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A Study on the Fiscal Support for the Human Development in Rural Area of China

Author: GaoXuePing
Tutor: ZhangJinMing
School: Jiangxi University of Finance
Course: Western Economics
Keywords: rural area human development fiscal support
CLC: F320
Type: PhD thesis
Year: 2011
Downloads: 65
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Abstract


Since the 1980s, with the deepening of China opening and reform, significant changes have taken place in the rural area of China, while some problems appears to be more and more severe. Farmer’s income and the development of agriculture and rural areas have been hot topics. How to measure development is also an important issue in the worldwide, and the conception of development has achieved great progress since the beginning of 1990s, UNDP brought forward the conception of human development, which not only includes economic growth,but also the other part of social development, Furthermore, UNDP designed an index(human development index) to quantify the extent of development. As a result, this dissertation made a research on the fiscal support for the human development in the rural area of China by introducing the theory and assessing methods of human development, and made some political suggestions on the improvement of the human development in rural area.There are eight chapters in the dissertation, The first chapter is an introduction to the research background, research importance, literature review, the paper’s structure, research methods, innovations and insufficiencies of this dissertation. In the second chapter, the author analyzed the following four theoretical bases:theory of development and human development, the relation between fiscal support and human development in rural area, theory public goods and theory of Schults’human capital, The goal of these analyses were to lay a foundation for the establishment of concept and theoretical framework for the dissertation. Chapters three, four, five and six are the maim body of this dissertation. In these chapters, on the basis of the discussion and the evaluation of the situations of the human development in rural area, the author first made an empirical research on the public fiiscal support for the human development and agricultural economic development in rural area, Then the author analyzed the demand for public financing and supply of financing support from the perspectives of agriculture or peasants’income, education and medical care in rural area. Furthermore the scale, structural and institutional deficiencies in public financing to the human development in rural area and the reasons were also discussed. After that, Chapter 7 introduced successful examples and hints of foreign rural fiscal support to the human development in rural area, such as those in South Korea and Taiwan. Finally, Chapter 8 is conclusions and propositions. It made some basic research conclusions, according to the defect of the current fiscal support to the human development in rural area, it also proposed several crucial suggestions to strengthen the rural financing to support the development:increasing the support to the construction of infrastructure in rural area, enhancing peasants’income from non-agricultural sectors, diverting labor from rural to urban area, improving the organization level of peasants and its service quality, and increasing the support to the education and medical service to promote the human development in rural area.The conclusions of the dissertation are as follows:(1) It indicated that the human development in China’s rural area had achieved significant progress according to qualitative and quantitative studies on the human development in rural area. For instance, peasants’real income and total product value of agriculture has increased respectively by 3.24 times and over 20 times in the past three decades, Educational and medical care situation in rural area have alse been improved a lot, The health level of the inhabitants in rural area has achieved greater progress than other countries with the same level of income. The value of HDI in rural area rised by 46% from 1981 to 2008, among which peasants’income contributed most, education ranked secondly, health contributed least.(2) Fiscal expenditure for agriculture is significantly and positively related with the growth of agriculture and the human development in rural area. On one hand it indicates that the expenditure for agriculture not only raises peasants’income, but also helps to enhance the human development in rural area; On the other hand, it shows that the agricultural situation is still laggard, and hence urgently need to increase the fiscal expenditure for agriculture, only in this way can the laggard agriculture achieve modernization, consequently enhance the comprehensive production capability and peasants’income, promote the human development in rural area.(3) The fiscal supporting expenditure for rural area’s education and medical care is significantly related with the human development in rural area, which indicated indirectly the responsibility absence of the government in public goods’supply; Although the non-fiscal input impelled the rural education, rural peasants’burden of medical care and health has been overloaded, which badly stressed the human development in rural area and revealed the short supply of fiscal support for it.(4) The defect in fiscal support has resulted in the slow progress of rural human development. The disparity between urban and rural area has been expanding, especially after 1994, the national government did not strongly support the development of rural development because of the short of fiscal income, resulting in the slow development of the human development in rural area due to historical and realistic reasons.(5) The human development in rural area needs the support of public financing, which is determined by the feature of agriculture, education and medical care, which is the nature of public goods, and is also the requirement of shortening the disparity between urban and rural area, and finally promoting the human development in rural area.

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CLC: > Economic > Agricultural economy > China 's agricultural economy > Principle of policy and its elaborate
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