For students in emerging markets i.e India and China, America was the dream destination for pursing their higher studies and a wonderful career. It was all a matter of few applications to US universities and choosing the right ones once you get the admits, ofcourse you need a better under-graduate score and acceptable scores in some qualifying exams. Two years of hard work and then landing in a good job there will help you take off in your career.
But now, is it all turning into a nightmare very soon ? The economic recession and its aftermath, have pulled the US economy considerably down. The housing bubble has led to huge financial crisis. Many big companies have gone bankrupt and huge layoffs have occured in many sectors across the board in America.
Many Indians have flown back home to India planning to apply for jobs in India, as they think that their jobs are not secure. US government has pumped in money through many financial and stimulus packages, cut interest rates to encourage spending by its citizens.This inturn has put a huge fiscal deficit burden on the American government, which many believe will balloon out to uncontrollable levels by FY10. Besides this, the American treasury bonds bought by many countries as a source of investment is becoming more of a liability. The Chinese who has the highest amount of treasury bonds are very worried about their return on investment.
Americans who are the main source of consumption for the global market are beginning to save more for the future fearing a bleak future. So, this has put enormous pressure on other countries who export goods to America and Europe.
Many believe this gap in global consumption can be filled only when emerging markets like India and China grow and create a domestic demand in their respective countries as they have a huge growing population.Experts believe even if America and Europe get out of this recession, they may not grow like they massively did pre-recession era. So, more protectionist measures and stringent immigrant laws will follow so as to keep American jobs to themselves. This may make it improbable for Indian students and their Chinese counterparts to study and get a dream job in US.
But the blessing in disguise could be a growing India and more jobs being created in India with well paid openings. This could take a few years, if not a decade or so before India and China emerge as dynamic economies providing sufficient jobs to its citizens. Till then, a slow growing or sluggish global economy will be the order of the day,hopefully just 2 to 3 years of pain.Indian companies should now look to Africa and "Emerging markets" for pouring their investment rather than United States and Europe and diversify their investment.
So, maybe, demise of the "American Dream" would be the starting point of an "Indian or a Chinese dream".
