Abstract
For over six decades Israel’s system of higher education has been managed by the Ministry of Education and the Council for Higher Education (CHE). During this period, significant transitions have occurred in the academic system throughout the world and in Israel, leaving their mark on research and teaching and on the related regulatory agencies. The purpose of the study is to examine the need for regulation of higher education in a capitalist world, with Israel serving as a case study. 
 
 The study examines the CHE’s management of changes that occurred in the academic world and the overall considerations utilized by the pilots of this regulatory agency, which led to shaping policy from a perspective of time and with an eye to the challenges of the future, in comparison to supervisory agencies around the world. The research method is based on research literature addressing the system of higher education in Israel and elsewhere as well as on interviews with senior academics occupying key positions in the CHE in the past and present. The research findings indicate that the CHE has a bureaucratic image, a short-sighted policy, and that it reacts to events more than leading them, as opposed to its declared goal of promoting high standard, innovative, and accessible research and teaching processes to benefit the economy and society. 
 
 The conclusion generated by the research findings is that implementation of a hybrid model suitable for the twenty first century, which combines liberalization and regulation, should be explored. This model will let institutions of higher education develop independently while reducing government supervision, and will allow the regulatory body to regulate their activity via incentives and restrictions, while identifying market failures that it will define. Such a regulatory body will include an array of academic experts from the field of higher education with proven experience in the fields of academic research and teaching, in order to separate the managing of Israel’s system of higher education from politics and bureaucracy.
Highlights
Israel’s Council for Higher Education (CHE) was established in 1958 as a supervisory authority of Israel’s academic institutions
One of the conspicuous decisions concerning higher education was reached in 1999 (Note 5), and it asked the countries in the union to adapt their academic institutions to the principles of the European Commission and to develop a uniform system for quality assessment of institutions of higher education and for student achievements
These actions are funded by the European Union, it was determined that each country must operate an independent system to ensure the quality of the institutions and of the study programs in its system of higher education
Summary
Israel’s Council for Higher Education (CHE) was established in 1958 as a supervisory authority of Israel’s academic institutions. Higher education was considered a resource attributed to the higher socioeconomic classes Some saw it as an official mark confirming the superiority of the wealthy, who acquired a wider education that made it possible for them to increase their economic might, and so on in a constant cycle. Those who could not afford to acquire a higher education made do with lower level jobs for which they received low pay that did not allow them or the generations to acquire such an education and breach the cycle of poverty. The development of globalization, technology, and information in recent decades, concurrent with political reforms, led to an increase in the number of institutions of higher education in the world in general and in Israel in particular, as well as greater competition between them, and lowered barriers to higher education
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