Private Universities In China, The Problem Of Financing Research

From reformation and opening up, our private universities have developed quickly along with our economic and institutional development and have got great accomplishment: their whole scope become comparatively huge, and diverse educational formds come into being, private universities administrative levels upgrade, subjects step in reason.Though the private universities acquire outstanding achievement, there are still many problems in the process of their development and the most significant is the short of development outlay. No matter from the macro analysis of population prospect and the micro analysis of average index conferring also from the country of their development, serious problems still exist in private universities, which is the pressure of great financing. The development type of private universities in China has both the kind of culture and economic, but the latter is more important and this kind of university needs much more capital to carry out.Based on the entreprises' finacing theories and refered to Public-Goods theory and entreprises' financial theories,combined with the present situation of our national private universities, the author proposes the financial theoretic frame of private universities. Through the analysis of the character of the private universities' products,the author believe that in terms of the public products' property,if they have non-exclusiveness and non-competitiveness,then higher education is not public product;in terms of Quasi-Public-Goods have nither xclusivesness nor competitiveness,higher education products are not Quasi-Public-Goods. Why we refer to higher education products as Quasi-Public-Goods is that the government endow higher education with non-exclusive character and it is mainly provided by government.However,the non-exclusive character is not born in it,it's not the character in itself,and higher education products is in nature to consume the products with positive externality.The product of private higher education has both the characters of exclusiveness and competitiveness,so it is private product.Therefore,(1)Private universities should be profit-making.The investors of which are mainly folk capitals such as enterprises,individuals,etc.and because they share investing risks, it is natural to persue investing profit.(2)Private universities are their mainbody of financing system;(3)Government should play a key role in the financing and give much more support;(4)Donation is also the important part of financing and private universities should create more opportunities to push the development of private universities.Based on the analysis of higher education and costs and profits of private universities and through the whole and individual analysis of their management status,we found that,private universities have some surplus to develop at the beginning,because of the low cost,rented school houses ,part-time teachers, more liberal arts majors with little labs. With the government's permission of the recruiting standard and the establishment of full-time teachers and the improment of the teachers.the cost of private universities is improving gradually and it will be more difficult for private universities to only rely on the accumulation of the tuition fees and adopt internal financing.For private universities' exterior financing, the government only provides some favorable policies on ground and revenue but not financing in so long period in the future, because government's finance is very limited for higher education, and most of its finance are used for public universities. It's impossible for private universities to receive money from government. If we run a school by donation, its few donation from society for education and "donation failure" phenomena is serious in our country. Not only from flow but also from stock to analyze, the donation for private universities from society is very limited. The facts of polity, economy, and culture result in low proportion of social donation. Because of the "path dependend" of these facts, the donation will not become the main financing source for private universities in future in the long run. The principal part of private universities financing will be enterprise and individual.Refered to the experience of America and Japan' s diversification in the private universities' financing and according to our practice of private university, we agree that ,to improve the development of the private university ,the government should perfect the principle;create good institutional environment; innovate the policy of education financing and extend the subsidization to private university; as to the private university, it's necessary for them to pursue the subsidization from government and loans from bank, issue the education bond, establish private university investment fund. Considering the stutus-quo,the author believe it's feasible through loans from bank and renting by financing.This is why it's the main choice to attract the adventure-hatred investor by issuing stock, and establish the industrial funds for their development in the future.