Market environment
Mexico is the 11th most populated country in the world with 108 396 211 inhabitants in 2010. The population is relatively young, 36% is aged between 15 to 35 years old, the average is 24 years old. Because of its geographical position it is considered to be a bridge between Latin America, and the United States and Canada.
Mexico has a free market economy that despite recessions in the region has been growing strong and steady in the past two decades due to low rate inflation. According to the World Bank, Mexico’s economy, the second largest in Latin America and the 13th in the world in nominal terms, is in the process of recovery from 2009 global economic crisis. The real GDP has a sustained average of 3 per cent since 2004 and for 2010 the economy is expected to grow by 4%.
These indicators and the government’s work towards the diversification of the economy, the implementation of fiscal programmes that include tax increases and a reduction in dependence on oil exports, has enabled Mexico to overcome the international economic fluctuations of the recent years .
Mexico’s International Agreements such as the North American Free Trade Agreement, NAFTA (1994) and the European Union - Mexico Free Trade Agreement (2000) have lead to an increase of foreign investment and exportations. The trade exchange between EU and Mexico has increased 133 per cent in the last seven years. Recently, President Felipe Calderon recommended diversifying sectors and regions of commerce to reduce Mexican dependence on the American economy.
Trade and Investment opportunities between UK and Mexico are supported in the country through UKTI (United Kingdom Trade and Investment). According to their data, Mexico is currently the second largest export market for the UK in Latin America and they predict that by2040 its economy will be larger that the UK’s.
Some of the most dynamic sectors of investment that receive promotion among UK companies include: Aerospace, Automotive, Consumer Goods, Creative and Media, Education, Environment, Financial Services, Food and Drink, Health Care, Infrastructure, Mining and Steel, Oil and Gas, Power and Energy and Security.
This state of affairs is an open door to increase the awareness of UK culture in the country.
On the political field, Mexico marked a step forward towards the walk to the consolidation of its democracy and pluralism during the last Presidential elections on July, 2006; where Felipe Calderon was elected president on the closest suffrage ever held. During his administration, President Calderon has made national security one of his main priorities through close cooperation on this matter with the United States.
Market characteristics
During his four years as President, the political programme of Calderon includes a significant support to education at all levels. One of his main objectives is to promote a transformation on society by reducing inequities of gender, regions and among social groups. To achieve this, his strategy is intended to modernise and extend the educational infrastructure in the country.
Mexico’s public spending in education in 2010 is estimated to be £43,593 millions, which represents 6.9% of GDP. The government spending includes scholarship programmes at HE level; in 2009-2010 there were granted 1,565 mobility scholarships to students from public institutions interested in pursuing a degree in national and international institutions.
According to UNESCO 27% of the population of tertiary age are in tertiary education. During his Presidency, Felipe Calderon has been working towards better quality Higher Education and international competitive courses. Some of his plans include launching national programmes to improve the infrastructure of the education centres and it is estimated that in 2010 the national expenditure in education will be of 6.9% of GDP.
The free trade agreements that Mexico has signed in the last two decades with more than 40 countries have triggered the internationalisation not only of the economy but also other sectors including Higher Education. Mexican public and private universities have established bilateral programmes with universities in several countries including the UK. As a consequence of the internationalisation of education, it became more relevant the institutions’ quality certification by international bodies.
Although both private and public universities offer educational programmes of international quality, public institutions are particularly unable to cover the enlarged demand of education at undergraduate level. This due to a double factor: a strong youthful population of 36 per cent between 15 and 35 years old and a fee increase of private HE institutions to maintain their quality standards.
As other emerging economies, Mexican researchers and high profile professionals of different academic areas look for international education opportunities mainly in advanced economy countries. The UK is a popular destination of choice among Mexican students: according to HESA in 2009 there were 1755 students enrolled in HE programmes in the UK.
One of CONACYT’s (National Council of Science and Technology—main funding agency for both research and scholarships and responsible of developing and promoting scientific and technological activities) top destination for their scholars is the UK; in 2009 CONACYT granted around 200 scholarships to the UK. Although the Quality Programmes in Mexican Institutions are been reinforced by this institution, CONACYT does not underestimate the growth opportunities that cultural and educational exchange brings to Mexican professionals.
Other important institutions who have a significant contribution to the funding of studies abroad at PG level are FUNED (Mexican Foundation for Education, Technology and Science) and FIDERH (Fund for the Development of Human Resources that belongs to the Central Bank of Mexico). Both organisms provide loans to high quality students who want to study abroad in areas such as: Business, Social Sciences, Engineering, Sciences and others.
