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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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    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

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    6 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil

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    conTenT

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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 .

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    execuTive

    summary

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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

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    dEMOGRAPHICS

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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,

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    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 ;

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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.

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    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.

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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.

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    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].

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    16 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil

    01TalenTs for abusiness hub

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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

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    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.

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    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.

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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

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    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

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    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).

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    20 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil

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    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%

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    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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    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

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    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

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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

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    NorthAmericA

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    Companies are consiering changing their strategies to solve the problem of labor shortage

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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

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    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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    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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    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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    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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    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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    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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    TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 45

    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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    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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    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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    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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    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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    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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    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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    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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    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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    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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    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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    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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    TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 77

    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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    TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 79

    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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    82 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil

    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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    TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 83

    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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    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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    TalenTs and human capiTal for an invesTmenT and Business huB in Brazil 89

    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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    90 TalenTs and human capiTal for an invesTmenT and Business huB in Brazil

    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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