ijcrb.webs.com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 1 EVALUATING THE NEW SUPPLY MECHANISM OF VILLAGE PUBLIC GOODS IN CHENGDU AREA BASED ON GOVERNANCE VIEW Wu Ping Associate professor, College of Economics and Management, Sichuan Agricultural University, Chengdu , Sichuan, China (611130) Zhang Qian Master, College of Economics and Management, Sichuan Agricultural University, Chengdu , Sichuan, China (611130) Abstract Improving the supply mechanisms of public goods in village level and providing adequate and reasonable public goods in rural areas are the necessary conditions to narrow the gap between urban and rural areas and are also essential to balance urban and rural development and to promote development of rural economy and social stability. In this paper, basing on village governance view, setting up the corresponding indicator system and using fuzzy comprehensive evaluation method ,we evaluate the supply mechanism of public goods in village level of the representative villages(communities) in Chengdu’s three spheres areas to provide some proposals on perfection of the supply decision mechanism of public goods in village level , multi-channel fund-raising mechanism and so on. Keywords: Village Public Goods, Supply Mechanism, Fuzzy Comprehensive Evaluation Method Introduction The difference in supply of public goods between the city and countryside is a major barrier to narrow the gap between urban and rural areas and get well-off in rural areas. That difference not only directly affects the living standards and quality of life among rural residents, but also has a very negative impact on the improvement of rural productivity and sustainable development of the rural economy. Therefore, coordinating of urban and rural public goods supply and reducing the gap between rural and urban development are necessary to achieve the coordinated development between cities and the countryside. The coordination is also a main way to build up harmonious urban-rural relationship and an important task in the process of building a new Socialist countryside. Having become the national urban and rural comprehensive reform experimental zone in 2007, Chengdu will put Rural public services and social management into its public finance coverage and actively explore the new mechanism of the rural public goods supply. 1.Basic framework of the new village public goods supply mechanism in Chengdu In July 2009, Chengdu Co-ordination Committee issued Interim Measures of Public services and public administration in Chengdu village special funds and Public services and management measures for the management of the village financing of construction project, clearly saying that an annual allocation of special funds to the reform for each village (community) should not be less than ￥200,000. Village self-government organizations can provide no more than seven times of the amount of funds as financing loans to Chengdu Small Town Investment Co. , Ltd. COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 25 ijcrb.webs.com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 1 Co-ordination Committee of municipal and county governments report Approve and allocate funds Product and Chengdu Small flow Capital ·· financing production Construct E Villagers Committees(Township xpression of demand demand of xpression Town Investment department ce government supervise and guide ) Co. , Ltd of public Call for tenders 乡镇政府监督指导） Get the loan below to from above goods Decide Communicate ideas needed public up from the bottom the up from goods Villagers’ Council Express requirements Collect opinions Villagers From the chart above we know that a series of mutual connection links consist of new village public goods supply mechanism and those links are closely related to each other, around echo and constitute an organic system. Villagers Committees are at a central position in the new mechanism and are in charge of collecting villagers' opinions to make strategic decisions of public demand projects and reporting those public demand projects to Co-ordination Committee of municipal and county governments. After those projects are approved, Villagers Committees can apply for a loan from Chengdu Small Town Investment Co. , Ltd and then call for tenders to build the projects. Municipal and county governments coordinate and arrange special funds and at the same time, they will supervise the supply situation of village public goods. Government platform company, Chengdu Small Town Investment Co. , Ltd provides low-interest loan to fund the projects building. 2.The characteristics of village public goods supply mechanism in Chengdu 2.1 Freshly establishing villager council to achieve real villagers' autonomy Villagers’ congress authorize the villagers’ council to implement the governance-discussing， decision- making and supervising authority while the village committee is the executing agency which is in charge of the villagers’ congress and the villagers’ council. The villagers’ council is responsible for extensively collecting the opinions and suggestions on the development of this community from the community residents, foreign long- stay nationals, and various economic and social organizations inside the community ,to make sure that everyone in the community has the right of speech to achieve real villagers' autonomy. In addition, The village council divides the power of the village party secretary and village party secretary , solving the long-standing problem of the supervision absence. 2.2.Guided by Villagers' demand to express the real requirement more easily "Measures" says the village public goods supply must be guided by villagers' demand. Only after we establish an effective mechanism for expression of villagers’ demand can a demand-driven rural public goods supply mechanism be really established. In practice of Chengdu，village organizations extensively collect the villagers opinions through the villagers’ congress and implement the，governance-discussing， decision-making and supervising authority through the villager council. The establishment of the villagers’ council , on the other hand , encourages the villagers to participate in the management of village affairs , making the expression of need smoother and more real . 2.3. Guarantee the funds in Chengdu by including the village public goods funds in the financial budgets The village special funds have been included in the budget to ensure long-term stable input solve the problem about sources of rural public goods funds. This means we can get financing within limits. Therefore, the sources of funds are more ensured and the burden of the villagers is reduced. COPY RIGHT © 2012 Institute of Interdisciplinary Business Research 26 ijcrb.webs.com MAY 2012 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 4, NO 1 3.The problems in the practice of the new village public goods supply mechanism 3.1.Whether the real villagers' views are effectively reflected First, the existence of interest groups will largely affect public decision making. Religious bodies in village are one of interest groups and they can form temporary unions to largely affect even determine the public decision making when voting on supply of public goods. Next, educational levels of villagers will also impact the effectiveness of demand expression. Last but not least, whether villagers’ council becomes a mere formality in practice should be considered. 3.2 The financing channels are relatively homogeneous The only financing channel is Chengdu Small Town Investment Co. , Ltd so that the financing channel is relatively homogeneous . The Small Town Investment Co. , Ltd regulates the types of financing public goods and the funds cannot be used for the building property ( including activity rooms, culture rooms and Squares) . 3.3 Whether the supervision mechanism can be effectively implemented The villagers’ council is the main method of villagers’ supervision , but villager’s council itself has some disadvantages: first, such a monitoring mechanism is based on the morality which is unstable and this kind of instability will probably lead to the oversight of supervision ; secondly, staff of villagers’ council there may be assigned by the village organization and this situation may result in invalid supervision. 4. The evaluation of new rural public goods supply mechanism in Chengdu This research randomly selects town and the village organizations of Chengdu three spheres1 areas and we use interview and questionnaire survey as investigation methods. We choose those places as investigation sites: Chengdu Small Town Investment Co. , Ltd, Chengdu Co-ordination Committee, Xingfu Village of Sansheng County in Jinjiang District, Baonian Village of Tianhui Town in Jinniu District, Nanqiao Village of Yongning Town in Wuhou District, Huali Community of Yongning Town in Wenjiang District ,Huimin Community of Gongping Town in Wenjiang District , Baimiao Village of Sanxi Town in Jintang District, Lugao Village in Qingbai river District ,Mayan Village of Youzha Town in Qionglai City and TangYing Communituy of Yangan Town in Qionglai City. Considering former qualitative analysis, we use the fuzzy comprehensive evaluation method to evaluate new rural public goods supply mechanism in Chengdu. 4.1 Evaluation Indicators setting According to the management theory, factors of weighing the pros and cons of public goods supply mechanism are mainly following:(1)Legality. It