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Expats in Asia See Living Costs Surge: Survey
AFP (12/02/2009)
The weak U.S. dollar is making life more expensive for expatriates living in Asian cities, according to a new survey from ECA International. Expats in Japan have been hardest hit thanks to the yen hitting a 14-year high against the dollar, with the four most expensive Asian cities on the list all being in Japan—Tokyo, Yokohama, Nagoya, and Kobe. Rounding out the top ten among Asian cities were Shanghai, Seoul, Beijing, Singapore, and Taipei. The most expensive city globally was the Angolan capital of Luanda due to infrastructure damage. Those areas whose currency is not pegged to the U.S. dollar are most vulnerable, and expats living there are likely to require higher living allowances from their companies. The survey measures the cost of 125 goods purchased in 390 locations around the world, including groceries, clothing, and other items, though housing, cars, and schools are not included.

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Foreign Workers to Get Credentials Quicker
CBC News (Canada) (11/30/09)
Canada’s federal government is working to speed up the process by which foreign professionals receive credentials to work in professions that they trained for abroad, rather then being forced to take up different occupations. Starting December 31, 2010, architects, engineers, registered nurses, occupational therapists, pharmacists, physiotherapists, medical lab technologists, and financial auditors and accountants will have their certification applications processed within 12 months. Physicians, dentists, engineering technicians, medical radiation technologists, licensed practical nurses, and teachers of kindergarten to Grade 12 are occupations that will be added to the list beginning Dec. 31, 2012. "It used to be that it could take two years after someone got here just to find out where and how to get their credentials evaluated," says Minister of Human Resources Diane Finley. "We recognize how important it is for newcomers to put their training and their knowledge to work here in Canada. ... It's vital for them, and it's vital for their families and it's vital for our economy." Statistics Canada estimates that 60 percent of immigrants work in jobs in a field that differs from the one in which they worked in overseas, while 42 percent of newcomers between 25 and 54 have a higher level of education than their job demands.

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When Chinese Entrepreneurialism Meets Western Economics
The Conference Board Review (11/09) Vol. 46, No. 5, P. 5; Heresniak, E.J.
E.J. Heresniak teaches economics and business in Shanghai as vice dean of Shanghai Guanghua College. The syllabus covers economics theory, curves, and calculations -- in which young people are interested despite the worldwide financial crisis. The students are actually more concerned about India as a rival than the United States. They are also curious about the free market's self-correcting "invisible hand," and point out that the U.S. government now steers banks and owns shares of General Motors and Chrysler. To explain the disparity between practice and theory, Heresniak observes that economics typically overlooks the fact that people cheat. In China, free market views have been aggressively adopted and entrepreneurship abounds. The streets have ample mom-and-pop stores, for instance, and businesses sell such things as stone, custom-made wedding dresses, oil paintings from photos, and money changing services. China has a mixed economy comprising central planning, government enterprises, and a free market. The approach is not perfect but still enables many people to strive toward upward mobility.

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Dubai Crisis May Trigger Expat Job Losses
Wall Street Journal (12/01/09) Delmar-Morgan, Alex
Dubai's economic struggles will most likely seriously damage confidence in the emirate's expatriate community, and could result in the loss of numerous jobs for expatriate workers. "It's clear there will be job cuts but it's too early to know the extent of it," says Raj Madha, an analyst at the investment bank EFG-Hermes. Dubai recently announced that it will seek a six-month payment freeze on debts owed to Dubai World, which is one of Dubai's biggest conglomerates and owns real estate developer Nakheel. Government-owned companies are Dubai's biggest employers, and account for most expatriate jobs. Cutbacks in the emirate's working foreign population could further impact an economy already struggling with a 50 percent fall in real estate prices over the last year. Dubai's tax-free living and luxurious lifestyle attracted many Western expatriates to the emirate during better years, but those times may be coming to an end as Dubai realizes it is burdened with massive debts and obligations. About 85 percent of Dubai's population is migrant workers, according to the U.S. State Department. Job losses in Dubai, which prides itself on nearly full employment for its indigenous population and high incomes, could be extremely politically challenging to the emirate's un-elected leaders. "I think it will be more challenging for the government to lay off nationals," says Banque Saudi Fransi chief economist John Sfakianakis. "The first downsizing happens with expatriates and, then if there is a need, the nationals are downsized, which could create discomfort." Last year, thousands of foreign workers were let go from Dubai's real estate and financial services sectors following the global economic crisis.

