Study On Equalization Of Basic Public Service In China's Urban And Rural Areas

With the development of economy and social progress, huge gap between urban and rural areas grows the public's concern and dissatisfaction. The voice of narrowing the gap between urban and rural areas for the public and achieving basic public services generally equal as soon as possible has become increasingly high. Especially in rural areas, the level of basic public services is so low that the broad masses of peasants cannot enjoy the fruits of economic development. The desire of peasants for the achievement of urban and rural equalization of basic public services is very urgent. Achieving equalization of basic public services between Urban and rural areas and improving the level of the building of basic public services can enhance the living standards of fanners and is of great significance for the maintenance of social stability and promoting the national economy's sustained, rapid and healthy development.In this paper, the author defines the basic public services as basic education, public health, social security and infrastructure construction to do research. Hoping to find reasons for the uneven basic public services between China's urban and rural areas and proposing some countermeasures so as to provide theoretical support and policy recommendations for the early realization of the urban and rural equalization of basic public services. Therefore, this study has very strong theoretical and practical value for enriching and developing the theories of public finances and promoting the harmonious development of urban and rural areas.The paper applies to regular analysis and practice analysis. First it analyzes basis in theory on basic public service between urban and rural areas. Second it studies current gap between city and village in China in practice. Then it gives reasons on broadening gap. In the end it provided some recommendations.The full text is divided into six parts as follows:The first part is the introduction, including the proposed definition of key concepts and literature review, the article structure, and deficiency.The second part of this study is the theoretical foundation, including market failure theory, social equity theory and Pareto improvement theory.The third part makes a detailed analysis on the gap of China's basic public services between urban and rural areas, including comparative data of basic education, public health, social security, infrastructure and other areas .It points out the seriousness of inequality of basic public services between China's urban and rural areas. The fourth part analyzes the reasons of non-equal public services between urban and rural areas in China from the point of transfer payment. The author believes that current transfer payment system exists inconsistency with equalization of public services in the objectives,structure,the distribution formula,supervision and other aspects in China.The fifth part introduces relatively perfect transfer payment systems of several developed countries, including Germany horizontal transfer payments, Canadian equalization transfer payments and Australia's general funding. It proposes some suggestions which is helpful to achieve the equalization of basic public services between urban and rural areas, such as reasonably plotting out powers of financial authority, making the goal consistent with the process of transfer payment, scientifically computing and reasonably investing the funds of transfer payments.The sixth part is about solution and suggestion, including clarifying transfer payment target, perfecting transfer payment structure, canceling tax return, expanding the scale of general transfer payments, further improving the factor methods. It also suggests that we should put emphasis on the use and allocation of special transfer payments and standardize existing special transfer payments and strengthen supervision in the transfer payment, particularly in funds of rural areas.In this paper, the innovation lies in the following areas:First is the innovation of research perspective. Most scholars study the differences of basic public services between China's urban and rural areas from the three provinces or regions and few do research from the gap between urban and rural areas. The paper studies the huge gap of basic public services between urban and rural areas and makes detailed analysis on the reasons for the gap.Secondly, the definition of basic public services is different from the others. In this paper, the author defines the current basic public services as basic education, public health, social security and infrastructure construction, breaking the limitation in which some scholars exclude infrastructure from the scope of the basic public services.