Study on the Indebtedness of Provincial Universities and Colleges in China

Taking Hubei universities and colleges as the example, this paper systematically studies the contributes and constituents of the debts borne by provincial universities and colleges in China. The policy of enrollment expansion started from 1999 without appropriate institutional environment and designs has trapped many Chinese universities and colleges, especially province-owned ones, into a difficult situation of heavy indebtedness. It proposes that increasing governmental input is the main solution to this problem, while enhancing universities and colleges' financing capability is essential and proprietary reorganizing may enhance their dynamics. Only when attentions from government, universities and colleges and society are drawn to the issue of debts owed by provincial colleges and universities, and positive actions are taken, the problem could be solved fundamentally.