith strong ties beteen members. Brail shoul
pla a preeminent role ithin this netor of hubs.
BRAiN plans to create a consensus an calls to action aroun this iea in all econo-
mic sectors. To achieve this, it currentl has 13 members: ANBIMA, BM&FBOVESPA,
FEBRABAN, Fecomercio, Banco Braesco, Banco o Brasil, Banco Santaner, Banco
Votorantim, BTG Pactual, CETIP, Citiban, HSBC an Ita-Unibanco.
Please go to .brainbrasil.org for more information about BRAiN an its vision.
preface
1mbt btg w t B B w b t wk
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6 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
et s 8
Tt b b 16
dg 22
et Tg 26
Qtt t 34
Qt t 39
agt btw t t kt 55
itt t tg 65
Tt bt 74
B g 74
B 82
c 88
conTenT
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 7
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8 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
T t tt attt B tt tt b b, w Bran J 2011, q t t , w tw wk wt t bt t b t t. T bjt w t t ttt B tt b b.
T t t t w t tt ttt Bran t t -qt t t ttt tt b b (see Exhibit 1), B tgt tt t t. T t t t Tt h ct .
it t b tt Bran t t tt k . T t t t t t tg b, t g t tt t t. T g tt tt t t gwt t q b, bt t tt tt bb. Tt w b t t w b t .
T B tt t t w w t t tttt g t t Globl Tlnt indx2 t k 25t t 30 t, 3 t 10 t lt a. i t, g t bb hr tg mw3, t t t t t t g t b t.
ctg tt b t t: g, t tg tt bt (see Exhibit 2). a t t tw tt B t tg t, t q t t t t . pb t t t w g t tw wk t
b Bran wt t t t t t, gg t t ggtt t t.
execuTive
summary
2 s: hk &stgg, Gb Tntinx
3 s: mnw2010 Tnt shtgrt
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 9
exhiBiT 1a b tt b t b
5. Financial inFrastructurE
1. MacroEconoMic EnvironMEnt
2. institutional EnvironMEnt
3. talEnt and huMan capital
4. physical inFrastructurE
6. connEctivity
7. iMagE oF thE country
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10 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 2T B tt t t: g, t tg bt
Components of the Brailian talent pool
TRAINING ANd EdUCATION
Traiig ad edati trarpepe it taet, ad idepriar, teia ad periredati, reig agage aditeratia eperiee
. Qatit edatib. Qait edati. Aiget betee at edati
er ad at te arket eed. Iteratia arater edati
Trai pepe tperr dieret re
i te e
Eabeiprtig
iteratiaepertie ad
epadig/idatigte traiig deti
taet
Eabeig aati
teprartaet gap
TALENT MOBILITy
Taet biit reer t teiprt ad eprt preia.biit i a atra peead t be aaged i it i t
beeit te tr
. Brai gai b. Brai drai
dEMOGRAPHICS
Degrapi i te bair reatig a taet p.
It idiate te aaiabiitr t a iiet
arge Eia AtiePpati t reate te
tr rkre
Pride te ber pepe reqired t reatea taet p
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 11
ag t g , B gt qttt tttg: t g b. ett t tt B t tw gt tt t t w tt t . a t tt t g t B (usa, c,
J, G, f t uK) t tt t tt w t tgwt t e at pt.
hg tt t tg, w w t t t tw t t B tt : t tg tt bt. atg B t g bt t , j t t q t t t t tg. W w tt b gt tg, w w t t b-: t qtt qt t, t gt wt t kt t tt t tg.
Quantit of eucation. atg t gt t t t B
t t t t, t gt t t ; w, t t t t t b tt tt 4:
In 2007, net matriculation in primary school, which is compulsory in Brazil, was 93%,above the global average of 88% and close to universal;
Gross matriculation in secondary school, which will be compulsory in 2016, was 77%in 2007, above the global average of 68% but still far from universal;
In 2007, the gross matriculation in higher education institutions in Brazil was 30%,below the global average of 38% and thus with room for significant improvement.
Wkg wt Bran t t t t t wgggt t t g t qtt t B:
Expand technical education, making sure it is aligned with what the market needs.
Implement a system to manage meritocracy in Brazilian schools to fight ;
Improve school management and the qualification of teachers and professors;
Increase the funding options available to students to increase the number oftt ttt g t.4 s: unesco
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12 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Qualit of eucation. T qtt t B g- tt qt , tgB st a ttg t, t t gt ttt g:
Although primary education in Brazil ranked 12t t btt t 2009tt pisa5 tt, t t t bt t t 65 t 2006;
Only five Brazilian universities are listed among the 600 best worldwide6.
Wkg wt Bran t t t t wgggt t t g t qt t B:
Increase funding for education as a whole ;
Rationalize the allocation of funds with more emphasis on secondary school ;
Increase and improve teacher compensation;
Improve teacher qualifications and improve their motivation;
Stricter monitoring of the quality of higher education ;
Promote greater interaction of higher education institutions and the market.
Alignment beteen eucation an the maret. T t gt btwwt t wt t kt wk B t ttt t :
Brazil is the fifth worst of 58 countries in this regard, based on an IMD7 t;
Only 2% to 4% of the research conducted at Brazilian universities is co-authored byb, k t tt t usa, J, G, t uK st K,where businesses co-author 10% to 20%8 t .
Wkg wt Bran t t t t wgggt t t g t gt btw t t kt B:
Rationalize contracting requirements and use flexibility where appropriate;
Align competences with compensation levels and career opportunities;
Create medium and long term education agendas that are aligned with thet t kt ;
5 pg intntnstntant: tt bt oecd t 15 65t
6 s: QsW unvtrnkng 2010
7imd Wcttvnybk
8 s: cnt sn nThng
st- lnunvt(nt)
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 13
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14 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Foster a closer relationship between academia and the workplace;
Fund academic research focused on company needs;
Structure a national certification system.
International imension of eucation an training. T t tg t tg g gg tt w kw:
According to an IMD8 survey, 43% of executives in Brazil believe that knowledge ofg gg B bw kt ;
The number of Brazilian students that leave the country on exchange programs is lesst 0.1 t btt, t b g tt w tB g g t 9.
Wkg wt Bran t t t t wg
ggt t t g t tt t tg B:
Increase the quantity and quality of foreign language teaching students receiveg t b t ;
Make extracurricular language courses universal;
Increase student exposure to foreign languages;
Expand the number of agreements between teaching institutions in Brazil and abroadt t tt g;
Increase the international experience of Brazilian students.
a t tt tt bt, tt wtt g gb. i w g, tt bt gt btt t. B t tb t tt bt b g, w t g B, b , w t B tt g t t t wk b:
According to the executives surveyed, in terms of its attractiveness to foreign, B k 27t t 58 t. hw, t gg wt t t , w ttt
tt, t t gwt r&d10;
8 s: cnt snn Thng st- lnunvt(nt)
9 s: imd Wcttvn onn
10 s: imd Wcttvn ybk,g gt wt t
wg ttt: fgn hgh-k ttt t nt bn nvnnt
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 15
Executives feel Brazil is one of the hardest countries for professionals to immigrate to,g t b t q, t bt t btg 11;
Brazil has no structured initiative to deal with its network of expatriates: in 2009there were about 3 million Brazilian talents living abroad, almost 1.5% of the entiret12. ot g t c i tt tg t .
Wkg wt Bran t t t t wgggt t t g tt bt B:
Map the competences this country lacks and disclose them worldwide ;
Reduce immigration bureaucracy and make it more flexible in selected situations;
Put together a group of companies to jointly recruit foreign executives ;
Create a tool and/or an entity to manage expatriates in a structured manner.
B b bg tt , bt t t tk tt tt t t t t t , t tttb b. T t t t t tg ttgt, t b g t t tt.T tt t B tt w b t tt t gb tt b tt tk t bt g t t tt t t t g tt t tt t t g b , t tt at tuK, t g t t.
Bran w tt b t tt ttg t ttg g wkg g t t t B tt qt t ttt B tt b b;tt t tt Bran t [email protected].
11 s: imd Wcttvn ybk
12
s: B mt fg rt
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16 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
01TalenTs for abusiness hub
a b b b tt tt t t tt t gt. B t t b q tt t b tt tt wt t q t kwg t ttt t t t b t, tt t w.
lg t t p r rbt B g ttt tt t t b b. h utt B, , b t t t kt t, tgt wt t g ttg t .
T t tt t b t t tt tg g B: t tg q w tgt t gwt, t t t jt tt tt b q b tb. T tt ttg t t t . Tt t t 2011 tg t B ct Bk (Bacen) mt
p ctt (c) w tt t tg b b t t tt (see Box a).
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 17
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18 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
13 dt t tt B t t 2009. s: rais-caGed
14 s: hk & stg,Gb Tnt inx
Box ai B, t tt tg g t
T tg w B g t. at t J 2011 -tg t B mt p ctt (copom), t ct Bk (Bacen) ttt t t k g t B b t tt t, t w. u tt t tt k t bt tt wg w b t t tt ttb wt tt, t t.
T t t t c tg t t wg t t t w tg. T t t . T t g t g t: T ( 2010) t nt c ctt it (incc) w7.7%, quite a bit higher than the 2009 increase of 3.25%, largely due to a 10.41% t t b. ag t , g t dieese (t t--union department of statistics and socioeconomic studies), 97% of the categories thatgtt wg t t 2010 g g t t.
Wg gg t t tg , bt tb. ag t b v e, B w, t
paid to company directors in aggregate form went up 36% in 2010 compared to the . T 189 t w b a,2011.
T b tg g t t B: t ct Bk c b g wg 2010.
Tt t t t t t g t w.ag t pwtc (pwc) 2011 a Gb ceo s, ttgt ttg b t gt g t g t(see Exhibit 3).
