Research On The Equalization Of Regional Basic Public Services In China

Since the16th National Congress of the Communist Party of China and its sixth plenary meeting put forward "gradually realize the equalization of basic public service", as long with the implementation of the strategy of regional harmonious development, the increase of central transfer payments, and the promotion of public finance and livelihood construction, the framework for basic public service system in China initially formed and relating standards established. Basic public services disparity showed a trend of shrinking around2009, while the western region developed faster. Due to expanding coverage, increasing service items, improving standards, reducing individual burden, we have built the world's largest, full covered basic medical insurance network and old-age security network. Those problems such as under investment and widening disparity get preliminarily resolved. But new problems occurred:inadequate and imbalanced supply, regional and provincial inequality, and architectural differences are more and more highlighted. All of these show that the equalization of basic public service in China is at a new starting point. We need to study thoroughly in advance to continue to stick to our previous thinking, namely incremental expand investment, increase the project, and increase in the standard, or still need to adjust our thought.This paper tries to find the answer from both theoretical and practical aspects. The connotation is shrinking from public service, the equalization of public service to the equalization of basic public service. Public service is mainly derived from the positive externalities, one kind is to let all the people have a better life like receiving education, enjoying public culture and freedom from poverty(social assistance, affordable housing, etc.); another is to promote the free movement of labor which is related to labor mobility, like endowment insurance, medical insurance and public employment service etc. the "public service" in equalization of basic public service, especially refers to the central and local government provide, need the equalization of public services,"basic" refers to the basic right to survival and development which is closely related with people, also be bound by national finance supply capacity of public services. Classic marxist theory like social theory of deduction, fair justice, western theory of political economy like welfare economics theory and the theory of fairness and justice and our country's inclusive development theory like fiscal choice, finance of the people's livelihood, the regional balance development finance, all of those theories provide a solid theoretical basis for the equalization of basic public service. In the specific supply, the relationship between government and market needs to be dealt with, let the government, market, society find its right place and function together. And also the relationship between central government and local governments, that is governments at all levels each performs its own functions, cooperates closely, and provide high-quality and high-efficient basic public services. Under the condition of market economy, regional implementation mechanism of equal basic public services includes promote regional coordinated development, implement system of tax distribution, build public finance and carry out transfer payment.In practical level this paper reviews the foreign practice and experience firstly. It makes a comparative analysis of cases in typical countries after the completion of the basic public service system, from the new public management movement in the1980s to the recent welfare reform the European Union rapid pushed after debt crisis show that reform and improvement has become the mainstream. Main experience are:Public services is not a pattern, but is customized; it is not accomplished in an action, but constantly amended and improved process; it needs a long historical period to establish a perfect system; the financial support manner of basic public service is to match the stage of development, etc.; along with the endless reform, all countries are "on the road" in strengthening and perfecting the public service, and will always be "on the road". Main lessons are:A leap, chasing, incremental benefits has the financial ability to ceiling, as long as exceed the fiscal revenue, will encounter benefits plight or benefits trap; due to the system inertia welfare predicament will lag for some time to appear, since from thrifty into luxury is easy, from luxury into thrifty is hard, once appeared any country will suffer benefits plight, emerging countries may arouse social unrest, while established welfare states will meet with obstruct of interest groups. Since1949, the regional equalization of basic public services roughly experienced three periods:low level balance period namely "few items, wide coverage, regional equalization, division of urban and rural, lower individual burden"(1949-1977), gradual unbalance period namely "shrinking coverage, enlarged regional disparity, increasing urban-rural gap, rising group disparity and sharpening individual burden"(1978-2002), and gradual march toward new balance period "wide coverage, lean to balance, lower individual burden "(2003-now).From the theoretical and practical analysis, the regional equalization of basic public services is derived from economic and social development. So this paper tries to establish basic public service supply and demand analysis framework. Due to the demand of public service unilateral growth and the public service supply limited by fiscal capacity, the public service supply will appear under fiscal capacity constraints Wagner adjustment after Wagner growth, and the'basic public service supply will generally experience three phases:lower and relatively stable, sustainable growth, reasonable level and relatively stable. After enter the Wagner adjustment, the relatively stable phase, the public service supply is converting from expanding investment and quantity to improve the quality and efficiency, from meeting demand to guide the expected management. According to the framework of supply and demand analysis, main difficulties on regional equalization of basic public service are in narrowing fiscal revenue growth space and enlarging expenditure pressures, thus help to judge is to convert to the third stage in our country, namely is about to enter to consolidating perfect period, to pay more attention to equality of opportunity, the quality efficiency, prospects guide. Main objectives are:complete coverage, fair and equal, balanced burden. To grasp the four basic principles:integration based in fairness and justice; broadly appropriate sustainable growth; diversification dominated by government; clear and equal power division, and pay attention to quality standard and accessibility standard on the basis of quantity standard.