On The Difficulities And Breakthroughs Of Beijing Indemnificatory Housing System

Housing, vital to the living and development of a person, is one of the fundamental conditions for human life. In a market economy, competition leads to market malfunctions and income polarization, which results in a large number of medium-and-low-income families incapable of affording basic housing. Housing security is the extension of the government’s social security functions in the housing arena, with indemnificatory housing being the material carrier for the realization of the housing security function, and the housing security system being the core element. The 12 th 5-year Plan on National Basic Public Service includes housing security function into the range of basic public service, making explicit statement that, the enjoyment of basic housing security service is a right entitled to by every citizen, and that the enjoyment of development outcome by all citizen by way of equalization of public service is not only the crucial and pressing requirement for preserving social equality and fairness, but also the internal need for the all-round development of a servicing government.This thesis chooses the Beijing indemnificatory housing system as the subject, and based on studying relevant researches and documents, conducts an analysis from the perspective of equalization of basic public service. The main conclusions are as follows:1. Being the basic housing provided to low-income families in need, indemnificatory housing is in the nature of intense positive externality, and a certain degree of exclusivity and competitiveness, and therefore is a semi-public product. The government is the principal body in the indemnificatory housing system. The strengthening of the awareness among decision makers with regard to public service is the key to realizing equalization. The reallocation system for fiscal income, which equalizes the fiscal abilities of different regions, is the pre-condition.2. In the market economy, public service ought to function in the arena where the market malfunctions, as a supplement rather than a substitute to market. It should never harm the market mechanism. Therefore, in the process of building the indemnificatory housing system, extra attention should be given to the influence which the housing security function possibly generates to the market mechanism. The public service should only interfere on the basis of protecting the market mechanism, making adjustment in areas where the market fails.3. The method of providing indemnificatory housing varies with the housing development stages. In the current stage of Beijing housing development when the total number of housing has reached a high level, building more small-size housing in a large scale is not conducive to the overall development and will result in a waste of social resources. Therefore, the method should be changed from “adding more bricks” to “giving the bricks to more people”.4. The non-competitiveness of public service renders the pricing mechanism of the market not functioning. Indemnificatory housing is a way of the government to fill the gap between the affordability of the people and the housing price of the market. Therefore, the pricing of indemnificatory housing should be on the basis of affordability for housing. The current pricing method which is on the basis of market price leads to the difficulty of public service.