Wisdom Stories
Jul
25

I say yuan, you say rupee

The conventional wisdom says that English is the language of business. But to what extent is business - and economic growth, for that matter - contingent on fluency in the language? An examination of the rise of India and China in the global economy offers insight into the relevance of language as a driver for growth, and reveals that the conventional wisdom may be right, but needn’t be applied universally.

It is worth considering first the growth story unfolding in India. After years of a cool Asian economic climate, in the late 1990s India emerged as a force to be reckoned with, as high value currencies such as the dollar, pound, and marc were leveraged by the cheap Indian rupee and a large supply of great labor. But what facilitated the transfer of wealth from richer countries to a developing country like India was - in a large part - an English-speaking lower class that could replace English speakers in many English-speaking ‘back offices’ located in rich countries, where costs of living demanded that high wages were paid to workers. The result was a massive shift not only in service jobs that led to the now ubiquitous Indian call centers, but also a shift in technology jobs, as a skilled, English-speaking engineering class emerged that was willing to work for a fraction of their American counterparts. Of course, all things do come to an end, and with the creation of a broad-based middle class, so came with it the seeds for tougher times: the rupee appreciated on world markets and prices rose, leading to a much more expensive Indian workforce that made many foreign companies reconsider their investments there. Nevertheless, a newfound middle class ensured that there would be domestic demand for Indian goods and services allowing India to ‘fish for itself’ in the pursuit of economic growth. Had India not had such a large English-speaking population, it is fair to say that it would have remained off the radar of many foreign companies that sought to cut costs, and thus would have remained without the middle class necessary to grow the economy from within.

China, however, offers an interesting counterexample to the utility of English. Whereas in India about 50% of the population speaks English fluently or marginally as a second language, in China that percentage is somewhere in the low single digits. Nevertheless, China’s economy has managed outgrow India’s at a rate of almost 2 to 1. The Chinese growth story, however, is a different one from India’s. Where India’s growth was in a large part the result of job creation in the services sector, which led to a growth in jobs elsewhere in the economy to support a new middle class, China’s growth was driven by the cheapness of labor and thus the cheapness with which goods could be manufactured and sold on the world market, in no small part also due to the country’s manipulation of currency. While the country has made great strides towards teaching English, China never required English on the same scale because growth was fueled by Chinese-speaking factory workers and not English-speaking administrative staff and engineers. Nevertheless, the Chinese growth story would have never unfolded without the demand for Chinese goods from America and Europe, which, to be sure, was facilitated by the existence of Chinese businessmen who spoke English and - to a lesser extent - Chinese expatriate businessmen living in the west who were able to get deals done.

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Jul
1

Moving From South Africa To USA

Well, guess I need to bite the bullet and call an international moving company. Don’t know which one, maybe I should Google it. I still can’t believe I have to leave the home I’ve always known to go live somewhere I’ve never been – the USA.

How can I leave South Africa, the adventure capital of the world where natural beauty and wildlife abound? Where one can follow the African drum and gumboot beat; the bright sun, stars and city streets; the friendly people, rich culture and freedom struggle that warms even the coldest person’s heart. Not to mention the invigorating mountain and ocean air. Can the USA offer anything even close to that? I wonder. Sigh.

But work is work. My company has offered me a huge promotion to make this move. I have to yank up my roots and the roots of my wife and children, I don’t have a choice. I never wanted my children to grow up anywhere else other than South Africa. It’s in our bones, has been for generations and generations. It really is for the future of my children that I make this move, even though they won’t see it that way for probably a very long time.

Okay, okay, enough procrastinating. I’m Googling international moving company right now to get some phone numbers. Let’s see…it says to put my home country in, South Africa, and my destination, New York, USA. Hmmm…what’s this I see? A whole list of international moving companies - and they’re willing to give me online quotes. Wow…this is going to be easier than I thought!

Okay, I’ve got quotes and now I’m going to check out the short listed international moving companies on the Better Business Bureau and Epinion. Thank God for the Internet! My wife helps me make the choice and we set up a date and time next month for them to come, pack up our lives and move us to another. For it truly is like starting a whole new life. The international moving company gives us advice on the rules, regulations and laws for the move and even hooks us up with a realtor. So far, so good.

I decide to Google New York and the pictures that come up look promising… and it’s right on the ocean too! We make online lodging at a five star hotel until our home is ready and decide to have a family vacation for the first month. We’re all excited now.

We book a couple of Broadway shows, trip to the Empire State Building, a general NYC tour, cruise of the harbor, tour of the Statue of Liberty and just so we don’t get over-immersed in culture, a Six Flags Great Adventure…for the kids of course.

I’m feeling better now. I realize that home is wherever you make it. I will always carry the beat of South Africa in my heart even though life’s adventures may take me afar!

International Moving

Posted in Moving To Asia, Over Seas Moving | No Comments »