A new options paper argues that Australia should see education not simply as a domestic policy portfolio or an export industry, but as a central instrument of statecraft.
“Education providers contribute to foreign policy goals, shaping positive outcomes at individual, community and country-wide levels. Their work is arguably one of the best tools Australia has at its disposal to support the development of its neighbours and amplify Australia’s global reach,” the paper argues.
The paper, What does it look like for Australia to see Education as a Tool of Statecraft, was released by AP4D (Asia-Pacific Development, Diplomacy & Defence Dialogue) last week, following consultations with 105 education experts and practitioners from Australia and across the region.
In a pre-recorded message during the webinar launch, Assistant Minister for International Education Julian Hill echoed the paper’s central theme, describing international education as “an instrument of Australia’s statecraft”.
Hill said the sector now strengthens global ties through both institutional and people-to-people linkages and acts as “both a key enabler of the traditional domains of statecraft – foreign affairs, defence, trade and aid, international development – but also a pillar in its own right, part now of Brand Australia.”
However, he suggested that the broader value of the sector is not widely understood.
“The public understanding of the sector and the focus of policy has been predominantly on the economic contribution, be it GDP, jobs, or university revenue. That remains important,” Hill said.
“But looking at the geopolitical circumstances around us, we need to more directly value our international education and skills sector as a national asset, important for building and maintaining enduring relationships with our partners.”
A fragile asset
The consultations behind the paper identified concerns about reputational risk, policy volatility and financial vulnerability. Participants noted that international students are described in policy documents as contributing to Australia’s soft power and regional engagement, while also being referenced in domestic debates about housing and cost-of-living pressures. The paper observes that any significant reduction in international enrolments would have financial implications for universities and could affect Australia’s reputation as a global education leader.
The paper identifies education’s contribution to statecraft across three domains:
- International development: international development, institutional strengthening, societal impact
- Diplomacy and trade: economic prosperity, soft power, generational connections, relationships
- Defence and security: conflict prevention, regional stability and resilience, sovereign capability
A tool for development
The paper positions education as a longstanding and central pillar of Australia’s development program. It highlights the role of scholarships, transnational education, research collaboration and institutional partnerships in supporting capacity-building across the Indo-Pacific.
A tool for diplomacy and trade
Education is described as both an economic contributor and a diplomatic asset. While the sector remains Australia’s largest services export, the paper emphasises its role in building enduring people-to-people links.
A tool for defence and security
The paper outlines education’s contribution to sovereign capability through workforce development, research and innovation. Beyond workforce development, the paper argues that education contributes to regional stability by strengthening institutions, fostering economic opportunity and supporting peaceful societies.
Education as a tool of statecraft
The paper reports broad agreement among those consulted that education should be recognised as a central pillar of Australia’s statecraft. Participants described education as contributing not only to sovereign capability and economic prosperity, but also to diplomacy, development and regional security.
While many examples of education-led engagement are already underway across universities, schools and vocational institutions, consultees observed that these efforts are often fragmented. There was support for a more coherent national approach, clearer articulation of responsibilities and stronger coordination between government and the education sector to maximise education’s strategic impact.
Opportunities
The paper argues that Australia holds a clear comparative advantage in education, with a disproportionately high number of globally ranked universities relative to its size. It also points to growing demand for international education in Southeast Asia, driven by demographic trends and expanding middle classes.
Australia’s proximity to the region, established reputation and extensive alumni networks are identified as strategic strengths. The paper suggests that, with coherent policy settings, education represents a significant opportunity for Australia to strengthen its regional influence.
Looking ahead
In setting out its vision, the paper recognises human capital as Australia’s primary asset and calls for the education sector to be afforded greater status in building sovereign capability and strengthening Australia’s global position. It calls for stronger regional literacy and language learning embedded across curricula.
Education’s full potential as a tool of statecraft, the paper argues, will be realised through a coherent whole-of-nation approach, underpinned by trust, predictable policy settings and closer collaboration between government and the sector.
The options paper can be downloaded here.
