This article examines the principal arguments found in the work of Paulo Freire concerning policy and ethics in the field of higher education in Latin America. It critically analyzes the university reform in Latin America dominated by the thought and practice promoted by various international financial institutions (such as the World Bank and the Inter-American Development Bank [IDB]) beginning in the 1980s and then looks at the feasibility of an alternative Freirian view. The work of Paulo Freire celebrated the liberating role that public university education should play in the training of citizens and professionals, that is with a critical and ethical conscience, committed to the needs of the locality, region and the world. All this is in clear opposition to what has happened to Latin American universities, influenced by neo-liberal reforms over the last decades.