Given the challenges that Canada faces adapting to a rapidly changing world order, it can’t afford self-inflicted policy gaffes. Yet that is exactly what Ottawa has delivered with its bungled strategy to reduce international student numbers.

The dramatic rise in international enrolments during the past decade was no accident. Federal and provincial governments actively encouraged it. Federally, international students were seen as drivers of economic growth and a vital source of future skilled labour. Provincially, they helped maintain the financial stability of public post-secondary institutions faced with stagnant government funding. Institutions adapted accordingly, which made the abruptness of the policy reversal all the more jarring.

The auditor general’s findings reveal a program rollout that was deeply flawed. What was represented as a measured effort to reduce international student numbers instead produced a shock wave — destabilizing post-secondary institutions, damaging Canada’s global reputation and hitting B.C. particularly hard.

At the core of the problem was a profound mismatch between intention and outcome. Federal projections anticipated modest reductions in study permit approvals of 10 per cent for most provinces and 18 per cent for B.C. What actually occurred was a collapse: approvals fell by about 57 per cent countrywide and by two-thirds in B.C.

This wasn’t an inevitable consequence of reform. It was the result of poor policy design. Ottawa relied on an allocation model built on mistaken assumptions — most notably, an unrealistically high approval rate. Combined with a sharp drop in applications — driven by new financial requirements, confusing administrative changes and growing uncertainty — the system produced a far more drastic contraction than projected. This impact was exacerbated by the inclusion of exempted graduate students in the allocation framework, further squeezing undergraduate admissions — the financial backbone of many institutions.

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