Report urges Canada to double down on foreign students to fuel innovation

English: International Students
English: International Students (Photo credit: Wikipedia)


Canada should double the number of international students studying here by 2022, a new report commissioned by the federal government says.
The task force responsible for the report, headed by Western University president Amit Chakma, wants Ottawa to boost the number of international students from about 239,130 to 450,000 in 10 years – from kindergarten through Grade 12 and post-secondary institutions – without taking away seats from Canadians.
The 122-page report entitled International Education, a Key Driver of Canada’s Future Prosperity, released on Tuesday, makes a connection between attracting international students and filling labour market shortages.
Calling the report’s recommendations ambitious, Dr. Chakma said he anticipates most of that recruitment will go to the growing economies of Western Canada.
“Our larger institutions may not have as much capacity to take on [additional] international students ... because they already have been recruiting aggressively, but there is a lot of potential room in our northern institutions and Western provinces,” Dr. Chakma said.
International students spent a total of $8-billion in Canada during 2010, up from $6.5-billion in 2008.
“There aren’t too many sectors that have shown that degree of growth, especially during the economic recession,” said Paul Davidson, president of the Association of Universities and Colleges of Canada.
The Conservatives put aside $10-million in their 2011 budget for the advisory panel on attracting the top young talent globally and catching up with countries such as the United States, Britain and Australia.
But aside from the immediate boost to the economy, international students are often seen as prime candidates to immigrate, with the established Canadian credentials and work experience for successful application. Even if these students return home, the panel report said, their ties to Canada might develop into business opportunities and diplomatic relations, and generally raise Canada’s profile abroad.
The University of Alberta’s international student population has already doubled to 10 per cent for undergraduates, and president Indira Samarasekera says there is room to grow.
“Especially in Alberta, parents like to hear that the return on investment is almost immediate with so many job opportunities,” she said.
The competition was already fierce for international students.
Countries such as India and China – Canada’s top suppliers of international students – are trying to reverse the brain drain. In 2011, India increased higher education spending by 30 per cent while the Chinese government aims to enroll 500,000 international students by 2020, twice the number it now hosts and more than it sends abroad.
“It’s dangerous to rely on international students to bring in income for Canadian universities, especially since India and China are expanding rapidly,” said Dru Marshall, provost at University of Calgary. “We might not always have access to those students.”
Paul Davidson, president of the Association of Universities and Colleges of Canada also said the costs of marketing abroad and ensuring international students’ needs are met once they arrive in Canada will likely offset much of the potential revenue generation for cash-strapped universities.
Both, however, said the real advantage is in exposing young Canadians minds to other cultures.
That’s why the task force also recommended creating 50,000 opportunities per year for Canadian students to go abroad for study and cultural exchanges. About nine in 10 Canadian students go to university in their home province.
Other countries are also trying to buck that trend. Over the next four years, the Brazilian government will spend $2-billion to help send more than 100,000 of its best students to universities globally to help forge future economic ties. Canada will receive about 12,000 of them, the second-highest total of all recipient countries.
The panel, however, shied away from asking Ottawa to commit to a dollar figure on international education investments, saying individual provinces and institutions will have unique needs.
Ottawa will consider these recommendations and possibly incorporate them into a global commerce strategy due in 2013.
Dr. Chakma said Western is prepared to earmark $1,000 and raise another $1,000 from alumni and donors per travelling fellowship, if Ottawa also commits $1,000.
“Unfortunately, the strategy ignores the skyrocketing costs faced by international students,” said Adam Awad, national chairman of the Canadian Federation of Students.
Many recruiters say that while Canada has a generally positive name abroad, they have difficulty articulating exactly what its brand is. And considering that education in Canada is primarily a provincial jurisdiction, developing a national brand is a challenge.
Some provinces, such as B.C., have already announced province-specific plans to recruit international students. Even so, Dr. Chakma said a “united front” is needed. That’s because research indicates that while students will always seek out well-known schools like Harvard, Oxford and McGill, most choose their international education destination based on a country’s reputation.
“Several university presidents went to Brazil, and while we were all promoting our individual institutions, we got much better access and coverage because it was a Canadian mission under a Canadian banner,” Dr. Chakma said.
Ms. Samarasekera agreed, adding that “people get confused when you talk about provinces with international students.”
“It doesn’t mean anything to them ... students don’t necessarily want to go to California or Massachusetts; they want to go the United States,” she said. “We need to do the same for Canada.”



