”Fifth, education enables society to preserve and disseminate its accumulation of scientific knowledge and productive experience free from barriers of time and space and national boundaries. It is through education that such accumulated knowledge and experience are spread from one nation to another and from one generation to another as humanity’s shared assets.”

I would like to go on with my observation of the relationship between education and economic growth on the basis of the speech I made and published two years ago. However, this paper has a different focus. While in my previous speech I looked into the major role education plays in expanding the economy and raising its growth rate, this paper underlines education’s important role in ensuring economic stability and sustained growth, and in providing effective solutions to problems that have occurred or may occur in the process of economic growth. In other words, my previous speech was about economic growth per se, whereas this paper is a study of employment, balance of international payments, income distribution, financial balance and other issues occurring in the process of stabilizing and sustaining economic growth. Furthermore, while my previous speech proceeded from the perspective of the economic history of Western Europe and America, this paper takes China’s socialist economy as its focus and background.

This paper is delivered in four sections dealing respectively with education’s relationship with employment, balance of international payments, income distribution, and fiscal balance, so as to illustrate education’s role in guaranteeing economic stability and sustained growth.