The Power of Educational Exchanges in Strengthening U.S.-LAC Relations

Introduction

U.S. foreign policy has long aimed to foster stable and secure relationships across the Western Hemisphere. Built on a foundation of close collaboration, the ties between the United States and Latin America and the Caribbean (LAC) are rooted not only in shared history, language, and familial connections, but also in educational exchanges, that is, programs that foster the movement of students among educational institutions abroad.

For decades, educational exchanges have served as a cornerstone of U.S. diplomacy, building human capital and promoting goodwill, cross-cultural understanding, and enduring international relationships. Through educational exchanges, the United States has cultivated generations of global leaders and trained numerous professionals, strengthening its influence through shared knowledge and trust. In recent years, more than 80,000 students from LAC pursued studies in the United States (2023–24 academic year), and more than 30,000 U.S. students studied in LAC (2022–23 academic year), bringing home critical workforce skills, social connections, and a greater understanding of the region.

In an era of strategic competition, prioritizing U.S.-LAC educational exchanges should remain a key foreign policy tool that yields long-term benefits for the entire hemisphere. Building on the findings of CSIS and the Institute of International Education (IIE) case studies, this policy brief highlights the value of educational exchanges, examines current trends in student mobility and the barriers students face, and offers strategies to revitalize and expand these exchanges in today’s evolving landscape.¹ At a time of global competition for talent and influence, educational exchange remains a powerful and indispensable instrument of diplomacy, which can strengthen partnerships and economic competitiveness as well as deepen the ties that continue to unite the hemisphere.
 

The Role of Educational Exchanges in U.S.-Latin American Relations

For many years, academic mobility between the United States and LAC has delivered significant economic, political, and diplomatic benefits for both sides. Educational exchanges advance U.S. policy in the region—namely by strengthening economic ties, improving human capital, and countering Chinese influence—laying the groundwork for more stable, resilient, and cooperative relationships. Additionally, these programs have played a vital role in shaping positive public opinion toward the United States across LAC, fostering mutual understanding, soft-power influence, and long-term goodwill.

Delivering Economic Benefits

Studying in the United States opens doors for students to immerse themselves in the U.S. way of life and develop workforce skills. At the same time, international students deliver concrete economic benefits to college communities and to the overall economy of the United States. During the 2023–2024 school year, 1.1 million international students pursued higher education in the United States, contributing nearly $44 billion to the U.S. economy and supporting more than 378,000 jobs. Beyond the private benefits they provide to higher education institutions, international students benefit the local economy, including the housing market, the food and beverage industry, and local retail. Specifically, students from LAC contributed over $4.4 billion to the U.S. economy in 2024.

This economic benefit has been noted by numerous policymakers, such as former World Bank official and current Dean of the School of Global Policy and Strategy at UC San Diego Caroline Freund, who noted in a recent op-ed that “attracting international students is perhaps the only U.S. foreign policy tool that on net expands domestic innovation and the U.S. economy while costing nothing to American taxpayers.” Furthermore, researchers have demonstrated that international students do not take seats away from U.S. students; instead, as international students often pay full tuition, they likely subsidize the education of many U.S. students.

Notably, the economics of educational exchange also benefit countries across LAC where U.S. students choose to study. In 2024, the U.S. Department of Commerce estimated that U.S. students contributed $3 billion to the region through tuition, housing, travel, dining, and other related services.

Advancing Human Capital and Entrepreneurship

Beyond the dollars and cents in spending power, educational exchanges also contribute to the development of human capital and innovation, which are essential components to drive economic growth. U.S. colleges and universities provide students with technical knowledge and critical skills while equipping them with practical experience to enhance their employability. After graduation, some international students choose to work in the United States, filling critical skill gaps across industries and making meaningful contributions to the U.S. economy. Most students, however, go back to their home countries, where they play a vital role in advancing the local workforce. Their experience likely contributes to potential future business connections and may also help foster goodwill and positively shape public perception of the United States across the region.

Moreover, many international students start their own companies, leveraging the business acumen and technical skills—such as in science, technology, engineering, and mathematics (STEM)—they acquire in the United States as well as the networks they build along the way. For example, a 2016 report found that 21 of the 87 “unicorns”—startups valued at $1 billion or more—in the United States included a founder who was an international student. This entrepreneurial spirit is also evident in international students who create startups in their home countries. An analysis of Brazilian startups found that a majority of companies receiving seed capital in 2021 and 2022 included a founder who had studied in the United States and was now working to build Brazil’s growing startup ecosystem.

Educational exchanges can also play a crucial role in supporting nearshoring and the development of regional value chains that benefit countries across LAC and the United States. Programs that provide training in green skills, digital services, and remote work are aligning workforce capabilities with the demands of modern industries. In the Northern Triangle—El Salvador, Guatemala, and Honduras—collaborations between educational institutions and industries are fostering workforce readiness. For example, a partnership between the Honduran Universidad Tecnológica Centroamericana (UNITEC) and North Carolina State University’s Wilson College of Textiles aims to develop training programs tailored to the textile industry’s needs. Institutions have also worked together to benefit technical priority areas of growth, such as Arizona State University’s collaboration with Mexican institutions to deliver professional development seminars and an online course in microelectronics and nanoelectronics, directly supporting North America’s semiconductor supply chain. Such initiatives ensure that graduates possess the specific skills demanded by employers, facilitating smoother transitions into the workforce. By aligning education with industry needs and fostering collaborations across sectors, these programs can integrate the region into global supply networks.

