Australian Universities in Crisis: Decades of Managerialism and Marketisation
Australian universities are currently grappling with a profound crisis, marked by severe governance issues, financial opacity, and mounting pressure on leadership. This situation, however, has not emerged overnight; it is the culmination of decades of systemic changes driven by globalisation, managerialism, and the marketisation of education.
The Roots of the Crisis: Globalisation and Austerity
In the 1970s and 1980s, shifts in the global economy forced industries worldwide to adapt rapidly, often through austerity measures disguised as efficiency improvements. This trend of "enshittification"—using cheaper materials or extending wait times—set a precedent that would later infiltrate higher education. By the late 1980s, the Australian federal government intervened to consolidate institutions, expand enrolments, and shift tuition costs, aiming to prepare more individuals for white-collar professions amid declining blue-collar manufacturing jobs.
The Rise of Managerialism in Universities
As university enrolments skyrocketed, particularly after 2000, institutions grew larger and more complex, necessitating a surge in managerial roles. This period saw management beginning to view academics not as collaborators in an educational mission, but as a workforce to be controlled and tamed. The relationship with government evolved, with managers responding to intricate "levers" of incentives and disincentives, transforming universities from bureaucratic entities into market-driven businesses.
Marketisation and Its Impact on Education
The early 1980s introduced marketisation to universities, initially through advertising during a temporary slump in student demand. Although this slump was short-lived, marketisation intensified, skewing the perception of universities from centres of teaching and learning to collections of metrics to be gamed. This shift has exacerbated issues for both staff and students, with relentless, often unexplained staff cuts leading to psychological harm and growing student debt amid rising living costs and intergenerational inequality.
Proposed Solutions for a Sustainable Future
Higher education commentators suggest three potential paths forward: increased government funding directed toward substantive improvements rather than superficial projects, reorienting policymakers toward the public good over market mechanisms, and enhancing community connections with more democratic internal decision-making systems. The latter approach emphasises reducing the dominance of university bosses, who are often seen as part of the problem, to foster meaningful change.
Unwinding these deeply entrenched systems will require concerted effort, but history shows that universities were not always this way, and they need not remain so. By addressing the root causes of managerialism and marketisation, Australia can work toward restoring the collaborative and educational mission of its higher education institutions.



