The Analysis On Financial Fund Operation Mechanism Of Chinese Higher Education

With the sky-rocketing expansion of nearly ten years commencing at the end of last century, the students'growth rate of Chinese Higher Education restored beneath 10%. Under this new circumstance, Financial Fund, the crucial material fundamentals of Higher Education, should be adjusted correspondingly. The financial fund is operated under the guidance of the government, and the government sets up an appropriate mechanism to ensure the regularity. Thus, the adjustment of financial fund should be initially executed on the very mechanism.Accessing to related domestic papers and documentations, as well as the current financial fund operation mechanisms in USA, UK, Japan, India and Brazil, the author harbored an original view, as distinct from the traditional perspective, on the higher education financial fund operations. The author deemed that it was not comprehensive to investigate the mechanism on the investment level. Moreover, the author proposed a concept that the financial fund operation mechanism was constituted by three sub-mechanisms, which is financing, distribution and regulation.Later on, along with the three independent but interactive dimensions, the author reviewed the statistical data on the higher education financial funds from 1998 to 2007, pointing that how the actual problems on fund-operating were caused respectively by the loopholes on these three sub-mechanisms of Chinese current higher education financial funding system. Meanwhile, the author elaborated that the visionary reform on the higher education financial funding should not only confine to the quantitative expansion, but also pay much more emphasis on the distribution of the fund composition and the regulation of the executive sessions.According to the analysis of the actual problems and the cognition of future reform, as well as experiences on the installation of the financial fund operation mechanism from other countries, at the last part of the paper, the author proposed several countermeasure and suggestions on Chinese current mechanism.Although the countermeasures and suggestions are conducted under a wide framework and thus superficial, it is an effective and overall research that steps across the whole rapid expansion of higher education. Besides, it should provide reference for further improvement on higher education operation levels.