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Spain’s Stand Against E.U. Directive Gets Stronger, Six Nations Join In
Spanish News (12/03/2009) Anand, Rajat
Spain’s opposition to the EU health directive has gathered the support of six more member nations--Poland, Portugal, Greece, Slovakia, Lithuania, and Romania. Spanish Health Minister Trinidad Jiménez said the country’s objections are based on the directive’s inability to guarantee quality healthcare as well as the expense, as it will cost the public health system an extra 2 billion euros each year. Another problem is the treatment of expatriates, as the directive would allow them to get treatment in another country and Spain would have to pay more than they would if the expat stayed home and went to a Spanish public hospital. Finally, Jiménez also said that the only people that would benefit from the directive would be the small portion of the population that is rich enough to pay for surgeries before being reimbursed.

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Lessons From H1N1's First Wave
Risk Management (11/09) Vol. 56, No. 9, P. 26; Phelps, Regina
The recent outbreak of the H1N1 flu virus has taught many corporate risk managers that having a plan in place is not sufficient. One of the biggest problems so far has been that most corporate risk officers failed to pressure-test their response strategies with either functional or table-top exercises. Second, employees will come to their corporate risk managers for assurance and answers. Expedient and efficient communication can differentiate between a considered and timely response and a distracted and hurried response. Third, H1N1 is unusual in that most of its victims are younger workers, meaning the virus has especially worrisome consequences for the business community. To minimize absenteeism, employers should categorize workers into four groups: essential to job site; essential but can work from home; nonessential but can work from home; and nonessential and not necessary to work remotely. Businesses should offer the highest level of protection to employees who are essential to the job site. Risk managers must remember that certain groups are more susceptible to the virus, including those with asthma, diabetes, chronic medical conditions, and pregnant women.

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The Dilemma of Corporate Expats
Epoch Times (12/02/09) Malhatra, Heidi
Various factors are combining to make working abroad less attractive these days, according to a new report on global human resources risk from Ernst & Young. Many governments are intensifying their efforts to collect tax revenues from expatriate employees, scrutinizing companies’ operations and potentially creating bigger tax bills for both companies and expatriates. Experts suggest that companies and expats use the tax equalization program, which is less confusing than following the advice of different tax authorities. Workers often expect a promotion when they return home, but that is not always a guarantee, and the recession has made overseas work less attractive for companies looking to cut costs and for families seeking to stick together and weather the storm. Some further risks for companies are expats violating rules for regulatory compliance, tax requirements, and societal and cultural norms. Ernst & Young says companies can reduce risk by boosting transparency, focusing on immediate regulatory compliance, and monitoring workers’ behavior both at work and away from the office.

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The Hostage Business
New York Times Magazine (12/04/09) Schmidle, Nicholas
Amid the global economic downturn, one dubious sort of money-making is on the rise: hostage-taking of expat workers in places such as the Niger Delta, where kidnapping and sabotage have disrupted oil production and forced concessions. "In a recessionary environment, the kidnapping rate goes up," says Gregory Bangs of the insurance company Chubb Group's kidnapping-and-random (K&R) specialty insurance group, which has seen a 15 to 20 percent rise in K&R insurance in the past three years. The kidnapping business was introduced in Nigeria by the anti-government movement MEND but has spread since then, and Mike Okiro, former inspector general of the Nigerian national police says that "there will be no end to it" as long as companies, governments, and families keep paying ransoms. This has led to the growth of a general K&R industry, including insurers, consultancies, corporations, and governments; right now, about three in four U.S. companies in the Fortune 500 carry such insurance. Long centered on Latin America, kidnapping and ransom in the modern era has since flourished in other places such as Africa and the Middle East, which saw reported cases nearly quadruple from 2004 to 2008, including Somali piracy as well as kidnapping by the Taliban and al Qaeda. Meanwhile, though there may be some moral ambiguity to legitimate K&R businesses such as insurers and consultancies, there may be no other option: "Fire insurance has been known to stimulate arson, and life-insurance policies have led to quite a few homicides, too. Are you going to quit taking out life insurance and fire insurance?" says Thomas Hargrove, an American whose 11-month imprisonment by Colombian guerrillas in the 1990s inspired the 2000 film "Proof of Life."

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With Fewer U.S. Opportunities, Home Looks Appealing to Expats
Wall Street Journal (12/15/09) Mattioli, Dana
With unemployment at 10 percent in the United States, many foreign-born professionals, who once viewed the United States as a place of greater job opportunities and prosperity, are now looking to return to their native countries. Companies based in other countries, particularly Asian companies, are using the weak American economy as a way to attract former residents back home, and the strategy is working as many foreign-born professionals in the U.S. face layoffs, underemployment, and visa issues. Harvard Law School senior research associate Vivek Wadhwa, who studies employment trends, says frustrations over the lack of advancement in the United States, where salary and promotion freezes have become common, are also major factors in foreign-born professionals' decision to return home. The 2009 Expat Explorer survey, by HSBC Bank International, found that 23 percent of U.S.-based expats are considering returning home, compared to 15 percent in other places around the world. The most common reason for returning home was increasingly limited career prospects. Many workers believed better opportunities existed back home or in other parts of the world. Additionally, foreign-based companies and U.S. companies with international operations are actively looking to attract displaced talent from the U.S. Expats living in the United States are attractive to employers because they have Western experience, are more willing to return to the U.S. in times of economic prosperity, can easily assimilate into the culture, and do not necessarily expect generous expat packages, like relocation costs, travel, and other perks, that a U.S. citizen would expect.

