A Comparative Study Of The Higher Education Financial Allocation System

From the late1990s, China has implemented the large scale enrollment policy inhigher education. The “Elite” education has transformed into mass education whichcreates more demand of higher education and human resources. We noticed that thecontradiction between the shortage of resources and the growth in enrollments.China’s higher education has gradually changed into the mode which is diversifiedfinancing, but the main economic source is still from government funding. In order toimprove the higher education financing system and make more efficient allocation offunds, a reasonable and effective financial allocation system has a far-reachingsignificance.The "base and development" mode and "integrated quota and special subsidy"mode have made great contribution in the last decades. Along with the reformdeepening of China’s higher education system, also a new corresponding fundingmechanism has been formed. This paper firstly studied China’s higher educationfunding history, then analyzed current situation of the higher education funding. Atpresent, we noticed problem of an overall inadequacy of higher education funding, themanagement is classified to different authority which leads to the disconnection ofappropriation, inadequate transparency of funding system, low utilization rate ofresources, etc.This paper further analyzed the situation of Americans, Japanese and Britishhigher education system from which we can obtain many lessons and experiences.Finally, by referencing the theory of manpower capital and public product, combinedwith the current situation of Gansu province’s universities and colleges, we propose afunding principle considering the diversity of subject and performance factors. Thisprinciple gives more reasonable way compared with "integrated quota and specialsubsidy" mode and it is more helpful for set up a perfect universities and collegesfunding system.After propose this principal, this paper lined out major eight suggestions in thelight of the present situation of Gansu province.1) Establish intermediary fundingmechanism2) A performance-funding system should be applied to provincial colleges and universities3)Establish the subject evaluation system.4) Establish acost-accounting center, improve student financial assistance system.5)Increasefinancial investment in higher education and improve the diversifiedinvestment.6)Improve the combination of production with teaching and increasescientific research revenue.7)Strengthen the legal binding.8)Increase the inputs forMinority(specialized) Colleges and universities...