Focuses on Moldavia, and its task of nation building--a task that depends, in part, on the effectiveness of the nation's educational system--following the demise of the Soviet Union. Provides a brief discussion of the growing importance of higher education, examines the evolution of higher education and management responses to the changing environment, and identifies current management practices in higher education. Concludes with a set of universal principles or characteristics of effective higher education and with an injunction to countries in transition and developing countries to reorient their educational policies in light of these principles. (Contains 4 figures and 4 tables.)