The problems are especially acute in developing countries. Worldwide, the demand for higher education continues to grow, but the demand is greatest in developing nations, where in 2000, half the students in postsecondary education are located. Providing sufficient funds for higher education is especially problematical in developing countries. There is resistance everywhere to the ever-expanding public expenditures for higher education. In developing countries, enrollment pressures add to the general fiscal difficulties.
Privatization is a key characteristic of higher education in developing countries.
Private institutions, sometimes profit-making, are taking hold in higher education. In many developing countries, the private sector is the fastest growing part of the higher education system. The knowledge revolution is dramatically altering the landscape of higher education. Knowledge is expanding rapidly, and the means of storing and distributing information is being transformed by the Internet and computer-based technologies. Developing countries control neither the sources nor the means of delivery of the knowledge, and consequently they are in danger of being overwhelmed by the new technologies.