ZHANGJIAGANG is known far and wide for its generosity in education.

"We have China's first county college. And our Liangfeng High School can compete with any first-class high schools," a visitor to Zhangjiagang can expect to be told frequently.

Why are the Zhangjiagang people so generous with their investment in education?

"Education is a resource for development in the long run," said Lu Yuanqin, Vice-Director of the city's Education Bureau.

"Both the progress of science and technology and the improvement of the quality of the work force depend on education."

Since China adopted the reform and opening policy in 1978, the fast pace of growth in numerous township and village factories created high demand for trained personnel.

To satisfy the needs of those rural industries, Shazhou Technology Institute was founded in 1984 in Shazhou County, the forerunner of the present Zhangjiagang.

It was the first school of its kind to be funded and run by a county in China.

With the principle that education serves local economic and social development, Shazhou Technology Institute has been dedicated to fostering qualified practical personnel for its own rural industries.

During the past decade it has introduced 11 majors such as industrial and civil engineering, textiles, electronics and automatic monitoring, all of which were urgently needed by the rural industries.

All students were chosen from local candidates and 80 percent of the graduates were distributed to township and village factories.

The county college has graduated 1,800 students, and some of them have become leaders of the local enterprises.

Since 1992 Zhangjiagang's economy has been taking off. Consequently a higher qualification for its work force appeared inevitable.

The city government decided education should take the lead in modernization.

About 30 million yuan ($3.6 million) was invested in 1993 in the construction of Liangfeng High School as one of the most advanced schools in the country.

One year later a modern-looking school with first-class equipment came into being.

"And we are even happier to find a 'Liangfeng Effect.' Many towns have followed suit to renovate their schools. The total investment in the past two years has reached 140 million yuan ($16.8 million)," said the vice-director.