B t b t, b w gt talent, as services in general need more and better qualified people: in Brazil, 67% oft t t t t t qt g education, and 25% have university degrees. In other segments of the economy thesepercentages are only 43% and 9% respectively13.
dt t t tg B b, t t tt t
w wt tt t t. i t, B k 25 t t t 30 t t Globl Tlnt indx14(see Exhibit 4), b t
s: B ct Bk, dieese, , BcG
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 19
exhiBiT 3Tt t g t w
Gba eetie iteti t age teir rgaiati i te et 12 t - Re.: 2011
Source: PwC Annual Surve of Global Business Leaders, press surve; BCG analsis
Tt gt ttg
rk gt
itt
ogt tt (g m&a)
ct tt tt
ct tt
itt wt t B dt
s g
n g
mj g
17% 52% 31%
23% 54% 23%
23% 48% 28%
25% 47% 27%
36% 41% 22%
50% 34% 15%
52% 34% 12%
% ee
Talents ill be the focus of change in the coming months
t uk, T, st a egt, g t. i t, g
t b b hr tg mw15, t t t t t t g t b t (see Exhibit 5), t b g t tg.
i w k t t g, B tt k t t 10 lt at , b c m16. a, tg B b g t qt t g t, t g b t t tg, tt bt.
T t B t tt t tt, w ttt t t tgt t tt tt t t b b. W w t b kg t t t tt t
, w t t t tt w: g,t tg tt bt (see Exhibit 2 on ge 10).
15 s: mnw 2010Tnt shtg rt
16 s: hk & stg,ltn an Tnt inx
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20 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 4T B tt t k t tt bk
Brai i raked 25t t 30 trie
i te 2012 Gba Taet Ide
usa
uK
c
nt
sw
c
G
at
f
i
s
m
st K
J
p
1.2.3.4.5.6.7.8.9.
10.11.12.13.14.15.
it
uk
r
m
G
agt
T
st a
egt
BrailTk
s ab
ng
i
i
16.17.18.19.20.21.22.23.24.25.26.27.28.29.30.
Te ai gap i Brai are taet
traiig ad taet biit
dg (eap1)
Qt tq g
Qt tg t b
mbt
t jb kt
T bt t ttt ttt t
dem 5
23d
26
23d
24
tee &
temb
EAP: Economicall Active Population. Note: in addition to the items above, the ranking also takes into account the Qualit of the environment to generate and develop talents, whereBrazil is ranked 19 th, and the Abilit to attract foreign direct investment, where Brazil is ranked 18 th. / Source: 2012 Heidrik & Struggles Global Talent Index; BCG analsis
In ThIs nEw ERA of mAjoR volATIlITy AnD lEAnoRGAnIzATIons, TAlEnTs ARE BEcomInG ThE nEw IT,REPlAcInG cAPITAl As ThE comPETITIvE DIffEREnTIAl[...]. wE ARE EnTERInG A nEw ERA ThE humAn ERA.
JEFF JoErrEs, cEo and chairMan oF ManpowEr inc.
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 21
exhiBiT 564% of businesses in Brazil have trouble finding professionals, and is ranked second from the bottom
% companies with problems finding talent - 2010
globala
verae31%
76%
64%
53%
53%
51%
45%
44%43%
42%
41%
40%
38%
31%
30%
30%
29%
29%
27%
23%
21%
19%
18%
17%
16%
16%
15%
14%
11%
9%
4%
fti raked ardig t tertage taet i Brai
T1
m b2
pt t
att ttlb
eg
d
f tg t
iT t
s tt
1.2.3.
4.5.6.7.8.9.
10.
1. Operators, maintenance technicians, engineers. 2. Electricians, plumbers, carpenters, etc.Note: Brazil is ranked 2nd out of 36 countries. / Source: Manpower 2010 Talent Shortage Report.
35%
36%
36%
36%
35%
35%
Japan
singaporE
poland
australia
hong KongMExico
pEru
taiwan
china
panaMa
costa rica
guatEMala
ruMania
austria
coloMBia
switZErland
italy
hungary
nEw ZEaland
gErMany
grEEcE
BElgiuM
FrancE
canada
cZEch rEpuBlic
swEdEn
nEthErlands
india
south aFrica
spain
usa
norway
grEat Britain
irEland
argEntina
BraZil
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22 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Ei grt i epeted t be pitie ... ...bt te EAP gr i deepig ati
Economic growth - % p..
Economic growth - % p..
Population of working age (billion)
Population of working age (billion)
1970
1970
1980
1980
1990
1990
2000
2000
2010
2010
2020
2020
2030
2030
2040
2040
3.2
0.8 0.8 0.8
2.6
2.0
1.2
1.2
0.9
1.6
1990 2010 2030 2050
0.77 0.84 0.81 0.75
1990 2010 2030 2050
2.533.70
4.485.14
0.9
1.8 1.8 1.9
0.9 1.0
exhiBiT 6i t, gwt t eap w t k wt t gwt t
cagr 2010-2040
cagr 2010-2040
cagr 2010-2040
cagr 2010-2040
0.9%
1.8%
-0.1%
0.5%
dEvElopingnations2
dEvElopEdnations1
1. USA, Japan, German, UK, France, Ital, Canada, Spain, Australia, Netherlands, Sweden, Switzerland, Belgium, Austria, Norwa, Denmark, Greece, Finland, Ireland2. China, India, Brazil, South Korea, Mexico, Argentina, Russia, Turke, Indonesia, Saudi Arabia, Poland, Hong Kong, South Africa, Thailand, Israel, Singapore, Iran, Egpt, Venezuela, Malasia,Colombia / Note: EAP = Economicall Active Population / Source: HSBCs The World in 2050, UN; BCG analsis
dg t w b w q tt w b t. it t bt tg e at pt (eap), w t wt t b .
i w k t jt gwt wkg g t t w tt g w b . a hsBc17 w tt, tg t t t w t t gw, t wkgg t w t. T t b tt, t tt bkt (see Exhibit 6).
17 hsBc rt tt ThW n 2050
02Demographics
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 23
exhiBiT 7B i t w gt wt eap
Note: the data submitted is based on a quantitative vision and does not reflect qualitative factors (e.g.: qualification) / Source: Stimulating Economies through Fostering Talent Mobilit, BCG& WEF; EIU Countr Data; BCG analsis
Bra1.6%
MEx0.4%
Esp0.1%
Fra-0.7%
Jap-2.3%
chn-1.7%
Kor-2.6%
tur-1.3%
idn-o.3%
can
-0.3%
usa-0.6%
pol-2.6%
rus-0.6%
suE0.3%
dEu-0.7%gBr-1.1%
aus-1.2%
ZaF0.9%
ind1.8%
Egy2.0%
ita-1.3%
Labor shortage Limited deficit or surplus Growing labor suppl
Aerage dieree i te eari idig adedig te eet te gba ei rii
Gap beteen labor supplan eman - 2010-2020
18 s t qttt t tk t t
w qt
19sttng enthgh ftng Tnt
mbt
T t w tt, , g t t t b, t t t gwg t wkg gt t t gwt (see Exhibit 6).
G t, B gt tt tg tt t t gt t w w eap gw t t t t t b18. a t b 2010 b BcG t W ef (Wef)19 (see Exhibit 7) tt g t B - tusa, c, J, G, f t ut Kg t b
w t .
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24 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 8B w t ttg t tt
2007
2010 - 2015
% companies that would considerinternational recruiting
% companies that would considermoving to new areas in search for talent
1. Includes Mexico 2. Includes Russia 3. China, India, Indonesia, Malasia, Papua New Guinea, Philippines, Sri Lanka,Thailand, Vietnam. 4. Japan, Hong Kong, Singapore, South Korea, Taiwan. 5. Australia and New Zealand.Source: BCG People Advantage Report 2008, Global Talent Risk Seven Responses, WEF & BCG; BCG analsis
7
18
NorthAmericA
22
48
NorthAmericA
8
32
LAtiNAmericA1
20
60
LAtiNAmericA1
6
22eUroPe2
23
56eUroPe2
11
25AFricA
25
52AFricA
16
38emergiNgASiA3
22
64emergiNgASiA3
9
19
DeveLoPeDASiA4
27
57
DeveLoPeDASiA4
3
14
PAciFicrim5
33
60
PAciFicrim5
Companies are consiering changing their strategies to solve the problem of labor shortage
aw t b tg g t t w. at t 2011d mtg, t W e f bt t t t b t t tt bt t t gb btg. c ttg t ttg t t t t t tt, g t tt tg t gg ttgt w g t w t g btt q wk (see Exhibit 8).
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 25
exhiBiT 9T bt q tt w t w ttt b t B
BRAzIL CAN ATTRACT BUSINESSES...
...OR SIMPLy ExPORT TALENTS
wit a deeped taet p, Brai dattrat biee eekig ati ere
qaiied abr i aaiabe
heer, i it de t ae a e deepedtaet p, Brai i eae it re a
a eprter qaiied abr
BASEd ON PEOPLE AVAILABILITy, BRAzIL COULd ATTRACT BUSINESSES OR MERELy ExPORTTALENT THE dIFFERENCE LIES IN HOw IT MANAGES THIS AVAILABILITy
COMPANIES
MUST MIGRATE
TO LOCATIONS
wHERE MORE
LABOR IS
AVAILABLE
TALENTS MUST MIGRATE
FROM NATIONS wITH
ExCESS LABOR TO THOSE
wHERE THERE IS A
SHORTAGE OF LABOR
sttg g b tt t b bt g g, B t t t ttt b k t tt t t b t b b. hw, t t jtg g . it t k t t tgt g t t tw: t tg bt. i t t, t B tt w t t tt t t ttt, tg b tt gt t t t t tt tg t(see Exhibit 9).
wE ARE EnTERInG An ERA of unPREcEDEnTEDTAlEnT shoRTAGE. If unADDREssED, ThIs wIll hAlTEconomIc GRowTh ARounD ThE woRlD AnD wIllfunDAmEnTAlly chAnGE how wE hAnDlE lABoR
chAllEnGEs. JEan charEst, QuEBEc prEMiEr
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26 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 10et t b tt tg tt t t
20
2 4 6 8 10 12 14
40
60
80
100
EQuatorialguinEa
BrunEi
Kuwait
Qatar
usa
gErMany
nEw ZEaland
n e meus$ ppp 2010
ye f ,2010 ee
Source: Data used b the UN to calculate its Human Development Index; BCG analsis
BraZil
Outliers - countries with low levelsof education but large incomes are
major crude oil exporters
T b t tt , t t t t btb t t. m g g wkg g tt t t w q t gwt, t t b t t t t t t b tt t t tt t b w ttt.
i k t t tt t w, t b tt t tgt btw g r t , t w,wbg gwt. ct w g t t g g r t , g bg t usa,G nw z (see Exhibit 10).
