China's Rural Areas: Public Goods Supply and Fiscal System Innovation

Author: Li Hua
Publisher:
Publish Date: 2005-09-01
Features: This book primarily studies the supply system of rural public goods in China from an empirical perspective. It clarifies the basic theory of rural public goods and gradually explores the history, current status, prominent contradictions, ongoing reforms, and future institutional arrangements for the supply of rural public goods. The book argues that the comprehensive construction of a sound public finance system in rural areas is key to the effective supply of rural public goods. The entire book is based on the classic theory of public goods, taking social public needs as the fundamental reason for the emergence of public goods. It defines rural public goods as social products that are distinct from private goods catering to individual farmer needs, limited to rural communities, and used to meet the public needs of rural society, with certain non-excludability and/or non-competitiveness. Currently, rural public goods in China exhibit characteristics such as regionalism, lack of uniformity, and multi-levels. The supply mechanisms of rural public goods include three modes: government supply, market supply, and voluntary supply. These three modes are integrated into the supply of rural public goods in China. However, due to the economic attributes of rural public goods, the low income levels in rural areas, and the decentralized operational methods, the supply of rural public goods in China adopts a government-led supply model.