A Study On Sustainability Of Funds Raised By Local Government And Participating Farmers Under New Rural Cooperative Medical System

Since the pilot implementation of new rural cooperative medical system in China in2003,it has alleviated rural poverty due to illness effectively, and provided the important systemguarantee for building a harmonious socialist new countryside during the10years ofdevelopment process.Sustainable problem of the new rural cooperative medical system’s financing is the keyfactor to the healthy operation of the new rural cooperative medical system, in the process ofraising funds, the important characteristic of this system is that the government entities at alllevels (the central government, local government) and the individual farmers share thepayments collectively. In the process of the operation of the new rural cooperative medicalsystem, government at all levels is the main part of the financing system, the centralgovernment centralizes much money, determine the standard of financing policy, this meansthat it has enough ability to raise funds. The central government and local governmentcontribute together with the same level. so among the proportion of contribution of provincial,city and county level of government, provincial government also have the regulate and controlability, comparatively,the pressure of risk in raising funds is relatively small, compared withprovincial government, city, county government and the individual farmers have morepressure in raising funds. In2007, the agricultural tax was cancelled comprehensively in thenationwide, this measurement narrowed the channel of county and countryside’s fiscalrevenue, aggravated the risk of raising funds in county government’s new rural cooperativemedical system. Although the compensatory transfer payments from central government tolocal government weaken the negative impact on reduction of local tax in some extent, theproblems that the basic fiscal has difficulties in raising funds also standout, constituting thegreat barrier to the stainable development on the premise of the financing level of new ruralcooperative medical system continue to increase. Equally, the improvement of financingstandard makes the level of payments to individual farmers increase gradually, whether theindividual farmers can afford and more actively involve in are also important factors ofsustainable development of new rural cooperative medical financing.This dissertation take Shijiazhuang city as an example, making a study on new ruralcooperative medical financing status, discussing each financing body’s payment ability andvarious factors which have influence on its financing sustainability under the new ruralcooperative medical system, meanwhile forecasting financing standard per capita and farmers’financing willing in2015and2020under the new rural cooperative medical system, studying the local government and individual farmers’ financing sustainability, thus discussing feasibleschemes of the new rural cooperative medical system’ financing sustainability in the futureunder the condition of the existing system, determine the financing development goals, clearthe responsibilities of each financing body, so that providing decision-making information tothe management department of Shijiazhuang new rural cooperative medical system.The data of this study source from macro and micro two aspects, the macro dataconsist of conventional statistics mainly, micro data source from the questionnaire survey ofthe rural residents’ family in Zhengding county of Shijiazhuang city and Luquan city.