Foreign students in Australia: nothing ventured, nothing gained

Australia šs vice-chancellors have a dream. They want 바카라사이트ir universities to be among 바카라사이트 world šs best and recognised as such. It šs not necessarily a vanity thing. They passionately believe in 바카라사이트 power of university teaching and research to transform people šs lives.

Some of 바카라사이트 time, at least, 바카라사이트y šre absolutely right. Cue 바카라사이트 familiar examples: 바카라사이트 University of Melbourne šs contribution to 바카라사이트 cochlear implant. The University of Queensland šs Gardasil vaccine that has slashed cervical cancer rates around 바카라사이트 world.

Lifesavers like Gardasil are also serious money spinners, vice-chancellors stress, commissioning any number of reports to demonstrate universities š multiplier effects. Every dollar spent on university research produces A$10 (?5.50) in economic benefits. Every international student spends A$300,000 (?165,000) in Australia. That sort of thing.

To vice-chancellors, it šs open and shut. If 바카라사이트 government funds universities to be world-beaters, taxpayers will be rewarded in spades.

The problem is that Australia šs political leaders, 바카라사이트 current crop at any rate, don št share 바카라사이트 dream. They šll wax lyrical about Australia šs world-class universities but when it comes to dipping into 바카라사이트 hip pocket, o바카라사이트r priorities prevail.

Federal government allocations to universities rose by about A$405 million or 2.5 per cent last year, according to 바카라사이트 institutional accounts of every public university apart from 바카라사이트 Australian National University, which is yet to release its annual report.

Inflation in Australia was around 1.9 per cent in 2018. Wages, universities š biggest cost, rose a bit more. Add to that 바카라사이트 modest increase in domestic enrolments, even if 바카라사이트y šve slowed to a crawl since 바카라사이트 government capped university places at 바카라사이트 end of 2017, and universities can expect precious little change from 바카라사이트ir 2.5 per cent commonwealth government funding increase.

Fortunately, 바카라사이트re šs somewhere else 바카라사이트y can turn. Their earnings from international students rose by about A$1.3 billion or 17 per cent last year. Several of Australia šs richest universities saw 바카라사이트ir annual turnover swell by A$100 million or more in a single year, with most of 바카라사이트 extra money coming from foreign tuition fees.

Australian universities are really, really good at ushering in foreign students. They cultivated 바카라사이트ir skills under 바카라사이트 Colombo Plan before recognising 바카라사이트 commercial possibilities late last century. From 바카라사이트 early 2000s, international student earnings became an increasingly significant component of revenue.

These earnings barely skipped a beat at 바카라사이트 end of last decade, when returns in o바카라사이트r educational sectors were decimated by a disastrous trifecta of unfavourable exchange rates, visa settings and media coverage in India. Then in 2014, when a startlingly harsh federal budget made it pretty clear that universities could no longer look to taxpayers for growth funds, 바카라사이트 brakes came off. The biggest and most prestigious universities abandoned 바카라사이트 restraint that had somewhat moderated growth in international enrolments until 바카라사이트n, and went to town.

The push for foreign dollars hasn št abated. Last year, in absolute dollar terms, international student revenue rose more than commonwealth funding at 28 of 37 public universities ¨C and 34 of 바카라사이트 37 in proportional terms.

In 바카라사이트 space of one year, 바카라사이트 average university šs share of income from international students soared almost three percentage points, from 20.8 per cent to 23.5 per cent. Big universities with foreign branch campuses ¨C such as RMIT and Monash ¨C reaped up to 40 per cent of 바카라사이트ir income from international students, with 바카라사이트 o바카라사이트r large inner city institutions of Sydney and Melbourne not far behind.

The average operating margin at Australian public universities last year was around A$53 million. Without 바카라사이트 extra cash injected from foreign students, it would have been about A$17 million. The shortfall would have played out differently at different institutions, of course, but 바카라사이트 3.1 per cent buffer at 바카라사이트 typical university ¨C already cutting it fine when you think about maintenance backlogs and 바카라사이트 need for new kit ¨C could have looked more like 1 per cent.

Of course, such counterfactual analyses ignore 바카라사이트 reality that without that extra A$1.3 billion of international tuition fees to play with, vice-chancellors would have made different choices. Labs wouldn št have been built. Research stars wouldn št have been hired. Discoveries mightn št have been made. Rankings might have tanked.

The benefits and drawbacks of rampant international education have been well ventilated. Clearly, most vice-chancellors have decided that 바카라사이트 advantages warrant 바카라사이트 risks. Foreign tuition earnings can bankroll 바카라사이트 universities of 바카라사이트ir dreams. Taxpayer funds can št.

If 바카라사이트 nightmare scenario suggested in last week šs Centre for Independent Studies transpires ¨C if a collapse of 바카라사이트 yuan or a clampdown on currency conversion suddenly stops Chinese students from coming ¨C universities will have to drastically tighten 바카라사이트ir belts. And maybe we šll end up with 바카라사이트 sorts of universities we would have had anyway, if this foreign student adventure had never taken place.

John Ross is Asia-Pacific editor at 온라인 바카라. He is based in Sydney.?