You are here: Home» Development News» Education

Scholar Calls for Tough Action to Boost Investment in Chinese Education to 4% of GDP

Adjust font size:

A Chinese education policy researcher has suggested holding local officials accountable if they fail to invest enough in education, an approach likely to help the nation meet its 4-percent-of-GDP target for education investment this year.

"I am optimistic the target can be met this year, if an accountability system is strictly implemented," said Xu Zhiyong, a professor with the Beijing Normal University who specializes in education policy.

China's basic education law, introduced in 1995, stipulates growth in investment in education by governments at all levels must outpace fiscal revenue growth.

The amended Compulsory Education Law, which took effect in 2006, reasserted the provision, adding that local governments that miss the target are to be held accountable.

China's education ministry announced earlier this month it would work to realize the long overdue "4 percent" target this year in its 2010 work agenda.

According to latest statistics, fiscal investment in education accounted for a record 3.48 percent of China's Gross Domestic Product (GDP) in 2008.

The target was set in guidelines for the country's reform and development in the education sector in 1993 with a vow education would get 4 percent of GDP by 2000.

In 2006, it was integrated into the 11th five-year plan, which was endorsed by the National People's Congress as a legally binding objective.

However, the goal has not been achieved so far, and this year is the final year for carrying out the 11th five-year plan.

Zhao Lu, senior official with the Ministry of Finance, said one of the bottlenecks is China's small share of fiscal revenue to GDP, around 21 percent.

"As a result, governments at all levels are financially strained to meet the 4 percent goal," he said.

Actually, fiscal investment in education was growing year on year, up by about 66 percent during the 11th five-year plan period which ended in 2010, according to the Ministry of Finance.

However, education still took a back seat to other profit-generating sectors in terms of fiscal investment in some places, said Xu Zhiyong.

As a result, the public have to pay more out of their own pocket, and they are complaining about surging tuition and miscellaneous fees.

Xu Zhiyong estimated, if the 4 percent goal is achieved, it will roughly generate additional funding of 50 to 60 billion yuan (about US$7.3 billion).

"It's a significant growth," he said.

"If the fiscal investment is raised, teachers will be paid better, and more funds will go to renovating dilapidated school buildings," he added.

Xu also called on the private sector to boost investment in education with a leveling of the playing field for public and private education institutions. He also called for encouragement of donations.

"I hope the education can take a larger share of China's GDP."

(Xinhua News Agency February 22, 2010)

Related News & Photos