US Education on the upswing: By Phil Mintz

Bruges, a picturesque town with buildings dating back centuries, is a tourist destination now, but during the Middle Ages it was the most important trading center in northwest Europe. As a New Yorker, I had always believed that my city -- and the United States as a whole -- was going to remain at the center of the financial world forever. But after seeing Bruges, and other cities, such as Amsterdam, which were once the financial heart of the world, I realize that economic leadership is never permanent.

Now, I am living in a world where London is seriously challenging New York as the world financial capital, the U.S. dollar is sinking, financial markets are in chaos, and ideas and entrepreneurial energy are flowing to rapidly growing economies in developing nations, including India and China. For an American, its a depressing series of bad economic news.

But earlier this week, there was a bright spot, an indication that in one area at least higher education the U.S. still retains its allure as a world leader. According to the just-released Open Doors report published by the Institute of International Education (IIE), with support from the U.S. Department of State, the number of international students studying at U.S. colleges and universities increased 3% in 2006-2007 school year, to more than 580,000. It was, the IIE noted, the fist significant increase in international student enrollments since the 2001-2002 academic year. The numbers are believed to be even higher this year.

Whos coming? Not surprisingly, its students from those same powerhouse economies. The number of students from India, which sends the largest amount of students to the U.S. of any country, increased 10% from the previous year, to more than 83,000 students. The number of students coming from China increased 8%, to more than 67,000, and the number of Korean students in the U.S. increased 6%, to more than 62,000.

The top field of study for international students in the U.S. is, not surprisingly, business and management, making up 18% of the total. Thats followed by engineering (15%) and physical and life sciences, at 8%.

And international education isnt just a one-way street. American students studying abroad have reached record levels according to the Open Doors report, with the number of students going abroad to study up 8.5% in the 2005-2006 academic year, the most recent statistics available. Again, business and management was one of the top areas of study for U.S. students going overseas. And while the UK remained the top destination for U.S. students, the report also cited noteworthy increases in U.S. students studying in India up 20% to more than 2,000, and China, up 30% to nearly 9,000.

This cross-current of education means that the economic life of the world will continue to spread across borders and continents, weaving the world together in ways that were unthought of when Bruges was at its financial peak. I cant say whether, decades from now, the U.S. will retain the economic dominance that it has had in the past. But Im betting that students will be still be coming here to learn and bring the lessons back to their own countries, wherever that may be.

Phil Mintz is the B-Schools Channel Editor for BusinessWeek.com in New York. He can be reached at [email protected]