With rapid socio-economic changes, twentyfirst century higher education is facing major challenges to its governance systems, curriculum, mission focus, external relations, research, and financing. A theoretical framework to analyze these post-massification challenges is suggested, with a focus on the Asia-Pacific region as well as global issues. Five main topic areas provide the basis for the theoretical framework: massification, privatization, accountability and governance, internationalization, and ranking and world-class universities. Some discussion of the possible effects of the financial crisis that commenced in 2008 is provided.

Higher education systems and institutions have used institutional mergers to address a range of different problems, particularly fragmentation amongst non-university institutions, lack of financial and academic viability, pressures for major system restructuring and external competitive threats. While mergers frequently are disruptive, strongly contested and costly in both human and financial terms, they have the potential to produce substantial longer-term benefits, particularly larger and more comprehensive institutions, stronger academic programmes, improved student services, enhanced student choice, greater institutional flexibility and, under certain conditions, increased efficiencies and cost-savings. Sensitivity to human and cultural factors and effective leadership are of utmost importance in achieving success in merger processes.

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