Public Finance in China : Reform and Growth for a Harmonious Society
2008
Lou, Jiwei | Wang, Shuilin
This publication focuses on public finance, development economics, and the Chinese economy. The government will focus on the public good aspects of education and training-compulsory education and some aspects of higher education and training. The publication encourages seven reforms including raising government expenditure on education to four percent of gross domestic product (GDP), and ensuring that all children actually receive nine years of basic education. Improving and widening access to medical care, especially for the rural population. The target is to extend the cooperative medical scheme to 80 percent of the rural population from the current coverage rate of just over 20 percent. China has sufficient fiscal resources to afford the level and type of spending commensurate with a harmonious society. This reallocation of resources can be done only gradually. It must go hand in hand with a better specification of roles and functions of the various levels of China and stronger mechanisms for accountability, to ensure that poorer local governments use the resources given to them.
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