China's Public Economic System Reform and the Outline of Public Economics

Author: Qi Shouyin
Publisher:
Publish Date: 2002-03-01
Features: The book clarifies some important concepts at the fundamental theoretical level. For example, in response to the common confusion between public economics and public finance among people both domestically and internationally, the author clearly defines these two fundamental categories. He argues that public finance is merely an important aspect and organizational part of public economics, specifically referring to the affairs of raising, allocating, and managing material resources for public economic activities aimed at providing public goods.
Another example is that in previous discussions of political and fiscal systems, the concepts of "powers and financial authorities" have been predominantly used, focusing on the division and allocation of power and authority. However, the author of this book believes that the traditional system theory and research methods, which emphasize "power" while neglecting "responsibility," are one of the main factors contributing to the common problems in public economic system practice, such as the struggle for power and the shirking of responsibility among different actors. In the arrangement of public economic systems, it is essential to clearly define the moral principle of allocating public economic responsibilities among relevant parties. Only then can powers and responsibilities be matched accordingly, allowing the entire public economic system to be built and operated around the central goal of effectively fulfilling the responsibility of providing public goods.
Based on this understanding, the author systematically analyzes and studies the reasonable allocation and clear definition of horizontal and vertical powers and responsibilities among all parties involved in the design of China's public economic system reform plan. The author examines the essence of public economics and public finance from the perspectives of institutions and systems, incorporating the principles of democracy and the rule of law into the reform design of each link in China's public economic system. Unlike many works that focus on the scope definition of public economics and private economy, as well as the adjustment of revenue and expenditure structures in public finance, while rarely discussing the connection between public economics, public finance, democracy, and the rule of law, the author of this book argues that the deeper essence of public economics and public finance lies in embodying the principles of democracy and the rule of law through institutions and mechanisms.
This is because the power of public economics and public finance originates from the lawful delegation or entrustment of inherent rights of the citizenry, and its decision-making must still follow democratic standards (i.e., genuine public choice) to fully reflect public opinion and concentrate collective wisdom. Its implementation must also adhere to the rule of law recognized by democratic procedures. Whether in the process or the results of implementation, they must be public and transparent to ensure the efficient use of public resources and prevent corruption under public supervision.
The book applies Marxist fundamental theories and methods to analyze public economics and its historical development, proposing an outline for the sinicization of public economics in China. The author believes that in the process of sinicizing Western public economics, it is not only necessary to absorb and learn from Western theoretical achievements but also to strive to uncover the public economic thoughts created by Chinese historical sages to enrich and complete them. This is because, although the more complete theoretical form of public economics emerged in modern Western countries, the ideas of public economics have a long history and their origins are not limited to Western countries. As a cradle of world civilization, China's historical sages have elaborated on a vast amount of public economic thoughts in their studies of the state and its fiscal management.