A Research On Agricultural Public Investment In China

Along with the further agricultural opening after China's entering WTO, China's agricultural and rural development faces a series of problems and challenges, among which the insufficiency of agricultural and rural investment including agricultural public investment and the inefficiency of the used investment are regarded as central issues which awaiting urgently to be settled. Our government attaches great importance to these problems. In the two continuous "NO.1 Documents" at the beginning of the years 2004 and 2005, it has been specially emphasized that the deep level contradictions, which restrict our agricultural and rural development, the task of maintaining the good tendency of rural development, are extremely arduous, and each measure to support agriculture must be strengthened. Therefore, how to study the problems of agricultural public investment (API) according in the current situation appears to be significant. The main research subject of this article is the problem in our API.From the relevant research of domestic and foreign researches, we can find that some developed countries' researches on agricultural public investment problems have formed relatively mature public finance theories, methods of public investment efficiency analysis and governmental policy practice frames on API. Domestic researches on the problems of API propose a brand-new research yield in the recent ten years along with the reform and opening policy. Seen from the research documents, domestic researches on the problem of API mostly analyze qualitatively agricultural public goods' characteristics, types and the main body's attributes that provide the public goods, and what proper role the government should take in providing the agricultural public goods and the main question and countermeasures in the existing agricultural investment and so on. In general, the qualitative elaborations and superficial analysis on the relevant data and question are excessive, thorough analysis on the API system and mechanism contradictions are insufficient, and the policy suggestions proposed are not operationally practicable either.On the basis of combing the present research results, this article defines API's connotation and elaborates on the relational theory, and also discusses the relationships between the agricultural public investment and the rural social economy development.The author systematically analyzes China's API system evolution and the policy evolution comprehensively from the qualitative angle, also describes and appraises the API system's evolution situation in our government finance system since the foundation of our country, reveals and analyzes the main problems which exist in the present API system; quantitively, the author tries mathematic model analysis on China's scale and benefit of API, discusses our API's total quantity scale and changing tendency, API's status and function in each kind of agricultural investments and API's efficiency height arrangement problem in different domains, and finds out API preference sequence. The result shows that, our API intensity is generally between 0.25-0.50 and the total quantity scale is insufficient after the reform and opening policy. From 1990-2002, the contribution order of three investments factor of the nation's financial expenditure supporting agriculture on farmer's family management net income is: supporting expenditure for agricultural production each operating expenditure for agricultural basic construction three item expenditures for agricultural science and technology. According to the rural public investment demand forecast theory, the article confirms API demand forecast model and forecasts the total quantity of API's demand, and the result shows that, in order to make the agricultural production conform to the growth tendency requirement in the "11th 5-year-plan" period, the government API scale should maintain between 1800-1900 hundred million Yuan every year. In the "11th 5-year-plan" period, API needs about 9200 hundred million Yuan. Based on the experience of API in the developed countries and the developing countries, as well as related government public investment rules in the WTO "Agricultural Agreement", this article discusses international experience in the API domain. According to the evaluation of the Doha negotiations on agricultural supporting policy reform and its possible influence, "The yellow box" supporting quantity policy space of USA is not very big in the future; changing "the blue box" measures to "the green box" measures in EU common agricultural policy reform in 2003, causes the EU agricultural supporting total quantity to carry on the substantive reduction by no means; under the premise that "the green box" is not in full use, our country will be far from the full use of "the blue box" policy. According to the former research result, from the angle of further deepening the understanding of the API's scope and function, optimizing agricultural publicinvestment policy goals, standing out API's emphasis and primary domain, perfecting the API policy structure frame, as well as legally secureing the government finance increase of API, consummating the intergovernmental financial controlling system and the village public investment "one case one opinion" system and strengthening API's entire journey surveillance and management aspect and so on, this article proposes to strengthen our country's API and management's corresponding policy suggestions.This article possesses three possible innovation places: first, from the quantitive angle it has analyzed each kind of API's preferential order by using the gray connection analytic method, second, it has forecast the API demand scale by using the logistic model in the "11th 5-year-plan" period, lastly, it has analyzed and appraised agricultural supporting policy reform of the WTO Doha negotiations and its influence.