China's Poverty-stricken Areas Of Human Capital Investment

The Development of Chinese Western Area is a significant event for our country at the beginning of 2Pl century. There is a large population of poor in the west of China that restricts its development. So reducing the poor will be the first motive force of this strategy. And it will be a criterion to judge whether we are successful in the development of Chinese Western Area.Through analysis, we find that the regional difference in economic lies in the difference in human capital which caused by education investment policy. The education policy we use today has many shortcomings. It can't guarantee the development and the spread of compulsory education in poor area; it adds so heavy tasks to the people that it does harm to the justice of education opportunity; it lacks of restraint of government so that which can't use education funds reasonably. In order to ensure the development of compulsory education in the poor area, we must reform the education investment policy. Central and provincial government should act mainly in the investment of compulsory education in poor area; giving more transfer to the poor area to protect the justice of education opportunity; making the proportion of central and provincial government should bear clear, and working out detailed rules and regulations to each class of governments.