Chinese Rural Public Goods Supply Research

First, this paper discusses the classification and the specific characteristics of public goods provision in rural China : multi-levels, foundation and high dependence. The paper displays deeply present provision of public goods in rural China : it is disorder and it is not enough for the needs in general including exter-institution provision, unreasonable of provision duties, conflict between provides and needs, non-effectively supervise for the public resources usage and so on . These also make fair and effective low. (1)effective: being short of the first-need and sustained-development needs; Surplus for no needs. (2)fare: no fare between city and county or different countries. Based on these, the paper analyzes systematically the logical choice and technological preparations in the process of institutional innovation of public goods provision in rural China, considering the nation's situations and public goods provision theory at home and abroad. The author thinks that both state and market are a part of the economical process, and they also have their obstacle which they themselves can't beyond. The obstacle of every part doesn't make the instead of another reasonable. The scope of the state or the market is up to the different countries or the different period of market ability in a country or the state's ability offering public goods that the people think widely they should be the state's role. The institution of public goods provision involves the following three main parts in rural China: the decision institution, the cost apportion institution and the usage and management institution of the financing. Considering the objective (Externalities, Informational Asymmetries, Agency Problems, Distributional Concerns, Output Observability, Governmental Abilities) and subjective aspects (The peasant's inratoinal and short sighted view), the paper thinks it is essential for institutional innovation of public goods provision in rural China as follows: First, to clear and definite the duties and rights of the state, the market and so on; to encourage multi-provision. Second, to stick to the equal policy for town & city;to evaluate the used financial policy that lays stress on the city not the town, and to provide balance public goods or services. Finally, to improve the democratic syetem; to innovate the process of decision institution from up-down to down-up.