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Residency bid for Chinese wife fails as immigration crackdown focuses on marriage fraud

BY DOUGLAS QUAN, POSTMEDIA NEWS AUGUST 14, 2012


Neil Macdonald insisted his marriage to a woman he met on a Chinese dating website was genuine and that she was his “soul mate.”
But a federal judge was unmoved, recently upholding immigration officials’ decision to deny the Kitchener, Ont., man’s attempts to sponsor his wife, Zheng Qun Huang, for permanent residence in Canada on the grounds she was interested only in a ticket to this country.
The decision comes at a time when the government has introduced measures to crack down on marriage fraud, making it much more difficult, immigration lawyers say, to apply for spousal sponsorship.
“No question, decisions on spousal sponsorships are getting tougher,” said Toronto immigration lawyer Jacqueline Bart. “We have to work harder as lawyers to make sure the application package we submit … is very strong.”
In 2006, Macdonald registered with two websites, Chinese Lovelinks and Cherry Blossoms.
Chinese Lovelinks bills itself as a website for people interested in “serious Chinese dating and relationships.” Cherry Blossoms boasts profiles for thousands of single Chinese, Filipino, Thai and Vietnamese women “who are looking for online dating, love and romance.”
Macdonald, a financial adviser in his 60s, began to exchange emails with Zheng and also made several trips to visit her in China. The couple married in 2007, and in August 2008, Macdonald applied to sponsor his wife for permanent residence in Canada.
Four months later, a visa officer denied the application, concluding that the marriage was not bona fide and was entered into primarily for immigration purposes.
Macdonald took his case to the Immigration Appeal Division, which held a hearing in March 2011.
Macdonald’s lawyers, Mary Lam and Cecil Rotenberg, said in an interview Tuesday that they presented evidence showing that the couple exchanged emails daily, that Macdonald visited Zheng twice a year in China, and that Macdonald had set aside half of his estate to her in his will.
Macdonald’s son from a previous marriage also vouched for the genuineness of their relationship.
“We’re in an age where cross-cultural marriages are not unusual. We’re in an age of technology. You have to take that into account in relationships and marriages,” Lam said.
But the immigration adjudicator dismissed the appeal, saying that the relationship had “very little time to evolve and develop,” and that there were issues with Zheng’s credibility.
The adjudicator cited the fact that she had made no effort to learn English after five years of marriage, that she had failed to tell Macdonald about a condominium purchase in China, and also lacked knowledge of Macdonald’s son.
Zheng sought a “new life in a new land … with one of the first persons she met over the international website despite the ongoing and considerable language barrier,” the adjudicator concluded.
In a decision reached last Friday, federal Judge David Near said the appeal decision was reasonable.
Macdonald’s lawyers said Tuesday one thing that worked against their client was a change to immigration rules that took effect in September 2010.
In the past, determining a “bad faith” relationship required that two conditions be met: an immigration officer had to find that the marriage was not genuine and that the marriage was entered into primarily for the purpose of obtaining immigration status.
After the rule change, a sponsorship application could be denied so long as one of the conditions was met.
“We’re losing sight of the humanity,” Rotenberg said.
Given the tougher rules, immigration lawyers need to cull as many documents as possible that prove a couple’s relationship is loving and will “stand the test of time,” Bart said.
That includes photos, email exchanges and financial-support records – even documentation of sexual encounters.
“When a couple is in love they want to communicate. There is proof. And we access that proof,” she said.
Vancouver immigration lawyer Richard Kurland said Tuesday he believes the crackdown on marriage fraud by the federal government is generally headed in the right direction, and that the Macdonald case is not indicative of any major surge in sponsorship denials.
The stricter regulations could have the effect, he said, of saving Canadian sponsors who enter into relationships in good faith only to be victimized by fraudsters seeking permanent status in Canada.
“People have to guard their hearts and wallets from abuse, the same way people do right here in Canada when they are thinking of spending forever with someone,” Kurland said. “It’s no different.”
Twitter.com/dougquan

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Canada may limit study permits and visas of foreign students