03eDucaTion anD Training
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 27
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28 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 11i B, tt t gt t gt t
I Brai, edati tribte re t GDP grtta a ter ia ietet...
... it i a te arget tribtr t a igered ie i Brai
Increase in GDP resulting from a 1% of the GDPincrease in each tpe of spending
Increase in household income resulting from a 1%of the GDP increase in each tpe of spending
eDUcAtioN eDUcAtioN
heALthcAre heALthcAre
AggregAteDemAND
AggregAteDemAND
iNveStmeNtS iNciviL coNStrUctioN
iNveStmeNtS iNciviL coNStrUctioN
commoDityexPortS
commoDityexPortS
1.70%
1.57%
1.54%
1.40%
1.85% 1.67%
1.44%
1.17%
1.14%
1.04%
Bz gdp me (%) Bz e me me (%)
Source: Social Polic Spending: a lever of growth and income distribution, an Ipea publication
T tt t B. i fb 2011, i20,B a e r ittt, tt t t tg tg tt b g tt, B, tt t economic results than any other social investment. A 1% of the GDP increase in theamount invested in education will result in a 1.85% increase in the economy, comparedto 1.70% increase for the same amount invested in healthcare and 1.57% invested gggt . itt t tbt t ttt t g (see Exhibit 11).
og t B t t. it w t t 1930 tt t mt et w t, kg t (see Exhibit 12),tg t usa e t 19 t ct. sttg ttt, t t B t gw qt t, tdecades. Between 1920 and the late 2000s the schooling rate went from 9% to 86%,
the literacy rate from 30% to 90% and the number of children matriculated in primary t 42 (see Exhibit 12).
20 s psg: gwt wt tbt, i
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 29
exhiBiT 12atg t t t, t B gt t
Te itr edati i Brai i rt, ad a eed igiiat ie 1930
Te tr a ade ar prgre i ig, itera ad te ber idre ad t atriated i 1
nmbe f e f m e
%
# f m (M)
In Brazil, organized education came onl late:Europe and the USA organized their educationalsstems in the 19th centur
including 4 ears of English including 3 ears of Spanish
1930
2
4
6
8
10
12
1970 1998 2006 20162010
te oEcd ee f 10.4 e
be e b Bz 2016
4
8 8
9 9
12
50
20
100
40
1920
1920
1930
1930
1940
1940
1950
1950
1960
1960
1970
1970
1980
1980
1990
1990
2000
2000
2010
2010
9
21 33
62
86
94
1
51
90
74
61
44
30
13
7
22
33
lt (15+ )
p s
sg (5 10 )2
s s
hg et
1. Data for 1980 estimated as the averagebetween 1970 and 1990 for data continuitpurposes. Data for the 1990s actuall refersto 1992.2. Schooling refers to the number of students in agiven age group as a percent of the total numberof persons in the same age group.Source: MEC; Inep; IBGE; Ipea; Organization ofIbero-Ameri can State for Education; BCG analsis
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30 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 13T t B g t t t wt epa
Iteratia bie b Ppati it ee EAP
s shg et p tg
8t g
p tg
4t g
p- n
% Eap b ee f e - 2008 % Eap b ee f e - 2008
52%
23%
11%
14%
singaporE
31%
39%
17%
12%
1%
hong Kong
33%
46%
13%
9%
uK
62%
29%
9%
usa
5%4%
20%
17%
17%
38%
india17%
22%
19%
35%
12%
5%
indonEsia
22%
15%
27%
29%
5%
MExico
26%
12%
15%
2%
45%
paKistain
9%
31%
23%
18%
11%
8%
BraZil
1. Segmentation for India estimated based on the populationbreakdown in the 2001 census / Source: International LaborOrganization, The Economist, Indias 2001 Census; BCG analsis
B t jt t t, w te at pt (eap) t g t t t wt positive balance between labor supply and demand: 40% of the economically activepopulation has at least a secondary school diploma, compared to 33% in Pakistan,37% in Mexico, 29% in Indonesia and 9% in India (see Exhibit 13). hw, w t t w tt B t g w tgo. In Hong Kong, Singapore, the UK and the USA 70%, 75%, 79% and 91% of thet t t t t (see Exhibit 13).
atg b tt b b, k t ttB t wt t , w g t. i t 1960, t t t a Tg sg, hg Kg, st K Tw- w t t B t, w t t qt t t t usa t uK, bk t
t t t t B t t t g t g (see Exhibit 14).
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 31
exhiBiT 14Gwt t t a Tg w tt t gwt
4.4% 1.7% 4.4% 10.5%
9.6%
8.5%
7.3%
3.6% 2.4% 3.6%
-0.3% 6.1% 2.7%
3.0% 2.3% 2.0%
aee em - 1960 1990
-2 0 2 4 6 8 10 12
south KorEa
taiwan
singaporE
hong Kong
ptt
f t
h t
Source: The Trann of theNumbers in The Economics ofDevelopment Perkins, Radelet,Snodgrass, Gillis, Roemer
Human capital as largel responsible for the groth of the Asian Tigers
T tt t st K t t t gt w (see Exhibit 15). i t 1960 t tg t t tt completed secondary school was less than 10%21 t tt, qt t Bt. st K tt b g t t t, b 1995fully 40% of its population had a secondary education, while Brazil was still taking timidsteps in this direction, with 10% of its population finishing secondary school. Investments t, g t t, w st K t t r tincome at annual rates of around 8.4% between 1960 and 2010, starting at a level lowert B t t r t tt t t b B.
s t g tt st K t k tgt tbtg t t t, B t tt t t t t t. ag t tt t tt g t, tg t t t t g , wg wg t t t ttt , b , kg t g wt kt .
i t sg w t t st K. sttg t t 1960, sg w g t t
when it comes to education. Fully 80% of all students complete the minimum 16 years ofg t t 4t k t t 65 t tt t pisa tt22.
21 s: W Bk
22 pg intntn
stnt ant. a 65t 2009: oecd + gt.
s: oecd.
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32 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 15st K w tt t b t t g t t , t w g
Iitia at iiar ee, st Krea tk a eap i edatibere Brai ad reaped igiiat ei rit
Te st Krea edati reti ad te trgpprt te geret ad trtred iitiatie
Schooling in Brazil and South Korea
% f e mee e 1
per itme (us$ ppp k)cagr
(1980-2010)
4.2
10.6
40.837.8
26.3
8.7
southKorEa
Kor
BraZil
Bra
1960 1970 1980 1990 2000 2010
10
20
30
40
50
Through 1995 schooling levelsin Korea were about 4 timeswhat the were in Brazil
Changes in education in South Korea focused on a few kepoints to ensure success
Government investments focused on ensuring the qualit ofprimar education, and were complemented b private invest-
ments in higher education
The role of teachers was stressedAttractive compensation policiesFull time job in a single schoolEmphasis on having time to work with students
Higher education more aligned with market needsAligned technical educationScience and technolog institutes were created
2.6
3.7
8.4
5.4
17.2
7.4
29.6
11.2
8.4%
3.7%1. Population older than 15Source: World Bank; EIU; media surve; BCG analsis
sg b qttt qtt t t. T t w t ; tt g w g t tg, tg b tg, wt wg tt t wt t kt . et t tg gg t ( t g t internship/residence). In addition, the use of technology became a priority and there was t t t w t g , g g t qt t, g t tttg gt, jt t t , t t.
ab db t t tt t t t b g t tg g wt kt . fg t t t ,
t ab db gt kk jt t w t tt, g bt t bw t t t t t jt
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 33
gwt tt t t t q b. T t t tt t t. itt, bt b t tkb b t tg ttt, tk tw wk tg t tt (see Exhibit 16). s t ab db tt :
Prioritization of a mie eucation moel, w b g t b g t t tg town laboratories and/or through internships;
Research stipens t t b t gt, tg t t t tt;
An ample school certification an inspection t t t t t t qt;
Maing the immigration bureaucrac more fleible q t t w t t t .
B tt b t t q t t t tg t tt . T t t w t t tt t t q t t B, kg t t t: t qtt qt t, t gt wt t kt t tt t t.
exhiBiT 16ab db w tt tt t gt btw t t kt
Te miitr Edati ked r pti taddre te rtage peiaied abr
ner iitiatie ere geerated ad abt35% te ae aread bee ipeeted
lakig a eie te r teia edatii te tr, te geret reated a prett reie ad deig teia edati
Te tr a aread ipeetedte irt iitiatie
In an effort to diversif its econom, Abu Dhabineeded to solve its shortage of qualified labor infocus industries. Examples:
Light manufacturing industr Renewable energ Water treatment (desalinization) Medical services
More than 20 restructuring initiatives were defined,focusing on clear objectives that included:
Ensuring education aligned with market needs Increased emploabilit of its citizens Making technical education accessible Develop skills to manage the sstem among thegovernment entities involved
Broad benchmarking effort involving a number of countries
FINLAND / INDONESIA / AUSTRALIA / DENMARKNETHERLANDS / JAPAN / BELGIUM / AUSTRIA / GERMANySWITZERLAND / USA / IRELAND / FRANCE / HUNGARyCANADA / SINGAPORE / NORWAy / SWEDENUK / MEXICO / SOUTH AFRICA / ARGENTINAEGyPT / SCOTLAND / CZECH REPUBLIC / TURKEy
Extensive involvement of businesses andeducational institutions
The legal and institutional changes required to implementthe new education model have been completed
Businesses are alread in contact with teaching institutions
The process to inspect and certif schools has beenimplemented, ensuring qualit and offering studentsinformation about the options available to them
Source: BCG analsis
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34 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
QUANTITy OF EdUCATION
a t qtt t t t t t g b t t g. T t qtt, tgt g - t t t - tt t qt t t tg tt. eg t t t t t tg t t t, b w qtt t.
dt t t t t, t B tt t t t tt t23 is 93%, which is higher than the global
g t (see Exhibit 17).
