| Finance plays a very important role in modern economy. The condition of financial system reflects the degree of financial development in a country (or region). The relationship between finance and economy is that of action and counteraction. If the condition of financial system is compatible with the demand of economic development, it will promote the development of econony, and vice versa.The reform of economic system in China was began in rural area. Since the reform and openning-policy have been in motion, rural economy has acquired prominent development. However, in recent years, the development of agriculture and rural economy has been almost stagnated, the growth rate of peasant's income has been decelerating and even dropping down. The rural surplus labor is quantitive and it is difficult to transfer them locally. Many peasants go out in order to hunt for a job. Their travel is too difficult to say. The 16th National Congress of CPC puts forward a social objection which is to build our country into a comfortable society overall. Then, what is the reason causing so many difficulties to reach this goal in rural area? The article thinks that financial repression is one of the main reasons that hinder the development of rural economy, even the growth of pensants' income. Because rural financial system is imperfect, so peasants couldn't raise enough money timely. Not only did many investment opportunities lose in vain, but also lost educational opportunities which could enhance their skill in labor. Thus rural economic development is constrained, and peasants couldn't shake off poverty and build up a fortune too.Based on the analysis of the current condition and reasons of rural financial system, this article proposes the target and principles of rebuilding a new rural financial system, also reconstructs the new rural financial system and gives political suggestions on it.This article consists of 7 parts:Part 1: Introduction. Beginning from the function of financial system, by using the documents of other people for reference, this part gives a basic subject that the rural financial system must be perfect or rural economy conldn't develop.Part 2: The present situation of rural financial system in China. After a brief review of the history of the institutional reform of rural finance, it inspects the current situation of rural financial system in China, then thinks that, at present, the development of Chinese rural financial system is insufficient and inefficient. The risk is ralatively bigger than before, and the rural financial system is fragile, too.So we have a conclusion that because the rural financial system is imperfect, it couldn't satisfy the various demands of financial service in rural economic development, and it constrained the development of rural economy too. Correspondingly, the slow development of rural economy and the impartial policies also constrains the rural finance development. That is to say, " they restricted each other".Part 3: Economical theory analysis about Chinese rural financial system at present. In the whole, the reason why rural financial system in China is imperfect is because of the inadequate supply of institution.'s problems.In China we always put the entry of rural financial institutions under strict surveillance. The government single-handedly cultivated these present rural financial institutions which are unsuitable for that rural economic principal parts' demands for financial service due to the inadequate participation of rural economic players.After analysis the present condition of rural financial system, this part still elaborates the present issues and reasons of each organization in rural financial system, such as rural credit cooperative, agricultral bank of China, agricultral development bank of China, private debt and credit, postsavings. Furthermore, the article rethinks the rural cooperative foundation's problems.Part 4: Practises and experiences of rural financial system learned from foreign countries or regions. This sectio...
|
PDF Full Text Request