World Class Worldwide: Transforming Research Universities in Asia and Latin America

2 The Flagship University and China’s Economic Reform

2 The Flagship University and China’s Economic Reform Wanhua Ma Higher education in China has undergone unprecedented changes since the late 1970s. Economic change along with social transition, the need for knowledge and technological innovation, the growing demand for internationalization of higher education, and economic globalization are considered factors underlying the shifting missions and roles of universities in China. With respect to scientific discovery and technological innovation, universities’ traditional values for developing human resources and transmitting cultural heritage have given way to more pragmatic and instrumental functions. The paradigm shift in higher education poses both challenges and opportunities to leading universities in China. OVERVIEW OF THE FLAGSHIP UNIVERSITY IN CHINA The success of American research universities has been recognized as a model for higher education worldwide, and in the 1980s even the Organization for Economic Cooperation and Development (OECD) countries started to discuss the model of the US scientific research system. The American model has also had a great impact on higher education in China. Since 1978, thousands of Chinese students and faculty have rushed to the United States, interested in advanced knowledge and education. Educational policymakers in China have tried to learn more about the development and governance of US research universities. Many conferences and publications have focused on American research universities: how they work and what lessons can be learned from them. American experiences have been the source for many ideas regarding higher education reform in China— including the building of research universities. Traditionally, higher education in China was characterized by the terms of key and non-key (or ordinary) universities. In 1978, 88 universities were recognized as key universities by the State Council, while the other universities (about 500) were considered to be ordinary universities. Peking University, Tsinghua University, and Fudan University ranked as the top three key universities. A key university was recognized on the basis of several indicators: strong teaching resources, nationally well-known disciplines and programs, and basic scientific research. Regional distribution was another factor in the selection of key universities—most key universities were located in the eastern part of the country. The key university system was established to improve the quality of teaching and learning and to strengthen basic scientific research in higher education. Key universities played an important role in the development of higher education in the 1980s. In 1980, key universities were the first to offer master’s and doctoral degree programs in certain disciplines. Since the mid1980s , key universities have given more attention to both the basic and the applied sides of scientific research. Policies and strategies have been adapted to infuse research funds into these universities. While China’s economy was growing at a fast pace in the 1980s and there was a great need for university research and scientific innovations, investment in higher education seemed to be on the decline. For example , investment in higher education was 3.04 percent of national gross domestic product (GDP) in 1990; in 1995, it dropped to 2.41 percent (Ma 2004). Subsequently, what was frequently heard was the request to reform the structure of higher education finance. The Chinese government has adopted three strategies to address the issue: restructuring the higher education system, collecting fees from students, and adjusting the university finance mechanism. These strategies were at least partly learned from the US model. Traditionally, Chinese universities were tuition free, with the government providing stipends for students covering most of the costs of accommodation, living expenses, and books. In 1994, the introduction of tuition and the establishment of loan programs with the involvement of commercial banks represented a fundamental shift for Chinese universities in generating resources. During the same period, the restructuring of the system provided an opportunity for the growth of Chinese flagship universities. Here the term flagship university simply means a university that holds a leading position in a country’s system of higher education. Two important projects are 32 Wanhua Ma worth mentioning in this regard: the 211 Project and the 985 Project. The 211 Project, initiated in 1994, was created to build 100 universities in the early years of the 21st century. Before the establishment of the 211 Project, the “Outline for Education Reform and Development in China” was issued by the State Council in 1993 (Central Committee 1993). This document has been widely cited as important for higher education reform, because it clearly states that the central government will reorganize the structure...