T tt t t t t t t t t gt t t b . Tbg g w g bt t24, taround 5% and 14% respectively. Because of this, only 63% of all children complete t t t t g25.
exhiBiT 17p t B t b t t tt
98 t 10: 99%
gv: 88%
94 93100
80
60
40
20
Japan MExico chilE BraZil
ne m m e e% 2007
Source: UNESCO;Todos PelaEducaomovement; BCG
analsis
Primar eucation in Brail is almost universal
23 e tt bk t g
24 abt tt w bt tt t . e tt w tt t
25 s: T e mt
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 35
26rvt eg # 13, apeoesp
(stt s p u Gt s T)
i t t bt, tt t t w ttt t gt t t , w w g t wt. s t t t t f J, w t t w tt w t -- b, wt t- t tt,t w t q t.
i B, b tt t wtt t tgbg , w t t t t gt t t qt t g. i t t tt tsystem in So Paulo, 91.9% claim that students are promoted from one grade to
the next without having learned the content taught. In addition, fully 91.2% of thet t wt t t t26.
Gross matriculation in secondary school is 77%, higher than the global average but (see Exhibit 18). s B w b 2016, w t tt g t t g B. a t tt t q tt bbt k qtt t t b t t t, b k t t t, w t t t t t t.
exhiBiT 18mtt g t t w g, bt t
Japan chilE MxicoBraZil
g m m e e% 2007
Source: UNESCO; BCG analsis
t 10: 94%
gv: 68%
100
80
60
40
20
98
85
77
71
Brail has room to increase the quantit of its primar eucation
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36 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Matriculation in higher education in Brazil drops to 30%, lower than the global average of38% (see Exhibit 19). nt, t g w tt t b tt g t gwg t t t t. T t t gwt t b t (see Exhibit 19). T bt twk gw t , t b g reuni,g t t b b , t t ttt usp lt. T b gt t b g g tg g t B, w tgt wt gtg t g t, prouni (pg u p T ut et a pg), t bt tt (fies f
ft ett e s) t tb tt g g ttt B.
i t , t g g t tbt wt kw tg ( t t g t usa). T t t tt , tw t , qt t jb kt. T b tt tt tgcourses increased 26.1% between 2008 and 2009, while in traditional universitycourses growth was only 2.5%. In 2009, 11% of all students were matriculated int t , w t t t t t 27. T gwt g t, t tg , b B t gt gt btw t wt t kt . T t t,
bt wtt g t qt t28, t t t.
Proposal to aress the gaps in the quantit of eucation in Brail
T qttt t b B g g t t t t t t tt . nt, t tt tt t t t t t t tk. Wkg wt Brant t t t wg ggt t t g t qtt t B:
Improve school qualification and management: t qt t tgttt tt t t tt tt t t wt t t. T gt btt q t t t qtt t. f g t f Gt pdde (pg ddt e c stgt t t s pg) t gt tt t t t g t a et (T e) g;
Customize the type of education based on performance to fight studentevasion: g b t tt t t t wb tt t tt tt. st tt t t
tt wt w gt tt b t bt, t t t usa;
27 hg et c 2009 (mec)
28 utt qt tgt . i 2009, t 4,449 tg t t hg et
Census, only 38% had everb b t mt et
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 37
exhiBiT 19hg t gwg, bt bw t w g
Japan chilE MExicoBraZil
t 10: 79%
gv: 38%
100
80
60
40
20
5852
30 26
t m e1 m e e 2007%
# f m e e Bz (m)
matriati rate i iger edati are i Brai
Te ber pepe atriated i ege ad ieritie i ireaig, drie priari b priate
0,8 0,91,1 1,2 1,2 1,4
1,5
2,43,0
3,9
4,54,9
5,1
2,1
2,83,3 3,6
3,8
tacc(99-09)
9,4%
5,0%
1999 2001 2003 2005 2007 2009
oer te ae perid te ppati i Brai gre 1.3% per ear
pt spb s 1. Includes matriculated studentsthat were held back and no
longer of school age / Source:UNESCO; MEC; Inep; BCG analsis
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38 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Expand technical education, obtaining more aligned education with what themaret nees: g t tgt s et ttg 2016,t t tt qt gt wt t kt, qt bt. ct w b senai t s t . Bt t gt, tg t pronaTec g(nt pg t p a t T et et) t t t t t t t t. i
t, g t g t, b t t t wt tg ttt. B t gt t , tg t b tt t t q b g;
Implement management systems based on meritocracy to expand Brazilianschools: btt qt t t b , w t w w t t t t tt tt t;
Increasing the funding options to expand higher education, including technologycourses: g t t g b g t tt w t t t w t gt t g t t . Bt b t t
tt tg ; , gt wt tt t t tg t , t prouni. it t t tg t tt g fies.
ThE GooD nEws IsThAT ThE numBER of
mATRIculATIons In hIGhEREDucATIon Is GRowInG fAsTER
ThAn ThE PoPulATIon, PRImARIlyAs A REsulT of ThE GRowTh In ThE
numBER of PRIvATE schools.
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 39
QUALITy OF EdUCATION
i B tg qttt b t, t t tqt t t. it t tt, wt t t, ttt t t t qt t, t t tg t t qtt.
p t B t 12t
wt t 65 t tt t pisa tt, tt tt g t t qt bt29. Wt g 401, B bw t oecd g 497, t gb g 468 t (see Exhibit 20).
a t t tt B tt tt t: tg Prova Brasil/SAEB30 tt t b t t tw t t g t t , bw t g t (see Exhibit 21).
T pro Brsl tt mt ptg,b t t t t t t tg tt tw t t t wk. T B tt t k t gt t t bt jb, bt k t b t b tt q. o t q t t tt b q t tt, tt kg, t b tt, b ttt(see Exhibit 22).
T t ttt t t tt qt t g t k t tt . ig t q tt ttt b t tt t t qt tt t , tt qt b t t t tt.
o t t tt t w k t t qt tg t t t, w t t. Bt t tt btt, t t t gt t t tg t, t ttt q ttt t t t (see Exhibit 23).
i t t t , B t : t bt tg t b t t. rgg t , B k bt t. W t tt t t B 23.0, t usa, agt t uK t t 13.7, 15.5 18.3 t. i B g b, wt tt t t 17.2, t 12.1, 14.0 14.4 agt,
t uK t usa t31
.
29pg intntnstnt ant: tt
b t oecdt 15 65 t
30 ag mt
ptg tt t b tt
B - saeB (B etat) tg 2005 p B btw 2005
2009. dt t t
31 2008 t, s: imd
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40 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
china
hong Kong
Finland
singaporE
south KorEa
Japan
canada
australia
gErMany
uK
FrancE
usa
russia
chilE
MExico
BraZil
argEntina
oEcd ee: 497t: 65
exhiBiT 20itt tt w t b t B
aee pisa e1 - 2009Rak
577
546
544
543
541
529
527
519
510
500
497
496
468
439
420
401
396
dt t , B t t bt t g t65 ttg t
1. Programme for International StudentAssessment OECD applied to 65 countriesin 2009 OECD + guests average scores
in reading, Mathematics and ScienceSource: OECD, IMD; BCG analsis
Brail performs poorl on the international PISA eam
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 41
exhiBiT 21T t tt t qt t B t
Brazilian average1 in primar education
0
220
1994 1996 1998 2000 2002 2004 2006 2008 2010
240
260
280
300
320
340
ag
Epeted aerage: 201 a 325p t g t tw g tt g
255239
246
Brazilian secondar school average1
0
300
1994 1996 1998 2000 2002 2004 2006 2008 2010
400
500
ag
Epeted aerage: 326 a 500
s tt g bw
tt286 272
1. Average scores in Mathematics and Portuguese. SAEB (Primar Education Assessment Sstem) through 2005 and Prova Brazil between 2005 and 2009, applied to public schools. Datarefers to the last ear in each teaching ccle / Source: A Ignorncia custa um mundo (Ignorance costs a world) b Gustavo Ioschpe; BCG analsis
Brails performance in primar an seconar eucation is poor
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42 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 22G b k k t gt t jb
Te pr qait priar edati mke e f me ke r peiitak. Te ai eet i er prdtiit, aa aatrig ert reqire rker a tik gia ad ae reeat eperi-ee t er t ad eee i te a-atrig ie. Ti a bee er diitbeae pr rker qaiiati.
Executive Manager - CNI (Brazilian National Confederationof Industr)
Te [g edar gradate] ee mee e mmm eqe ii: gd Prtgee, deear, patieead diipie, ad ee kig t akqeti, tak ad ritiie
Cristina Simes, Director, Id Consulting1
52% te iterieed b a peiare te natia Idtr federatibeiee e q f m e(e 1 8) e f e m beme e teir epee. Te data tat 99% te paie qeriedbeiee te t iet i epee trai-ig, bt 99% ae prbe qaiig te
Voc S.A. On-line
Ee teia edar re t eqip tdet e e ee e fee.
