Issue link: http://www.e-digitaleditions.com/i/269179
57 BizEd March/April 2014 T he rate of growth in emerging economies is picking up speed. The Economist notes that the percentage of global corporations based in developing nations more than doubled between 2005 and 2010, from 8.2 percent to 17.4 percent. And according to the International Monetary Fund, 2013 was the first year in which emerging markets accounted for more than half of the world's gross domestic product (GDP), on the basis of sheer purchasing power. Not surprisingly, the nations with greatest potential for growth are the world's largest emerging economies, including the BRIC nations of Brazil, Russia, India, and China. Just consider this data point: In 2012, the U.S. and Europe represented 19 percent and 20 percent of global GDP, respec- tively; China accounted for 12 percent; India, for 6 percent. The Conference Board Global Economic Outlook 2014 projects that by 2025, the U.S. and Europe's share of global GDP will fall to 18 percent each, while China's and India's will increase to 23 percent and 8 percent, respectively. This economic shift toward developing nations has huge implications for our industry because it correlates to an increasing demand for business educa- tion in these regions. Research from UNESCO Institute for Statistics indicates that enrollments at higher education institutions in emerging economies grew by 109 percent between 2001 and 2010—compared to just 28 percent at institutions in developed countries. So far, however, the number and quality of programs in these regions have not kept pace. There is still far more demand in emerging markets than supply can accommodate. How will business schools in different parts of the world provide the programs needed to educate future leaders? AACSB is keenly interested in the answer to that question. Technology has an important role to play in helping schools expand the reach of their programs. For instance, introductory courses, which aren't as dependent upon student-to-student or student-to-faculty interaction, could increasingly be taught to large cohorts through technology-enabled platforms. Schools could also use fewer faculty, or use their current faculty more judiciously, if they partner with institutions that have strong online delivery programs. But first and foremost, business schools in developed and emerging economies must collaborate more frequently to achieve goals crucial to our industry. Only by working together can they take advantage of each other's By John Fernandes g Emerg ing Opportunities