>>this week on world business... >>international schools take steps into china. >>it is about being clever enough to see where the opportunity is going to be in the future. >>how access to communications technology has revolutionised life for millions of kenyans. >>mobile phone technology in kenya is well understood, everyone has a mobile phone. >>and a new business funding model giving young entrepreneurs a helping hand in france.

>>hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. the business of international education is worth 45 billion dollars a year and marketers have china firmly in their sights. but not all are focused on attracting"nouveau-riche" chinese students to campuses abroad. some of the most respected english private schools are expanding in the people's republic itself. >>"doe, a deer, a female deer....." >>reporter: quintessentially english, in far flung china - though unlike its four century old namesake for the teenage sons of the world's millionaires and monarchs, harrow international school welcomes well-heeled beijing-based children as young as three, including girls. >>established in 2005, this is the harrow brand's second overseas school after bangkok.

a third opens in hong kong in 2012. >>farthing: there are many visionaries on the harrow school board who see the value in transliterating a qualityharrow-branded service into new markets. at a commercial level, there is a return from the international schools as well which goes back to help maintain a level of fee structure at a school like harrow to the benefit of that school too. >>reporter: harrow international school is a private company backed by a hong kong investor; it operates under alicence from harrow school in the uk. as for the maths, the beijing operation has over 400 students - with annual fees for the eldest, 28,000 us dollars. >>in the city of tianjin (pronounced tee-en jeen), another famous british name, wellington college, opens its doors in the autumn of 2011 - in a campus funded by a local property developer. a relative latecomer

to the overseas market, wellington has big plans to catch-up with the competition, first in china, then india and the middle east. >>cook: they believe firstly that they have a brand at home, a quality of education in all its many guises, extra-curricula, academic, moral, spiritual and so on - which they can export, so to speak, around the world. >>mackie: mainland china hosts over 270 international schools in 43 cities and in the provinces many cater to just a couple dozens students. but for the majority of schools, they can only enrol foreigners - children of expats or returning chinese with foreign passports. so for well-off mainlanders who seek a less politicised, international education and a seamless entry to the world's leading universities, there are two options. >>reporter: option one, there are schools abroad, which, along with colleges, vigorously compete at education expos like this for a share of the 200,000 chinese

students who study overseas annually. of this number, over 3,000 under 18s attend british boarding schools, while around the same amount board in the us. most going onto universities, paying premium fees, in their countries of choice. these numbers are growing as anxious parents worry about their only child's competitive advantage inchina's marketplace. >>gregg: there's an interesting push coming on with how parents view the importance of education and their careers. i see that there are a multiple of opportunities for kids to come back who have gone through that creative thinking and analytical thinking, good communication in english and other languages, to thrive in companies in china because they don't get that internally necessarily. >>reporter: that is, unless they opt for option two. after completing his compulsory chinese education, 16 year old dang xuyang was able to enter harrow international school's sixth form to study for britain's a levels -

so avoiding college foundation courses and other problems faced by his peers. >>xuyang: most foreign universities do not recognise chinese secondary school qualifications. there was also aproblem with my english language proficiency at that time. so coming to this school was one of the best ways to solve these problems. >>reporter: many leading international schools adopt the same strategy. however, another foreign player is focused primarily on domestic students. >>reporter: old etonian william vanbergen's company british education - with a mainland investment partner - isestablishing three boarding schools for the over 15s that run on the uk curriculum. >>like wellington's tianjin model, campuses are typically provided by developers - who recognise theconnection in china between a reputable school and nearby property prices. here in qingdao, britain's oxford international college oversees the delivery of a quality, branded education that can cost up to 18,000 dollars per year. bankers say the business plan

is sound, but executing such a model in china isn't easy. >>vanbergen you really want to try and draw on the strengths of what you have - the tradition, the history, the academic excellence. but then you've got to replicate it half way around the world. you're talking about an environment that doesn't speak english, that is very, very culturally different. >>reporter: china's cultural differences and the country's growing clout on the world stage, isn't lost on head teachers, like frances king of the exclusive roedean girls' school. she's here in china, not only to meet prospective elite students, but also explore potential teacherand student exchanges - and so better prepare her girls for their future roles, be it in business or diplomacy. >>king: it's about being clever enough to see where the opportunities are going to be in the future. there are certain markets which will remain strong and constant in the west - certain markets in the uk that i can tap into. it's what kind of sharp new outlook you want to bring to your business