Palma Filho UNESP Professor
1. Agenc that handles about 600 positions/month focusing on oung people, offering three different tpes of jobs: first job, call-center and trainee positionsSource: media surve; BCG analsis
The effects of not eveloping the proper primar school sills
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44 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 23T qt b t b t t t, t tt
pb e e er it(us$ ppp /e) - 2008
3.0
2.2
2.1
2.0
1.7
1.5
1.3
1.1
0.6
0.6
0.2
0.1
Te ee ietet i Brai i be iteratia beark
ce f e e b ee - 20071
priMary avEragE highEr
I additi, t te ietet i Brai ge it iger edati
37 51 12
30 37 32
32 36 32
34 35 31
34 37 28
22 33 44
20 30 50
21 21 58
16 19 65
11 20 69
27 28 46
uk B,
t ttt t t
1. Percent total public spending per studentat each level - includes public spending withprivate and public schools, the cost to manageeducation in the countr and private subsidiespaid to students or schools 2. Data for 20083. Data for 2010 4. Data for 2009 5. Data for2006 / Source: OECD; EIU Countr Data; WorldBank; German Federal Statistics Office; BCG
analsis
35 46 19
usa
uK
FrancE
hong Kong
singaporE
gErMany
gErMany
south KorEa
uK
usa
Japan
chilE2
FrancE
BraZil
singaporE3
MExico
hong Kong4
india5
Japan
MExico
BraZil
chilE
china
india
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32
T Qt et B, n aqm f - 2011 saeB
t 2003
rgg t tg t t tt gt.c t t t, B q w t b may teach at that level. Right now 33% of primary school teachers in Brazil have att . mw, t t tt t t g, qg t t (see Exhibit 24). T t t t qt ttt tt gt t t b btt t t qt tt, tg tt sg t w t t t tt. i t w, wt t t w t b b t t
q t t g q tt.
T t t qt t t , t mt et t b tt:
In 2007 CAPES (Coordination for the Improvement of Higher Level Staff) launched itsNational Teacher/Professor Training system, which offers teachers courses at FederalTg et ittt w t g t g b t B o ut (uaB), t tt g t t b t.
To improve the qualification of primary school teachers in city and state public schools, 2009 t mt et t t nt T Tg pg. ugt f pt t g t t t twt t g, w tg t t t t t.
a t t t qt t t t tt t .B tt g 3.6 , w t usa t g 6.2 . a, t k G fq tt tt t t t b t (see Exhibit25). a B t t g t g t g gw, t tt t t t.
et t32 b t t tt ggt t t
tt b g, g, wt t t b bk t w jb, . T b tt wt t , wt t t bk t bt tt b. T t w tt b , t b , t bt - qt tt, w t bt tt .
B w j tt t t qt t t t tt. T t tt t , t b ggt tb t t t tbt t tg t t t B t qttt t t qtt t
t t w . at t t, gg b t tt w tt t qt t t t, t b t:
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46 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 24G t tg t tbt t t qt
% m ee e ee f qf1 - 2009
nmbe f e f e ee e eqe beme ee2
The training of primar school teachers in Brail is quite poor
Required schooling for teachers
Schooling of teachers in Chile and Brazil
9
32
1
91
68
ut gt
ag
p
chilE BraZil
33% of all primary schoolt B tt
ita
dEu
dnK
nor
chE
spn
Fin
Fra
uK
chn3
hKg
Jpn
sgp
usa
4
7
6
4 4 4
3
6 6 6 6 6
5 5
4
2 2 2 2
5
4 4 4 44 4
5
7
p et
s et
EuropE asianorth
aMErica
4.1 2.5 4.05.6 3.8 4.0
pme4
1. Qualification levels based on the ISCED International StandardClassification of Education score 2003 data 2. Data for 2001 3. Inthis case Primar School includes Junior Middle School (children 12to 15). Equivalent to the second portion of primar school 4. Of thecountries shownSource: Teachers Matter, Attracting, developing and retaining effective
teachers - OECD (2005); Teachers and Educational Qualit: MonitoringGlobal Needs for 2015 UNESCO (2006)
I 2012 te miitr Edati i reqire a
tet r pepe iteretedi a areer i teaig,bt it i t et ear iti i be pr
In evelope nations the situation is ver ifferent
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 47
exhiBiT 25T t tt t t tt t t qt b t
tme Bz e e - 2006
Most stuents in Brail spen less than 4 hours a a in school
Countries that offer higher qualit eucation have more stringent requirements
1.9
4.1
3.6
prEschool priMary avEragE
Secondar school e n amespend an average of 6.2 a da in school1
te uK eme recommends at least5 a da at the secondar school level
South Korea requires a minimum number ofhours at each level
Secondary School: 5.82
Junior High(2nd part of basic ed.): 5.52
F3 and gem4 require students
to sta in school f me for mostof their basic education
A redti i te age ppati er te et deadei pride a pprtit t e tie
1. 15 to 19 ear olds matriculated in school. 1. 2005 - 2009. 2. Calculated based on the number of hours required a ear (1,190 and 1,122 respectivel), and the number of school das ineach countr (205 per ear). 3. Children 7 to 16 must be matriculated in school full time 4. Children 6 to 15 or 16 must be matriculated in school full time.Source: Korean Ministr of Education; Bureau of Labor Statistics USA; Northern Hemisphere Trends in Education - CNI | SENAI; CPS-FGV; BCG analsis
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48 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
The government also increased the number of required years of schooling in Brazil.i 2006 t b btw t g 6 14, 2016 - w b ;
In 2007 the Ministry of Education launched the Education Development Plan (PDE),w t t tgt btw t, , g, tg t. a t pde t 40 g g t ;
Together with the PDE, the Ministry also created IDEB, the Basic Educationdt i t t qt t b t b tt twk, t b g t t
t t.
In 2011, the government launched PRONATEC (National Program to Foster Access toT s). T bjt t g t t t qt t B b tg b jt tt t t b t t gttg. T bjt t jt t t t t 8 tt b 2014, t t twk t ;
Fundeb, the fund to maintain and develop basic education and value education, gt tt tt t tt t tg ;
pro Brsl t t t b t t t g t t;
The Todos Pela Educao (Everyone for Education) movement encourages andt t t g tw t t tgt;
Non government institutions, such as the Ayrton Senna Institute, have private supportt t qt b t B.
i t t, t t tt t w b 2016 t bt t b . Tgt b b t t t b
tt, t g t g w t. f t, bt b t tt w t tb t qt t bt t g t jbkt: t tgt wt t t tg, t b senai, s ct p s ( t tgt t stt s p).
T gt tg t t t t tt t g t wk, t kg t b. nt tt t t t tt g ttwt b, w t tt t gt t wk33:
In Sweden, students enrolled in professional secondary schools spend 15% of theirt -t-jb tg;
33 s: T p et
Tg tnt h cni | senai
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50 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
In the UK, on-the-job training was instituted in 1994 and has already trained 1 milliontt;
In Finland, students have the option of combining secondary school with on-the-job.
i B, t bt t gt t the success of this model. Graduates have incomes 12.9% higher than those that haveonly a traditional secondary degree, and are 48% more likely to find employment 34. ifact, a survey by the Ministry of Education shows that 72% of the graduates of federalt t .
T t t t t B. T b tt wsimultaneously enroll in secondary and technical schools is very small, only some 4.3%of the students nation-wide, and 5% in the state of Sao Paulo 35. ag t aaj t p s ct, t t t b t openings may be as large as 30% of the number of spaces in secondary school.
ag g t ttt, t t g t, qt b t t tw j bkt. B b gt tt g qt t, t t b. T gt t t t B tt , t
g ww. o t t t lt a 2010, t wB, B t t g t w bt (see Exhibit 26).i t bkt t jt t g t B, tt t g qt t.
a t t t t qt t t g t,t G c i36, provides further evidence of this. Only 13% of the highereducation courses are in the lower two levels, while 50% are somewhere in the middleand 38% are ranked at the top of the quality spectrum (see Exhibit 27).
T t qt t tt b g t gwt, b t w t t g tt. ig t b b t t tg, t b tt w gt t t, bt g t t bt t qtt qt, w w tt t t.
ag g t tg t B, bt t t tt.i 1996 t nt c e w t, kw t p. i2004 t w t nt hg et at stw t, b enade37.
s t t t t t t qt.rt w38, t t t t t , kg t tt t kt t t t t qt. i t, t t t t w t
t t . f , t b wt p.d. t g qt t tt q tt t .
34 s: t b mn t f Gtvg, t b ittt vtt (2010)
35 s: sttt b aaj, ct p s a 2011,
36 2008 G c i b mec
37 nt sttp e
38 T 2009 enade t tk t b b
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 51
exhiBiT 26i lt a, B g t t t
MExico 1 ue n am e M (unaM)
BraZil 2 uee e s p
BraZil 3 uee E e cm
argEntina 4 ue e Be ae
chilE 5 pf ue c e ce
argEntina 6 ue a
chilE 7 ue e ce
Brasil 8 uee Fee r e Je
MExico 9 te e Mee (itEsM)
argEntina 10 ue ort u
253 uee e s p
292 uee E e cm (um)
381 uee Fee r e Je
501-550 pf uee c r e Je
551-600 uee E p J e Meq F
rk f e be ee l ame u.s.ne & w re - 2010
rk m e be ee e Qs w ue rk - 2010
Three Brailian universities are among the to 10 in Latin America...
... but the Countr oes not fare ell in global league tables
Brazil is ranked 27th out of 56 nations with the largestnumbers of universities included among the worlds top 600
Source: Worlds Best Universities in U.S.News & World Reports, QS World Universit Rankings 2010; BCG analsis
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52 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 27T t qt g t B g
13%
0% 0%
50%
38%
Only 13% of Brazils colleges andt t t w
...
