China's Sustained Economic Growth And Investment In Education Countermeasures

The great development achieved since Chinese economic reform is attributed to education investments. Together with China's advantage in labor force, the enhancement of education standard accelerated the economic rise which mainly depends on the labor-intensive manufacturing industry.Looking forward, the sustainable development relies on human capital, and education is the key factor. It is demonstrated via following angles: The labor force advantage change requests transformation of development method; Education input can facilitate labor-intensive industry to transfer to higher technology product areas, accelerate urbanization process and minimize area economic gap; In long-term, education investment plays a strategic role in building-up talents capital and achieving Chinese industrialization.However, there are education areas where government macro-control is needed to improve the education return: overall government investment is relative low; there is structural unbalance by regional areas, and by elementary, middle and higher education; vocational education needs more emphasis; the content of education shall be adaptable to market need; privately- run education is not enough; bottle-neck in private and enterprise investment.The improvement suggestion is raised on the basis of the theory of "Public Product" and "Education Cost Share" and with reference to the experience of developed countries. It includes adding government sponsor on poor areas in terms of elementary and vocational education, restructuring current investment among elementary, middle and higher education, introducing more market competition mechanism, focusing more on vocational education, encouraging enterprise investment by legislation, standardizing labor market, and making special policy adjustment during current economic crisis periods.