||Chile's higher education system has moved a long way from state and professional towards market coordination. Presently, market oriented policies predominate across the system, based on a loosely regulated private provision of higher education and the use of a set of "para market" mechanisms designed to enhance competition between state supported universities. The effects of these policies on the number and differentiation of higher education institutions, on enrollment, on the evolution of professional careers and academic degree programs, and particularly on the funding of the higher education system are here analyzed. A balance is drawn, specifically with respect to the nature and quality of private institutions and their public regulation, and to the competition for funding between state supported universities. .