This document summarizes a presentation on the challenges faced by diversity in higher education given at the 12th General Conference of the International Astronomical Union in Sao Paulo, Brazil in July 2004. The presentation discusses how higher education is being impacted by increased commercialization, privatization, and emphasis on workforce development over research. While this opens up access and new education providers, it also threatens the autonomy and cultural relevance of education in developing countries. The role of governments in ensuring quality, relevance, and a rational system that balances workforce needs, research, and academic freedom is discussed.