This article explores what is meant by "a balanced higher education system". It argues that the Clarkian "triangle of coordination" (Clark, 1983) and the more recent model of Martinez and Richardson (2003) should be replaced by one that distinguishes between "self" and "collective" interests in both the academy and the wider society. Such a scheme will help us better to understand and to deal with the challenges presented by marketisation and privatisation. It will also provide the basis for system level policies that attempt to secure a balance between the competing interests in higher education. (Contains 2 figures.)