Any meaningful attempt to identify and explain the constraints on the credibility of the university system in developing countries should be based on an appreciation of the historical context in which this institution of higher education evolved. The purpose of this paper however is to undertake an examination of the present day realities of institutional and ideological factors which impede the successful realization of the espoused goals of the university in new states. These states are often categorized in the literature as belonging to the 'Third World' (Altbach [5]).