This paper examines recent reforms in Mexican higher education identifying positive changes and continuing problems. An overview of the reforms of the 1990s shows shifts in two significant areas. First, funding has increased overall, but priorities have shifted, with funds for higher education and research increasing at a lesser rate than those for basic education. Funding rules also changed, with funds now generally targeted to specific programs rather than for general operational purposes. Second, evaluation, a concept alien to Mexican higher education, has been introduced. The paper's assessment of these reforms notes that some changes have occurred such as the increasing influence of the professoriate in evaluation and accreditation procedures, better understanding of the connection between higher education and the economy by the public and policymakers; less suspicion of educational quality and private education; and greater policy continuity underlying the reforms. The paper lists some problems that remain, with three issues considered crucial: (1) translation of desired outcomes into measurement--that is, using evaluation as a tool to steer the system; (2) revision of the system of funding with subsidies and salaries no longer allocated according to traditional patterns; (3) better definition of the rules and regulations that govern the system. (Contains 12 notes and 14 references.) (CH)