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AN RISING NUMBER OF INTERNATIONAL STUDENTS IN THE UNITED STATES AND CANADA

When I first arrived in the United States for undergraduate studies in 1999, I was among approximately half a million foreign students. That figure remained largely unchanged for the following six to seven years in the aftermath of 9/11, before beginning to climb rapidly once more. Today, more than one million international students -- precisely 1,078,822 -- are enrolled in American colleges and universities. This reflects a 3.4 percent rise compared to 2016 and a doubling over the past decade, according to the latest Open Doors report published by the Institute of International Education. This growth has been fueled in part by students from China and India, who together represent half of all foreign students in the U.S., with their numbers increasing by 6.8 percent and 12.3 percent respectively since the previous year.

Data for the 2016 to 2017 academic term shows that the influx of new students coming to the U.S. held steady at 290,836, remaining consistent with the peak years of 2014 to 2015 at 293,766 and 2015 to 2016 at 300,743. Had the governments of Brazil, which saw a 32 percent year-over-year decline, and Saudi Arabia, which experienced a 14 percent year-over-year decrease, fully sustained their generous scholarship initiatives, it is quite possible the United States would have recorded an overall increase in the arrival of new foreign students this year.

For some, this pattern of sustained high enrollment might come as a surprise given the current administration's stance on immigration, such as the proposed border wall, travel restrictions, and the rescission of DACA, among other policy announcements. Nevertheless, according to the Institute of International Education, the steady annual growth of international students over the past 60 years demonstrates a notable resilience against fluctuations in American politics.

Canada has likewise witnessed a boom in its international student population, which has nearly tripled over the past ten years to reach 415,000. In fact, the 17 percent year-over-year jump in the intake of foreign students to Canada in 2016 indicates that this expansion could accelerate further. Similar to the United States, students from China and India make up a major portion of the international cohort, jointly accounting for over half of the overall foreign student community.

49 BILLION DOLLARS IN DIRECT ECONOMIC CONTRIBUTION, AND MULTIPLE TIMES THAT FOLLOWING GRADUATION

International scholars play a significant part in the economic development of a nation. The combined 1.5 million foreign students studying in the U.S. and Canada contribute roughly 49 billion USD annually through direct spending on tuition and living costs. To put that figure into perspective, 49 billion dollars exceeds the gross domestic product of about half the nations in the world. Furthermore, these figures only measure their time spent in school, as immigrant students continue to generate even greater economic value after graduation. For instance, a 2016 study by the National Foundation for American Policy revealed that roughly half of all unicorn companies in the U.S., defined as startups valued at over 1 billion dollars, featured at least one immigrant founder. According to the research, the combined value of the 44 immigrant-founded businesses stands at 168 billion dollars, which approaches half the market capitalization of the stock markets of Russia or Mexico.

SEVERAL GLOBAL DYNAMICS ARE FUELING THIS EXPANSION

The fundamental drivers behind the growth of international education point toward continued increases for many years ahead. The Open Doors 2016 presentation indicates that the primary catalyst is population growth in other regions of the world. There are 1.2 billion individuals globally aged between 20 and 30. When compared to the 24 million college students in the U.S. and Canada, it is easy to understand why even a small fraction of this vast demographic attending universities in North America can create a substantial impact. Beyond demographic trends, the difficulties students sometimes encounter when attempting to secure limited and competitive admissions in their home countries have also prompted them to seek premier education abroad.

Finally, while world-class instruction is priceless, it also yields massive financial returns for the students themselves. An analysis conducted by my organization, MPOWER Financing, which provides funding for high-potential international scholars attending top American universities, indicates that the median yearly earnings for student applicants from India, which is MPOWER's largest market, prior to moving to the U.S. for a master's degree is under 20,000 dollars. Their compensation after earning an American degree ranges from two to seven times that amount, depending on whether they return to their home country or remain in the U.S. for employment, as well as the specific company and role they secure.

A ROBUST MOVEMENT THAT OUGHT TO BE WELCOMED

We are observing the remarkable influence that international scholars arriving in the United States and Canada are exerting on our respective nations. Considering the economic value these students bring both during and after the completion of their academic programs, this is a movement that all of us should embrace and support moving forward.

However, we observe starkly contrasting political attitudes toward these students in the U.S. compared to Canada. Canada has established the attraction and retention of top global talent as a national priority through a proactive outreach strategy and its express entry permanent residency pathway for skilled immigrants. The United States, conversely, has yet to raise the cap on available H1B visas to a level that matches the demand for high-skilled labor, has delayed the startup visa initiative, and still lacks a timely pathway to permanent residency for international professionals. Several prominent publications, ranging from the New York Times to The Economist, have argued that these distinctions, coupled with generally lower educational expenses in Canada, have contributed to a sharper rise in international student enrollment in Canada relative to the United States.

To fully capitalize on the steady increase in foreign students and the financial advantages they bring to their destination nations, the United States should consider implementing successful strategies from its northern neighbor to foster the expansion of this vast talent pool.

About the author

Emmanuel Manu Smadja serves as the co-founder and chief executive officer of MPOWER Financing, a rapidly expanding financial technology company offering study loans to exceptionally talented international students attending premier universities across North America. Having been an international student previously, Manu strongly advocates that credit systems should transcend national borders and evaluate individuals based on their future earning capacity.

Note: This is a featured article. This article is not curated by Ashiraj.