The countries of the Anglophone Caribbean wish to have their tertiary education systems play a more significant role in nation building, consistent with a developing consensus on the critical role of tertiary education in processes of national development. However, they are confronted with two problems: the first is their comparatively low levels of tertiary-level enrolment; the second is their comparatively high levels of national debt. The challenges of financing tertiary education are therefore particularly acute in the region.

This paper examines the philosophical underpinnings of the call for reforming the financing of higher education from the perspective of higher education administrators, politicians, and students. It argues that there are three underpinnings associated with the call: the entrepreneurial thrust, as well as the financing, and the resource allocation underpinnings. It then uses the experiences of some universities to point out challenges faced by Caribbean higher education institutions in their quest to reform. It also suggests actions that may be taken to combat the challenges.