which i think appeals to me. >>reporter: expanding the reach of distinguished brands in mainland china is a long-term strategy. for the hard pressed british treasury, these early connections should help maintain the intake of top dollar students to uk universities. while sino-british networks should deliver referral business to the schools and advance their students' careers - by broadening the old school tie network. >>the mobile phone has revolutionised the lives of the rural poor across the world and nowhere more so than africa, where access to a mobile phone has increased fivefold in the last 5 years. we took atrip to kenya to find out how this simple tool can make such a vast difference to trade, banking and even health. >>reporter: these are the sights & sounds you'd normally associate with kenya...

>>but there's a new note echoing across these east african plains, and it's transforming the lives of millions of people. >>anderson: mobile phone technology in kenya is well understood, everyone has a mobile phone. so they saw immediately a utility for this facility and my goodness everyone can do it and you can sit in the most primitive, filthy bar in the middle of nowhere in western kenya and there will be someone sitting on their mobile phone over a beer. >>reporter: just ten years ago owning a mobile phone was a privilege enjoyed only by the wealthy with only 500,000 phones in the entire country. today around 47% of the population are hooked up to the airwaves. and as kenya embraces mobile technology it is helping to close the gap between rich and poor. >>one of the biggest groups to benefit has been farmers, now connected to a world of information they could only have dreamed about only a decade ago. >>kuria: if i want to maybe get the raw

materials or maybe manure i can order them via my phone and i'll get them supplied - i can also pay, if it is fertilisers, or the pesticides all of them, so simply it eases my work and the cost of transportation. >>reporter: agriculture accounts for more than 50% of kenyan gdp, employing around 75% of the population. >>but it is still small scale and long journeys to market meant farmers were easily exploited by brokers. now communication allows them not only instant knowledge of market prices but also enables them to work together cooperatively. >>jamlia abbas is co founder of a system called mfarm, which made this possible. >>abass: we noticed that the farmers did not have sufficient information to negotiate properly with the buyer. so we're providing them with this information through sms.

the other point is that what we have is we are bringing the farmers together so that they can sell together and buy together. >>kuria: we have eliminated the brokers; the prices will be higher, so simply, there is a benefit to me as a farmer, of which i intend to make maximum profit. so, by eliminating the broker, i get the profit that i require >>reporter: it's these kinds of technological innovations that have helped farmers earn 50% more in 2010 than they did the year before, >>but the technology that has had the biggest impact is mobile banking. >>musembi: it has been revolutionary. it has changed completely the money landscape in kenya and it has proved that you know the economy and finances and business does not have to be controlled by banks any more. >>reporter:

the first service of this kind, mpesa, launched in kenya in 2007, when only 17% of the population had access to a bank, while 80% of the country had mobile coverage. >>the service has over 13.5million subscribers and more than 5.5 billion us dollars has moved through the system. >>herlihy: people are shocked at is how much currency flows through the hands of what we call the poor, you know, its not to say they are rich, it's not to say they are accumulating wealth, but just the actual flow of capital between someone's hands. >>nykabi: through this service, the mpesa you are to see that people are able to trade, parents are even able to send children their school fees using mpesa and we get to see that it has bought a rapid and random change. >>reporter: a similar payment system is being used to bring fresh water into remote communities.

currently less than half of rural people have access to clean water, which has a huge impact on health. >>at this solar powered ground pump, villagers pay for the water using a chip loaded with mpesa credit. >>maneki: far away and you can see along the mountain to fetch water there, of which we were using a lot of time wasting. our women are doing very well because they don't go far away so they are enjoying it and they are very clean because now they don't walk far away. >>reporter: in this case the communications revolution literally means women have less far to travel, but in a more general sense communication has broken down the barrier to distance

in kenya. many of the population may still be rural, but being able to connect with brokers, banks and each other across the country means they are no longer remote. >>and it's estimated that increasing mobile phone penetration by 10% in emerging markets can lift per capita gdp by nearly 1 percent. >>still to come on world business... >>funding by the masses, a new way of financing films in france. >>and what does it take to make it in nascar. >>hitting the big time on the big track... and the rest in just a moment on world business...