One significant advantage of UK higher education is the duration of programmes: Masters degree programmes in Mexico last for two years while UG degrees run between four to five years. The cost-benefit balance and the high quality tradition of the programmes place UK institutions on a competitive advantage position compared with other countries considered. Furthermore, due to the increase in the fees of private local institutions, currently studying in the UK is not as expensive, as it was perceived in the past.
International institutions must emphasize the cost-benefit balance in UK Education when promoting their programmes in the country. Other strengths that must not be forgotten is the worldwide prestige on education quality, the variety of subjects and courses offered, the improvement of English proficiency, the high rates of Mexican students that face no difficulties for obtaining a student visa, the cultural diversity and tolerance; as well as the value and great investment for their future professional careers.
Due to the geographical proximity with the United States and the increasing participation of Mexico as an emergent market doing business with other countries, English language is increasingly requested both as a pre-requisite for gaining admission in the most important Mexican universities and for obtaining better work opportunities. English proficiency among Mexican students pursuing a UG or a PG degree abroad has increased in the last year. This situation opens a new market of young students aged 17-20 for English summer courses.
Over the last years, a niche market that that has been identified for having a potential opportunity for strong growth are UG programmes. The number of High Schools offering International Baccalaureate schemes in the country is constantly increasing; this has leaded their students to become more interested in studying abroad. An important fact to consider is that tuition fees at UG level in the private sector continue to increase (around £7200 a year), making study abroad options even more attractive.
The use of technology in schools and higher education is also expanding. In 2009, according to the National Statistics Institute (INEGI) the internet users were 27.2 million people, from which 77% are under 35 years old. The use of the web has also changed from e-mail only to a 41.5 per cent of information research usage. As a consequence, the market of virtual technology for online programmes has a great growth potential as well.
Market opportunities
The number of private and self funded students is increasing, especially for Masters and UG degrees. Scholarships from both national and international sources are still imperative for some Mexican students.
British Council Mexico works to address changes in CONACYT’s policies, improving the relation with key contacts from this agency and identifying those Mexican Institutions offering International Quality Programmes according to CONACYT’s registers.
Through this strategy, UK institutions will be able to identify potential opportunities for signing Split Ph.D’s and Joint Degree agreements with Mexican Universities and therefore increase their share in the Mexican market.
According to the latest information of HESA in 2009, the top five preferred areas of study of Mexican students at PG level the UK were: Engineering and Technology, Social studies, Business & Administration studies, Physical Sciences and Biological Sciences.
Enquiries from local to British Council Mexico and at British Council booths at different education exhibitions also show that programmes such as Arts, Design and other creative areas are becoming more popular, especially due to the increase in interest of females in international education. Females are another important target group in the Mexican market because they are becoming more participative in the economic sector.
Our infrastructure and strategic education priorities
British Council Mexico has one office in Mexico City which was opened in 1943. The Education UK section was established in 1998 and the country is also an Education UK Partnership supported country since 1999. From that year, the number of Mexican students in Higher Education in the UK has doubled. Currently, BC Mexico has 29 Country Partners institutions.
One of our main projects is the Education UK exhibition that has been organised uninterrupted since 1998, the venues are Mexico City and Monterrey, the second largest city in the country. Education UK 2010 counted with the participation of around 30 UK higher institutions and attracted over 3,000 visitors.
Other promotion activities that we deliver throughout the year include attendance to educational exhibitions in different cities, informative talks to prospective student’s parents and counsellor’s sessions, virtual fairs, pre departure briefings, and a Road Show that takes place in October aiming to promote UG programmes in the UK among IB students.
The main priorities of the Education Section are to deliver high quality service standards to institutions, improving the market intelligence information to provide significant advice to institutions for recruiting and to establish long term relationships with Mexican institutions both for promoting academic collaboration (i.e. establish joint degrees and split PhDs). Finally we also maintain contact with both academic institutions and private sector for increasing the number of private and self-funded students.
Within the Education UK Partnership, BC Mexico collaborates with Country Partners through a Customer Relationship Management scheme to ensure personal contact and customer satisfaction.
Sources of information:
Fourth State of the Union Address, National Statistics Institute (INEGI), United Kingdom Trade and Investment (Mexico's profile and business opportunities), HESA Statistics Query System, CONAPO (The National Population Council) indicators, The World Bank, Mexico Country Brief. UNESCO.
The United Kingdom’s international organisation for cultural relations and educational opportunities.
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