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e ranges of consumption profit, rural public goods can be divided into national, regional and local rural public goods. National rural public goods’ profit covers the whole nation and should be offered by the central government, such as basic rural scientific research, rural laws and policies, rural information systems, compulsory education, militia training and family planning, etc; regional rural public goods go beyond the local boundary and should be offered by provincial governments, such as river dredges, large-size water project, rural information system and regional plant diseases and insect pests prevention, etc; local rural public goods only involve local area, so should be offered by county and township governments, for example, administrative service of basic government (at the township and county level), fountain water project, water irrigation, rural medicine, road construction and culture center, etc. Also, rural public goods can be divided into “hard” and “soft” two types. The first includes infrastructures, such as rural traffic, telecommunication, power network, etc. as well as basic water project construction and so on; the latter includes rural education, technology training, scientific research, information, technical service, maintenance of public order and relevant rules and policies, etc. 3 Problems in Our Country’s Rural Public Goods Supply at Current Stage Rural public goods are a basic factor for farmers’ production and living, so the well-done rural public goods supply is a key point to rural development and new socialism countryside. But now there are still many questions in the rural public goods supply, which has seriously hindered rural economic development and improvement of farmers’ living standard, whereby influences construction of new socialism countryside. 3.1 Shortage of Rural Public Goods Supply Caused by Difference in Urban-rural Separation Chinese government followed the imbalanced development pattern featured by heavy industry priority in 1950s, implementing urban-rural separation’s dual economic structure. Government uses surplus agricultural profit to support industrial capital accumulation and urban economic construction. Because central finance is committed to urban industrial and public construction, the rural public goods supply is in great shortage; meanwhile, due to attentions that were turned to urban area from rural, the rural public goods supply can only be supported by agriculture revenue and extra-policy income. After the reform of rural revenue system, the town revenue has decreased a great while the central and provincial support is far from enough, so rural public goods supply is in great shortage. 3.1.1 Serious Shortage of Rural Productive Public Goods After the implementation of the household contract responsibility system, farmers have begun to make production based on household, they urgently require government’s support in the form of productive public goods in large-size irrigation facilities, large-size agricultural fixed capitals, qualifying seeds, agricultural new technology and agricultural market information, etc. But due to the limited financial income of county and township governments, compounded by lack of relevant supervision and efficient incentive policy in non-budgetary fund input, the serious shortage of productive public goods supply is caused. 3.1.2 Serious Shortage of Public Goods Supply Involving Sustainable Development in Rural Areas