>>with high youth unemployment across europe, graduates are actively encouraged to set up their own businesses. however banks are unwilling to lend money and it's difficult for entrepreneurs to get started, but a new phenomenon known as 'crowd funding' where thousands of individual investors pitch in, is helping many get a head start. >>reporter: behind the scenes on the set of a new french mockumentary film. it follows the life of a rich business man who likes to flaunt his wealth, power and political influence. in other words a satirical look at life for the french super rich with links to president sarkozy. ality and the story that you thought would appealed to everyone suddenly people start saying no i don't believe in it. so it can be very tough and very frustrating. >>reporter: but his film found the money

thanks to a new trend known as crowd-funding. nt film projects; film buffs can then help finance ones they like with sums starting as low as 10 euros. le as an extra or even an associate producer credit. and of course if the film makes money the smallscale investors get a share of the profits too. making. so its seems entirely normal that those who are willing to financially back a film should share in the benefits if the film makes money. but under no circumstances can we promise or guaranteethat a film will make money. and that does not include

the huge number of film makers who have to give up their projects even before the film has even been finished because they have run out of cash. >>reporter: but the incredible financial and critical success of the low budget oscar winner "the king's speech"may well inspire investors. ater number of backers can help talk up projects on social networks helping to generate additional publicity. tribution for small independent movies. i am absolutely sure of that. the market in the hothouse movie industry is becoming increasingly competitive. there are between 15 and 18 new movies released every week

in paris alone each week so it is becoming very difficult to survive. >>kazandjian: them to make people realize that there is a market. i think it's a very good example of a low budgetturned into some sort of positive point. >>reporter: if paris is a great backdrop for films - it's also home to some of the world's most well-known fashion designers. but beneath the surface are thousands of young designers hoping for their first break. like this pair working out of a dingy windowless cellar. e banks didn't want to loan money to unknown designers like us. so the internet investors are reallyour first financial backers. >>reporter: a website promotes 4 new designers each month. when 40 internet users agree to buy an item the designers swing into action and make them

orders; that way we don't have to worry about unsold stock; each fashion item is sold. >>reporter: investors get a discount on the goods, paying only 40 for a shirt, get invited to the fashion show and should the goods become a money spinner get a return on their investment. 't know how or who to turn to for business advice and who can help them with marketing, publicity and distribution. in the end a designer is focused on his or her design creations. but there are plenty of things that also have to be taken into account to succeed commercially. and that means financial backing and that is difficult to come by. >>reporter: the pair are still a long way from the glamorous catwalks of say yves st laurent or christian dior. but already they have made their first

breakthrough launching their spring collection for 2011. >>nascar is easily the most popular motorsport in the us, and many people dream of flying round its oval circuits at speeds of over 200mph. but what's it like when you actually get there? we tagged along with one driver for a day to see what's involved, and also to find out how the sport itself is handling a recession that's proving both long and painful. >>reporter: i was driving across georgia the other day...and as i occasionally nudged the speed limit...i thought to myself...what would it be like to be...a nascar driver?...well...if you're 24yr old david ragan...along

with doing this.... >>you'll be doing plenty of this.... >>sunday morning...and ragan's meeting the public...as well as taking a closer look at one of nascar's most challenging circuit... >>ragan: this is a fastest track in nascar.....we average close to 190mph here >>reporter: this is ragan's 4th full year in nascar...and its important to build up his profile... >>ragan: sometimes i wish i could be sitting with no-one around and thinking about what's gonna happen here or there. but we all have to go through this....in order to keep the fans interested in our sport. >>reporter: right now the sport does need its fans. projected attendances this year are down 8% on last year, around 20% on 2005. here at atlanta they're doing all they can to entice fans to the track...

