Rearch On The Reform Path To Realize The Target Of Fairness And Efficiency Of Housing Provident Fund System

With the development of our economy, more attention has been paid to "fairness and efficiency" of the society life, and the housing sector’s fairness and efficiency has even become one of the social focuses. The housing provident fund system is an important support to our housing security system, and its fair and efficiency is an important indicator and guarantee of the housing provident fund system’s value and Sustainable development. Conducting the case study of Jiangsu province, this article analyzes the level of fairness and efficiency of the housing provident fund system and discusses relevant issues. Based on the combination of theory and practice, this article further makes recommendations on establishing a fair and efficient housing provident fund system.Firstly, this article expounds the theoretical basis of establishing the housing provident fund system, which includes the social security thought, the public goods theory, the principal-agent theory and the political legitimacy theory. The development and practice of social security in China and overseas has proved that the social security thought is always based on the theory of economics; the public goods theory is the core research object in welfare economics; the principal agent theory is the main content of the contract theory in institutional economics; the political legitimacy theory is the basis and premise of a political system’s existence, continuity, stability and development. These theories constitute the theoretical foundation of the existence and development of the housing provident fund system and play an important role in supporting the existence and development of the system from the different aspects.Secondly, this article outlines the housing provident fund system and clarifies its concept and connotation, functional properties, operation mechanism and management system. This article expounds the system’s seven attributes including security, finance, welfare, mutual aid, mandatory, special purpose and semi-public goods. Management of housing provident fund complies with the following principles: policy-making by housing provident fund management committees, operating by hous ing fund management centers, depositing in special bank accounts and supervising by finance departments. This paper uses the data analysis of the operating situation of the housing accumulation fund, affirming its positive function to the economy and society.This article introduces the society equity theory and efficiency theory and analyses the relationship between the theories and the social security. The fairness has four processes:starting point, equal opportunity, process and result. The social security can promote a social fairness by redistribution, which means social security can realize the fairness. Meanwhile, economic efficiency is the premise and foundation of social fairness. This article indicates that an effective principal-agent mechanism is one of the core problems in the principal-agent relationship of the housing provident fund system. As semi-public goods, the housing provident fund commits the corresponding task of housing welfare fairness, efficiency and sustainable development.Base on the above analysis, the target of fairness and efficiency of the housing provident fund system can be divided into three levels:the basic goal is to reduce the financial burden and guarantee the basic housing needs of low-income families; the intermediate goal is to build a multi-level housing security system; the ultimate goal is to seek support for the reform and improve the legitimacy of the ruling.By constructing the fairness and efficiency evaluation index, this article analyses the fairness and efficiency of Jiangsu Province’s provident fund system in capital accumulation, use, lending and other aspects. This article uses coverage rate, the deposit rate, deposit ratio and base to evaluate the fairness of the housing provident fund’s deposit, use the liquidity difficulties, management level and the income gap to evaluate the fairness of the provident fund’s use, and the coverage efficiency, allocation efficiency and management efficiency to evaluate the provident fund’s efficiency. Through empirical analysis, this article proves that there exists serious unfairness and inefficiency in starting point, equal opportunity, process and result of the housing provident fund.From prospects of the system design, governance structure and financial factors, this article makes further and thorough analysis on unfairness and inefficiency. There exist defects in system orientation, legal status and organization orientation of the system design and defects in carte blanche, decision, operation, supervision and business principal-agent relationship. Defects such as decentralized operation、narrow channels of appreciation and lack of professionals have hindered the effective work of the provident fund’s financial functions. The provident fund system has deviated its target and government intervention has turned into government failure.By studying the development and progress of housing security systems in Singapore, Germany and America, we can learn from these successful experiences and push the top design process of the housing provident fund system. Main inspirations are as follows. Values determine the selection of a country’s social security system; Balance between fairness and efficiency is the core of the reform of a social security system.The government is the main body of constructing the housing security system and improving housing security legislation. The design of housing finance system needs lay emphasis on market orientation. Housing security system must suit its national conditions.Based on detailed quantitative and qualitative analysis, this article indicates that the government must reform the housing provident fund system to enhance the economic performance, political performance and social efficiency. This article makes constructive suggestions from eight aspects including the concept of values, system’s implementation, strategic positioning, function positioning, legislation, management system, operational mechanism and fund management. Establish the value orientation of balancing fairness and efficiency and pay more attention to fairness. The government leads the implementation of the system and the responsibility must be shared by the government and fund depositors. The housing provident fund is an important part of the housing security system covering both urban and rural areas. The housing provident fund system must dominantly function in the housing security sector, while playing policy housing finance function. Actively promote the legislation process of housing provident fund. Reconstruct the principal-agent relationship of the management system. Establish regional housing provident fund management institutions and change from the local planning to overall planning. Realize maintenance and appreciation of the fund’s value and safeguard depositors’ interests.