Economic diplomacy is that branch of diplomacy that entails various economic activities such as exports, imports, investments, economic aid, favourable trade agreements, tourism, etc. An international student is someone who is residing in a country other than his/her for the purpose of undertaking a study programme. The attraction of foreign investment has been one of the most popular objectives of economic diplomacy. Lately, the attraction of international students has become a popular economic diplomacy objective.
Why international students?
An international student studying at a local university and a foreign entrepreneur bring similar benefits to the host country. From tuition fees and payment for housing, visas and other services, the economic benefits that are derived from an international student are significant. Like a foreign company’s investment capital, international student fees are an important inward investment.
Often international students can afford to enrol at more expensive universities and stay in upmarket student accommodation. With no local family ties, they tend to spend longer periods on campus, thereby spending more money on university catering, accommodation, sports facilities, and on other paid-for activities. They boost the rental markets and property values in the suburbs surrounding university campuses. Their higher continuation and completion rates mean universities can rely on guaranteed tuition fee income for long.
The United Kingdom (UK) pre-Covid-19 data showed that international students were responsible for generating two and a half times more value than business travellers. A 2023 University World News articles revealed that the UK was generating £25.6 billion from international students and related education exports. The British government international education strategy aims to grow foreign student numbers to 600 000 by 2030, thereby boosting the value of education exports to £35 billion.
Australian universities experienced rapid revenue increase since 1995 before Covid-19 reduced international student movements due to border closures. Non-monetary benefits derived from international students include diversifying to the student body, enhancing the global nature of a university, and contributing to global learning and international research. Upon graduation, international students become alumni who would be key influencers to potential future students. They are also potential future foreign investors in a host country of study. They take to their home countries new insights, perspectives, and understanding of a host country’s culture and its people. They can be more amenable to the host country’s interests should they one day assume leadership positions in their motherlands. Through gained exposure, international students can also contribute to strengthening cultural diplomacy by enhancing cross-cultural awareness, trust, and understanding between and among countries.
Measures promoting international student inflow
Some countries are setting the trend in attracting international students. For example, Education Malaysia Global Services (EMGS) has been promoting Malaysia as a preferred destination for Australian students. Sub-Saharan Africa has especially become an international target market with countries like China, Canada, Germany and Turkey having policies that focus on increasing the inward movements of international students. China has become a preferred destination for students from East Asia. South Africa has the highest international student population from Sub-Saharan Africa, which is estimated at 30 300. Certain European countries have set up institutions that advance their higher education abroad. They promote their universities by focusing on prestige, teaching quality, performance, and cost of tuition as selling points. Higher education institutions themselves help provide a lasting classroom experience and treat international students well. Good customer care engenders loyalty.
Conclusion
It has been realised that the attraction of international students can be successful if only all relevant actors like higher education institutions and the government authorities responsible for education, investment, and immigration respectively work in unison. The ease of getting a study and visa and the quality of life in a destination country can also be pulling factors. It follows, therefore, that universities and other institutions of higher education have become key actors in a country’s economic diplomacy. On the other hand, as responsible corporate citizens, they are also expected to report to authorities those students who overstay their study visas and/or do not attend classes.
All stakeholders need to collaborate at improving the competitiveness and the attractiveness of the country’s education system through streamlined processes and procedures of studies application, visa processing, travel, and welcoming arrangements. Immigration authorities should have dedicated desks and personnel for attending to international students’ administration. International students bring with them economic, social, and cultural benefits to the towns and cities where they live and study. For these reasons, they deserve the same treatment as foreign investors.
* Julius Iikela is an International Relations and Diplomacy Management graduate.