... while fully 38% are in thet
Bek f ee b gee ce ie e 1 - % 2008
1. General Course Index, includes onl schools assessed in 2008 - bottom score is 5 and top score is 1 / Source: MEC; BCG Analsis
39 rt dt b fh s. p, Bw, otb 17, 2010 wgthat 14% of the students interviewed t ttq w t 350
40 at mBa41 at t a cgts B
42 e ft mgtdt
n
lt, t t t t t t t qt t t t t t t gt t, t w k btt t t qt t s--s kt .
rgg gt , gt t t t, t mBa . ct t b q(360) bw wt t t q, t b t w t39. i t, t t g lto snsu, t t bjt t t qt ggtg (strto snsu) - tt gt b tmt et. T btt qt w tt t b
btg tt tt - amBa40
, aacsB41
, efmd42
t k, tg w b t .
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 53
Proposal to aress the gaps in the qualit of eucation in Brail
B ww tt t t qt t t tgt t t. it qttt b, tk tt b tt, t tg tt q . T t t tk t t t t tw qtt t b tg tt . T tt t tt t, btt tg t , g t. Wkg wt Bran t t t twg ggt t t g t qt t B:
Increase funding for education as a whole. Gt t t tfunds dedicated to education in Brazil include reducing payroll and/or income tax b tt wk t tg. a, t w b t q tt tt b g t. at, , t tt t tt t tt t, t t t wg (see Box B).
Rationalize the allocation of resources with a greater effort on secondary school,gg gt g t g t b t, t prouni pronaTec g. T t t tt btg t t t t, kg t t t g t t
.
Increase and improve teacher compensation, g ttgt t t t. T t b wg t, b t, t btt. T gt t wg t t g t. pt t, tt, bt g t t, b t t.
Improve the qualifications of the countrys teachers and motivate them b g t b t w t t g t
t. pt t tbt b g ttg tg t w t .
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54 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Box Bpb g t at
s t w t 1989, t hg et ctbt s (hecs) b tg t at t t. B tg g-t t t t g t t t tt t, t t b t t t t at.
stt b t t g w t tt. T t t t bt tt t w t gt. T bt t tg i T g w t wg t g-t . T t w g t of the recent graduate, and varies between 4 and 8%. Thus people who earn less than$ 30,000 tg, t g t $ 60,0001 t tg bkt.
T t t tg g gt t t t tk, gk t t b t gt, t tt gt tt . B t btt t t wttt , t t t w t t. ot t t t t t at , tg t t,t t t t b t tgt.
1. Australian Dollars; Source: Australian Parliament online librar The Higher Education Contribution Scheme; Jacques Schwartzman Highereducation in Brazil; BCG analsis
Monitor the quality of higher education, t gt, t g qt. i t t t qt tb t t tt b mBa b bjt tt qt t t t. pt tt t t g, g t t t tg g qt.
Foster a relationship between the market and colleges and universities, ttt t wt t kt t . T t w t t t w t t t t, b .
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56 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Bulgaria
croatiaslovEnia
pEru
BraZil
MExico
china
south KorEa
russia
argEntina
Japan
uK
chilE
FrancE
hong Kong
india
gErMany
usa
australia
canada
singaporE
exhiBiT 28T gt btw t kt B
ame beee e e e mke - e f 0 (e) 10 (e)
B em e
The alignment of eucation ith the maret in Brail is the 5th orst in the orl
Lo bar eam (OAB) approval ratesare an eample of this misalignment
2
34
4
4
4
4
4
4
5
5
6
6
6
6
6
7
7
7
8
8
B t5t wt t g 58 t
76%
46%
23%
16%
nEw yorK1 paris2 rio dE JanEiro3 so paulo3
1. New york in 2010 2. Data estimated using a specialized website. 3. Arithmeticaverage of the approval rate in the 3 2009 Bar Exams - prior to 2009 the OAB barexam in So Paulo was different from the rest of the countrSource: OAB; MEC; IMD; NyC Bar Exam; Global Talent Risk Seven Responses - BCG& WEF; media surve; BCG analsis
f a. o t uK tt t t gt tt 47.i J 2010 t fsa t qt q tt, t 2012 t -q t t g t w t g bg b t t .
B qt bt t tt g. T t t gt t b, tg tt47 ct i ittt,ifs s f ittt f pg
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58 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
47 ctiittt, ifss f ittt fpg48 Bat f ct mktett49 st egc
50 at ct mktat ittp
51 T t t bfeBraBan :tg (200 23 kwg),tg, ttg
t
q. i t t tg, t, tt tt t wk wt t t, bt t t g qt. i t t, t q tt b anBima48 cvm49; w apimec50 tt. att t t t t t b (oaB).
dt t gt btw t t wk, B ttgt t gt t t b tt
t t gt, t t t t. et k tt b t t-w b.
In 2007, a program entitled Brasil Profissionalizado (Brazil Professionalized) wast t b t kwg. T tt t gt t t tt t t tt, btt gt,gg t t tg t t .
SENAI, which is part of the National Federation of Industries system (CNI), owns thegt tg lt a. it t t t 2 w g t tg t , 96 t ;
Senac, a reference in professional education in Brazil, is managed by the Nationalft T (cnc) t t, 15 t kt t ;
The Paula Souza Center, which runs the technical schools in the state of So Paulo(ets fts) tt g wt kt t ttt wt t t t t g, b bt tt t t tg t;
Many unions offer courses to enhance the employability of their members, such t c s mtwk u, w t t t kwg g g t b;
The Brazilian Bank Federation, FEBRABAN, maintains technical and professional51 tt tt t wk b bk;
Totvs, a Brazilian service and technology company, has partnered with over 60g t B t tt t t t b.T t wt t tt b t t g t tg k wt wt t b .
itt tt g B w t tgt btw t t kt. a b tbtw t t tw t t tt tt t
tg t gt, t kt.
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60 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
exhiBiT 29c b kg t g qt b, g t t t kt
% ee
% ee
More fleible requirements - operational an technical
More fleible requirements -tactical an strategic
83%
56%
46%
53%
28%
50%
17%
28%
6%
e t
Gtdg
ftlgg
e t
pct
utdg
Tsk
Tc
pct
Note: stud of 130 large Brazilian companies according to the BNDES (total revenues US$ 350B), in all 5 regions of the countrSource: Fundao Dom Cabral (March 2011)
In Argentina, Pampa Energia S.A. sponsors an electrical engineering school at ITBA tot t tt t ;
Indian technology company Infosys operates a joint training system with universitiest tt tg. Ww t g t 395 tg t 100 t i . T g g gb t c, m m;
In Germany, Joblng b-t tt tt w gt tt t t jb kt. it tt, tg t tt t jb wt t ;
The South African Network of Skills Abroad (SANSA) brings South African expatriatesbk t t t t tt b wt t kt q.
B tt t tg gt. T tt g qt t wt t t , t w g t tg g, t t g t t -b g. s g tkg , w b t tg tt t qt b t t t t , w t t tt ttg (see Exhibit 29).
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 61
a t t bt, w wt b t t t b,B st B t t k t g t b,tg t qt t g t, gthe number of interns and/or minor apprentices52, qg g gg . W b mt ptg tt t t b, , tt, t tt. Tttt t t g tg t t t .
i t t t g btw wt t B wt t ktt, t g tt gt t btw b
. ag t t, B k 45
t
t 58 t w t t t t kwg btw t b53. The small number of joint academia/business publications merelycorroborates this perception. Only 2% to 4% of the research conducted at Braziliant -t b b, k t tt t usa, J,Germany, the UK and South Korea, where businesses co-author 10% to 20% oft (see Exhibit 30).
52 m atpg: f
Gt g ttbt 14 t24 g
b tnt lg s
(s, senai, s t.).T
tt tg t t tw, wk
t 6 . B- t t
g qt t5% to 15% of their total
t
exhiBiT 30i B t tt tgt btw
pb -e b bee em % f ee
BraZil1
singaporE2
south aFrica3
gErMany4
south KorEa5
uK6
Japan7
usa8
2%
5%
5%
10%
10%
10%
10%
10%
4%
9%
9%
20%
20%
20%
20%
20%
1. Includes Unicamp, UFMG, UFRJ, UFRGS and USP.2. Includes Nanang and National Univ. Sing.3. Includes Cape Town and Witwatersrand.4. Includes Fried. Alex., Humboldt, Tech Dresden, Tech Munchen and Univ.Saarlandes.5. Includes Korea Inst., Korea Univ., Pohang Univ., Seoul Natl. Univ. and yonseiUniv.6. Includes Bath, Manchester, Reading, Sheffield and Southampton.7. Includes Chiba, Gifu, Hiroshima, Hokkaido and Kagoshima.8. Includes Harvard, Johns Hopkins, Northeastern, Univ. of Alabama and Univ. ofMassach.Note: percent calculated based on total research projects published on ScienceWebb the 500 universities with the largest number of registered publications.
Source: Center for Science and Technology Studies - Leiden Universit(Netherlands)
Interaction beteen acaemic research an businesses - 2010
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InDusTRy funDs [...]hAvEEnABlED ThousAnDs of nEw
PRojEcTs AT BRAzIlIAn scIEncEAnD TEchnoloGy InsTITuTEs.
ThEsE ARE DEsIGnED noT onlyTo cREATE KnowlEDGE, BuT AlsoTo TRAnsfER ThIs KnowlEDGE To
BusInEssEs. BEcAusE of ThEsEjoInT PRojEcTs BusInEssEs hAvEIncREAsED moRE In TEchnoloGI-
cAl InnovATIon [...]FinEp wEBsitE what arE industry Funds
. Wkg wt Bran t t t twg ggt t t g t gt t B:
Rationalize contracting requirements and use flexibility where appropriate;T tt tt t t tk, g t qt t tt t t g wt t t bt k t . c w t t , t wg t
t g g gg, . i t,t wt bt qt b t wg t.
Align compensation and career opportunities with the competences required,t t wt t t, t g tt tt tb gt. pt t t tt ttg t t
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64 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
w, g t. T b b qt btgt gwt gt t t, t t g.
