My job is to select the right leader to decide the allocation of funding, their task is to allocate funds.
The paper shows that the credit market in which informal finance is eliminated will allocate funds in some inefficient way, and once informal finance is allowed to co-exist with formal finance, the allocation efficiency of credit resources can be improved, a socially optimal outcome is shown here.
They should also allocate funds for universities to 'recover resources' - develop their research capacity and upgrade or maintain infrastructure.