Rural Public Goods Supply Model Of Historical Evolution And Innovation

Since the application of the reform of economic system in countryside, mainly concerning the Family-contract responsibility system, with the corporation system in countryside turning to no-collectivism, the supply system for public goods loses its foundation and the level of the supply of public goods in countryside gradually falls down. So, in order to coordinate the development of countryside and city, and build a rich society, it has become a pressing task to reform the current system for the supply of public goods completely, undertake system innovation and change the two-segment system to supply fundamental and dependable public goods for the farmer. Firstly, the article gives an introduction of the definition and characteristics of the public goods, especially that in countryside. Secondly, the article looks back upon the situation of the supplying of public goods in times of undeveloped countryside economy and people's commune, which describes the history of public goods' evolution in countryside. Thirdly, the article analyzes the current situation, efficiency and equitability of the supply of public goods in countryside, then applies the optimum and second-optimum theory about the supply of public goods to probe theoretically the optimal and second-optimal mode for supplying public goods in countryside and establishes the assumption that the countryside in China is unfit to adopt the optimal mode for supplying public goods. So, the most suitable mode for supplying public goods in countryside the reality permits is the second-optimal mode which means that one side, to establish the democracy mechanism that can mirror the farmer's partiality for public goods to decide the category and amount of public goods within the financial permission; the other side, to let the central government supply the nationwide public goods and subsidy the local public goods according to the rule of equitability.