Two Decades of Basic Education in Rural China

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6.1 Introduction

This chapter explores the development of the funding system for rural schools
which has long been problematic in China. Locally based community financ-
ing, which was common before the rapid economic development that started in
the 1980s, became increasingly inefficient and inequitable as the income of local
authorities increased unevenly. More centralized approaches also proved to have
disadvantages since decision making was distant from local needs. After a series
of reforms each designed to address the deficiencies of the last system, the Rural
Basic Education Fund Guarantee (RBEFG) system has now matured and is the
basis for planning and budgeting for the foreseeable future. This chapter has three
parts. The first provides a narrative of the development of the funding system since
the founding of the PRC. The second explores in detail the impact of the reforms
to the funding system and the strengths and weaknesses of each the new arrange-
ments. The last part indicates a range of policy options for the future that could
consolidate the system and ensure that it provides a sustainable method of financ-
ing education in rural areas.
Universalization of access to basic education has been an ambition in China
which dates back over 100 years. Until the late 1980s it was a dream rather than a
reality (Wu 2008 ). Most of the children in urban areas could finish junior (grade 9)
or even senior secondary (grade 12) school in the 1980s although school condi-
tions varies widely and could be very rudimentary in poorer areas. The most
challenging task for universalising nine year compulsory education as mandated
in 1986 by the Basic Education Law, was to extend access to the vast rural areas
where over 80 % of children lived. The problems were especially acute in remote
mountainous areas, economically backward and poor countries, and where some
ethnic minorities had never embraced modern schooling. Parents of poor fami-
lies had little motivation or economic ability to send their children to schools,

Chapter 6

Financing Compulsory Education in Rural

Areas: The Development of a Sustainable

Fund Guarantee System

© Springer Science+Business Media Singapore 2016
L. Wang and K. Lewin, Two Decades of Basic Education in Rural China,
New Frontiers of Educational Research, DOI 10.1007/978-981-10-2120-6_6