My Rational Analysis Of The Supply Of Public Goods In Rural Areas

When it comes into the 21st century, China's reform and opening up has stepped onto a new stage, and economy has been developing more stable than previously. However, the development of China's economy is facing new challenges. Facing to the new economic situations and the current conditions of China, this article mainly analyzes China's economic situation based on the corresponding theories and gives out some effective practical measures.China is a large agricultural population accounts for the majority of countries, more than 13 million people, almost 900 million in the rural areas. The rural development, raising the living standards of farmers and the long-term sustainability of China's economic development play an extremely important role. After reform and opening up, with the household contract responsibility system with remuneration linked to output promotion, the production of peasants has been mobilized, with advances in agricultural production and improves the living standards of farmers. However, China still lags behind the productivity of the rural phase, a large portion of rural areas still lives at the mercy of god, so the supply of public goods in rural areas is particularly important. Meanwhile, the household contract responsibility system based on the family unit decentralizes organizational structure, so it also increases the dependence of farmers on public goods. Although the supply of public goods to agricultural production in rural areas and even the whole of China's economic development plays a very important role, as the grass-roots government's insufficient financial resources (especially in the reform of the tax system after 1994). The top-down, the supply of public goods in rural areas less takes into account the demand (farmers), as well as for other reasons. The current mechanism for the supply of public goods in rural areas has still serious shortcomings. Based on reform and opening up in 1978 as a cutoff point, the paper compares of the differences of two periods and analyzes of the new situation after the household contract responsibility system with remuneration linked to output. Then the paper analyzes the relevant data for 1978-2005 and comes to the main problems and their causes of the supply of public goods in rural areas. Meanwhile it gives a number of policy recommendations from the supply of public goods in the rural experience of typical examples of foreign countries. There are two differences between this article's studying and similar studies in and abroad. First, the paper introduces the principal-agent relationship in economics when analyzing the main problems in the supply of public goods in rural areas, in order to involve the deficiencies of supply of public goods with a view to more of the image. Second, it gives policy recommendations comparing the foreign experience with the actual situation in China, in order to making greater feasibility.