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tv   World Business  PBS  August 29, 2011 6:30pm-7:00pm PDT

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>>reporter: this week on world business... >>international schools take steps into china. >>it is about being clever enough to see where the opportunity is going to be in the future. >>reporter: gearing up for the 21st century - india is spending a trillion dollars on transport infrastructure over the next 6 years. >>the delhi metro itself will be bigger than the london underground. >>reporter: the innovative projects helping to raise living standards across bangladesh. >>at this moment, seven villages within a range of 15 kilometres, approximately
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15-thousand, 15-thousand people are enjoying this great quality electricity. >>reporter: hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. the business of international education is worth 45 billion dollars a year and marketers have china firmly in their sights. but not all are focused on attracting "nouveau-riche" chineseents to . some of the most respected english private schools are expanding in the people's republic itself.
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>>reporter: quintessentially english, in far flung china - though unlike its four century old namesake for the teenage sons of the world's millionaires and monarchs, harrow international school welcomes well-heeled beijing-based children as young as three, including girls. >>established in 2005, this is the harrow brand's second overseas school after bangkok. a third opens in hong kong in 2012. >>farthing: there are many visionaries on the harrow school board who see the value in transliterating a qualityharrow-branded service into new markets. at a commercial level, there is a return from the international schools as well which goes back to help maintain a level of fee structure at a school like harrow to the benefit of that school too. >>reporter: harrow international school is a private company backed by a hong kong investor; it operates under alicence from harrow school in the uk. as for the maths, the beijing operation has over 400
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students - with annual fees for the eldest, 28,000 us dollars. >>in the city of tianjin (pronounced tee-en jeen), another famous british name, wellington college, opens its doors in the autumn of 2011 - in a campus funded by a local property developer. a relative latecomer to the overseas market, wellington has big plans to catch-up with the competition, first in china, then india and the middle east. >>cook: they believe firstly that they have a brand at home, a quality of education in all its many guises, extra-curricula, academic, moral, spiritual and so on - which they can export, so to speak, around the world. >>mackie: mainland china hosts over 270 international schools in 43 cities and in the provinces many cater to just a couple dozens students. but for the majority of schools, they can only enrol foreigners - children
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of expats or returning chinese with foreign passports. so for well-off mainlanders who seek a less politicised, international education and a seamless entry to the world's leading universities, there are two options. >>reporter: option one, there are schools abroad, which, along with colleges, vigorously compete at education expos like this for a share of the 200,000 chinese students who study overseas annually. of this number, over 3,000 under 18s attend british boarding schools, while around the same amount board in the us. most going onto universities, paying premium fees, in their countries of choice. these numbers are growing as anxious parents worry about their only child's competitive advantage inchina's marketplace. >>gregg: there's an interesting push coming on with how parents view the importance of education and their careers. i see that there are a multiple of opportunities for kids to come back who have gone through that creative thinking and analytical thinking, good communication in english
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and other languages, to thrive in companies in china because they don't get that internally necessarily. >>reporter: that is, unless they opt for option two. after completing his compulsory chinese education, 16 year old dang xuyang was able to enter harrowinternational school's sixth form to study for britain's a levels - so avoiding college foundation courses and other problems faced by his peers. >>xuyang: most foreign universities do not recognise chinese secondary school qualifications. there was also aproblem with my english language proficiency at that time. so coming to this school was one of the best ways to solve these problems. >>reporter: many leading international schools adopt the same strategy. however, another foreign player is focused primarily on domestic students. >>old etonian william vanbergen's company british education - with a mainland investment partner - is establishing three boarding schools for the over 15s that run on the uk curriculum.
