ABSTRACT
This chapter suggests that the impact of higher education funding policy in Japan and how that has affected the nature of higher education system, and also the implications for its being seen as either a 'public or private good'. It discusses the changing dynamics of both public and private funding for Japanese higher education system in comparison with other Organization for Economic Cooperation and Development countries. Higher education reforms by the government seem to be reinforcing the processes of so-called 'institutional isomorphism', making existing differences between national and local, public and private universities less substantial. The chapter also discusses the current wave of new policy initiatives that aim to pick the 'elite' national universities to create 'world-class' universities. It concludes by considering the continuing challenges and tensions for Japanese higher education, which have redefined and realigned constantly the nature of higher education as both a public and private good. This may provide a model for future university in Japan and beyond.
