Since the 1980s, a series of reforms that aimed to reconstruct the relationships among the government, the university, and the student (consumer) have been initiated in the systems of higher education. In varying degrees, these systems of higher education were affected by market forces. Given this, the relationship between the state and higher education has also been changed significantly. The purpose of this paper is to view recent changes in higher education in the historic context of globalization. It attempts to trace the source of these changes and to depict, against a new background, the new role of the state vis-a-vis higher education. It also seeks to illuminate the rationale behind the changing role of the state. By using the experiences of selected countries as illustrations, this paper will discuss the salient features of the state's role change in various contexts.