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>>like wellington's tianjin model, campuses are typically provided by developers - who recognise theconnection in china between a reputable school and nearby property prices. here in qingdao, britain's oxford international college oversees the delivery of a quality, branded education that can cost up to 18,000 dollars per year. bankers say the business plan is sound, but executing such a model in china isn't easy. >>vanbergen: you really want to try and draw on the strengths of what you have - the tradition, the history, the academic excellence. but then you've got to replicate it half way around the world. you're talking about an environment that doesn't speak english, that is very, very culturally different. >>reporter: china's cultural differences and the country's growing clout on the world stage, isn't lost on head teachers, like frances king of the exclusive roedean girls' school. she's here in china, not only to meet prospective elite students, but also explore potential teacherand student exchanges - and so better
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prepare her girls for their future roles, be it in business or diplomacy. >>king: it's about being clever enough to see where the opportunities are going to be in the future. there are certain markets which will remain strong and constant in the west - certain markets in the uk that i can tap into. it's what kind of sharp new outlook you want to bring to your business which i think appeals to me. >>reporter: expanding the reach of distinguished brands in mainland china is a long-term strategy. for the hard pressed british treasury, these early connections should help maintain the intake of top dollar students to uk universities. while sino-british networks should deliver referral business to the schools and advance their students' careers - by broadening the old school tie network. >>reporter: india may be one of the economic success stories of the modern world, but it has achieved this despite some truly antiquated transport infrastructure. the government is pushing
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to improve this with a massive investment programme which will benefit millions of people, yet there is some resistance to the plans. >>reporter: every weekday morning in mumbai, 5000 lunch deliverymen go to work, taking hundreds of thousands of home cooked meals from the suburbs, to workers in the city centre. >>the dabbbawallahs, as they are known, are semi literate, but achieve a loss rate of only 1 in a million; using a system that business magazine forbes ranked in efficiency in the same category as high-tech companies like motorola. >>sawant: the code is unique but very simple. when somebody new joins us it takes about 15 days for them to betrained. and then they know which station to take this to and which office to deliver it to. >>reporter: it's a testament to indian ingenuity, but at its core the business is a workaround -adapting to the often failing colonial and early post-colonial infrastructure
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that is a feature of much of the sub-continent. >>narula: one of the major challenges which india needs to overcome is to have a realistic assessment of wherethey're heading. it's all well and good for us to say that we want to catch up to china but that requires meaningful planning, meaningful integration between a lot of different agencies >>reporter: india is raising its investment from 4 to 9 percent of national income, ploughing 1 trillion dollarsinto infrastructure from now until 2017. >>the money is being spent to transform places like new delhi; home to over 11 million registered vehicles, more than all other indian cities combined. the region loses nearly 420 million man-hours every month due to traffic congestion. >>inderwildi: it's a good thing to get people off the road and into a mass transit system especially because you can reduce emissions, not only co2 emissions but also polluting
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emissions and you can reduce your dependency on oil. >>reporter: so - the delhi metro. rapidly becoming a landmark, it's single-handedly trying to transport this 1,000 year old city into the 21st century. it already carries 1.5 million people every day, is still expanding and the aim is to double its size in the next decade. >>nath: the delhi metro itself will be bigger than the london underground and we will have done about close to 419 kilometres, billions of dollars of investment, that would take care only again of a part of delhi's problems, because delhi has a huge metropolis and growing numbers coming in every day. the challenge of urbanization in delhi and the challenge of urbanization in our large cities is huge. >>reporter: the country is looking to create 15,000 kilometres of new roads and highways at an estimated cost of30 billion dollars. >>however 90% of indians live in villages or towns far
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from the great new highways, where vital infrastructure improvements are often overlooked. >>mccartney: making rural roads passable in wet weather conditions. the boring, low key, small scale infrastructure but nevertheless makes a big difference to lives of ordinary people." >>reporter: that said, the project has made a real difference to many rural indians, especially farmers. it's estimated that 25% of perishable goods rot, because bad roads stop produce getting to market on time. >>singh: there is a lot of progress, there are national highways here. earlier we had problems transporting our produce. now there is no problem at all and we are benefiting from this progress. we are getting very good rates for our potato crop. >>reporter: however as always there is dissent; while many farmers feel the benefit of the new road network, others are protesting against their land being acquired for
