In the post-Mao era, reformers in the People's Republic of China have taken
significant steps to privatize social welfare services. After the adoption
of a socialist market system in the 1990s, educational development has bee
n affected by strong market forces. It is argued that the emergence of priv
ate educational institutions, the shift of state responsibility in educatio
nal provision to families and individuals, the prominence of fee-charging,
as well as the introduction of internal competition among educational insti
tutions, clearly suggest that China's education has been going through a pr
ocess of marketization. The principal goal of this paper is to examine inst
itutional origins of the policy change in education, with particular refere
nce to the process and implications of such changes. The paper will also ap
praise the Chinese experience in the light of global practices on marketiza
tion of social welfare services. (C) 2000 Elsevier Science Ltd. All rights
reserved.