ABSTRACT
Since the supply of public goods and services in most countries is the same for both urban and rural areas, however, public-finance policies mainly focus on ensuring that there is sufficient investment in agricultural production, as well as sufficient profits and people engaged in the business. China needs to redefine the responsibilities and accountabilities of government. This chapter first looks back at the evolution of the relationship between the State and its rural population since the founding of the PRC. It then analyzes the general situation as it stands today, as well as the main problems. On that basis, it proposes policy recommendations for greater public-spending support for farmers, farming, and rural areas. It recommends that people must keep raising the percentage of income from land transfers that goes to the building of rural basic infrastructure, and land remediation be incorporated into the scope of activities supported by line-item projects funded by public finance.
