The European Connection

It was a matter of time. In a rather obvious consequence of the global economic downturn (particularly acute in Britain), the famous Good Schools list of the best educational institutions in the nation witnessed the rise of state entries in the rankings, usually dominated by what the Brits call “independent schools” (private preparatory schools). 

Although several headmasters and analysts interviewed by the FT were surprised, I am surprised at their amazement. The credit crunch that has been afflicting markets for now over a year, with severe consequences for governments’ fiscal balance around the world, not to mention the high-earning financial sector, has hit the demographic that has always been most likely to send their offspring to elite schools.

As Britain’s top (fee-free) state schools receive more and more applications, it will be interesting to see how this trend impact education enrollment rates in the rest of Europe and in the US, not only in terms of private elementary and high schools, but also when it comes to higher education. 

Fewer and fewer, it seems, can avoid the consequences of the economic malaise, which – if nothing else – reinforces the strength of the phenomenon.

In a very interesting interview on FT.com, World Bank president Robert Zoellick warns about the dangers inherent in the current global economic downturn. With rhetoric reminiscent to historians’ talk about the 1930s, Zoellick makes an interesting point about Eastern Europe and its relationship with the EU.

Considering the relatively recent openness of these economies and the lack of “strong foundations” in their market and democratic institutions (merely as a function of time, if nothing else), it is important for developed economies to help reduce the volatility associated with Eastern European economies. Given the importance of European FDI and its political stake in the region, Zoellick convincingly argues that it falls on to the EU to act. Unlike where the French and British may be heading, the solution is to help these economies not veer away from the path of market integration, open regulation, and perhaps most importantly, democratic institutions.

Even in the era of the European Union, the Weimar Republic nightmare is never too distant in Central Europe.