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This paper explores recent changes in tertiary education policy in New Zealand, which are designed to address legitimation deficits. By offering an analysis of the making, and the subsequent unmaking, of quasi-markets in tertiary education, this paper attempts to describe how the state dealt with legitimation deficits resulting from providers' of tertiary education use of the adult and community education funding category to increase their revenues. In providing this description, the paper helps to provide a way of understanding how the state in New Zealand has responded to legitimation deficits by introducing a new regime of governance. The paper concludes by arguing that, in terms of its treatment of category 5.1 funding, this regime is supportive of neo-conservative goals. [ABSTRACT FROM AUTHOR]

This paper discusses New Zealand's role in the global market for tertiary education. The internationalisation and liberalisation of education markets is progressing rapidly in today's globalising world, as reflected by the incorporation of education as a service into the GATS framework. Through the example of New Zealand as a case study for the internationalisation of education services, the study depicts the way the government is involved in this process. Commodification of sectors traditionally subject to domestic public policy is often associated with a less interventionist state, but our example of education shows that this is not necessarily the case, at least not in the medium-term: New Zealand's government rather appears to be an active facilitator of the liberalisation process in education. We review its recent move towards treating education as an international export good and present data on the growth of this industry. The paper concentrates on the particular ways by which New Zealand's government is trying to facilitate this process of liberalising the education sector. [ABSTRACT FROM AUTHOR]