Transformation Of Government Function From The Perspective Of Public Goods Supply

How to define government function in a reasonable way and how to transform it earnestly are not only major theoretical projects but also practical projects for China in the transformation process from the planned economy to a market one to establish the socialist market economic system. Also they have become the focus of attention of university students and professors. This paper attempts to analyze the limits of government function from the perspective of the supply of public goods and then proposes reasonable suggestions on transforming the government functions. Based on the analysis of basic theories of the supply of public goods, this paper discusses the necessity of government's supply of public goods and the advantages of doing it. And then it further points out the fact that the government is responsible for the supply and yet the efficiency of the supply is very low. Therefore, it is necessary to define the ranges of the supply. By comparing the water supply management systems of countries like the United States, India and Israel and examining water supply management situation in Chongqing, this paper discusses the inspirations out of the reform of water supply management system in Chongqing to the transformation of government function. Using the supply as the cutting point to analyze the basic theories of government function, this paper also discusses the importance and urgency of transforming the function in China in an all-round way, the achievements, the problems and the limitations in the transformation, and then puts forward that the government function is to be defined reasonably. Lastly, the paper explores the ways to transformation based on China's real situation.