Create a medium and long term education agenda that is aligned with thecompetences the maret emans. ct b t jt t g t
t t t t t tt ttt k B b b. T gt g ttt tt kt gt, gt bt, t t t qt t t ttt g t.
Promote a closer relationship between businesses and academia. st tt t t g b t p s ct tttbt t g t t t t tt t t ,wt t tt t. T t t bt wt tbt t tt t tg, b bt t t g t t . at tt tt btw feBraBan t ft, w t tgt t
t wt k t wk t t. it tt t tt g t t t. i t, t g btw tkt b tt, tg t t tt t tt t t, .
Fund academic research focused on what businesses need. T b jt b t tt. pt btw t tt tt t cnpq (B nt st Tg dt c),capes (ct t it hg l st) fapesp (ttt s p ft t st r) t t t t t k g wt B qt gwt.
Create a national certification system, t wt b t tk t usa. it t t t t t w t tt t q, g t t, b b t tt bt t t t t uK, G ptg.Gt t k t t t t tt, gt.
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 65
INTERNATIONAL dIMENSION OF EdUCATION
T tt tt t tg gg t, t eg s, w tt , btt g tt b b. i 2010 w bGlobalEnglish, 74% of the 26 thousand respondents said that English is required for
work, and 55% of them use English on a daily basis in their professional activities56.
T tg g gg btt t , t b t. i t, 1998 tt gt 4 eg , 2010, 3 s . T tt r J t b eg gg t tgt, t t 2014 f W c 2016 o G. Tnt s s e enem, g gg tt 2010. at t t , tg gg t , g t gt wt gg t k t ttt t t gg, tt gg gw t tt. i t, t wt tg tt t t tt tt
t b, g t t gg.
i t t b gg t b tt gwt gt. T b tt tt a, gg, 8 t 2007 t 65 t 2011. itt tk eg g t gt b b tg W c o G. a wt t t t u it p s p tt t t eg t t b(.g.: t ).
hw, gg tg t t. dt t g, ggg tg B t g b wt t kt . B t
wt k t w t t t gt btw gg tand market needs; 43% of this countrys executives are unhappy with the foreigngg k B wk (see Exhibit 31).
itt t k t tg tt tB b b. a g b B g t gt wt t tt g, t b
56T gbt egrt Gbeg
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66 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Language teaching in Brail has little relationship ith hat the maret nees
...an is belo hat it nees accoring to 43% of the eecutives
3.1
3.1
3.1
3.2
3.7
3.7
3.8
4.5
4.6
5.0
5.2
6.9
7.0
7.2
8.1
oe ee: 4.9
ame beee fe e e mke eqeme - e f 0 (e) 10 (e)
h fe Bz eee e efe e k f Bz ke
exhiBiT 31lgg t B t t t t kt
5.5
9%48%43%
Bw t mt t
e t b
Source: EIU, HSBC, IMD World Competitiveness yearbook, media surve;interviews; BCG analsis
5.2
MExico
Japan
BraZil
chilE
uK
russia
FrancE
usa
china
south KorEa
hong Kong
argEntina
australia
gErMany
india
canada
singaporE
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 67
lAnGuAGEs ARE A mAjoR oBsTAclE TomATch cAnDIDATEs AnD joBs ToDAy
All ImPoRTAnT BusInEssEs wAnT ThEIRmAnAGERs To sPEAK EnGlIsh, AnD ThATs
noT so EAsy To Do BraZilian hEadhuntEr
exhiBiT 32T tt t tg B t t t t t
Outbound
Primaril student exportersPrimaril student importers
Inbound
uK
37.1
2.5
FrancE
26.8
5.8
usa
12.7
1.1
Japan
8.8
3.8
chilE
2.5 1.9
china
0.21.7
argEntina
N/A1.1
MExico
N/A1.1
india1
0.00.6
BraZil1
0.00.5
ib b e - e e (e e) b - 2007
nmbe f peeb/b
()
351 247 610 126 8 42 8 1 n/a n/a24 54 51 54 6 424 157 22 8 25
1. Data refers to 2006 / Source: Unesco, IMD World Competitiveness yearbook media surve; interviews; BCG analsis
International stuent mobilit
g tt B , tg t t t t b B tt b, t t b g tt t t (see Exhibit 32). Tw B t tt ttt tt t t t f Gt vg(fGv) t ut s p (usp).
eaesp, t f Gt vg (fGv) s p s B, g b tg wt tt tg ttt t
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TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 69
b twk t t 2 b 2010, tgt 3 b 2012 (see Box c);
The South Korean government offers stipends to foreigners interested in going to tt t, t t k t t tt.600 tt tk tg t tt 2010;
The government of Singapore offers tax incentives to companies that send their b t t, t t tt t t sg;
i t, tt t t tt t t t tt bt w, : u, ib-a
Box ce g g twk
e (EuRon communty Aton Sm or t Moblty o UnrstyStudnts) e g t g twk t t ec lg lg pg. Wt bgt 7 b t2007 2013 , t bjt t lg lg pg t tg tt, t t btw t g.
e g tt bt b tg t t btwb t, g tt tt tt t t tt, tt t gtg g t g t. e t tt t gg g g t tt t ttg t twk.
e bgt 450 , gg t 2 tt 250 g t 1987. it b g t q t tt t twk. T tgt t t tt b 2012. rgt w t network of over 4 thousand colleges and universities in 33 European countries, or 90% t g ttt g t.
Source: European Commission Education and Training; BCG analsis
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InTERnATIonAl ExPERIEncE Is AnoThERKEy ElEmEnT foR cREATInG A TAlEnTPool foR ThE BRAzIlIAn BusInEss huB.
A lARGE numBER of BRAzIlIAn collEGEsAnD unIvERsITIEs hAvE AGREEmEnTs
wITh PARTnER schools foR InTERnATIonAlExchAnGE, AnD ThE numBER of foREIGn
sTuDEnTs In BRAzIl hAs IncREAsED.
tt t bt g g gg, t t eg( b t ), tt tt b w b ttt. at t t gt t t t gg, tg wt t t. hw, gt tt g w t t t t gg t,
pgt ( t b t usp pt s stt u), t t t t tg t g .
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72 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Increase student exposure to foreign languages: eg s,g t kg tt tt g t gg.T gt g t t g gg t tt tt, t espm, t tg ktg . pt t t t t g ttwt g tt, t t eg s. Tt t g, gg t tg b tk B g tt t t.
Expand the international experience of Brazilian students: t w b t
t wt lt a, tg g g twk g t e e. T w q t t b q g tt tg g t t, t gt qtt . i t, t gt t t t b t t B tt tt tg b, t g tt tt tg B. stt m b . ptg wt tt t t mBa t B t w t ttt g tt t tt btw B g tt.
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74 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
T t t tt g t tg B tt tt bt tg g t B, t g B tt t wk
b. a t w t t 195 tt, bt t t t w b gb t w g tg tt (see Exhibit 33).
dt t bt g t gb , t t- t ttt , wkg b g t t t t w . Bt t, kw brn gnw tt , brn drn w tt , t t bt w g, t b b qt t.
BRAIN GAIN
itg g wk w t b B ttg t W W, w t gt t qt g gt.Estimates show that in 1900 immigrants made up 7% of Brazils population and wereresponsible for about 60% of the manufacturing facilities in So Paulo.
T t tt g t B t wk b gt tt t tkg w
jb tt gt bg t B. hw, w g, b g b t bg wt qt tt w t t B t t t, t w, t t g . T g wk tg t g t t t kwg w
t ttt, tbt t g t g t t b.
04TalenT mobiliTy
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a t58 t bt gt t t w tt g tg q gt g t t bt t t t, kg t t jb g wg t t wt tg gt.
itt w tt t t tt bt t .
fg b t t tt t leading USA companies 65% at Merck, 64% at GE and 60% at Cisco 59.
exhiBiT 33itt tt bt t
NorthAmericA
22
48
DeveLoPeDSiA4
27
57
PAciFicrim2
33
60
emergiNg
ASiA1
22
64
AFricA25
52
gLobALAverAge
25
57
eUroPe523
56
LAtiNAmericA3
20
60
% me e e e
2010-2015
2007
+131%
1. China, India, Indonesia, Malasia, Papua New Guinea, Philippi-nes, Sri Lanka, Thailand, Vietnam. 2. Australia and New Zealand.3. Includes Mexico 4. Japan, Hong Kong, Singapore, South Korea,Taiwan. 5. Includes Russia
Source: BCG People Advantage Report 2008, Global Talent Risk Seven Responses, WEF & BCG; BCG analsis
58 hg-sk igt tit ct: W Bt?
(h, G & Jg 2010)
59 s: W ittpt ogt
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76 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
B t t g wt tt t t ttt tt. T t k tt tt t ttt g , B gt t gt g t tt t t wk. lw, t t w t k t
g wk t t B. T b t t t t b t imd: B 5.0 0 t 10, w agt,sg, c, hg Kg f btw 6.5 7.0 (see Exhibit 34).T b g t t tt. it tk t gtt t Brl 15 t t gt wk .
dt t k tt tt, t ttt B ttt tt t g tt t, tt t B tt g tt. B t, w, ttt t tt (see Exhibit 35).
B g g t gt t gwk. atg t t, tbt t kg t wg t g tt.
In 2010 the law changed to allow foreign professionals to enter the country for one, tg t t b qt t b;
In 2011 the law changed to authorize the entry of foreign students for professionalg g tg t , g b qt tt t b t gtg, t t bt wt t t g t tt t t b;
The number of work visas issued by Brazil is on the rise: in the first half of 2011 the
Ministry of Labor issued 13 thousand temporary work visas, 12.7% more than in thesame period of 2010. A total of 56 thousand work visas were issued in 2010, 30.5% t 2009;
The MDIC60 tt btw t t b B gg t g wk t t;
lb t g tg b gt gg tt g wk, g t t t t, t c61, w g wg t qt tt agt b tt B, g t t62:
Brazil, and reciprocally other Latin American countries, has a simpler process forgt wt t g, tg t b t e u.
