This report examines the past record, current condition, and potential of Iraq's higher education sector. Iraqis have traditionally valued intellectual achievement, but the legacy of Baathist rule and the current tide of instability are crippling the universities' ability to function effectively. The future, however, could see those universities playing a leading role in securing long-term peace. This report argues that if the security environment improves, Iraqi universities could become leading actors in the country's civil society, providing opportunities for faculty and students to resolve social and political conflicts, promote political stability and economic growth, and build an institutional infrastructure able to safeguard human rights. However, if the higher education sector is to play this role, it must first introduce reforms in such areas as curriculum development, faculty education, and administrative procedures. (Contains 22 notes.)