Why Educational Investment Will Be Transformed Into Political Capival

It is not surprised that some Chinese public people often have a common senseidea that the educational capital can be transformed into human capital and theincrease of educational investment in a country can contribute to its economicdevelopment. However, such a conclusion is open to question in the redistributionsociety in which the transformation is happened more common mutually betweeneducational capital and political capital.The body of this paper focuses on two following human capital assumptions:1.Sequence of capital income assumption: that in a long term investment in humancapital yields will be higher than physical capital because the capital investment rateof return is different.2. Education investment assumption: the social consequences ofthe sequence of capital return will lead to an increase both in the economic educationand the on-the-job training of workers.In order to clarify my argument of these two assumptions, I would prefer to citethe concept redistributive economy created by Karl Polanyi and put forward thefollowing two questions:1. How is the Capital income sequence like in theredistribution society?2. What is the signal role dose the educational capital play inits transformation of political capital?Thus this essay selects the Chinese Qing Dynasty as a carrier for the answers tothese two questions after depicting three ideal type of redistribution society. The Qingsociety is in line with the basic characteristics of the redistribution society, whichmakes the relationships between the educational investment and political capitalbecome the main description of this article: the second chapter make a conclusion ofsequence of different type of capital income in the Qing Dynasty after a statisticsestimate of the political capital stock. The third chapter make an analysis of theopportunity distribution characteristics of the political capital in the Qing Dynasty, indicating that the investment of education plays a strong signal role in the spatial andtemporal scales of the formation of political capital.Last chapter analyze the continuity of the redistribution mechanism and foundthat this mechanism still has a complex effects on the new China after theimplementation of market transformation in1978. The sequence of income betweenpolitical and human capital has not changed, which creates the functional conflictroles between the redistribution governor " and "direct producers". It also brings thefollowing two consequences:1.both the level of education and party membership hasthe signal affect in the selection of the "redistribution governor" and the higheracademic capital of the University is, the stronger the degree of dependence of theredistribution system is.2. Redistribution mechanism has a negative impact on thetransformation of human capital in the redistribution society. Institutional attachmenttheory is an attempt to explain this phenomenon.