U.S. students studying and training abroad also benefit from these exchange programs, including from the knowledge and skills they acquire and foreign culture exposure. Beyond the technical skills and language training gained, studying abroad also equips U.S. students with soft skills that are equally important for entering the labor market and preparing them for leadership positions. These capabilities include teamwork, problem solving, communication, leadership, and time management. Research confirms that international mobility is one of the most effective ways to cultivate these skills: Employers consistently view students with study abroad experience as more adaptable, better prepared for international assignments, and stronger in intercultural communication, independence, and stress management.

Countering Chinese Influence

As it stands, current U.S. foreign policy toward Latin America is being shaped increasingly by great power competition with China. Both powers are competing for economic influence in the region, leveraging educational exchanges as a strategic tool. However, the region has evolved significantly since the first exchange programs were introduced. It is now more educated, economically developed, and technologically advanced, and is increasingly driven by the goals of sustained economic growth and human development.

However, each great power takes a different approach to educational exchanges. The United States’ appeal is its high standard of education, equitable recruitment, and civic-focused curriculum. These programs help dismantle global stereotypes about the United States by giving international students a deeper, firsthand understanding of U.S. culture and values, while exposing them to the dynamics of a pluralistic society. U.S. values often emphasize individualism, freedom of expression, and civic participation—reflected in the diversity and openness of exchange programs.

In contrast, China’s approach to global education support is to “spend big, with little attention to national context or need, with preference to elites, and with little to no transparency or accountability,” per a previous CSIS report. Chinese values tend to prioritize collectivism, social harmony, and respect for authority. While this approach has been highlighted in certain cases across LAC in the backsliding of democracy, it has also offered up thousands of educational opportunities focused on subjects that benefit the state and society at large.

This difference can shape participants’ experiences and perspectives, highlighting the unique qualities of each culture. Although the United States remains the preferred destination for LAC students, China has been stepping up efforts to attract international students. Some of the strategies include guaranteeing spots for students in Chinese higher education institutions and offering generous scholarships and stipends for member countries of the Community of Latin American and Caribbean States (CELAC).² In addition, China has opened over 40 Confucius Institutes at universities across LAC since 2006.

Shaping Public Opinion Toward the United States and LAC

Educational exchange programs can also play a vital role in shaping positive public opinion toward the United States across LAC. Numerous studies have shown that educational and cultural exchanges can significantly improve perceptions of the United States, especially among alumni who go on to become leaders in their home countries. Likewise, U.S. students who study in LAC countries gain valuable regional insight, language skills, and cultural competence, all of which contribute to more informed foreign policy perspectives and stronger interpersonal connections. These experiences not only enrich individual participants but also help cultivate a generation of U.S. citizens with a deeper appreciation for the shared interests and values between the regions.

In a region where perceptions of the United States are sometimes unfavorable, these programs serve as a valuable tool for shaping public sentiment. Since 1999, the State Department has carried out more than 100 evaluations of exchange programs to assess whether programs met intended goals and to gather information about long-term impacts for communities in the United States and abroad. Beyond economic and foreign policy impacts, these evaluations indicate that exchange students foster more favorable views of the economic, governmental, and political structure of the United States. Exchange programs expose both U.S. and international students to each other’s cultural values, languages, and national histories. When international students return home, their experiences can help dispel cultural misconceptions and stereotypes. Moreover, a study from the American Economic Association found that students from nondemocratic states who are educated in democratic countries can foster democracy once they return to their countries.

Building Long-Term Diplomatic Relationships

Educational exchanges also create an environment where students can network and connect with one another, building long-lasting relationships. This group of business, civil society, and political professionals and future leaders can help improve diplomatic relationships and create trade and investment ties between countries. For the United States, strong global networks of allies can offer valuable support both in times of peace and during crises or war.

In the political realm, an estimated 300 world leaders as of 2012 had been educated in the United States, showcasing the enduring ties to international education. In LAC, this educational link to leadership has been invaluable, with at least 5 of the last 10 presidents in both Mexico and Colombia having studied in the United States. Some examples of prominent Latin American leaders and experts who studied or participated in an exchange programs in the United States include Luis Abinader (Dominican Republic), Felipe Calderón (Mexico), René Favaloro (Argentina), Pedro Pablo Kuczynsky (Peru), Mauricio Macri (Argentina), Sebastián Piñera (Chile), and Juan Manuel Santos (Colombia). 
 

Educational Exchanges: Analysis of Historical Trends

To understand how to strategically plan for continuing student mobility that is mutually beneficial to the United States and LAC, it is important to understand the history and current state of educational exchanges. This section analyzes trends in LAC students pursuing higher education in the United States, as well as trends among Americans students undertaking studies in the LAC region.

LAC Students in the United States

International mobility of students and scholars to the United States has been well documented since the first edition of the Open Doors Report on International Educational Exchange was published in 1949 (see Figure 1). In 1949, 6,726 international students from Latin America pursued studies in the United States, representing 26 percent of all international students. By 2024, the United States hosted 85,891 international students from Latin America, a 13-fold increase. While the number of students has increased significantly over the past 75 years, students from LAC only comprised 8 percent of the total international student population in 2023–2024, which is down significantly from when the Open Doors Report was first published (approximately 26 percent). This indicates that there may be opportunities to expand mobility in the future through sustained institutional engagement.