Potential and perils of a university boom

To get an idea of the incredible economic potential of providing university services to foreign students it's worth looking at an extreme example. Imagine a small territory of about 350,000 people which decides to invest hugely in universities. In three years it manages to boost the already large number of 45,000 foreign students to 100,000, who are studying at 16 universities. There are plans for another 16 to be established within the next three years. This "industry" contributes some 1 billion dollars to the local economy, a third of GDP, ahead even of tourism. The students come from 134 countries and pay about 5,000 dollars per year. Tuition is in English.

If you haven't guessed where this educational bubble is expanding, the fact that half the students come from Turkey might help. The place is northern Cyprus. And, apart from the fact that many foreign students register...