This paper argues that the contemporary market driven reforms to tertiary education in New Zealand and Tanzania will result in the relegation and deemphasis of educational ideals in favour of a vocationally oriented education. The history of tertiary education in Tanzania and New Zealand is outlined. The impact of the World Bank and International Monetary Fund on economic policy development in both countries is discussed. The conflict between notions of academic freedom and the market model of tertiary education is clarified. The paper concludes by discussing the potential impact of market oriented reforms on tertiary institutions and education in general.