Abstract

Although universities have undergone changes since the dawn of their existence, the speed of change started to accelerate remarkably in the 1960s. Spectacular growth in the number of students and faculty was immediately followed by administrative reforms aimed at managing this growth and managing the demands of students for democratic reform and societal relevance. Since the 1980s, however, an entirely different wind has been blowing along the academic corridors. The fiscal crisis of the welfare states and the neoliberal course of the Reagan and Thatcher governments made the battle against budget deficits and against government spending into a political priority. Education, together with social security and health care, were targeted directly. As the eighties went on, the neoliberal agenda became more radical—smaller state and bigger market—attacking the public sector itself through efforts to systematically reduce public expenditure by privatizing public services and introducing market incentives. At the same time the societal relevance of the universities demanded by critical students was turned on its head to become economic relevance to business and industry in the knowledge society