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World's Friendliest Countries
Forbes (11/30/09) Ruiz, Rebecca
Bahrain has pushed Canada out of the top spot on HSBC Bank's annual ranking of countries that are the most expatriate-friendly. The list is based on a survey of 3,100 expatriates, who ranked countries on how easy it is to set up a new life there. Bahrain was noted for its access to modern healthcare, low-cost housing, and a strong network of social groups for expats. Canada moved to second place, followed by Australia, Thailand, and Malaysia. Expats liked these countries because it is easy to make friends with locals and the quality of life is higher than back home. Bahrain did not score so well on making local friends, but expats liked the ease of finding a home, establishing finances, and locating good schools. Some say the survey results may be a fluke, though, as only 31 expats in Bahrain responded to the survey, compared to 450 in the United Kingdom, which received some of the poorest scores along with the United Arab Emirates.

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Doing Business Indian Style
Easy Expat (12/01/2009) Lobo, Sidd
When participating in or conducting a meeting in India, it may be beneficial to make a presentation that is longer than average. People in India tend to emphasize context, so abundant information would likely be welcome. The presentation can be converted into a story that contains numerous details about the company. It is also prudent to dress conservatively and to expect delays before and after a meeting. Indians tend to focus on processes, and may spend more time describing how they reach a certain point instead of what they will do after they get there. As a result, the presentation should have the process worked out to the last detail and address why certain things are being done. Small talk is a normal part of any meeting because Indians want to feel acquainted and at ease with others. Asking questions about a person's education and background are commonplace. It is also important to understand the hierarchy in Indian organizations, where bosses typically have the last say on key issues. As a result, it is crucial to identify that person early on and be on good terms with him or her. Finally, it is very important for Indians not to lose face in front of colleagues, so foreigners should be courteous and respectful and avoid being overly abrupt.

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Activists Protest S. Korea's HIV Testing for Foreign Workers
AFP (12/01/2009)
South Korea’s policy of mandatory HIV tests for some foreign workers is garnering criticism from an activist group that says the policy violates the rights of migrant workers. The group, which includes HIV carriers, a migrants’ trade union, and others, submitted a petition to the National Human Rights Commission to coincide with World AIDS Day. The policy in question requires that all foreign applicants prove they do not have HIV, and they are then tested again when they arrive in the country and, if found positive, deported. Even those that have already received work permits will be deported if at some point they contract HIV. Technically the law requires that a person give consent before being tested for HIV, but foreign workers are given health checks without being informed that they include HIV tests. Local workers, however, are not required to undergo testing. The activist group says the policy discriminates against foreigners and is “in breach of the rights to human worth and dignity and rights to work.” The policy has forced more than 600 foreigners to leave South Korea since the 1980s.

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U.K. Expats Driven Home by Weak Pound
Financial Times (12/08/09) Law, Denise
A stronger euro against the British pound has made living abroad more expensive for Britons, and a study from reallymoving.com shows that the number of U.K. citizens requesting to move back home rose 37 percent over the past year. The number moving abroad has also declined by 18 percent, as pensions paid out in pounds do not go as far as they once did. Ireland has seen the number of expats wanting to go home rise 75 percent this year, with Spain at 39 percent and France, Germany, and Italy following close behind. Those who have a second property in the U.K. will have less trouble going home than those who invested most of their money in a single European residence, according to Rosemary Rogers, director of reallymoving.com. Many aspiring expats will likely have to hold off retirement until the economy rebounds, experts say.

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Effective Policies Needed to Attract Vietnamese Expatriates: Conference
Saigon Daily (Vietnam) (11/23/09)
The first annual Overseas Vietnamese Conference took place this week, where speakers said that the Vietnamese government is not effectively exploiting the knowledge and skills of expatriates. There are many Vietnamese overseas who want to run small businesses in Vietnam, and the government should create policies that attract the financial and intellectual resources of expats and establish a support organization for overseas Vietnamese coming home to work, they said. Deputy Minister of Science and Technology Le Dinh Tien agreed that the government should do more, and said he has submitted a plan to the Prime Minister that would attract more overseas Vietnamese and get them involved in more technology transfer and in teaching the language to young expatriates. It would also establish a database on Vietnamese expats around the world, programs that offer preferential treatment and salaries for expats, and an annual forum for expats to advise the government.

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