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Township liabilities roots: rational inquiry and analysis

Author: SongGuiWu From: www.yourpaper.net Posted: 2007-11-18 23:03:48 Read:
Summary generate the liability issues in China's township has deep roots in many aspects. The concentration of power in the political system is the political roots of the township liabilities. The underdevelopment of the economy is the economic factor in the township liabilities. The farmers cultural characteristics induced township liabilities cultural causes. Dual social structure social causes that lead to the township liabilities. Solve the problem of the township liabilities, must be systematically advancing tackling the problem in a comprehensive way.

Keywords township liabilities Origins

Currently, the township liability issue has become a difficult and hot issues in China's economic reforms. Township liabilities, not only the fundamental needs of rural modernization, but also China's reform and whether further an important guarantee for the smooth progress of conditions. From the present situation, the root causes of township liabilities problem is diverse; solve the the the township Liabilities problem is a systematic project.
Political terms, the political power system operation is not standardized township liabilities political roots
The study shows that: A fiscal spending self-inflated inner power centralized bureaucracy. Especially when the centralization of power is reflected in the political sphere, the economic sphere decentralized fiscal revenue and expenditure of the government's behavior becomes complicated. First, it is assumed that the local financial unanimously to pursue local overall interests, economic decentralization exacerbated the financial pressure of the totalitarian regimes still. Because the separation of powers within the economic sphere has led to local governments based interests. But local governments to the autocrats taxpayers direct supervision for risk, there is no need to fully meet the needs of taxpayers. From localized interest, local governments must take into account local economic development issues, and the resources needed for economic development and local public goods supply. This makes it possible to produce: If the local government's fiscal spending to attract capital and talent inflow of the local economy rapid development, thus increasing the local fiscal revenue, it will form a virtuous circle; Second, if the local government's decision-making mistakes not to create new sources of revenue, it will exacerbate the plight of the local government finance, the liabilities become inevitable. So, the totalitarian system of financial and Democratic Finance is very different. Democratic Finance expenditure and income must go through the budget, government spending is reflected in the supply of the necessary administrative and public goods. Fiscal revenue and expenditure under the totalitarian can not go through the budget, government spending effect depends on the preferences of decision makers and judgment. This means that even if the local government does not rent-seeking may still appear insufficient supply of public goods or excesses. Followed, autocrats Central will not give up the right to direct management of financial resources, which means that places no right to tax, a reasonable amount of local taxes can not be set in accordance with the socio-economic conditions, the local government can not get enough of the main taxes generate income within the system. However, the separation of powers within the economic sphere in fact again the responsibility of public goods supply a large part of decentralization to the local level. Thus, the pursuit of local government based interests led to fierce competition between different kind of competition with the financial resources of the past compete for the higher levels of government, but at the same time to maintain this competitive, new content, and that is to improve the competitiveness of the local supply of public goods. Therefore, the competition of the local government fiscal spending enormous pressure, and thus provide a possible and necessary for government debt. Again, in a totalitarian system, the supervision function is weakened, beyond the control of the government of distorting behavior. Under the totalitarian system, the interests of the local government officials and local economic development is not only more and higher levels of government appointment. Therefore, the lack of the final conditions of supervision and information asymmetry, local government officials may take advantage of the terms of reference of the transfer of financial resources for personal benefits, rent-seeking activities. The contradiction of such officials of rent-seeking to increase government revenue and expenditure.
Can be seen from the above analysis, in the context of the authoritarian regime, fiscal spending has inflated ego rigid; decentralization reforms in the economic field but also further exacerbate this expansion trend. Therefore, the solution to the current problem of indebtedness of the township, from the political system in terms of, is to gradually take the decentralization reform, effectively building the a good township level public finances. Democratic Finance in the public finances is essentially the core is to promote the township building of democracy, strengthen the construction of public finances. To this end, to fully understand the township liability issue is not just an economic issue, but also a political issue, should consider this issue in the context of the entire macro system. To actively explore effective decentralization. On the one hand, we should actively promote the decentralization of the local township decentralization reform. The essence of the decentralization of state power system retracement of the exit of the country from people's lives. Countries not only to relax political control of local and local residents, but also in fact abandoned the system embodies and symbolizes national authorities intervene. Decentralization provides the driving force of China's modernization, but also aggravate the imbalance over the economic, political, social, and cultural development. Therefore, the central government should establish a sound system of policy coordination, to promote the rationalization process of the decentralization reform. 3, we must actively promote local grassroots political power of the rule of law, scientific construction. 4, and vigorously promote the process of democratization of the local grass-roots political power. Democracy is the proper meaning of socialism. The democratization with modern Xiangxie of line. Of course, how human activities, the democratization process must also be established historical conditions only start-up and operation, and accordingly select the appropriate ways and means. In China, the process of democratization started not long, in particular, the history of long-term lack of democratic habits, lack of democracy and political construction experience. To go beyond the obstacles and difficulties, and the smooth progress of the democratization process, particularly important to select the appropriate ways and means. At present, the building of grass-roots democracy in rural areas should focus on three aspects: First, should give full scope to inner-party democracy; should give full play to the role of the NPC; implemented at the grass roots mass self directly exercise their democratic rights by the masses themselves.
Second, economic underdevelopment and financial resources is not busy economic roots caused township liabilities
As can be seen from the survey research, economic underdeveloped regions township has three basic characteristics: First, the total economic output is significantly lower. Is still based on traditional agriculture-based industrial structure. Third, secondary and tertiary industries, not only small-scale, and very backward. Therefore, the financial resources of underdeveloped areas townships are still the main sources of income of a single traditional agricultural structure. Such financing led to fiscal revenue has the following characteristics: First, the absolute size of the fiscal revenue. Underdeveloped township small absolute size of the economy, coupled with traditional agriculture-based economic structure "tax amount is small, these township fiscal revenue will naturally less. Second, is the slow growth of fiscal revenue. In the case of secondary and tertiary industries behind the township fiscal revenue, the main source of farmers' income. In recent years, because the country is no longer priced acquisition approach to encourage grain, cotton, oil production, traditional farming profitability level has been very low. This leads to a living out of farmers' incomes stagnating, and indirect constraints township fiscal revenue growth. Third, fiscal revenue instability. Both traditional agriculture and cash crops would be subject to the dual constraints of natural conditions and markets, its level of return volatility, resulting in unstable fiscal revenue. Therefore, the positive economic development, growth of the township financial strength, another fundamental way to solve the problem of indebtedness of the township. To do this you must: 1 should actively promote the industrialized operation of agriculture. Industrial management of agriculture requires market-oriented, and their comparative advantages to the principle of maximizing economic benefits, agricultural resource elements according to the market mechanism. So, the industrial management of agriculture is an effective means to improve the economic efficiency of agriculture. Here, the development of the industrial management of agriculture should be gradual and in particular to prevent administrative intervention. Based around the actual development of the industrialization of agriculture to diversified modes. 2, the township government should actively promote the development of agricultural science and technology service organizations. 3, we should actively develop individual and private economy. Vigorously develop individual and private economy is an effective way to increase the township fiscal revenue. The township government should actively support the development of the individual and private economy, they should create a good environment for development. 4, adjust the economic structure, and actively develop secondary and tertiary industries. Based on the development of agricultural industrialization, must adjust the the township existing economic structure and industrial structure, namely the development of the secondary industry and the tertiary industry. In particular, is a major agricultural provinces township must do this, adjust the economic structure will be able to revitalize the development not adjust the structure of the economy will be difficult. 5, to further improve the level and ability of the township to manage the economy, should minimize the administrative command, but should, as far as possible, to do service work for the economy.
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