China's Investment In Higher Education Reform

Our country has already turned into the popularize stage of the higher education. The rate of the higher education's acception has arrived at 21% in 2005. But, the government public finance can not bear the education investment caused by the fierce development of the higher education. The shortage of education budget, has already become "bottleneck" which influenced higher education's development. According to the theories of human capital, public products and education's attribute, the higher education is the so-called "quasi-public product" which lies between the "public Product" and the "private product", its development must mainly depend on the government, and the public finance must play the major role in it. But the higher education also belongs to the category of "non-pure public product" in which the governmental finance should not bear the whole investment in its development and the society and individuals should make an appropriate portion of investment in it. After having encircled this main idea, after having found the existing problems in the reality and analyzed the causes of their formation, this paper puts forward the thought to solve these problems by using the foreign experience for reference. During the process of the detailed argument, the author of this paper, by giving over the current situation of the financial investment system of higher education and its evolution, draws the conclusion that the seriously insufficient investment from the governmental finance and the unformed pluralism of the financial investment system of higher education are the main problems of the financial investment system of higher education in our country. Through the deep analysis of the current situation of the financial investment system of higher education in our country and the problems of it, this paper draws the conclusion that it is that the central government and the local governments have not builded up a reasonable equilibrium mechanism of the education public finance and the misposition of the educational management by governments that cause these problems. Based on the experiences of the western developed countries such as the USA, Japan and Britain in the financial investment system of higher education, this paper puts forward eight strategies to improve it under public finance system.