A Comparative Study of the Public Service Supply Systems - 中欧社会论坛 - China Europa Forum

A Comparative Study of the Public Service Supply Systems

Authors: Jie Jianli

Published by Journal of Hebei Normal University, 2009, No. 4

1) Clear concept of values on basic public service supply systems

The countries that provide balanced urban and rural basic public services are those countries that the government attaches great importance to agriculture and rural economic development. If China is to solve the problem of biased urban supply of basic public services completely, it must have comprehensive institutional mechanisms, and ensure that agricultural policies would not incur large fluctuations. This not only includes what agriculture itself should do, it should also list the responsibilities of the government, strengthening the government to fulfil their responsibility conscientiously to supply basic public services.

2) Strong support for rural cooperative organisations, democracy and open decision-making

Government support for farmers organisations, not only promoted the development of agricultural production, more importantly, farmers can express their voice through the channel of a legitimate organisation, safeguarding the related interests of farmers. In China, the urban and rural supply system of basic public services has not yet established mechanisms for citizens’ participation on views and feedback, in particular the supply of basic public services in rural areas. While the reform process of basic public services is accelerating in China, citizens’ participation in decision-making should be an important reform agenda, to improve the rural democracy, to ensure the rights of farmers, and to give farmers the right to speak.

3) A perfect division of labour system of the central and local governments’ basic public services

It is a realistic option to establish a division of labour system for the basic public services so that central and local governments focus on the establishment of a reasonable division of the burden. Therefore, to completely change the problem of low proportion of government investment in basic public services in rural areas, the responsibilities and rights on the supply of basic public services in urban and rural areas must be made clear to all levels of government, to establish a modern rational system of intergovernmental sharing.

4) A stable financial support mechanisms for agriculture spending and a standardised fiscal transfer payment system

The expenditure budget for agriculture in western countries such as Europe and the United States is in general 20%   50% of the total financial expenditure, and in many developing countries the percentage of agricultural expenditure is 10%   20% of total expenditure. In China, the financial fund for agriculture in the state financial expenditure has continuously declined, it was 12.20% in 1980, 9.98% in 1990, and in recent years, it has remained at about 8%. Therefore, our budget should ensure steady growth for the financial fund of agriculture, and guarantee a consistent growth rate. To introduce a standardised system for fiscal transfers is the current practice used by other countries to solve urban and rural disparities, it is also the basic means for achieving the balanced supply of essential public services in urban and rural areas. In China, it is essential to continuously improve government transfer payment system, and increase the supply of basic public services in rural areas, through tilting financial resources towards the rural areas and maintaining the long-term growth of agricultural funds.

5) A sound legal security system on the supply of basic public services

Supply of basic public services should be built on the basis of democracy and through channels of institutionalisation, so that the supply of basic public services in urban and rural areas obtains stable legal protection. China since 1st January 2008 implemented the “Town and Country Planning Act”, but it has not yet formed a complete and clear legal system for all levels of government to stipulate the rights and responsibilities of providing basic public services in rural areas. It still lacks laws and regulations for effective protection of “three agriculture”. Within the framework of the constitution, China needs to further develop a systematic legal system to protect the supply of basic public services in rural areas, establishing the effective supply of basic public services in rural areas on the basis of legal protection.

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