The education industry should become a driving force behind China's economic growth, officials said.

"Education is the basis for social development and should become an important factor in pushing China's economy forward," said Yang Zhongguang, vice-president of the China Association of Urban Economics.

Yang's research found that in developed countries with high levels of urbanization, education has contributed up to 30 percent of their economic growth.

But in China, the education industry accounts for just 10 percent of the nation's overall economy.

Yang announced the disparity before a press conference at a forum on China's urban development and educational economy. The two-day forum, which wrapped up yesterday in Beijing, drew 100 economic and educational experts and 500 mayors from 300 cities nationwide.

Experts said the government's low investment in education is the main problem. And the government has been restrained in its opening of the educational industry to foreign investment.

Ministry of Education research indicted that government spending on public education should exceed 4 percent of the state's gross domestic production (GDP). That spending in China, however, amounted to just 2.4 percent of its GDP in 1999.

"But the potential of educational consumption demand is there," said Rao Huilin, a professor with the Northeast University of Finance and Economics.

China's residents have put 6 trillion yuan (US$722.8 billion) in bank saving accounts. In a survey, according to Rao, many said they will use 10 percent of their savings for educational purposes.

"It's now up to the government to readjust its policies and vitalize the educational market," Rao said. "The development of education is also vital to the development of cities, which are centers of civilization."

But some experts insisted that education should not be industrialized and commercialized.

"The aim of education itself is to train people and cultivate their personality and character," said Hao Keming, a senior researcher with the National Education Development Research Center. "But if commercialized, the aim will become maximizing profit, and that's dangerous."

World Bank said in its global market report that education is a sector in which the government should play a big role and it should protect the educational rights of its people, Hao cited.

"So our government should strengthen macro control and prevent some education sectors from being commercialized," said Hao.

"In China, the governments at all levels should step up efforts to guarantee every children's opportunity to receive compulsory education with low charge," Hao said.

(China Daily November 15, 2001)