A Research On Improving Chinese Investment System To Basic Education

Basic education, which benefits overreach the locality, is a public good with very strong positive externalities. The greatest challenge that China's basic education investment system faces is the grievous insufficiency of gross investments. Taking Jiaojiang District, Taizhou City, Zhejiang Province as an example, this dissertation analyzes and clarifies that the obliging entities of basic education investment are almost all concentrated in county and town level governments. Moreover, the imperfect tax sharing public finance system accumulates the financing power to the central, provincial or municipal governments, which puts the lower level governments' financing authority and duty in dissymmetry and weakens the investment to basic education. Meantime, imbalance in basic education investment between different regions and between rural and urban areas and low efficiencies in fund investment to some extent aggregate the contradiction of basic education fund supply and demand. Finally, this thesis, combing Chinese reality and international experience, offers advices on improving the investment system of Chinese basic education, which include:Realign the financing obligation between different level governments on basic education so that central government and local higher level governments put on more financing obligations;Consummate the tax sharing public finance system and specify the financing authority and responsibility of governments on different levels;Regulate public finance transfer payment scheme on basic education;Strengthen the legal system construction on basic education finance system;Reform management system of basic education by developing private basic education on competition basis and innovating basic education's disbursement management to enhance its resource-disposing efficiency.