Institutional Innovation Of Supplying Public Goods In Rural China

After 20 years of Reform and Opening Up, China's economy has undergone tremendous changes. Total economic output and per capita income levels were significantly increased. However, along with the rapid economic development, China's regional development gaps and the gap between urban and rural areas are increasing. China still has a large number of peasants living below the poverty line. Public goods, such as roads, education, health services, health drinking water, and communications are of great significance for the poverty-stricken population out of poverty and regional co-ordination. Public investment for the agricultural production has an enormous role. Researches show that the increase in the number and the quality of public goods can significantly reduce the income gap. My Government has a sufficient knowledge of this. Based on the study of the characteristics of the various periods of rural public goods, with using the cost - revenue model ,the article builds Private Innovation Model, Partner Innovation Model and Government Innovation Mode as a theory system to explain the phenomenon ,which came out after the reform of the Family-contract Responsibility Institution. Then under the guidance of the above theoretical model the article make further explanation to the path of the institutional changes on the supply of rural public goods in China. At the same time the article uses the research data empirically studies the status and problems of the present Institution of supplying public goods in rural China, and how the factors of the costs and benefits affect the path of the institutional changes. Based on the above analysis and conclusions the reasonable policy proposals are given.The conclusions and recommendations as follows: Raising the income level of farmers is of great significance for the institutional changes on the supply of rural public goods in China; Under the conditions of Non-interference in the private and partners sectors in the production and business , Government can create a sound policy environment for institutional changes by reducing the cost of the supply of public goods; Government should attach the larger weight importance to the interests of farmers, that is, the larger a value, and foster the interests of the groups which are closely related to the farmers; For Reducing the cost of institutional Innovation, Government should, according to the degree of influence to urban residents 6, implement the policies with a gradual start; Finally, innovate the mechanism of supply ,and encourage diversified investors join in and multi-level institutional innovation model come out.