We have seen Spanish b-schools breaking into top 10 in BW or FT rankings. I.E and I.E.SE both are choice of number of b-school aspirants. Till now both these colleges have been boasting 90%+ placement within 3 months from graduation. The average remuneration given to students from these 2 schools is comparable to that of other top European and American b-schools. Taking other factors such as quality of life, climate and culture into account, Spain is an attractive destination to pursue MBA.
But, consider this, majority of the students from these 2 schools are placed in Latin America or Spain. Given the current state of Spanish economy how wise it is to go to IE or IESE? Let me share few points raised by John Mauldin in his newsletter about Spanish economy:
1. Is Spain a second Japan in making? Spanish banks are in big trouble and so is Spanish economy. Why? Because Spain has as much unsold houses as US has {but US is approx 6 times bigger}, Spain is only 10% of EU but it accounted for 30% of newly built houses in Europe since 2000. Most of these houses were financed through foreign capital and with the prevailing financial crisis the things will worsen.
2. There is an 850% rise in outstanding loans in last 8 years given to Spanish housing developers. The current outstanding loan amounts to well over 50% of Spain's GDP {near;y 470 bn euros}. And most of this will go bad, Can you imagine the fate of Spanish banks if most of these loans go bad?
3. Unemployment in Spain is well over 17% {4 million Spaniards are unemployed}, govt might make policies which could make it difficult for international students to get jobs in Spain {85% of class in IE is International}
4. Spain might land up in a situation similar to what Japan landed in 1992, but Japan had 3% GDP surplus and Spain has a deficit of 10%.
Given the current state of Spanish economy i would refrain from applying to Spanish b-schools until and unless i dont give a sh** to employment post MBA.
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