>>clark: we have got a $19 student ticket for today's race,..//...we have a family four pack where you can get 4 tickets, 4 hotdogs and 4 cokes for $159. >>reporter: it is pretty cheap entertainment.... >>well, it costs us for the bus and stuff $125 per person. reporter: >>for 4 days? >>for the whole weekend, yeah. >>about $ 150-200 for the bus, food, plus your beverages, you are around $300. >>reporter: but thinning crowds means that after hosting 2 races a season for the past 50 years...from next yearatlanta speedway will only stage one.... >>tharp: the parent company that owns this racetrack made the decision that they thought it might be best if we went racing next year in kentucky. >>reporter: ragan was born near this track, the son of a nascar driver ...but oddly enough, he got his chance torace thru a reality tv show... >>ragan: my big break was the roush racing driver x show. jack roush had a driver competition . i sent in my resume, i was

part of the show and that was my big break into nascar... >>reporter: the reality for ragan now is that when you're getting established, pressing the flesh matters... >>reporter: last year nascar sold about $1.6b worth of merchandise...not bad, although down by about 20% on 2008....but as the 36 race season roars on, of more concern is the demographic nascar is reaching... >>jong: they're still pulling in crowds of over 100 thousand fans to every race on average...but the averageage of those fans is a lot closer to my age...than their age...it's in fact 42, and of the major sports in america...only baseball has older fans. >>tharp: certainly attention spans vary among young people. >>clarke: very short attention span

>>reporter: fox tv says its 18-34 year old nascar viewers have dropped almost 30% on last year...and nascar may have to consider whether today's youngsters are simply willing to sit through a 4 hour race... >>clark: we may not have 500 mile races in the future. we may have shorter events. >>reporter: there aren't too many young folk hanging around in the shiners tent...but the man with almost 17m dollars in career earnings soon wins over some more fans. >>reporter: for ragan...the business end of the day is finally approaching...time then for a hug from mum...who's unlikely to be enjoying the next 4 hours... >>ragan: you always have butterflies in your stomach...you're always a little nervous...but you know he lovesit, he is doing everything safe,

you know he's in the best equipment possible so that is a comforting. >>reporter: you might think the publicity requirements might tail off a little so close to racetime...but nascarprides itself on its drivers' accessibility to both fans and media, so i go in for some last minutethoughts about race strategy... >>reporter: starting very shortly, what do think about now as you're getting into the car. >>ragan: time to get focused. can't talk to you too long. >>reporter: hmmm. not quite the gettysburg address, but from 9th on the grid...there's serious racing to be done....for regan it is going to be a mixed night... >>reporter: for nascar itself, results have been mixed at best over the last couple of years...but down at the track they remain convinced it's still an experience not to be missed.... >>nascar's still a lot of fun. you need to come. >>it's like seeing a picture of the grand canyon and actually going to the grand canyon. there is nocomparison between the two.

>>reporter: which is why the die hards come back year after year...often to exactly the same spot... >>reporter: i guess the repetition is part of the attraction really. same people...doing the same things. >>seeing your friends again...yeah...sure thing. >>everybody out here always says play the cornhole. you have got to play the cornhole. that is the main game. >>cornhole. look at that. >>reporter: two years ago, in his second season, david ragan came 13th overall in the sprint cup, a superb performance that's proved hard to match...but he's confident his best days lie ahead...not behind. and round here they're equally optimistic that nascar's glory days are far from over.... >>clark: we are still number 2 to football in terms of fan attendance, fan support. tv ratings. >>tharp: from a standpoint of excitement and competition our sport has never been better. >>reporter: after 4 hours and 500 miles...ragan finally takes 19th place.....it's been a difficult, yet still

satisfying nights racing... >>ragan: it's always a challenge. you don't win every race but it always keeps you hungry for the next one. >>reporter: and so the search for an improved performance will continue.....both for david ragan...and america'sfavourite motorsport... >>that's it for this week's world business. thanks for watching. we'll see you again at the same time next week.