On Tuesday the Ministry of Education (MOE) announced on its official website (www.moe.edu.cn) a debt clearance policy that would universalize the nine-year compulsory education in China's rural areas. The notice asked local education administrations to begin resolving debt disputes. The announcement clearly stated that governments would pay existing debts to free China's schools from their current liabilities.

Previous figures submitted to the Standing Committee of the National People's Congress by the Ministry of Education showed that debts engendered from "universalizing the nine-year compulsory education" in China's rural areas now stand at almost 50 billion Yuan (US$6.6 billion).

Debt disputes have been afflicting a vast number of schools in China's rural areas.

Last month, the NPC Standing Committee's inspection team, created to enforce the Compulsory Education Law, suggested that the State Council create a comprehensive plan and devise solutions for debts incurred by "universalizing the nine-year compulsory".

The plan would also address issues regarding dilapidated school buildings in some rural areas. A work report delivered by the NPC Standing Committee vice chairman Lu Yongxiang showed that debts engendered from "universalizing the nine-year compulsory education" are mainly in the forms of costs paid by construction companies in advance, bank loans and loans from teachers and the public.

A survey conducted by counselor to the State Council Ren Yuling  last year showed debt disputes were widespread in many places. Various debtors have blocked local governments and schools, prevented students and teachers from holding normal classes, locked classrooms and even physically assaulted teachers and headmasters of local schools. In Tuanfeng County of Hubei Province 21 schools operated by the Ministry of Education were disrupted for one week last year.

In the notice, the Ministry of Education expressed the hope that local governments could avoid similar debt disputes. The MOE definitely ensured that governments would pay off debts engendered from "universalizing the nine-year compulsory education". The MOE also demanded that new debts would not be incurred. To insure these procedures the ministry has banned extravagance and waste in school buildings and has also promoted thrift and economy.

The MOE also expressed the hope that governmental departments responsible for education would adopt specific measures to prevent misuse of financial resources of rural compulsory education, especially regarding funds that safeguard compulsory education and would be used for debt clearance.

(China Development Gateway July 21, 2007)