Comparative Study Of Rural Cooperative Finance In Different Countries

Cooperation issue is one of the economic issues that has arouse the concern of many countries in the world. Deriving from Western Europe in the mid-19th century, the cooperative economic system has developed to an important constituent of the economy in some western developed countries. Especially, the implementation of cooperative economic system in agriculture area has helped small-size dispersed production match with the integrated market, which has played an important role in pushing forward the modernization of industrialized management and realizing the modernization of agriculture. Looking back to the important progress and the achievement of China’s rural credit cooperatives reform in current stage, it is found that the credit to the agricultural sector has increased, and that the policies for improving the financial service to rural areas have begun to be implemented. The Document NO.1 of the Central Government in 2015, Several Recommendations for Strengthening the Reform and Accelerating the Modernization of Agricultural Construction, is the 12th Document NO.1 of the Central Government in the recent 12 years paying concern to the 3 Agricultural Problems. It shows the great attention that the Central Committee of the CPC and the central government has continuously paid to the issues concerning rural areas, agriculture and farmers. Currently, rural credit cooperative institutions do not function well since there are many problems unsolved in the reform. Compared with the rural credit cooperative system in the western countries, there is still a long way for China to run in the area of businesses management, organization establishment, external relation, supervision system, supporting policies and so on. Therefore, by comparing the rural cooperative financial system in major countries, this paper endeavors to find the strategic path for the development of rural cooperative finance in China.It is of great theoretical and practical importance to select agricultural cooperative financial system as the research observation. Especially, under the background that the Document NO.1 in 2015 was published, it is necessary to analyze agriculture cooperative financial system of related countries from the angles of businesses management, organization establishment, external relation, supervision system, supporting policies. As for the value of application of the article shows, by carefully comparing historical backgrounds, development models and successful experiences in developed and developing countries, it is possible to find the efficient of agriculture cooperative finance of our country, keep away from wrong ways, try best to make the development circle shorter and discover the right development path for the cooperative finance of China. As for the value of reference and guidance of the article, by absorbing the successful experiences and analyzing the failures, it is helpful to effectively provide suggestions for the development path of the agriculture finance of China, which serves as a scientific reference in the early development phase of agriculture cooperative finance of China in order to avoid from blindness, reduce the cost of experiment and increase the probability of success of agriculture cooperative financial of China. As for the value of forecast, the agricultural finance cooperative is an important measure to fill in blank of financial service in rural area, reduce the gaps between urban and rural areas, and promote the rural economic development and recovery of the whole domestic economy of China under the background of recession of world economy and domestic economic downward pressure. It is believed that by comparative analysis of cooperative financial system of related countries, it is beneficial for the establishment of the normalization theory of rural cooperative finance and reform path choices of rural cooperative financial development.Compared with the previous research papers, there are the following innovations in this article. Firstly, it provides a new perspective to make research on cooperative finance, including the impacts of the financial sustainable development theory on rural cooperative financial development and the indispensability of cooperative finance under 3-dimensional perspective, on the basis of discussion relating to the origin, concept, orientation, sustainable development of cooperative finance as well as main contents of rural cooperative finance. Secondly, by having adopted the comparative analysis method and selected typical sample of developed countries and developing countries, this article compares the differences of the sample countries concerning businesses management, development model, supervision challenges risk prevention system, external relation, and supporting policies of government, etc. Thirdly, it is detailed in this article that the history of the theory dissemination and practice of cooperative finance, make comments on the current status of credit cooperation, and dig historical and cultural causes why rural finance in China has not choose the way of credit cooperation. Finally, suggestions are made on the development and reform of the rural cooperative finance in China.There are totally 3 parts in this paper, which is further divided into 8 chapters. In the Part Ⅰ, the previous research references are introduced and analyzed. In the Part Ⅱ, the rural cooperative financial systems in US, Japan, Germany, France, India, Bangladesh, Korea, Holland and some other countries are introduced in detail, based on which the comparisons are made in the areas of businesses operation, organization, external relation, supervision system, law-making practice, government supportive policies and so on. In the Part Ⅲ, the reestablishment of the rules and framework that rural cooperative financial institutions are to comply with. The main contents of each chapter are as follows:The Chapter 1 is introduction. By sorting and reviewing the related literature, the research motivation and methods are discussed, and the innovation and shortage of the article are pointed out.The Chapter 2 is mainly about the related theories of financial sustainable development. Firstly, in this chapter, based on the related theoretical research, the concept, nature and characteristics of cooperative finance are introduced. Secondly, the emergence and development of cooperative financial ideology. Thirdly, based on the financial sustainable development theory, it is put forward that sustainable development is also necessary for cooperative finance. Besides, cooperative finance in the 3-dimension framework is reoriented. By the analysis in this article, the theoretical basis of the literature review are improved, which provide strong theoretical logic for the deep research in the following parts.Chapter 3 is the comparative analysis on the business management of rural cooperative financial institutions of related countries. It is made up of the comparative analysis of the origin of the fund, the utilization of the fund and the comprehensive comparison of the business management of related countries based on which the good experiences for China are found.Chapter 4 is the comparative analysis of the development model of rural cooperative financial institutions of related countries. On the basis of comparative analysis of different development model of related countries, the common characteristics of these countries and contents beneficial for China to study are discovered.Chapter 5 is the comparative analysis of the rural cooperative financial regulatory system and risk prevention mechanism. First of all, from the regulation subject and regulation object, regulation method three aspects comparing differences in national regulation system; Secondly, comparing the difference between the countries risk prevention mechanism; Finally make a comprehensive comparison, it is concluded that worth our using for reference.Chapter 6 is the comparative analysis of the external relations of rural cooperative financial institutions. First of all, compare the rural cooperative financial institutions and the government’s external relations; Second, compare the national rural cooperative financial institutions and the relationship between the commercial finance and policy finance; Finally make a comprehensive comparison, it is concluded that worth our using for reference.Chapter 7 is the comparative analysis of the countries of the rural cooperative financial support policy. First, carries on the comparison to national economic policy support, including financial support policy, preferential tax policies, interest rate preferential policies; Second, is the comparison of the legislative support, including the aim and the function of cooperative financial institutions, in the legislation of organization structure and the operating mode is how to regulate. Finally make a comprehensive comparison, it is concluded that worth our using for reference.Chapter 8 is the analysis of our country rural cooperative financial organization development and rebuilding. First of all, reviews the spread and practice of cooperative finance thought in our country; second, reviewed the status of the current credit cooperatives; finally, put forward our country rural cooperative financial organization to build the principles and framework of the content.