The role of institutional self-evaluation is considered in the context of transition from central regulation to self-regulation in various higher education systems in Europe. A distinction is made between external steering, where regulations and decisions are made by a central state authority, to self-steering, where decisions and regulations are made on a decentralized level within a higher education system. Self-evaluation is seen as both an important process in creating an institutional self-description and as a central element in reflection activities on the institutional level. The theory of self-referential systems is reviewed, along with the organization literature on the organization/environment relationship. Recent developments in higher education in the Federal Republic of Germany and in the Netherlands are described as examples of the contradictions that can be traced in the development from central steering or regulation to self-steering or self-regulation. Developments at the University of Frankfurt and the University of Ulm are briefly considered. 36 references. (SW)