Subject Identity, Role Of Government,States Of Intermediary Organization

Nowadays, the modern society forms a ternary structure. Hence it facilitates a brand-new harmonious triangle relationship of higher education development and three mechanisms of the resource allocation. However, there are certain disharmonies in the field of higher education resource allocation mechanism. The government possesses more authorities in educational resource allocation. Meanwhile, limited resources are inefficiently allocated. Under the leadership of powerful government, higher education has great scale, but it is weak in spirit. Universities and colleges gradually lost creativity; they are actually not excellent in nature, just at a very superficial level.In market economy, the market mechanism of higher education has its fundamental nature. It focus on demand&supply, choice, price, competition and risk. It plays its basic role in the field of historical changes in higher education market and proves to be efficient resource allocation. The resource allocation mechanism of higher education reveals tenacious vitality in the long history. It resides among three keys of market domination, government and market intermediaries. China’s higher education market mechanism is latecomer exogenous; inevitably there are some imperfect places. Therefore, three keys of higher education market mechanism are important constructive points.The first is the subject identity of the higher education market. Higher education market subject refer to organizations or individuals directly involved in market trading activities, including colleges and universities and their teachers, students and their parents, employers, buyers of scientific and technical services, etc.. Among them, colleges and universities become a special market player. Sensitivity of the subject enables them to have a free dispose of their own behaviors, to respond appropriately to demand&supply, price and other signals. However, Chinese universities lack of legal entity status; investor equity of higher education are weak; higher education donators have no enthusiasm; the risk of human capital investment of students and their families are large;"soft constraints" exist in costs of human resources for the employers; there are flaws in the collaboration mechanism for the buyers of scientific and technical services. So subject of our higher education market has lost its identity.The second is the role of government in higher education market. The government is playing a role both as an external market regulator and a special market participant. Good government is not only necessary to hold the bottom line of marketization of higher education, but also to avoid two kinds of bureaucratic administration to ensure the necessary input in order to maintain the fairness of higher education. As a market participant, the government should act as a smart buyer of higher education production, and a provider of strategic products of higher education. It should scientifically shares decentralization with higher education institutions to provide effective protection for the operation of the market mechanism. It is a pity that the role of our government in higher education market has been dislocated.The third is the status of intermediaries in higher education market. Intermediaries are social intermediate organizations serving for market mechanisms of higher education. The non-profit, non-governmental professional organizations form trilateral balances. The government and narket jointly safeguard the stability of higher education market mechanisms. However, intermediaries of higher education have been polarized, which have both official and nonofficial features. The buffer is malfunction and major decisions are absent when are made. Therefore, market intermediaries in our higher education market are inferior in status and the remedy prescription is privatization.The three major problems mentioned above in Chinese higher education market mechanisms can be solved only through innovation. First innovation could promote the recycling of governmental mechanism through the separation of the rights of management, operation and investment. Second one could achieve the liberation of market subject by combining rights, responsibilities and interests. The third can strengthen neutral character of intermediaries through comprehensive transformation, aid and reform. Academic authority, market strength, government power and volunteer force are not in the same dimension and have huge level differences. Academy is bound to decline if the situation continues. So the government should consciously decentralize to the society to foster a sound market system of higher education, to create a healthy environment of market mechanisms and to implement market mechanisms tension. The higher education institutions will transform from binary structure to ternary structure. Thus, the three roles (the government, the market, and the intermediaries) could play and balance in the game of higher education. Three mechanisms (market mechanisms, voluntary mechanism, and government mechanism) conflict and complement each other in the field of higher education to avoid an imbalance and to improve the efficiency of resource allocation, in order to establish an impartial, efficient and free higher education system.