60 mt dt,it T
61 f egg,att agc
62 Tt t Brl 15,000 w b w agt t B
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argEntina
singaporE
chilE
hong Kong
FrancE
canada
australia
gErMany
MExico
india
china
uK
BraZil
Japan
usa
south KorEa
russia
exhiBiT 34T B gt g
7.0
6.8
6.8
6.7
6.6
6.4
6.2
6.2
6.1
5.9
5.8
5.1
5.0
4.4
4.4
3.7
3.2
Ee f e f mm ke1 (e f 1 10)
1. IMD World Competitiveness yearbookSource: High-Skill Immigration to Industrial Cities: Who Benefits?
(Hall, Graefe and Jong 2010); IMD; media surve; BCG analsis
It is ifficult/comple for foreigners to enter the countr
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exhiBiT 35dt t g, B t t ttt t g tt
Brail has become more attractiveto foreigners...
...but professionals o not finBrail attractive
itt gt gt t t t b t tt t gwg B
n tt gt B bgg g wk
T tt tt
A eergig reear per:
Brai i beig a re attratie
detiati r ietii ad
aadei reear.The Economist and BBC Brasil
Because of the opportunities its econom offers
Because of the multinationals thathave come to Brail
Because it is attractivefor specific groups
dtt,B t 27tt 58tw t ttttgtt
19.1
28.1
38.1
47.8
77.4
87.2
96.8
156.1
185.9
195.8
225.4
5.1 27
4.9 29
33
4.1 42
4.1 43
3.6 49
1. IMD World Competitiveness yearbook, analsing agreement with the followingstatement: Foreign high-skilled people are attracted to our countrs businessenvironment.Total of 58 countries included in the surve / Source: IMD, HSBC, EIU, The
Economist, BBC Brasil, media surve; BCG analsis
aee e1
(e f 1 10) rk
4.6
switZErland
singaporE
usa
hong Kong
australia
uK
chilE
FrancE
india
china
russia
BraZil
gErMany
KorEa
Japan
MExico
argEntina
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B t b t gt t tt t t g tt tk t . it t w qt t tk tg t
tt t t t g, wtt g t wk.n t t b g t t t t ttt .
Canada uses a system of scores to issue work visas, and has made it easier forg tt t g t t t tt. Qb t tt t ttt tgt tt tt t t jb kt, gt t tt t tt wt f;
Singapore has simplified its process to obtain work visas for talents that have skillstt ttg t t t, t t t gt t tt t ;
An initiative by the Danish government mapped the economic sectors with atg tt t gt t t d tt tt Wk dk b t nw d, i;
The countries that make up the European Union contribute to creating a regional talent b g t bt qt , t e Jb mbt pt t bg tgt t g. it t tk g q wk t tg tt jb ;
The UK simplified its visa policy by adopting a points system that balances immigrantt t t t;
Australia also has an immigration system that is based on the qualifications oftt t t t t (see Box d).
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80 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Box dst bt gt at
at t tt t t t gt t gtt t t t t t tt . Wkg wt at -, t gt tt t t t t t , tt t k t gtg b w t tt t qt t at b kt. T t tt t b t at gt t t-t t, t ttt t t .
v b , g t k t at, t. hw, t t tt b t , t t t t t t t t -gt t. i t w t t b t t t t , t t t tg w t tt w.
i t t g tt g , at tt t t, bt wt t t bg t t, t g tt t at w t wk tt t. i t t gt t jb t .
Source: BCG & WEF Stimulating Economies Though Fostering Talent Mobilit; BCG analsis
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Proposal to fill the brain gain gap in Brail
T b g t t tgt t tt , B t tt tt wk t t ttt. Wkg wt Brant t t t wg ggt t t g B b g:
Map the competences this country lacks and disclose them worldwide. h tgt tt , w b t t t.B t t tt t b , t ttb tt . T tt, g wt bt , t t t . pt t tt t t , tkg t tb t gg t wt t gtt . i t, b t , tg t t t, t t jt t t t t t g t w.
Reduce immigration bureaucracy and make it more flexible in selected situations:
k t gt b q tt tg tt b, t b t t qt bt . p t t t b t, -qg b tt tt t gt t.i t, t gt wt lt a w b t t tt t . it tt tt t t tt gt t g, b g ttbt t tg t t b, g t.
Put together a group of companies to jointly recruit foreign executives. stt tg t t B , t t
t g wt tt t t t tg. Tw b g kw w , t jt tt t b.
BRAIN dRAIN
T tt tt gt b t wk kw brn drn t tt b t t t. T tt, t b, t t tt tg t (see Exhibit 8 on ge 24).
i 200963 the Brazilian brain drain amounted to 3 million persons, or 1.6% of its
t, t b t i , wt t 30 expatriates, or 2.5% of the countrys population (see Exhibit 36).
63 s: B mt fg rt
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dt gt gwg b B tt, t t g t g t b t t t tbt. T b t t:
The development of the national economy t tt B t tt b b w t tt tt t t t t ttt t tt b b. eg t
tt B t tt t t b t t B, g t t tt t w ;
exhiBiT 36The Brazilian brain drain has reached 3 million professionals, or 1.6% of its population
I 2009 tere ere 3 ii Braiia epatriate...
...ti ber i ti a pared t ter ati
Bz ee( ee 2009)
d b f (m e) %
north aMErica1,325
cEntral aMErica5
south aMErica514
EuropE816
aFrica37
MiddlEEast32
asia290
ocEania23
india
BraZil
30
3 1.6%
2.5% Source: Brazilian Ministr ofForeign Relations; BCG PeopleAdvantage Report 2008; media
surve; BCG analsis
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84 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil
Incentives for talents to return to Brazil, wt tt t ttt
B tt. T w t t t tt , bt t qt b g kwg tt . B t t B bk t t t, bt t ttt-w t t;
Creating a structure netor of epatriates w b gg t g t tt tt, g kwg t tt. it w t t gt t B t b t tt t g. T B t.
uk t t t B t , t t wt w g t t g t bg bk t tt:
China has a program to support the return of its expatriates, offering them preferredttt t t w t tt t -tgtt c t;
The Indian Diaspora, an organization created by the Indian government, is a network tt tt t t btw tt btw t t t g. i tg ttg t bg bk t tt. f t, t p mt t t j t, g i n, t ceo p, vk pt, t ceo ctbk;
South Korea has long standing initiatives that include funding expatriate visits to thet t t t, g t t tt t t t t k t ttt t tt;
clGlobl twk c tt tt t tbt c g b t t tg tt kwg;
The South African Network of Skills Abroad exists to transfer expatriate knowledgebk t st a tg tbt t tg.
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Proposal to fill the brain rain gap in Brail
T tt B g, w t t t w t gwg t g w. T w w B b . nt,g tt b tb, B tk tg t ttnetwork to enrich its talent pool and improve/disclose its image as an investment andb b. Wkg wt Bran t t t twg ggt t t g t B:
Create a tool to manage expatriates in a structured manner. a B tttwk bg bt, kwg t, tttgtt tg t t g b. T, g w t tt , bt t b t t
tbt t k. T gt t t b kgtt t twk, gt b (.g.: capes, fapesp) gt t t tt t tbt t bt t tt t tt t. pt tt t ttwk tg t tt tt t t t, t t t b t tt.
GloBAl TAlEnT moBIlITy Is BEcomInG As cRITIcAl AsThE moBIlITy of GooDs AnD cAPITAl gloBal talEnt risK sEvEnrEsponsEs rEport By thE world EconoMic ForuM and Bcg
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conclusion
a t tt tt tg, q ttt t g tt tt b b. it t - t t t, t ttt t b tt w ttt t t tt tg.
B tt t w t b t tt . it gtgt, t t t t g, t g t t twt t tg tt bt. T w t gt g t B tt . T t t t k ggt w t t g
t tgt t B tt w.i t t t b t tt tt t t, t t -t t ggt t t b t: t tt ttg ttt t t, tt k t gt, tkt. ot t t g t tt , :
The UK Sector Skills Councils (SSCs), independent organizations sponsored by the go-t b t t, t t tg t on employer requirements. SSCs exist for 22 industry sectors, or 90% of the UK eco-, tt wt tt :
Working with employers to determine future training needs;
Developing training;
Defining minimum occupational standards;
Creating learning systems;
Encouraging more investment in training;
Providing useful information for the long-term planning of the labor market.
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In Australia, the government develops national education and immigration strategiesb kt tg t sk at gt. T tb t t mt hg et, Tg, et lbrt gg t t t t w k. it t b:
Analyzing current and emerging needs for competences in various sectors;
Ample distribution of information to enable employers, businesses and workers tok gg tg ttg;
Recommendations to the government on current competences and future needst k gg t k bg tt t;
Relationships with the relevant government bodies to advise them on the current t t, ttg t gt t.
itg t ggt g tg ttt tt t B b (see Box E)t t b gt, t kt t t ttg tbtw t, t t B tt t t.
y w t t tg tt tt tg ttt tt tt tt b b B lt a tt tt Bran tt.
vt t t w b t t : www.bb.g
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Box ea t t B tt
A coorinate talent pool a B tt tt , g tk b b-t gt
g tg t tt t t wt t b t t T gt, t kt g t - t t t
t t tt g t tt q t t
demographics B t t w gt wt g g e at pt t
t b q gwt t ttt tt b t t t g
Eucation an training T t , wt gt
tgt wt t t t t q t . T w b t b-t gt b t t
mtt g t B b t w g et qt t t , wt g pisa t t oecd t s t g wt wt t kt , wt tt tt
wt ; g jt t t t t tq t
u gg tg tgt t t t tt, wt t -t t t w gt
fqt tt g g t t , wt B t-t gg b g tt g t B; tg g twk lt att
Talent mobilit it tt t t tgt t B t w kwg
g a qk t wk gt t a tg twk t g tt tbt t t gwt
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