Our economy would benefit from sending students to study abroad

Britain reaps the benefits of welcoming overseas students to study in the UK - but internationalism works both ways. We should also be enabling UK students to study abroad.

UK students don't venture into foreign universities as much as their overseas counterparts. While this won't come as a surprise given the country's language issues, the recent publication of the "Outward Student Mobility Strategy" by the UK Higher Education International Unit (IU) has emphasised the urgency of the situation.

The strategy has been developed as an original request from the Minister of Universities and Science, David Willetts, and highlights the importance of raising awareness at a national level of the benefits associated with studying, volunteering or working abroad. In addition, it raises the issue of making this opportunity widely available to students from both a financial (i.e. scholarships) and academic (i.e. credit recognition) point of view.

Some might say the reluctance of UK students to study abroad ultimately benefits the economy, stopping a brain drain - something that Southern European countries are currently experiencing. Coincidentally, the countries with higher rates of student mobility are those least “Anglophone-oriented”, such as Spain, France and Germany. Many continental students (mostly under the Erasmus programme) use overseas experience as a means to improve their knowledge of English and also as the best alternative to a gap year, which is not so widespread in Continental Europe as it is in the UK or the US.

I don’t believe there is a risk of brain drain in the UK. The nation's economy is dynamic and attracts more international workers than any other European country. However, I do think that in the long run this lack of interest among UK students in investing a few months studying abroad could be detrimental. It is not purely the academic aspect of this experience that is valuable for students, but also the chance to be immersed in the culture and everyday life in their host country. It enables them to understand different societies and their ways of life, a better perspective of the role the UK plays at a global level, exposure to fresh thinking and ideas, and access to new networks of contacts.

I have been working on the internationalisation of university students since 1996. Back then, student mobility was perceived as the privilege of just a few. Throughout the years we have built bridges between Latin American and European universities and seen real change and growth. When Santander Universities began its activity in the UK in 2007, we knew that the contacts between UK and Latin-American universities were not as frequent and numerous as with other areas of the world, such as the USA, Asia or Australia. Today things have changed and those contacts have increased exponentially. Yet there is still tremendous potential which has not been fully developed. Economies such as Chile or Brazil grow at a yearly rate of around 5 per cent. Middle-class populations are expanding rapidly and have a particular interest in higher education. UK firms can prosper in Latin America, and not only in Brazil, but also Colombia, Mexico and Chile.

There is a need for employees who understand these markets, either by speaking the language, having lived in those countries previously, or both. A graduate who has recently been in, for instance, Chile and can speak Spanish, will be a great asset to a company wanting to export their products to Chile or expand in that market. The same rules may be applied to universities. Many Latin American students tend to choose the USA when studying abroad for proximity and reasons of cultural affinity.

However, those who choose the UK seldom regret making that decision. There is a keen interest from Latin American students to study in the UK, but not enough promotion of UK universities in those countries. A bigger marketing effort is needed to entice students into choosing the UK for their postgraduate or Master's courses.

There is also the need to provide financial support for UK students who wish to take the step towards studying abroad. This is where private institutions play an important role. Companies with a global presence such as Santander, with strong links both in the UK and Latin America, should commit themselves to helping those students to study and carry out research abroad. This financial support can come in many different shapes and sizes: from scholarships to travel grants, funding of special projects or PhDs, bilateral exchange programmes etc. All stakeholders involved, government, universities and the private sector, have a responsibility to increase contact and build networks if a hugely important opportunity for the UK is not to be missed.

Luis Juste is Director of Santander Universities UK

The Graduate School of Economics building at UNAM (Universidad Nacional Autonoma de Mexico). Photograph: Omar Torres/Getty Images.
Luis Juste, Director, Santander Universities UK
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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.