Capitalism and Higher Education: Establishing the relationship, and understanding the implications for low and middle-income economies

The study of capitalist formation and its relation to higher education is the object of this paper. It analyses the connection between political and economic processes at the national and global levels with changes that occur in the associated system of higher education. The study takes a historical perspective to mapping change and a comparative approach, drawing on two case studies: Malaysia and Mexico. This paper constitutes an effort to critique the ‘convergence’ approach to higher education reform. Comparative evidence indicates that there are a ‘variety’ of contextually dependent responses by higher education systems to the move toward the knowledge economy. To address this issue I draw from a comparative study between Malaysia and Mexico as well as a theoretical construct that concentrates on the institutional forms and the institutional dynamics of capitalism. In contrast to much of the literature on capitalist formation that has predominantly focused on developed economies, this paper explores the implications of the move toward a knowledge-based economy for two middleincome economies. This has implications for the de-contextualised policy reforms and strategies for higher education that are recommended by global regulatory agencies.