ASIA
26 March 2014
Canada's "Asia-competency" deficit
To be a winner in the Asian Century, you need to "know" Asia. Unfortunately, Canada is being held back by an "Asia-competency" deficit.
To be a winner in the Asian Century, you need to "know" Asia. Unfortunately, Canada is being held back by an "Asia-competency" deficit.
There are a vast array of economic connections between Asia and developed countries like Canada or Australia -- from trade and direct investment projects, to capital flows and migration. One key part of this is human transactions like tourism and flows of international students. And as business and political relationships deepen, it becomes necessary to negotiate the nature of these relationships.
For these, and many other reasons, developed countries need to have a strong base of Asia-competence. This has been recognized in the Australian government's recent White Paper on the Asian Century.
It has now also been highlighted in a recent opinion poll by the Asia Pacific Foundation of Canada. This poll asks Canadians who are engaged in Asia to consider different dimensions of Canada-Asia relations when it comes to education, and the role education might play in helping Canada build closer relations with Asian countries.
60% of respondents who employ Canadians for Asia-related work say it is difficult to find qualified Canadians with the appropriate level of knowledge and awareness of Asia to help the company or organization succeed in Asia. More than 8-in-10 respondents consider education, especially for Asian languages, to be the most critical component of any strategy to build closer relations with Asian countries.
Over 70% expressed the need for more to be done to promote Canada as an education destination, with the main barriers being immigration rules, tuition fees and the academic culture of host Asian countries.
"We need to invest in education and skills training programs that reflect the global reality of a rising Asia," said Mr. Yuen Pau Woo, President and CEO of the Asia Pacific Foundation of Canada. "Canada will not be able to participate fully in Asian business opportunities or have influence in the region unless we build Asia competency into our education system, and make Asia knowledge a priority for businesses, government and civil society leaders."
This report goes on to question whether Canadian governments at all levels can develop the political will and sustain the necessary commitment to pursue a full-on, long-term Asia strategy. It suggests that Canadians need to be gently pushed and prodded to acquire an understanding of Asian societies. Currently, fewer than 3% of Canadians participate in study abroad programs, and the percentage of those studying in Asia is very low.
This report is excellent in drawing attention to the need for Canada to improve its Asia-competency. But there are a number of unanswered questions.
First, there is no reference in the report to the important population of Asian Canadians, who represent at least 10 per cent, and probably a lot more of the present Canadian population. Is Canada seeking to use and exploit effectively its own Asians as the basis of its Asia-competency? It is well-documented that many high-skilled Asian immigrants are not able to use their skills for various reasons, and undergo "deprofessionization" as they waste their time doing low-skill jobs.
Second, another issue that needs to be explored is whether there are any barriers to Asian Canadians becoming entrepreneurs who could do business with Asia. Small and medium size enterprizes (SMEs) always have difficulty raising finance, and face other, often bureaucratic, barriers to doing business. On the other hand, while SMEs often face "information/opportunity problems" in new markets, in Ontario there are an important number of Chinese business associations, actively promoting trade and investment links with China.
What is fundamentally lacking in Canada is a national political and societal acceptance that the country has to live and work with Asia, especially China, as the region's largest economy. It has relied on the large US market for so long, that a major change in mindset is necessary to understand the Asian Century.
Canada should take inspiration from Australia and elaborate a "Canada in the Asian Century" strategy. The Canadian government's agonizing over the recent Chinese and Malaysian foreign investment cases shows that policy makers have still not come to grips with the Asian Century.
As this excellent Asia-Pacific Foundation report highlights, education should be a key element in developing Asian competency. But other policies can also contribute to developing such competency, most notably migration and foreign investment policies.
The Asian Century Institute, from its Toronto base, hopes to contribute to developing Canada's Asia-competence.
Executive Director
Asian Century Institute
www.asiancenturyinstitute.com
There are a vast array of economic connections between Asia and developed countries like Canada or Australia -- from trade and direct investment projects, to capital flows and migration. One key part of this is human transactions like tourism and flows of international students. And as business and political relationships deepen, it becomes necessary to negotiate the nature of these relationships.
For these, and many other reasons, developed countries need to have a strong base of Asia-competence. This has been recognized in the Australian government's recent White Paper on the Asian Century.
It has now also been highlighted in a recent opinion poll by the Asia Pacific Foundation of Canada. This poll asks Canadians who are engaged in Asia to consider different dimensions of Canada-Asia relations when it comes to education, and the role education might play in helping Canada build closer relations with Asian countries.
60% of respondents who employ Canadians for Asia-related work say it is difficult to find qualified Canadians with the appropriate level of knowledge and awareness of Asia to help the company or organization succeed in Asia. More than 8-in-10 respondents consider education, especially for Asian languages, to be the most critical component of any strategy to build closer relations with Asian countries.
Over 70% expressed the need for more to be done to promote Canada as an education destination, with the main barriers being immigration rules, tuition fees and the academic culture of host Asian countries.
"We need to invest in education and skills training programs that reflect the global reality of a rising Asia," said Mr. Yuen Pau Woo, President and CEO of the Asia Pacific Foundation of Canada. "Canada will not be able to participate fully in Asian business opportunities or have influence in the region unless we build Asia competency into our education system, and make Asia knowledge a priority for businesses, government and civil society leaders."
This report goes on to question whether Canadian governments at all levels can develop the political will and sustain the necessary commitment to pursue a full-on, long-term Asia strategy. It suggests that Canadians need to be gently pushed and prodded to acquire an understanding of Asian societies. Currently, fewer than 3% of Canadians participate in study abroad programs, and the percentage of those studying in Asia is very low.
This report is excellent in drawing attention to the need for Canada to improve its Asia-competency. But there are a number of unanswered questions.
First, there is no reference in the report to the important population of Asian Canadians, who represent at least 10 per cent, and probably a lot more of the present Canadian population. Is Canada seeking to use and exploit effectively its own Asians as the basis of its Asia-competency? It is well-documented that many high-skilled Asian immigrants are not able to use their skills for various reasons, and undergo "deprofessionization" as they waste their time doing low-skill jobs.
Second, another issue that needs to be explored is whether there are any barriers to Asian Canadians becoming entrepreneurs who could do business with Asia. Small and medium size enterprizes (SMEs) always have difficulty raising finance, and face other, often bureaucratic, barriers to doing business. On the other hand, while SMEs often face "information/opportunity problems" in new markets, in Ontario there are an important number of Chinese business associations, actively promoting trade and investment links with China.
What is fundamentally lacking in Canada is a national political and societal acceptance that the country has to live and work with Asia, especially China, as the region's largest economy. It has relied on the large US market for so long, that a major change in mindset is necessary to understand the Asian Century.
Canada should take inspiration from Australia and elaborate a "Canada in the Asian Century" strategy. The Canadian government's agonizing over the recent Chinese and Malaysian foreign investment cases shows that policy makers have still not come to grips with the Asian Century.
As this excellent Asia-Pacific Foundation report highlights, education should be a key element in developing Asian competency. But other policies can also contribute to developing such competency, most notably migration and foreign investment policies.
The Asian Century Institute, from its Toronto base, hopes to contribute to developing Canada's Asia-competence.
Author
John WestExecutive Director
Asian Century Institute
www.asiancenturyinstitute.com