The Gap Between Rich And Poor Problem Analysis Of The Institutional Factors

In recent years, China’s poverty gap has gradually enlarged. It not only restrictsthe sustainable economic development, but also affect the stability of the society andthe successful implementation of China’s economic and social transition. Thesolution of poverty gap is the need of contemporary conditions and be one of theultimate goals of socialist economy. To solve the poverty gap, System is one of thekey factors.In view of this, this article briefly analyzes the poverty gap withinstitutional economics theory.China’s poverty gap can be roughly divided into four aspects: regional gap、urban-rural gap、industry gap and class gap. After briefly summarize the researchliteratures on the four gaps, this paper gives some relevant analysis on the mainsystem factor of each aspect: the main system factor of regional gap is the effect ontransaction cost form government policy and informal system; the main system factorof urban-rural gap is the agricultural market reform and the property right reform withrural land system as the core; the main system factor of industry gap is the pathdependence in the reform of state-owned enterprise and a phenomenon of "groupcollusion"; the main system factor of class gap is the class solidification form the longterm game equilibrium under Chinese traditional culture.Based on the analysis of the four aspects, this article summarizes the systemfactors on the overall gap. The system factors of the overall poverty gap can bedivided into four aspects: the first is the formal system including policy、market andothers. The policy and market are the most two factors and the market system itselfalso has a self strengthening mechanism increased the poverty gap; the second is theinformal system including economic culture、political culture、social culture and so on.Economic cultural leads to a difference of competition consciousness, politicalculture cause a hook in wealth and political power, social culture cause one’s successdepends on his social capital; the third is the change of transaction cost and theallocation of property rights. Different initial allocation of property rights will affect the finally allocation of resources and wealth; the last is the game mechanism and theinstitutional innovation. The game power influences the game results, and the gameresults in turn strengthened the game power, leading to a self strengtheningmechanism of poverty gap. Besides, the economic subject’s autonomy systeminnovation is a important measure to achieve self development, china’s existingreform experimental zone practice is a powerful and necessary attempt abased onsystem innovation.On the basis of the above analysis, this article briefly summarized institutionalfactors of poverty gap, and suggested some corresponding countermeasures. To solvethe poverty gap,the government should curb the market’s self strengtheningmechanism while strengthening the market construction; use the government policyand other formal system prudently; promote and protect people ’s right andconsciousness of system innovation while cultivating the game mechanism, and paymore attention to the construction of government’s self discipline and the supervisionmechanism by the public.Finally, this article discussed and analyzed three deviation in China’s marketreform: ignoring the cultivation of market consciousness、opposing the efficiency tothe equity and one-sided understanding market for privatization, and suggested weshould pay attention to the government’s identity of a game agent and the differencesbetween the target and the purpose of the reform in China’s institutionaltransformation. At the end of the article, this paper extended a point that the solutionof human problems ultimately depends on human itself, not the system to restrict orencourage.