Daily Egyptian Politics Editor

The ongoing slump in Asian stock markets continues to spiral downward and both United States trade and SIUC is feeling the burn from the crash, administrators say.

SIUC has seen a decline in international enrollment since 1994. University administration has stepped up efforts to halt the trend, such as a reorganization of International and Economic Development, a potential decrease in out-of-state tuition and an increase in recruiting measures.

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However, the loss of Asian currencies’ values against the U. S. dollar likely will minimize the effectiveness of the efforts, Vice Chancellor for Academic Affairs and provost John Jackson said.

The situation of the Asian stock market can only hurt us, Jackson said. Their denominations are at historic lows against the dollar, which means Asian citizens will be able to buy less goods and services.

This also means they will have trouble paying for education.

Changes in exchange rates have in effect raised tuition 33 per cent to 88 per cent since July for students of the affected countries

Though this semester’s official international enrollment figures will not be available until Monday, the figures likely will follow the three-year trend of a loss in students.

International enrollment has dropped from 1,117 in fall 1994 to 684 last semester.

However, Director of Admissions and Records Walker Allen said that until the official results are tabulated, a drop, increase or stabilization in international enrollment is speculation.

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The likelihood of international students increasing in numbers on campus seems remote, though.

Hungtao Hsiung, a senior in radio and television from Taiwan and president of the Republic of China Student Association, said there is a definite increase in Taiwanese students at SIUC.

Hsiung said in past semesters, about 15 students came from Taiwan to the University, but this year only three new Taiwanese students are attending.

Although Taiwan’s currency has lost 33.47 percent of its value against the dollar since July — compared to Indonesia’s currency drop of 86.88 percent — Hsiung said the downswing is affecting his family and his career.

Every time I talk to my family, they complain about paying higher prices and not being able to buy as much, he said. Before the economy crashed, I planned on going back after graduation but now I’ll try to stay here.

But several Asian students already have left. Student Trustee Pat Kelly, who works for the Center for English as a Second Language, said most of the Korean students he instructs have gone home for good.

As major Asian investment banks such as Peregrine Investments Holdings Ltd. fail, Asian currencies will continue to plummet against the dollar. Unless the trend is halted, this eventually will hit United States agricultural exports hard.

Jeff Beaulieu, associate professor of agribusiness economics, said Asian markets are the largest consumers of American agriculture exports.

Japan, for instance, is the largest importer of our agricultural products. The Asian economies have been growing quickly for the past several years, with a 4- to 7-percent growth rate.

Beaulieu said that the possibility exists of a chain of stock market slumps worldwide if the dollar’s value continues to grow against foreign currencies.

If you start cutting that growth rate and the purchase power declines in those markets, it can also adversely affect other foreign markets.

Eventually, if the dollar gained so much that other markets could barely afford U.S. exports, the dollar’s value would begin to fall.

Jim Osberg, a researcher at the Office of Economic Development and a member of Gov. Jim Edgar’s export council, said the Asian markets eventually will stabilize.

You’re looking at about 18 months before there is a real turnaround, he said.

Osberg said the actual results will vary from country to country.

Meanwhile, the fate of some SIUC students is uncertain, says Carla Coppi, international students and scholars associate director.