One of a series of studies on higher education in different countries, this paper examines political developments in Sweden from 1976 to 1978 and their effects on higher education. In 1976, after 44 consecutive years of rule by the Social Democratic Party (except for about 100 days in 1936), the Liberal Party and the Conservative Party were able to form a coalition government. The impact of the shift of government in the policy area of higher education is detailed, and the politics and policies of higher education in Sweden before September 1976 are briefly sketched. The new nonsocialist government largely continued the Social Democratic government's higher education policy; the only significant departure was the free sector which had the potential to jeopardize important aspects of the reform. Some changes brought about by the reform are inclusion on governing boards of members representing the public interest, decentralization of decision-making power from the central to regional and local levels in higher education, geographical dispersion of higher education, the guarantee to applicants of a place in certain study programs and disciplines, and increased linkage between education and research. The use of ad hoc commissions and appointment by the new leaders, and the government's behavior concerning student aid and research are examined. (SW)