Return on Formal Education (RFE)

Sharing some stats from this article I read two days back:

• India now produces more engineers and MBAs than the US and China combined. Our annual output of 15 lakh engineers and 3 lakh MBAs is way ahead of the US (1 lakh engineers and 1.25 lakh MBAs) and China (11 lakh engineers and 75,000 MBAs).
• MBAuniverse.com estimates that outside the top 20 MBA colleges only 24% of students are employable.
• Assocham believes that campus placement (in the context of engineering) outside the top 20 colleges is 10%.

The article also has some suggestions which is where it gets really funny. By funny, I mean the quality of suggestions, not really the stats. Stats aren't surprising at all. Have a look:

• They must get 3-5 years of work experience after their engineering or college degree before getting an MBA.
• If most students are not getting campus placements we need to fix our dysfunctional employment exchanges that only gave 3 lakh jobs last year to the 4 crore kids registered. We need to allow foreign universities in.
• We need to raise our 3 lakh formal apprenticeships — Germany has 40 lakh, Japan 1 crore and China has 1.5 crore.
• Most importantly, India must explode job creation because nothing changes a student's life more than their first formal, non-farm job. 

A critique of the article:
While every action or piece of execution benefits from good measurement systems and the stats emerging out of these measurement systems, the recommendations offered in this article reek of naivete at best. Even offering only the stats would've done better justice to the gravity of the situation.

Find the article here.