A Study On The Impact Of Grass-root Financial System Upon Rural Public Goods Provision In Poor Areas

We have advocated The Over-all Prosperity Society and The Harmonious Society as goals. New Village of Socialist is under construction intensely. The provision of rural public goods is a necessary side of "The Over-all Prosperity", a step of "The Harmonious Society" and a content of "New Village of Socialist". However, at present, it is a common problem that the grass-root finance is tough, especially in poor areas. The lack of rural public goods is a big obstacle to The Over-all Prosperity,The Harmonious Society and Bulding of New Village, and it is a manifestation, as well as a result, of the financial difficulty. The tough grass-root finance can not all be blamed to the financial systems, but the finance systems should take some responsibilities of it. We cannot extend the rural public goods provision only if we resolve the financial difficulty and innovation the financial systems. The steps of financial system reform have never been slow. Public finance is the goal of the finance systems reform. We have already put forward the policy that the public finance will run through the countryside. The rural public finance has or will have affected the rural public goods provision more or less.The article is to study on the impact of the grass-root financial systems upon the rural public goods, and search for the ideas and countermeasures to provision of rural public goods under the rural public financial systems.The article drew the conclusion that the finance had something to do with the systems innovation of rural public goods provision after retrospected the financial systems and provision of rural public goods in different periods.Financial system is one of the factors that affect provision of rural public goods. It takes its effect by institutions, systems and mechanisms. The article chooses The Decentralization in Finance, The Fiscal Transfer Payment, Systems of Fiscal Management and Taxation Reform to talk about the impacts of the financial systems on the rural public goods provision. The finance difficulty will impact unpon rural public goods provision. The truble-maker back of the finance difficulty is financial systems and government efficiency. There are some carriers or mediums by which the finance difficulty affects the rural public goods provision. On the other hand, the rural public goods provision will revers cause and affect the financial systems.The article emphasized on the fact analyse. It reasoned the characteristics of qusi-public goods for extension of agricultural technology, and applies for the methods of investigation case analyse and typical analyse to analyze the impacts of the financial systems upon the extension of agricultural technology. YX is a poverty county in Anhui province. Its finance is very tough. The article drew the conclusion that there is a far way for the extension of agricultural technology to meet the requirement of the rural public finance, by describing the extension of agricultural technology organizing system, personnel provision, extension content, extension ways, extension policy-making procedures and function display ext, with such a background. At the same time, the article analyzed the fund conditions of extension of agricultural technology, proved the gap of extension fund is the origin of the backwards of the extension of agricultural technology, and explained that the extension fund takes and conducts its effect by financial resources and efficiency. So we can refract and prove that financial systems do have profound effect on rural public goods from above.The ways to guarantee rural public goods provision under public finance systems are: (1) The most important idea is that we should emphasize on both financial power and efficiency."Skillful wife can not do without the rice",The financial resources and capital sufficiency are the premises, while the efficiency of the supply system is the basis. It is important to raise the "transfer coefficient" in provision systems;(2) The idea that we should reform from the easy to the difficult and step by step. Firstly, starting from perfecting and innovation of financial systems, to resolve the grass-root financial difficulty in short term;to build up rural public financial systems in middle-long time. Secondly, we will innovation the rural public goods provision system and improve its efficiency. Thirdly, work hard on complicated policies. (3) The idea that we should innovation in "three directions". One is horizontal innovation, which emphasized on dealing with the relationships between market and government probably, and the connections, compromises and mutalities between supply system, administration system, land and census register system ext. Another is vertical innovation, which refers to dealing well with the government responsibilities and rights, balancing the financial power and executive power. The basic government should not shirk its responsibilities and throw to the self-organizations.The last but not the least is innovation constantly, which indicates that rural public financial systems construction can not be completd one day, and it needs to adjust and perfect the rural public goods provision system consistently.