Nicholas Keung
Immigration Reporter 
In an attempt to weed out “disingenuous” international students, Ottawa plans to grant student visas and work permits to only those enrolling in government-accredited schools.
“The proposed regulatory changes would ensure that study permit holders are genuine students by requiring students to enroll in and actively pursue a course or program of study after arrival in Canada,” said Citizenship and Immigration spokesperson Nancy Caron.
“Institutions that are not designated by provinces and territories would no longer be able to host international students.”
Although the changes are still in the consultation phase, the proposal, published in the Canada Gazette, also recommended that work permits, whether for off-campus work or a co-op/internship program, be limited to visa students in accredited schools.
“Disingenuous study permit holders use their study permit as a primary means to gain full access to the Canadian labour market,” Caron noted.
“Strengthening aspects of the program that could be abused by fraudulent schools or non-genuine study permit applicants is vitally important to protect Canada’s reputation abroad.”
The proposed changes came just as a national task force released a report Tuesday calling on the government to double the number of international students studying in Canada by 2020. It urged Ottawa to ramp up efforts to attract foreign students, to encourage innovation and exchange.
The number of international students in Canada — taking anything from short-term language courses to post-graduate studies — has gone up by 36 per cent in the past five years, from 176,000 in 2007 to almost 240,000 last year. More than one-third of those students are studying in Ontario.
A recent study by the Canadian Bureau for International Education found that international students contributed $8 billion to the Canadian economy in 2010.
In overhauling the visa program, Ottawa is taking a leaf from Australia’s book. That nation adopted similar policies after seeing an upsurge of enrollments in fly-by-night colleges when it granted permission for foreign students to work in the country, then apply for permanent residency.
The international student program quickly became a conduit for immigration to otherwise unqualified candidates. Schools also reported students disappearing upon arrival.
In 2008, Ottawa launched the Canada Experience Class, to allow visitors on work and study permits to apply to become permanent residents. Since then, it has also expanded its work permit programs for foreign students.
The proposed changes are welcomed by the Canadian Consortium for International Education Marketing, which is made up of five national educational associations.
Accrediting qualifying schools could help crack down on sham colleges that offer substandard programs to foreign students, said Paul Brennan, of the Association of Canadian Community Colleges, a member of the consortium dedicated to promoting Canadian education abroad.
Brennan said some of his group’s 130 member-schools have had visa students who withdrew, transferred or disappeared soon after arrival. A stronger monitoring system can help screen international students and track their movements, he said.
“It’s an issue of manpower. They need money to fund the enforcement and must keep the reporting system simple.”
Under the plan, student visas would no longer be issued to people who enroll in courses of less than six months. These students could instead come as visitors and apply for a study permit from within Canada, officials said.

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Moody's "very comfortable" with top Canada rating


