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Accelerating the Establishment of Modern Financial Transfer Payment System from the Perspective of Capability

【Authors】
KANG Fengli 
【WorkUnit】
Guangdong University of Foreign Studies, 510006
【Abstract】

The report to the 19th CPC National Congress calls for expediting the creation of a modern financial system. As socialism with Chinese characteristics has entered a new era, the principal contradiction facing Chinese society has turned into a contradiction between the people's ever-growing needs for a better life and unbalanced and inadequate development. Resolving the contradiction requires fiscal support. The scientific assessment of the evolved principal contradiction in a new era holds the key to development. The essence of development is to expand people's capabilities to achieve substantive freedom. In this paper we discuss the content of imbalances and inadequacies from the perspective of capability approach, and develop an index system for measuring capability in the context of current social development from the five dimensions of economic conditions, housing and employment, human capital, social capital, and natural capital. This paper also analyzes the characteristic facts of the inequality of capabilities and capability poverty of Chinese residents. On this basis, it proposes to ease the constraints of the fiscal system on capability expansion, and establish a modern fiscal transfer payment framework from four levels namely decision mechanism on division of administrative rights and financial power, funds transfer, form of transfer payment and performance appraisal to ease inequality of residents' capability and eliminate capability poverty.


JEL:H77, I31

【KeyWords】
Capability Inequality, Capability Poverty, Functioning, Fiscal Transfer, Modern Financial System