Aspects On Institutional Obstacle And Innovation Of China's Urbanization

Urbanization is the necessary phrase of modernization also the natural result of the development of social labor division and market economy .The basic driving force of urbanization results from the social labor division and mass transaction which are brought about by economic development. The factors such as the population of urban and rural area may promote the development of social division and mass transaction. But the present different polices for urban and rural area obstruct the free flowing of these factors, Which has become the main institutional obstacle of the urbanization of China.This article analyses about these phenomenon and makes some new suggestions on the institutional aspects of household register, education, employment, social security, land etc. The structure of this article is as followed:The first part briefly generalizes the connotation make some representative opinions of urbanization and analyses that the fundamental driving force lies in the labor division and mass transaction resulted from the development of the market economy. While the key factors are governmental institutional arrangement and innovation.The second part analyses about the main manifestation and causes of the institutional obstacle-respective, polices for urban and rural area.The third part about some concrete suggestions of the governmental institutional innovation under the current institutional circumstance.An efficient institutional arrangement is the key factor promoting economic development and urbanization process. Respective policies for urban and rural area are continuance of separating the planned system. It under that historical circumstance existed for particular reason. But after the establishment of the socialist market economy system, its existence has become a main institutional obstacle of urbanization and economic development of China. As the supplier of institutional innovation, the government should eliminate these obstacles unfavorable for the urbanization, provide efficient institutional innovations, and design the institutional framework thus creating favorable condition for urbanization. We should give full play to the market force, meanwhile correct the inefficiencies of market so as to realize sustainable, rapid, healthy development of urbanization.