Ties that bind beyond the dollars and cents

Professor Glyn Davis, vice-chancellor of the University of Melbourne, reflects in the index report on the benefits that foreign students bring to Australia-Asia engagement. “Education is a good indicator of the broader relationship (with other countries),” he says. “Strong education flows reflect broader flows, particularly in trade.” Davis cites Malaysia as example. “We know that graduates from (Australia) live and work and in many cases lead in other countries,” he says.

“People talk about the Malaysian cabinet: at one point the majority of its membership were graduates of Australian universities. That can only enhance trade between Australia and Malaysia. That can only make the Malaysian government think positively when it’s in trade negotiations with Australia.”

On the other hand, difficulties in the education relationship would, over time, flow on to affect trade. Davis worries about recent attacks on Indian students studying in Australia.

He takes comfort in the procession of leaders visiting India to cool feelings. Brumby has just come back, after a visit by Deputy Prime Minister Julia Gillard, who is education minister. Rudd spent time in Delhi on his way to Singapore for Apec.

Business takes heart in the broad relationship with Asia, as measured by the PWC Melbourne Institute Asialink Index. And not just for the dollars and cents.