Where there is a problem in an American university, a university administrator will be hired to address it. It does not matter if the problem has a solution: as Stanford sociologist John Meyer cynically explained in a lecture this week in Beijing, as formal organizations such as universities expand beyond their core mission, the answer is to hire a professional to accommodate each additional new function, no matter how difficult or unnecessary it may seem. “You have to hire a professional,” he said. “That’s how you prove that someone is doing something when they should be doing nothing.”

While the American higher education system has been dominated by growth in the number of administrators, the crux of China’s higher education shift in the last decade-plus has been an unprecedented expansion in the number of students. The Chinese higher education system counted 36.5 million students in 2852 postsecondary institutions in 2015. From 2003 to 2013, total enrollments increased more than 200 percent, more than 10 times the growth in the United States over the same period. 

The 2016 budget expenditures for the 73 national universities in China. Even if you don’t read Chinese, you can figure out that the numbers drop off pretty quickly.

Since the Chinese government began the latest round of higher education expansion in 1999, at the tail end of the Asian Financial Crisis, it has excelled at enrolling students but struggled to actually educate them. Most students will enter middle- and lower-tier schools, but funding and attention remain concentrated on the most elite schools — even compared to merely elite institutions. Tsinghua University, one of China’s top two schools, is slated to spend 18.2 billion yuan in 2016; more than double every other school in the nation except Peking University, Zhejiang University, and Shanghai Jiaotong University. (see chart, right)

Many scholars and commentators criticize the university’s administrative system for holding back the development of China’s higher education. But although the inequality between schools is reminiscent of problems in the United States, the administrative issue that plagues China’s higher education system is a difference of kind, not of degree. As I explain in my new piece in this month’s Washington Monthly, China’s problem of over-administration is a question of concentrated political power, not of administrative bloat.

Administrative expansion, combined with decreasing state funding, more price discrimination, and the Chivas Regal effect that equates higher price with higher quality, has spurred massive tuition increases in American higher education. It is extraordinarily expensive to go to college in the United States: the annual cost of attending an elite private college, or a public college for out-of-state students, is far higher than the median household income in the country.

None of this can apply in China because the state controls all of these levers. Tuition levels are set by the state and have not increased in a decade. Most schools rely almost entirely on government funding for their revenue; few universities except for the most elite schools can draw a significant amount of money from other sources, such as donations or external grants. Continue reading →