Rural Communities, Public Goods Supply Model Study

30 years after its reform and opening up, China has received rapid growth in economy and fiscal revenue, meanwhile the income gap between urban and rural residents has also expanded. The income gap between urban and rural residents in China may exacerbate its urban-rural dualistic economic structure and have negative effects on economic structure and social stability of our country. In order to avoid these negative impacts, we must reduce the income gap between the urban and rural residents. And the only way to narrow the income gap between the urban and rural residents is to accelerate the process of China's industrialization and transfer the agricultural labor to non-agricultural industry. In the West, the industrialization and urbanization were putting up at the same time. But China has a too big agricultural population and they reside too scattered, so we can not copy the urbanization path of the western countries, first centralized and then decentralized. China should try its hard to build the rural communities and provide rural community public goods adequately. Summarizing and researching China's traditional and existing rural community public goods supply model can provide useful guidance for the innovation of supply of our rural community public goods.Based on the Western theory of public goods, I analyze China's rural community public goods supply model systematically. This paper is divided into four chapters. Chapter I defined the subject of the essay. Chapter II critically summarizes the Western theory of public goods. The third chapter analyzes the compulsory supply model of rural community public goods. Chapter IV studies the existing negotiation supply model of rural community public goods. This study focuses on Chapter IV. My conclusion is that: in those rural communities with higher collective-income, negotiation supply model can play a very good role, but in those rural communities with lower collective-income, negotiation supply model can not take its advantage well. While some rural communities have created some methods to provide community public goods instead of negotiation supply model, these methods have limitations. The cooperation ability of residents in rural communities is still the key factor of supply of community public goods. Our government or other organizations can serve as an external intervenor to help residents in rural communities to establish cooperation capability.