The Economist has published an interesting article about the shifts in application volume and the ‘economic drivers’ that influence them. Topics covered include demography, visas, job markets and location. As expected, this is an interesting read: http://www.economist.com/business/globalexecutive/education/displaystory.cfm?story_id=3328888

In other news, the Wharton Admissions Blog has published a great posting on the application review process as it relates to interview invitations. This is a must read for those applicants who are anxiously awaiting invites! http://adcomblog.wharton.upenn.edu/admissions/2004/10/interview_invit.html

There was an interesting opinion piece in the International Herald Tribune yesterday that discussed increases in applicant volume at many continental European MBA programs.

In short, the author puts forth a thesis that MBA programs on the continent are becoming more and more attractive to international students for the following reasons:

1) European programs “address the international profile requirements” that global firms are looking for by bringing together a truly international class.

2) Student visas are more readily available in Europe than they are in the US or the UK.

3) There is a perception that “the role of the US as the leading economy is diminishing, while Europe is on the rise”.

Here in the Clear Admit offices, we’ve also noticed that several European MBA programs have picked up steam and increased enrollment, but we’re not so sure that the article cites the right reasons for this growth.

We’d argue that the growth that many European MBA programs have experienced can be attributed to the following reasons:

1) Many of the international (English language) MBA programs in Europe are relatively new. Marketing efforts to build brand and attract candidates have begun to pay off.

2) The 1-year European MBA makes many European programs seem more appealing (less time, less money).

3) There is a perception that visas might be harder to come by in the US and UK (post-9/11).

As for the third point, this was true for a period of time in 2001-2002, but since that time both countries have dramatically reduced the waiting time/approval processes for visas.

Finally, in terms of the article’s comments on the economic strength of the European Union, we’re not exactly sure that there is any economic evidence for Europe being ‘on the rise’ in terms of GDP, employment rates, and lowering the cost of doing business.

For the full text of the article: http://www.iht.com/articles/2004/10/18/opinion/reurope.html

The Wharton admissions office has reported a slight up-tick in application volume in round one. They received roughly 1750 applications, which is 2% greater than last year’s R1 volume. While it is clearly too soon to make definitive statements about application volume, our guess is that these initial numbers may be indicative of the 2004-2005 admissions season. Here’s why we think so:

1) The schools are coming off of back-to-back seasons during which they experienced declines of 10-20% in admissions volume. In essence, the ‘admissions bubble’ that engulfed the 1999-2001 seasons has burst, bringing admissions levels back to more typical levels.

2) Unlike 2003, this year has not been marked by such sharp declines in GMAT test taker volume. In fact, domestic GMAT volume looks like it has begun to stabilize. This suggests that application volume will likely remain flat.

3) The job market looks very different for the class of 2004 than it did for the class of 2002. Prospective applicants have taken note of increases in hiring numbers at the business schools and may opt to pursue an MBA as a result.

Of course, these trends are very hard to predict, and what happens in Wharton’s first round may not be the same as what happens everywhere else. Needless to say, an up-tick at Wharton likely means that the ‘freefall’ in application volume at the top schools is over.