The Research On Change Of Compulsory Education Finance Institution In Vietnam

Educational finance institution reflects security and support of education from nation and social. The reform of national education finance institution is a historical continued process. Studies of historical changes in educational finance system can help us to better grasp inherent changing law of education finance institution, make the allocation of education resources to be more adequate, equitable and efficient.This paper analyzes the developing and evolution process of compulsory education financial system in sixties years from the end of Vietnam War, using finance, public economics and new institutional economics theory. Actually, institutional environment innovation plays key role in the process of institutional arrangements changes. Basing on institutional environment innovation, this study divides finance system of compulsory education into three historical stages, including financial institution of basic education during the period of the planned economic institution, compulsory education finance institution of reform and opening initial stages, the period of compulsory education finance institution after reform of the tax system.This research analyzes the three historical stages of compulsory education financial institution, explores the context of changes at each stage of compulsory education finance institution, explain reasons for changes in each stage of compulsory education financial institution. The characteristics of financial system arrangements at each stage of compulsory education has been summarized in this paper from the main supplier of compulsory education expense and the proportion of compulsory education expenditure between different-level governments, on the basis of the historical data at each stage of compulsory education financial institution. At the same time, learning from Benson’s performance evaluation criteria of educational finance institution, the running performance of compulsory educational finance institution has been evaluated with normative and empirical analysis methods from the compulsory education system in adequate fiinds, equity and efficiency point of view.The studies found that compulsory education finance institution between rural and urban has different evolution path. There are obvious differences between urban and rural with compulsory education financial institutional arrangements in Vietnam. Moreover, Vietnam’s urban compulsory education financial institution is more stable than rural.The compulsory education financial institution experienced changes course, afforded by different supplier including the government, the community, and individuals to government only, from the view of the funds for compulsory education suppliers. And the compulsory education financial institution has experienced the process afforded by the government, social and personal burden on the common (mainly borne by the Government) to basically full coverage of the government’s fiscal in cities. But the compulsory education finance institution in rural areas is experienced by the government, the collective and the individual peasants burden (mainly from burden on individual peasants), to financial security by the government.The education expense management and funding responsibility for security has been dominated by the local government according to the proportion of compulsory education expenditure between different-level governments. And the level of government security has increased. At the same time the responsibilities between different government levels has been becoming clear. The primary and secondary schools are expensed by the same level of financial responsibility, including municipal districts or counties (districts) to assume the main responsibility of governments in cities. But there are changes from the agency and the village to the county-base, shared by multi-level government in rural areas.Moreover, this paper explains the changing path of compulsory education institution from the national political and economic system, financial institution and the government’s macroeconomic policy objectives based on the analysis of compulsory education finance institution. The institutional environment play key role in the changes of China compulsory education finance institution.Studies about the innovation process of Vietnam compulsory education finance institution can service how to build a more scientific and rational framework of compulsory education finance institution in the future. Because financial institution has a significant impact on changes of compulsory education finance institution, and the direction of Vietnam’s financial reform is to build public finance institution the Vietnam compulsory education finance system should be should be conducted within the framework of in public finances in the future. Basing on the success experiences of innovation on compulsory education finance institution, this study indicates that the security level of compulsory education should be improved; compulsory education finance institution should be arranged on the basis of scientific and rational design of the financial transfer payment system to ensure adequate allocation of resources, equity and efficiency.