China's Compulsory Education Finance Transfer Payment System

In recent years, China has faced severe challenges during the process of popularizing compulsory education, especially among the people in the countryside. Lots of problems are still quite outstanding now. For example, there are still financial difficulties in poverty-stricken and rural areas, and the input of education in different districts is still uneven, etc. A recent survey of the World Bank pointed out that those two problems would be the main development obstacles of Chinese education in the new century. Both the two problems are closely related to the Compulsory Education Input System. A lot of scholars advise we set up a norm and practical inter-government payment system (from central and provincial government to county) to solve the input and balance problems of compulsory education in China.This paper analyzes the problems of compulsory education in our country in terms of economics. First of all, it defines the concepts of compulsory education, system of financial transfer payment and compulsory education financial transfer payment system; clarifies the related researches in China and introduces the mature compulsory education financial transfer payment system in developed countries; and also indicates its own structure and innovative ideas. Then the paper explains both the theoretical and realistic basis of the compulsory education financial transfer payment system. The theoretical foundations are mainly public product theory and fiscal federalism theory. In the realistic basis, the paper lists the present problems in the education financial system on the foundation of briefly introducing the financial system reform of compulsory education in China. And it emphatically analyzes the reasons in system; indicates that the research and design of the compulsory education financial transfer payment system is the main route to solve the problems. Finally, it carries on global design to the compulsory education financial transfer payment system, including its principles, subject, target, types and designed patterns.The innovative views of this paper lie in: First, through analysis in depth, the paper points out that the substandard compulsory education financial transfer payment system is a main obstacle in establishing balanced developed compulsory education system. In the meantime, setting up normal education transfer payment system rules becomes the...