Research On Non-balanced Financial Investment Issue On Compulsory Education In China

Equity of education is an universal value of human society, and a balanced financialinvestment is an important basis to realize the equity of education. Compulsoryeducation, which is a beginning and basis to the realization of society equity, is a basicpublic service to the entire children of right age.China started to carry out nine years compulsory education since1986. and hasmade an astonished achievement by popularizing the compulsory education during thepast20years. In2006, China revised the law of compulsory education, which pointedout the public welfare service characteristic of compulsory education clearly. The newlaw of compulsory education sets the realization of education equity and promotion ofbalanced development as the direction of future development, and points out the resourceallocation of compulsory education should be equal and fair, especially that of theequal investment on financial funds.It is obvious that the problem of unbalanced financial investment on compulsoryeducation does still exists. Under the present financial institution of compulsoryeducation, the financial investment is unbalanced among different regions, urban andrural areas, even schools in the same region, because of the unequal development ofeconomy, the prominent problem of urban-rural binary structure, and society in variousregions, and urban-rural dual system. Although the financial institution system ofcompulsory education has been reformed and perfected, the unbalanced problem infinancial investment on compulsory education is still a serious one. Therefore, it is ofgreat significance both in theory and in practice to research in-depth the unbalancedinvestment of compulsory education under the background of the present financialinstitution system of compulsory education. This article will provide an idea for theestablishment of equal and normative financial system of compulsory education throughthe research on this issue, and provide a realistic path to realize a balanced financialsystem of compulsory education.This dissertation tries to research and solve the unbalanced problem in thedevelopment of compulsory education from the prospective of finance. It analyses the problem in the whole process before and after the new law of compulsory education andnew institution of guaranteeing funds for compulsory education in rural area, and itcombines qualitative and quantitative analysis, globally and locally, especially thecomparison analysis and empirical analysis. It finds out that the unbalanced problem infinancial investment on compulsory education is obvious and severe, through the analysisof the conditions of present financial investment among different regions, and amongurban and rural areas. At the same time, it takes out a theoretical and empirical analysisof the problems, and proposes suggestions of solving the unbalanced problem incompulsory education financial investment based on the experiences of relative foreigncountries.In structure, this dissertation firstly introduces the background and significance ofthe researched topic, as well as the research method, structure arrangement, innovationand deficiencies. Secondly, it reviews the studies about compulsory education. In thereview of foreign studies, it first introduces five points of view, i.e., opportunity equality,neutral of wealth, horizontal equity, vertical equity, and sufficiency. And then it reviewsthe relative foreign research findings about financial equity of compulsory education. Inthe review of domestic research, it concludes the research of compulsory education fromfive perspectives.About the theory of compulsory education financial equity, it firstly introduces therelative theories about equilibrium, it analyses the relative definition about equity andequilibrium, compulsory education financial equilibrium, horizontal and vertical equityof education. and then talks about the theory of public goods and its three basiccharacteristics. Secondly, it analyses the theory of public goods supply from marketfailure, low efficiency of private providing public goods, and suitability of governmentproviding. Thirdly, it introduces the connotation of compulsory education, and points outthe theoretical basis of pure public goods of compulsory education, and the principles ofcompulsory education financial equilibrium.In the analysis of unbalanced financial investment on compulsory education, firstly,it introduces measurement methods, such as standard deviation, range, variablecoefficient, etc. Secondly, it divides China into east, middle, west three economicregions according to relative principle, and uses methods of standard deviation, range, and variable coefficient to measure the unbalanced level of the funds in budget andpublic funds in budget for students in ordinary primary and secondary schools in variousregions. Thirdly, it researches the unbalanced level of compulsory financial investment inthe provinces of east, middle and west region. Finally, it analyses the unbalancedcondition in urban and rural areas.About the analysis of the reasons of unbalanced financial investment of compulsoryeducation, it first elaborates the reasons from five aspects, i.e., the insufficient financialresources invested in compulsory education investment, the different development ofregional economies, the imperfect institutions of compulsory education, the impact ofurban-rural system, the imperfect of supervisory mechanism. Secondly, it makes anempirical analysis about the factors that affect the unbalanced investment of compulsoryeducation.In order to research and solve the problem of unbalanced financial investment in abetter way, it introduces the international experiences of promoting financial balance ofcompulsory education. These experiences include the insurance of equal investment ofeducation funds through legal measures, establishment of transfer payment institution,adoption of more targeted financial support measures, implementation of central fundingand market-orient operation mechanism.About the suggestions of promoting financial equity of compulsory education, itfirstly proposes the measures of increasing financial investment on compulsoryeducation, elimination of urban-rural dual structure, promotion of coordinated andsustainable development of regional economy, establishing uniform standard, exercisingthe liability of central and local government, setting up regional adjusting funds,establishing financial transfer institutions. Secondly, in solving the problem ofinsufficient investment in poor areas, weak schools, and vulnerable groups, it proposesthat it should adopt different financial support. In conclusion, it proposes the measures ofestablishing laws, regulations, and supervisory institutions of compulsory education.