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infrastructure projects.... and the government's acquisition policies. >>so what if they are making roads, it's not going to feed us. inflation is so high that we can't afford to feed ourselves. >>mccartney: it is very difficult to build roads in india because property rights are so complicated. it can takea long time in the courts to acquire property to widen roads or buy the farmland, reallocate farmland to road building purposes. so it is a very veryslow and long process. >>reporter: but at the end of that process, if the government wins, they have the right to make a compulsorily purchase. >>rajesh devi was given $6,500.00 for her land but says that without the ability to farm - it is theonly livelihood she knows - her family face starvation. >>devi: we are all affected, women and children too. when our land is taken from us, how will we farmers feed our families? and the compensation was too
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little. >>reporter: there may be resentment and legal wrangling and bureaucracy might hold up the development of roads, where the country's great rival china can move much faster. but it is also a signal of one of india's great strengths... and notably lacking in its main competitor. >>mccartney: in the long run in order to sustain growth one needs an independent judiciary, one needs protection of private property rights, one needs a vibrant civil society and india already has those things. you know, very difficult to create however creakily functioning they are india has them but china hasthe daunting task of trying to create those institutions. removing the legal system, property rights from its communist legacy, the communist party. and so even if china has raced ahead in the lastthirty years, many would argue and agree in the next fifty years perhaps india is going to overtakechina >>reporter: more and more people are beginning to believe that the world's biggest democracy may, after all, be playing
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a successful long game. >>reporter: still to come on world business... >>smart solutions for a better future in bangladesh. >>and why superbike racing is still growing despite the recession. >>super fast and super dangerous... and the rest in just a moment on world business... >>reporter: bangladesh is home to some of the most innovative development techniques, most notably the grameen bank created by muhammad yunus. this year he was dismissed in an apparently politically motivated dispute, but his work helped lift millions out of poverty and is just one of many imaginative projects in the country,
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helping people establish and grow small businesses. >>reporter: working conditions are harsh at these brick plants outside dhaka. but in some ways they are sign ofprogress, as well as the challenges that progress brings. >>it's the demand for new homes and shops, and the building of new roads and bridges that has fuelled the creation of around 5000 of these factories. the problem is that most of them have been built illegally right on top of fertile rice fields. >>hariri: you have to meet the demand of the population and at the same time you have to raise productivity ofthe land through r and d, through improved seeds. so i know there is pressure on the soil but thisis the situation there, and you just have to cope up with this increasing population pressure.
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>>reporter: the islamic development bank is working with the bangladesh government to do just that...educating farmers to help improve their yields, funding mechanized farm equipment, building cement irrigation channels. >>paul: if we increase the irrigation channel, then the command area will be increased, irrigation costs will be reduced and the production will be increased so the farmers will be benefited and the farmers will be economically enhanced. >>reporter: projects like these are helping farmers move from mere subsistence, to reaping surpluses they can sell. >>another, more high-tech initiative, is similarly aiming to increase farmers' incomes. >>the telecentre network was established with funding from the canadian and swiss governments. there are more than 3000 of these profitable, self- sustaining centres across the country. >>akbar: this centre is run by an entrepreneur, owned and run by an entrepreneur. but there are some different kinds of models. those are run
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by ngos, civil society, even the government is now also owning some. >>reporter: for a modest fee, rural people can get digital photos taken and photocopies made, helping them to apply for government services and subsidies without having to journey into the towns. >>and thanks to a partnership with the international rice research institute, they are also boostingfarmers' productivity. >>akbar: when a farmer is having a problem, like he needs any information on input like seed, or fertilizer of pesticide he goes to this centre now. >>reporter: computers require a steady power supply, and that's far from a given in bangladesh where only about 40 per cent of people have access to electricity. >>one man has found an ingenious solution. with seed funding from the world bank and bangladesh government, asuuzzaman sheikh established the country's first biomass power plant. >>it uses a waste product
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the country has in abundance - rice husks. >>sheikh: the people of here, they are thinking me, that i am mad because i will produce the electricity from the rice husk. they are asking me: "are you mad? you are producing the power from the rice husks >>reporter: no one doubts his wisdom, let alone his sanity, any more. >>sheikh: at this moment, seven villages within the range of 15 kilometres, approximately 15-thousand, 15-thousand people are enjoying this great quality electricity. >>reporter: economic activity in those villages has boomed since sheikh brought them power. >>sheikh: we can implement such a kind of more and more projects in the villages of bangladesh, i think the problem of electricity will be solved. >>reporter: barring the microstates, bangladesh is the world's most densely populated country.
