Brain drain poses a significant challenge to South Asian countries, many of which are experiencing rapid economic growth and require a skilled and globally competitive workforce. However, the emigration of skilled individuals in search of better opportunities abroad has exacerbated this issue.

In Nepal, one in five young people leaves the country for overseas education each year, predominantly heading to Australia, Japan, Canada, the USA, the UK, and India, according to 2021 data. This trend is expected to grow with an increasing youth population and rising affluence within the middle class. 

The number of Nepali students studying abroad surged from 44,255 in 2017 to 95,268 in 2022, leading to a decline in domestic higher education enrolment, a British Council study says. 

“With a median age of 23.5, Nepal has one of the fastest-growing college-aged populations globally,” it says. “In 2021, the country’s outbound study mobility ratio was 19%, significantly higher than China and India, which stood at less than 2%, underscoring the high demand for international education relative to Nepal’s population size.”

Higher Education Challenges in South Asia

South Asia, home to approximately 2 billion people, has a rapidly growing young population. But, the demand for university placements already outstrips available seats. In Sri Lanka, only 44,000 university spots are available annually despite a demand of 171,000. Similarly, India, with 43 million students currently enrolled in higher education, will need to double its university capacity within a decade to meet its target of achieving a 50% gross enrolment ratio in tertiary education.

Nepal’s Tribhuvan University, established in 1959, remains the primary institution educating the majority of students through its central departments, constituent campuses, and affiliated colleges. Despite an increase in educational institutions and student enrollments over the decades, concerns persist regarding the quality and standards of higher education. Weak enforcement of quality benchmarks has led to issues such as poor class instruction, high failure rates, and compromised certification standards. Governance inefficiencies, such as administrative delays, and limited research funding and inadequate financial aid for students, has further hindered Nepal’s higher education sector, the study adds.

The Role of Transnational Education (TNE)

Experts suggest that Transnational Education (TNE) programmes can help retain talent by allowing students to pursue globally recognized curricula without relocating abroad. To maximize the benefits of TNE, these programmes must align with local skill development needs and the demands of the economy to prevent an unintended acceleration of brain drain.

Currently, 59 private Higher Education Institutions (HEIs) in Nepal, registered with the Ministry of Education, Science and Technology (MOEST), offer bachelor's and higher-level programmes in collaboration with 34 overseas institutions, predominantly from the UK and Malaysia, according to the study. Most of these TNE partnerships are concentrated in Kathmandu. 

TNE presents vast opportunities, especially with rising enrollments and growing demand for postgraduate research. Education hubs and virtual learning models could support sustainable development, with potential diversification in fields such as business, IT, engineering, hospitality, and languages. 

However, TNE programmes in Nepal face challenges including accreditation delays, restrictive regulations (limiting the approval of new TNE programmes to two per year), compliance with engineering council requirements, and insufficient institutional capacity. 

The ongoing governmental reforms, including a proposed ‘Higher Education Act’, aim to streamline governance, but uncertainty concerning policy remains a barrier to new entrants, the study says.

A Pathway to Expanding Access and Enhancing Quality in South Asia

Along with Nepal, other South Asian countries are increasingly recognizing the value of transnational education (TNE) in their efforts to internationalize higher education. By fostering collaborations, TNE enhances domestic institutions’ capabilities and expands access to high-quality education for the region’s growing youth population.  

UNESCO data on outbound student mobility from South Asia—including Bangladesh, India, Nepal, Pakistan, and Sri Lanka—indicates significant growth in recent years. This trend underscores the rising demand for international qualifications, driven by the superior education offered by top global universities, access to international networks, and the development of cross-cultural competencies that improve employment prospects.  

However, studying abroad is not an option for everyone due to financial, logistical, or personal constraints. Research suggests that many students would welcome the opportunity to earn international qualifications at home if viable alternatives existed.  

TNE, which provides students access to globally recognized qualifications and curricula, has emerged as a transformative solution. Essentially, it extends education beyond borders, bringing quality learning to students rather than requiring them to travel.  

TNE can take various forms, including distance and online education, franchise and validation models, or international branch campuses. It offers flexibility in learning pace, location, and delivery methods, enabling students to balance their studies with personal and professional commitments.  

Traditional academic structures often limit students’ ability to think critically and address complex, real-world problems that require interdisciplinary knowledge. Additionally, research capacity remains a concern, as universities struggle with underfunded research departments, insufficient faculty and student training, and restricted access to global research networks. This not only affects education quality but also limits students’ contributions to innovation and technological advancements, diminishing their global competitiveness.  

Another critical issue in higher education is the weak link between academia and industry. Many students graduate without practical experience or exposure to industry needs, making it difficult for them to transition into the workforce. The lack of strong university-industry partnerships results in fewer internship opportunities and real-world learning experiences, often requiring graduates to undergo additional training before becoming job-ready.  

Experts suggest that TNE can help bridge these gaps by fostering multidisciplinary education, enhancing research capabilities, and strengthening industry connections. By improving the overall quality of education, TNE can significantly boost the employability of graduates in South Asia.  

TNE as a Catalyst for Development

The British Council’s ‘Value of TNE Partnerships Report 2022’ highlights TNE’s role in achieving Sustainable Development Goals (SDGs).

Many global partnerships contribute to quality education (SDG 4), economic growth (SDG 8), and reduced inequalities (SDG 17). TNE models also support gender equality (SDG 5), health and well-being (SDG 3), and sustainable consumption (SDG 12). 

Flexible learning options, such as online and part-time courses, promote lifelong learning and continuous skill development, aligning with SDG 4’s objective of fostering inclusive education opportunities. Moreover, TNE fosters global professional networks, enabling research collaborations and business ventures that strengthen innovation in host countries.

The UK has emerged as a leading TNE provider, with over 571,000 students enrolled in UK Higher Education programmes abroad in 2022/23. The country is also the largest TNE partner in South Asia, hosting more than 97,000 students in 2022-2023, according to the UK Higher Education Statistics Agency. However, awareness of TNE remains limited among students and parents in South Asia, stakeholders say.

Despite increasing governmental support in South Asia for TNE as a means of enhancing domestic higher education, providers in Nepal face operational challenges. These include misalignment between Nepal’s academic calendar and international institutions, the need to integrate foundation years for four-year degrees, declining demand for local master’s programmes, and concerns over the recognition of UK degrees in regulated fields such as engineering. Financial and visa-related constraints also hinder student mobility to TNE partner institutions.

Recommendations for Strengthening TNE in Nepal

To overcome these challenges, the study recommends:

-Streamlining regulatory procedures to reduce administrative delays and facilitate new programme approvals.
- Enhancing data transparency to improve policymaking and student guidance.
-Strengthening quality assurance of TNE programmes to align with international standards.
-Supporting institutional diversification and promoting international collaboration to foster competition and innovation
-Aligning curricula with local economic needs to ensure employment readiness.
-Offering lower-cost TNE options to improve affordability.
-Addressing social and economic inequalities to expand educational access.
-Identifying sustainable TNE models that reduce the need for partnership travel, therefore meeting global sustainability goals.

TNE holds immense potential in shaping the future of higher education in Nepal by expanding access, improving quality, and addressing the brain drain challenge. With well-structured policies and strategic partnerships, the country can leverage TNE to build a globally competitive and resilient workforce.