Analysis Of Economic Operation Of Independent Colleges Of University

In2010, the State Council promulgated the "National Long-term EducationReform and Development Plan", pointing out that "Private education is an importantgrowing point for the development of education and an important force to promoteeducation reform." Among them, the Independent Colleges of higher education,which are products of the reform and development from the "elites" education to the"masses" education, have achieved rapid development within the time of more thanthe last decade, with the Second Tier College as the embryonic form arising in thelate1990s. As a result, the311Independent Colleges across the country have becomean important force for the development of higher education in China. With millions ofgraduates from the Independent Colleges gradually entering the society each year,joining the cause of socialist modernization, the country, investors, organizers,parents and employers all hold a positive attitude towards the development of thesecolleges. The strong vitality shown by the colleges in the development process is deuto some profound economic reasons. Therefore, it is necessary for the colleges to do aspecial analysis of the economic rationality. On the basis of analyzing the nature ofthe Independent Colleges and the education provided by them, with Zhuhai Collegeof Jilin University as an example, this thesis analyzes the reasonable existence of thenewly-born economic form, from many aspects concerning the social demands forhigher education, the host universities, the investors, the parents, the students, thesociety, and so on, based on the theory of monetary economy, human capital theoryof input-output and social analysis. Especially in the cost-benefit analysis regards theinvestors, this thesis uses a large number of detailed financial data analysing thecollege tuition revenues and expenditures, and comes to a conclusion that investmentin higher education means a large amount of initial investment, with high operating costs, long recovery period, stable earnings, relatively low risks; and for the investors,from the college’s balances, to obtain a reasonable return is economically viable. Ofcourse, the Independent Colleges with the operation form of private mechanismsprovide higher education services to the society, increase the supply of highereducation to meet the demand for higher education of the masses. With someeconomic benefits, after all, as a new phenomenon in the development process, thosecolleges will inevitably encounter some issues, such as the economic rent seeking ofthe state-owned universities, social and economic contradictions; and, in themeantime, the development bottlenecks and challenges. Through the brief analysis ofthe challenges and solutions in the development process of the Independent Colleges,and their own scientific development trend, this thesis aims to study the economicand operational feasibility and rationality of the Independent Colleges.