Foreign Language and America’s Global Competitiveness

1. Foreign Language and America’s Global Competitiveness Ranjit Advani 22 June 2004

2. Foreign Language & America’s Competitiveness • Introduction • Personal Experiences • Global Perception of Americans • Global Competitiveness – CSFs • Some Realities and Trends • What Do We Need to Do? • Q.& A.

3. Introduction • Context for my Comments • Partner in PwC, a Professional Services Firm • Global Clients • Global Organization and Resources • Global Competitors

4. Personal Experiences • Contract negotiations in Russia • Language proficiency of both sides • Competing with another global firm in Russia • Winning advantage : Solution offered language compatibility • Negotiating merger in India • Benefit of understanding the culture

5. Global Perception of Americans Most of us: • do not know or understand the world outside our borders • are not proficient in their languages • are not interested in understanding or studying other cultures • welcome foreigners – as tourists, students, professionals, competitors

6. Global Competitiveness - CSFs • Understanding Your Customers • Understanding Your Competitors • Understanding and Utilizing Your Global Resources Effectively

7. Some Realities and Trends • Based on personal observations • At my last firm, • 26000+ employees in US / 1700 spoke a foreign language (6.5 %) • According to 2000 US Census, • Population 262 million / 40 million spoke a language other than English • Compare this with countries in US and Asia

8. Some Realities and Trends Continuing personal observations: • Attended two MBA graduations in the family – at Duke and Harvard Business School • Both schools emphasize global strategy and global competitiveness; yet neither includes knowledge of a Foreign Language as a requirement. • HBS had 30%+ foreign students in class of 2004. Many returning to their countries with a good understanding of the US environment. We do not understand theirs. They are building a competitive edge in global business.

9. Some Realities and Trends • Does any leading Business School in the US have Foreign Language requirement? • (INSEAD in Europe does. Many international universities do.) • How about educational Institutes on Public Policy? • Kennedy School of Government at Harvard and the Woodrow Wilson School at Princeton do not.

10. What do we need to do? • Regain the competitive advantage • Learn and understand Global Cultures – learning Foreign Languages is only the first step. • Businesses have started working on this challenge. • Competing for limited resources. • Educational Institutions need to fill this void - Emphasize foreign language requirements. • Government can help coordinate, encourage, incentivise, mandate. • Government should also start emphasizing foreign language requirements in its dealings with its suppliers and other businesses.

11. What do we need to do? • To be globally competitive, we need to understand our global customers, competitors and resources better than our competitors understand them and us.

12. What do we need to do? • It is not a difficult task but it, probably, will not get done without a system of economic incentives and mandates. • The longer we wait to accomplish this goal, the longer our global competitiveness will be at risk and our economy will continue to be under pressure. – We need to move quickly.