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Reform of educational management system: from planned economy to market economy
Under the background of socialist public ownership, the education system needs to change from planned economy mode to market economy mode. This paper will discuss the necessity and direction of educational management system reform from two aspects: school-running system and educational administrative management system.

Diversified school-running system

In order to meet the needs of market economy, we need to break the unified and single mode of running schools and gradually form a diversified situation in which the state runs schools and all sectors of society participate. Schools with compulsory education should be nationalized and localized, schools with vocational and technical education can implement diversified school-running system, and universities can implement central, provincial and local (city) governments as the mainstay, while supporting social and private modes.

Decentralized multilevel decision-making system

In order to meet the requirements of market economy, we need to reform the educational administrative management system and establish a decentralized multi-level decision-making system. The government and education administrative departments should be mainly responsible for macro-decision-making, giving non-compulsory education schools more decision-making power.

Market-oriented organization and management mechanism

It is necessary to change the single planning instruction and administrative intervention mechanism, and comprehensively use market regulation, planning regulation, economic leverage, legal means and administrative means. For non-compulsory education schools, especially vocational and technical schools, we can get rid of administrative and planned management mechanisms and directly introduce market management mechanisms. Reflect the supply and demand of education through the information of talent and labor supply and demand, and make the school organization and management market-oriented.