Education Journal


2002.第30卷第1期(Vol. 30 No. 1).pp. 41–61



The Role of Government in Educational Development: Economic and Finance Considerations

雷萬鵬、鍾宇平(Wanpeng LEI & Yue-Ping CHUNG)




What is the role of government/state in the development of education? This article analyzes the justification, strategy and impact of government intervention on education from the perspectives of economics and finance of education. The analysis shows that there is an intersecting boundary between government intervention and market operation. Government intervention should be limited to the provision of public goods, the protection of equality, and the adjustment for market failures. Outside these boundaries, government should refrain from intervention and allow market forces to operate and exert their positive effects on efficiency. A study of education development in various countries reveals that in most cases, government has exerted either too much or not enough intervention in education, especially in developing countries. In which areas and under what conditions a government should “retreat” or “enter” are important and urgent research topics in education development. In the case of Mainland China, the change in the role of government in education still has a long way to go.