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Asian Equation The The problem: Demand for quality business education in Asia vastly exceeds supply. The solution: East and West must work together to foster more first-class business programs to serve the world's fastest growing economy. ast year, I gave a presentation before members of the Association of Indian Management Schools (AIMS) in Goa, India. As I spoke to the group of Indian business school directors, I emphasized a troubling reality: Not a single Indian business school is represented on any of the world's rankings. No Indian business school has achieved AACSB accreditation. And few, if any, Indian business schools have truly pinpointed their unique missions in the global market- place. Without a focus on research, without attention to developing more full-time doctorally qualified business facul- ty, and without a commitment tomission-based development, I told them, no Indian business school ever will. Many directors came up tome aftermy presentation to say sNumerous for-profit business schools, established by pri- vate investors, place little emphasis on quality of education. Despite these circumstances, the market for graduate busi- ness education in the region is on the rise. Top-tier schools have excellent facilities, the latest technologies, and high- quality teaching faculty. They admit the brightest and most motivated students, even as they struggle to earn internation- al reputations and earn globally recognized accreditations. Given this progress, no accreditation organization can by Arvind Phatak that they agreed with my argument and were very interested in creating world-class institutions. But, they added, a scarci- ty of qualified faculty, shortages of private funding, and a lack of world-class research orientation have made such objectives seem out of reach. Their perspective is not uncommon at business schools throughout Asia. In fact, schools of global standing in Asia are the exception, not the rule. Outside a handful of schools in China, Hong Kong, Singapore, and South Korea, most Asian business programs have not gathered enough momen- tum to achieve international standing. Barriers to their growth are numerous: s Business schools in Asia typically have a small number of full-time faculty, relying heavily on adjuncts. s Adjunct faculty often teach at several schools using the same material, even when teaching different courses. sMost faculty carry large teaching loads in programs with high student-to-faculty ratios. s Schools encourage faculty research but often do not require it. s Doctorally qualified business faculty are rare. s Many top-tier Asian schools use tests other than the GMAT for admission, failing to leverage the cachet of the GMAT for their programs. s Schools outside the top tier have scant resources. As a result, they often take a cookie-cutter approach to education. 44 BizEd NOVEMBER/DECEMBER 2005 afford to ignore the Asian continent or stand back while other organizations offer their own designa- tions. Western-based accreditation organiza- tions such as AACSB International need to set standards for accreditation that recognize and incorporate the Asian perspective. They need to offer face-to-face infor- mational and advisory assistance to help Asian schools excel not only in their own regions, but in the global marketplace. Only then will the Asian business school market truly equal its population's rising demand for quality business education. The Asian Context It's no surprise that Asia's demand for business education is on the rise. Asia's economy is growing twice as fast as those of Europe and theUnited States. Asia accounts for 25 percent of the world's gross national product and is expected to account for 30 percent within a decade. Its traditional agrari- an cultures are rapidly being transformed into societies based on industry and information technology. Since the economies of China and India have grown more liberal and their mem- berships to the World Trade Organization have been accept- ed, all eyes have been focused on Asia's ascension into a glob- al economic power. It's no surprise that China, India, and other Asian coun- tries represent a huge market for business education. Asia boasts two-thirds of the world's population; and unlike the graying population in theWest, half of Asia's residents are less than 25 years of age. Most important, Asia's cultures place a high premiumon education.Most families will do everything they can to pay for their children's education. Yet Asia's management education infrastructure lags far