TORONTO (Reuters) - Moody's Investors Service is "very comfortable" with its top Aaa credit rating for Canada because the country's fiscal and banking strength give it room to react to risks arising from the European debt crisis and Canada's hot housing market, Moody's chief analyst for Canada said on Thursday.
Steven Hess said he did not believe the risk from Canada's booming real estate sector was very great, but that he would not be surprised if there was some price correction. External risks from Europe would mainly flow to Canada from the United States, Canada's largest trading partner, he said.
"We still have a stable outlook on Canada and don't see any reason why that would change anytime soon," Hess said in an interview with Reuters.
"The fiscal situation being pretty good relative to other countries and ... our bank financial strength ratings for the Canadian banking system as a whole are the highest really of any banking system in the world."
Hess said if one is looking for risks to Canada they would come from high household debt and the heated housing market, but that Canada's strong banks and economic strengths would likely limit the fallout of a housing correction.
The Bank of Canada, in its semi-annual Financial System Review on Thursday, said the country's financial system remains highly vulnerable to a further escalation in the European debt crisis and the possibility of a correction in the housing market.
But even if a severe housing correction resulted in problem loans, Hess said Canada's big banks would be able to manage without having to resort to government help.
"It wouldn't be surprising if there was some correction in the housing market," Hess said. "Now will that cause a financial problem, system-wide? In the end we don't think that that risk is very great because of the lending standards that are in the banks, because the economy is still doing relatively well and employment is all right.
"You don't have the same thing that you had in the United States of people losing jobs before losing their houses. And also the legal framework surrounding foreclosures and whatever is different in Canada, and is more conducive to people continuing to service their loans."
Canada's federal housing agency said in a report on Thursday that the country's hot housing market will likely cool toward the end of 2012.
SAFE-HAVEN STATUS
Canada and Germany are alone among G7 countries in having Moody's highest credit rating with a stable outlook. Canada's prudent fiscal management and sound banking sector have been credited with helping it survive the global recession better than many countries.
Hess said Canada's strength - including the relatively positive budget positions of the federal and provincial governments and the prospect of eventual official interest rate increases - is turning Canada into a safe haven for foreign investment.
"In some sense, the Canadian government bond and Canadian dollar assets in general are taking on some characteristics of a haven currency internationally (with) investors who are wanting to diversify away from Europe because of the situation there," Hess said.
"And with the debt-limit question coming back to the fore in the United States, maybe some diversification away from the U.S. dollar is also desirable and Canada looks like a place you could put your money."
The emergence of Canada as an alternative safe haven for foreign investment is benefiting the government in terms of low bond yields. Hess said the proportion of Canadian government debt held by nonresidents has risen in the last couple of years to about 20 percent.
That is low compared with the United States, where nonresidents hold about 50 percent of U.S. Treasury bonds, and compared with France and Germany, where it is more than 60 percent.
"In Canada it is still relatively low so there is a lot of room, if you want to put it that way, for foreign investment coming into not just the federal government but the provinces as well," Hess said. "And this means that their borrowing costs are lower than they would be otherwise. Even if the Bank of Canada raises the short-term rates, the longer-term bond market is going to benefit from foreign demand."
Last month, the federal government announced a smaller-than-expected budget deficit for 2011-12, giving Finance Minister Jim Flaherty some leeway to react if needed to what he called an "unstable" situation in Europe, and keeping Ottawa on track in its plan to balance the budget by 2015-16.
Hess said Canada can't escape feeling the effect of any return to fiscal crisis in the United States or a knock-on effect of the euro zone debt crisis or breakup.
"It's not something we are predicting, but the risk to the financial system coming from Europe, for example, is there. And that would obviously have some spillover effects on Canada because of the close association of Canada and the U.S.," Hess said.
(Reporting By Andrea Hopkins and Claire Sibonney; Editing by Peter Galloway)

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Immigrant Underemployment is Costly for Canada, CIBC Says

English: Tour CIBC in Montreal.
English: Tour CIBC in Montreal. (Photo credit: Wikipedia)

By Nirmala Menon


Bloomberg
A worker at an auto-parts plant in Ontario. A CIBC economist argues that changes to Canada’s immigration model could help productivity.
Immigrants in Canada are underemployed and paid less than Canadian-born workers, a phenomenon that’s costing the economy over 20 billion Canadian dollars in forgone earnings, and is probably  a significant factor in Canada’s productivity gap with the U.S., according to a report from CIBC World Markets.

Newcomers to Canada may be more educated now, but they only earn about 60 cents on the dollar relative to their Canadian-born counterparts. That compares with 80 cents on the dollar earned by those who arrived in the 1970s, the report says. The earnings gap is also narrowing at a much slower pace.

The crux of the issue is a mismatch between the skills that an immigrant brings and those the country needs, according to the report’s author, Benjamin Tal. Furthermore, immigrants are arriving with less proficiency in English or French, Canada’s official languages.

“This is not an efficient market,” Mr. Tal, who is deputy chief economist of CIBC World Markets, said in an interview.

He says Australia is doing a better job of narrowing the discrepancy between its native-born and immigrant populations, noting that the earnings gap is 50% smaller than in Canada. He says mandatory pre-immigration English language testing introduced in the 1990s is probably the key factor for the advantage that Australian immigrants enjoy. There’s also more coordination between government and the professional bodies responsible for licensing, so immigrants have a greater chance of success in their fields, he says.

Although many recent changes in Canadian immigration rules are modeled on Australia, Mr. Tal worries that Canada may be focusing too much on short-term needs.

“We should be taking a long term view,” he says.

The earnings disparity between immigrants and those born in Canada doesn’t bode well for the country’s lackluster productivity. Mr. Tal points to estimates that suggest some 20% of the increase in the productivity gap with the U.S. over the last decade can be attributed to immigration.

“Without a significant increase in immigration-based productivity, the aging profile of the Canadian population will work to reduce the standard of living all Canadians,” Mr. Tal writes.


http://blogs.wsj.com/canadarealtime/2012/08/13/immigrant-underemployment-is-costly-for-canada-cibc-says/Enhanced by Zemanta

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