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Higher education is still very much is demand throughout the world,but is increasingly financially squeezed because of budget constraints. The UK has responded by encouraging “diversity of mission”and setting performance targets. In practice, however, this has often resulted in sameness rather than diversity. This also raises the question of quality and standards. As a result of these developments the traditional idea of a “university” in the UK is itself being challenged. Discusses the major elements of change in higher education. Concludes that the twenty‐first century university will be unlikely to succeed unless it can manage change effectively.

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