This paper examines and critiques the Australian Federal Government's efforts to put pressure on universities to increase the links between business and universities and to adopt more business practices. Examination of the 1992 and 1993 World Competitiveness Reports reveal ratings which cast serious doubt about the effectiveness of Australian business and industry. The 1991 Australian Mission on Management Skills Report substantially challenges the appropriateness of practices in Australian management and management training. However problems which have been identified are likely to be neglected in an economic upturn. It is argued that Australian government policies encouraging wide adoption of business practices and values reflect the short term planning strategies characteristic of English speaking countries and the inability of government and business leaders in these countries to remedy their own deficiencies in order to regain economic power lost during the 1980s. The wisdom of co-opting university staff and resources to remedy lack of research by Australian business is questionable. The uncritical adoption of Australian business practices may result in universities losing their distinctive roles, create conflicts of interest, and threaten the existence of Faculties of Education within universities. (Author/JB)