During the 1990s, we will observe continuing trends of increased 'inte
rconnectedness' among regions, nations, and people. These trends will
generate dynamic forces leading the human race to a global society. Th
e coming twenty-first century may well be termed as 'the global centur
y'. A successful transformation towards the global century, however, w
ill require a new leadership and democratic process. Institutions of h
igher education will play a crucial role in this transformation. In th
is paper the author proposes reform strategies for higher education to
meet the new challenge of the global century. To be more specific, th
e following three items are examined. First, major trends toward the g
lobal century are highlighted. Second, the current situation of educat
ional institutions is described. Third, with the above analyses, strat
egies of reform are discussed. Five key ideas in this paper are: (1) t
he global integration of knowledge and practice, (2) the development o
f long-term strategies at the levels of university administration and
the departments, (3) the creation of stronger incentives and rewards f
or faculty and students, (4) the strengthening of the cultural foundat
ion of learning and life, and (5) a major reorientation of funding pra
ctices toward a longer-term endowment approach.