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Home News Opinion

International education: the quiet force shaping economies, communities and ideas

Dirk MulderbyDirk Mulder
March 16, 2026
in Opinion
Productivity Commission Backs University Role in Building Australia’s Skilled Workforce
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International education is often described in simple terms. It is an export industry. A line in the balance sheet. A figure measured in billions.

But that framing barely scratches the surface.

International education is not just an economic sector. It is a social and economic network that touches communities, businesses, research, diplomacy and culture in ways that are often invisible until they disappear.

The presence of international students in a country changes how cities feel, how businesses operate and how societies connect with the rest of the world. Yet in many public debates, that broader value remains poorly understood.

At a time when international education is under increasing scrutiny in several destination countries, the sector may need to do a better job explaining the full picture.

Because the value of international education is not just financial. It is social, cultural and strategic.

One of the most powerful but least visible contributions international students make is the networks they create.

Students who study abroad often become lifelong connectors between countries. Some stay and build careers in their host country. Others return home but maintain professional and personal relationships that later support trade, research partnerships, business deals and diplomatic understanding.

These connections form what some policymakers describe as “relationship infrastructure”.

It is not infrastructure you can see, but it is infrastructure nonetheless.

Many global business leaders, policymakers and entrepreneurs are alumni of universities in countries where they once studied as international students. Their experiences shape how they view those countries for decades afterwards.

In that sense, international education is one of the most powerful forms of soft diplomacy available to governments.

It builds familiarity, trust and cultural understanding in ways that formal diplomacy rarely can.

Communities shaped by global classrooms

The social impact of international education can also be seen in everyday community life.

International students bring languages, food, festivals, music and perspectives that enrich the places they study. They introduce communities to cultures they may never otherwise encounter.

Local businesses respond in kind. Restaurants diversify menus. supermarkets stock international ingredients. cultural festivals appear in city calendars.

University campuses become global spaces where students from dozens or even hundreds of countries interact daily.

For domestic students, this exposure can be transformative.

Graduates enter the workforce with international friendships, cross-cultural skills and a deeper understanding of the world beyond their borders. In an increasingly global economy, these skills are not simply nice to have. They are essential.

International education, in that sense, helps prepare societies for a globalised future.

Powering economies in unexpected ways

The economic story of international education also extends far beyond tuition fees.

International students support a wide ecosystem of businesses. Hospitality venues, technology providers, language testing services, transport operators, education agents, marketing firms and tourism businesses all form part of the international education supply chain.

Small businesses often thrive in student precincts. Cafes, grocery stores, tutoring centres and service providers adapt to the needs of internationally mobile students.

Students themselves also become entrepreneurs. Many launch startups or create new businesses after graduation, bringing fresh ideas and international networks into local economies.

Others enter sectors experiencing workforce shortages, contributing skills in areas ranging from healthcare and engineering to digital technology.

Over time, the students who arrive to learn often become the talent that helps economies grow.

The sector’s social licence challenge

Despite these benefits, international education is increasingly caught in broader public debates about migration, cost of living pressures and social cohesion.

In some countries, the sector’s rapid growth has outpaced the public’s understanding of its value.

When communities see international education primarily through headlines about numbers or economic revenue, the broader social contributions can easily be overlooked.

This is where the concept of social licence becomes critical.

Social licence is not granted through policy. It is earned through trust.

For international education, that means ensuring communities understand the value students bring, not just to universities but to society as a whole.

It also means ensuring students themselves have positive experiences and are supported to integrate into local communities rather than existing on the margins of them.

Strengthening community connections

There are practical ways the sector can strengthen this social licence.

Universities and colleges can deepen engagement between international students and local communities through volunteering, cultural exchange programs and community partnerships.

Local governments can recognise international students as contributors to civic life rather than temporary visitors.

Employers can highlight the role international graduates play in strengthening local workforces.

And perhaps most importantly, the sector can tell better stories.

Stories of the graduate who became a local doctor in a regional town. The entrepreneur who launched a startup employing dozens of people. The researcher whose international collaboration led to a breakthrough discovery.

These stories exist everywhere. They simply do not travel as widely as the economic statistics.

A global asset worth protecting

International education is often described as one of the most successful sectors of the globalised economy.

But its real success lies in something deeper.

It brings people together across cultures and borders. It spreads ideas, knowledge and understanding. It creates networks that power economies and strengthen societies.

And it does so quietly, one student at a time.

In a world increasingly shaped by geopolitical tension and economic competition, that kind of connection may be more valuable than ever.

Which leaves a final question for the sector itself.

If international education is truly one of the most powerful social and economic connectors in modern society, how can it ensure communities see it that way too?

Tags: Social License
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Dirk Mulder

Dirk Mulder

Dirk Mulder is the founder of the Koala and Principal of MulderPR, a strategy and marketing communications consultancy specialising in international education. Dirk has had extensive experience in International Education and Service Management, holding Directorships at the University of South Australia, Curtin University and Murdoch University as well the Lead for International Student Initiative across the Asia Pacific region at Allianz Partners. He has been member of the boards of Perth Education City (now Study Perth) and Education Adelaide, he has chaired the Universities of Perth International Directors Forum and has been a past board member of the Hawkesbury Alumni Chapter, his alma mater. His views are widely published and quoted across the media and has been seen in Campus Morning Mail, the Australian Financial Review and ABC television and online. Acknowledgement/disclosure: Dirk holds shares in and outside of the education sector including in IDP Education.

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Northern Territory welcomes new international students as sector eyes growth in 2026

Northern Territory welcomes new international students as sector eyes growth in 2026

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