by firms that hire new graduates and are required to train them.
Firm-supplied financial skills development is inefficient and expensive. It could be replaced by a more economic system according to the enterprise managers we interviewed in Shanghai. 8 We believe the solution to this training problem lies in finding a means by which the firms needing financial skills can compensate China's teachers for generating these skills. At present, the lines of communication and financing of skill development have not been developed to meet this need in Shanghai.
In conclusion, the solution to the problems of a shortage of financial skills in China lies in addressing the cause of the shortfall. Supply induced shortages for occupations such as accountants, auditors and investment managers can be handled by focusing on training. Shortages stemming from demand breakdowns for occupations such as traders, securities analysts and bankers cannot be addressed through training but instead require a focus on the constraints that prevent them from flourishing.
The authors wish to thank City University of New York and Shanghai University for support of our six week visit to Shanghai. This chapter stems from interviews we conducted with Shanghai financial market professionals during that time. For further details on the subject of this chapter, see Laura Nowak and Kurt Dew, "CUNY Team Report, CUNY-SU Business Development Project," October 1994. Available by request from the authors.
Laura Nowak is a Professor of Finance at City University of New York, College of Staten Island. Kurt Dew is an Assistant Professor at Eastern Mediterranean University, Gazimagusa, Turkey.