Government Function And Public Policy In The Process Of Balancing Urban And Rural Development

China has a distinct dual-structure in economy between urban and rural which restricts the healthy and continual development of country's economy and society. The dual-structure between urban and rural has its historical cause of formation; however, the current government system and policy also intensifies the division and make it to be a "trap". In order to balance the urban and rural development, government should adjust its function and policy actively to explode the dual-structure.Huzhou, in Zhejiang province, is a place which has developed economy but serious division between urban and rural. Although it seems that the disparity between urban and rural in Huzhou is not as huge as the disparity in the whole country, but we have to solve this problem urgently because the economic development in Huzhou is so quick. And Huzhou's practice in the process of balancing urban and rural development has some typical significance.On reviewing the practice in Huzhou ,we can find that the government should play a dominant role in the process of balancing urban and rural development. Moreover the government should deal with rural and urban as a whole, deal with those problems in balancing urban and rural development as a system, and solve those problem by systemic acts. That means government should adjust its function ,while respecting the rule of market and the willing and initiate of the peasants, and finally build a cooperative network among government, enterprises and society. At the same time, adjusting policy related is also needed.By the way of balancing urban and rural development, government should construct a new public financial system that can cover rural, construct an social ensure system which offer the same welfare to urban dwellers and rural dwellers. Those system obstacle should be removed gradually and completely.