The new educational mandate in China: Running schools running businesses

The introduction of the market economy has posed new challenges to educational financing in socialist People's Republic of China. Its materialist orientation and the focus on raising living standards put tremendous pressure on administrators to improve teacher salary. They turned to profit-making activities for a solution, giving the educational system its unique dual character of running education and making money. The author analyses these developments since 1978 and alerts educators, especially those from Eastern Europe and other former socialist countries facing similar situations the fundamental issues these developments raise.