Research On Supply Of China's Rural Public Good With Institutional Non-neutrality

Non-neutral institution means that the same institution have a different meaning and produce different effects to different groups of people. In the context of studying the supply system of rural area in China, this phrase can be regarded as an unfair state which can be ultimately reflected by the supply of public goods with urban-rural dual economic structure.China's supply system of public goods in rural areas has some demonstrated problems, including serious shortage, unfair condition and inefficiency. Non-neutral institution phenomenon in the supply of public goods in rural areas provides the explanation for these problems. Due to unclear responsibilities and weak incentives, the supply of rural public goods is more vulnerable to the lack of government; about the funding mechanism, the unequal situation between financial power and service responsibility since china's tax distribution reform, in addition to the imperfection of rural tax reform, has transfer the financial burden to farmers and cause great injustice; Finally, in decision-making mechanism, due to the limited rationality and the dispersion, farmers face difficulty to create their own organizations, so their voice could more easily be ignored in the top-down decision-making mechanism. Why is there Non-neutral institution phenomenon in supply system of public goods? Theoretically that is because the combination of interest groups and politicians which are seeking profit. Beside, urban-rural dual economic structure is the direct source. Plus, decision-making mechanisms in Public Choice Theory could lead to a number of obstacles for the fair and efficiency. In this case, to solve the corresponding problem, we must build an effective justice system in rural public goods provision.