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that means that even its economic progress of recent years is inadequate. >>goldstein: bangladesh has had some success in accelerating its growth rates over the past two to three decades to a point where the country is now growing at quite a healthy 5-6 per cent per year even during theglobal economic and financial crisis of the past couple of years. >>reporter: it needs growth of closer to 9 per cent if it's to continue to substantially reduce the number of people living in poverty, which still stands at close to 40 per cent. >>goldstein: it has been the garment industry and labour-intensive manufacturing on the one hand which has been behind much of the growth of bangladesh in recent years. the other aspect has been labour migration out of bangladesh to many countries in the middle east or neighbouring countries. >>reporter: those migrant workers now send home close to 10 billion dollars of remittances a year,ml
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investment and economic growth. >>still, the country remains heavily reliant on foreign assistance. >>hariri: the successes in the various models, from grameen to microfinance and islamic microfinance, the ngos, many, many organizations are really playing their part in helping bangladesh get out of poverty but really the challenges are tremendous. you know, the climate change, the overpopulation, pressure on infrastructure on the various projects. so it's really quite a challenge to get it to work in that country and make it sustainable. >>reporter: sustainability that must be built on seeing demand for bricks for new construction continue to grow,but without the factories that make them, eating up limited and vital arable land. >>reporter: the sport of superbikes is
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spectacular, fast and dangerous. it may lack a little of the glamour of its bigger brother moto gp, but has a large and dedicated following. where other sports have felt thepinch of recession, last season two more manufacturers swelled the ranks of superbikes. >>reporter: it's where the rubber hits the road...where the bike-makers put the product... >>flammini: ...our series promotes the product that everyone can buy for road use. therefore you have a direct return on your investment. >>sunnotel: the racing class that is most closest to products people can buy in the street. people
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really can identify them. >>jong: ok we are in a sunny summers afternoon here in britain and there are few things i like doing more than hanging out on the grid at the world superbikes...because lets face it...these are my kind of people.... >>(adj) what do you need to do win? >>corser: just get a good start and get up the front. get away with the front guys. >>brooke: the big thing with bikes is you know, you've gotta go to the edge but be careful because if you get it wrong or make a mistake then you pay quite a big price. >>this is the bike series for true bike lovers...and for the 7 manufacturers on the grid...reaching out to those potential customers has never been more important.... >>sunnotel: we are selling products that basically nobody really needs but everybody wants and in terms of a recession these markets are hit first. >>reporter: despite the recession... manufacturers aprilia and bmw joined the series. in bmw's case, it's provedan ideal platform for launching a new sports bike onto the market...
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>>jong: if you want to enter the competition...last year you had to produce 1000 bikes, this year you have to produce 2000 bikes. essentially the idea is that you can walk into a shop and buy a bike that is not too far removed from this beast. obviously it won't go as fast... >>reporter: because while the chassis does remain the same...the one litre engines are highly tuned and any modifications can make a significant difference.... >>sunnotel: the whole layout, the geometry, everything is the same but in terms of electronics for example, in terms of engine power you're allowed to change quite a lot of things but clearly there is a strong link. >>reporter: in a tough economy, world superbikes has been a welcome addition to the silverstone circuit's 2010 portfolio... >>phillip: since december we've been spending quite a lot on rebuilding the track to get
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the safety in for bikes. motogp...for world superbikes. and we've spent about 10 million total on that and now we're building a new pit and paddock building as well. >>reporter: the more prestigious motogp series, which visited silverstone earlier in the year races slightly faster cutting edge 800cc prototypes...but they are far more expensive you can get a team onto the grid for less than 2m euros - about a quarter what you'd pay in motogp....and keeping costs down is a constant mantra... >>flammini: we have forbidden exotic technologies...exotic materials to the point that today a racing bike readyfor the track can be bought for 100 thousand euros which is really a limited amount of money. >>reporter: superbike's revolutionary decision in 2004 to appoint a single tyre supplier also helped cut costs, along
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with levelling out the competition...and every race weekend pirelli provides teams with around5000 tyres... >>barbier: in this race for instance we got 4 different slick choices for the riders and so they have to make during the test session on friday and saturday to make their own choice for the race. who will make the best will win. >>reporter: and pirelli's performance in superbikes has helped the italian company win a far more high profile contract...formula one... >>barbier: for pirelli it's really important to go in a part of the world where maybe our brand is not so well known like the far east. where the f1 is now concentrating on new countries that are far from europe, far from the us and we need to show our image down there as well. >>reporter: f1's attractiveness is undisputed. this years grand prix at silverstone pulled in 305,000 fans. that's about twice what motogp attracted...more than 4 times the world superbike crowd. it
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makes superbikes appeal sound rather thin....but while motogp is struggling to put more than 17 riders on the this race 24 superbike riders attacked the track... >>crutchlow: are you in a dangerous business? >>no. i don't think so. it's what we do and we all love it or else we wouldn't be here. >>corser: a dangerous sport? >>no more dangerous than walking across the road mate. >>doesn't worry you. >>nah! >>brookes: part of the job though isn't it. yeah part of the job and obviously everyone realise that but we allare stupid enough to do it anyway. >>reporter: that's it for this week's world business. thanks for watching. we'll see you again at the same time next week.
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