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Enhancing China's Competitiveness Through Lifelong Learning ...

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Developing a System of <strong>Lifelong</strong> <strong>Learning</strong> for China and the New Role for Government 27<br />

Figure 2.2. Rising inequality in rural incomes and illiteracy<br />

35<br />

30<br />

Percent<br />

25<br />

20<br />

15<br />

10<br />

5<br />

Illiteracy<br />

Income<br />

0<br />

1975<br />

1980<br />

1985<br />

Year<br />

1990<br />

1995<br />

2000<br />

Source: China State Statistical Bureau 2000, various issues, cited in Zhang and Kanbur 2003.<br />

Note: The income inequality measure is the Gini coefficient, calculated based on populationweighted<br />

per capita expenditure at the provincial level in rural areas. The illiteracy inequality<br />

measure is also the Gini coefficient, calculated from population-weighted province level data on rural<br />

illiteracy rates.<br />

Many problems stemmed from the decentralization of financial responsibility<br />

to the provinces, leaving poorer provinces unable to finance compulsory education.<br />

Teachers in public rural schools started charging fees to students, which is<br />

very regressive because the children from the poorest families could not afford<br />

to pay these fees or buy textbooks, so they dropped out of school. The new policy<br />

abolishes school fees for rural compulsory education, provides free textbooks<br />

and financial aid for boarding for poor families, clarifies responsibility at all levels,<br />

shares financing between the central and local governments, and guarantees funding<br />

for rural compulsory education.<br />

This is a very positive development. The key now is to ensure that the new policy<br />

is properly implemented.<br />

The new role for government<br />

The lifelong learning system and the new dynamism in the education and training<br />

market require that the government do more than provide public goods and ensure<br />

equity. It must coordinate government agencies and other nongovernment players,<br />

building an effective governance system and providing quality assurance.<br />

Coordinating government ministries<br />

The Ministry of Education is the main body in charge of formal education from<br />

preschool to higher education, including responsibility for the part of adult education<br />

that is conducted in the formal educational system (such as some of the vocational<br />

education and training). Before the late 1990s, many specialized colleges or<br />

universities directly belonged to line ministries, but they all have been transferred<br />

under the Ministry of Education. As a result of the former planned economy, the<br />

Ministry of Education still has strong control of the enrollment quota, disciplinary

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