[경제발전론] 기여입학이 국가경제에 미치는 거시경제적인 영향(영문)

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레포트 > 경제경영계열
2010.09.08
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[경제발전론] 기여입학이 국가경제에 미치는 거시경제적인 영향(영문)

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[경제발전론] 기여입학이 국가경제에 미치는 거시경제적인 영향(영문)에 대한 자료입니다.

I. Intro
II. Supporting opinions on the adoption of donation based admission
III. Criticisms
1. Finance gaps between the universities in capital areas and local areas.
2. Moral hazard
3. Equity
IV. Conclusion

본문내용

III. Criticisms

1. Finance gaps between the universities in capital areas and local areas.

The most serious problem with an adoption of donation based admission is that the financial gap between top universities and less privileged universities can be even larger. It can be interpreted as a gap between high-ranked universities in capital area and local universities in other areas. Actually it is originated from the fact that almost all students prefer Seoul than other areas, because living in Seoul allows them to enjoy various benefits as in culture, facilities, and any other public goods.

Normally finance in universities consists of government subsidy, tuition fee from students, donations, and so on. However, financial gap between the universities in capital areas and other areas starts to be shown from government subsidy.

2009-10-05 16:22

“2.6 times of difference in Government subsidy between universities in central and local area.”

…According to the data, in 2008, the average government subsidy per a local university was 6500 million won while that of the universities in capital area was 17400 million won. In other words, the government subsidy for the local university was only 37.3% of the subsidy for a university in capital areas. Moreover the gap has been increased compared to 2000, from 1.6 times of difference. At that time, the average government subsidy for local universities was 1600 million won and that of the universities in central area was 2700 million won…

As shown on the article above, the finance gap between the local universities and capital area –located universities is becoming larger and larger. Considering the fact, donation based admission will make the matter even worse. In other words, it would look as if fuel was added to the fire.’

The matter of insufficient finance in many local universities is not something new or unknown, and one of the reasons can be expressed as insufficient income from tuition fee due to a lack of enrolled students. As a result, there might be an adoption of expedients in order to meet the quorum as shown on the following article. Moreover, the problem of finance in universities might lower the quality of education, damaging the essence of education.

| 2009-10-07 15:19 |

“Illegal admission to universities to handle a matter of insufficient finance”

..Seorabeol university illegally admitted around 700 students for last three years in order to make up for the lack of finance, caused by the decreased number of enrollment students.
According to the law of higher education, the number of enrollment students is strictly limited according to the number of faculty, the size of the sites and school building, as well as finance base. However, Seorabeol university fabricated some of the applications by a way of avoiding the law…

Then what would an opinion from the local universities? Mostly they are negative or opposed to donation based admission.

Jung-sik, Na, The president of Gyeong-seong university in Busan
“The time is not yet ripe for adopting donation-based admission. It would rank the universities in terms of finance, and it is not correspond with common consensus among people. It would be able to be adopted in the future, when the admission system is perfectly liberated.”
Young-jin, Go, The president of Korea international university in Jin-ju city, Gyeongnam province.
“Donation based admission system is still unfamiliar with people in Korea. It should not be adopted yet. However it can be adopted slowly.”
Byeong-jin, Yoo, The president of Myeong-ji university in Seoul
There is no system like ‘admission is exchanged with money in the world. It can be a reason to give extra points at a certain section, but there should not be any exchange between finance and admission, like purchasing goods with money. Above all, we need to define the concept of donation based admission more clearly.“

2. Moral hazard

When implementing donation-based admission, market failure can occur because of asymmetric information. Universities can spend money earned through donation in an inefficient way because it is difficult for the government and people to know how the university spends contribution and it is hard to monitor university’s behavior. It is called moral hazard. “Moral hazard is a special case of information asymmetry, a situation in which one party in a transaction has more information than another. Moral hazard occurs when the party with more information about its actions or intentions has a tendency or incentive to behave inappropriately from the perspective of the party with less information.”

In this case, when donation is used to support the low-income group and build education infrastructure, social welfare can increase. But universities do not have any incentive to use their budget in an efficient way. There are a lot of examples that show faculty’s corruption. For example, ex-presid

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