Coordinated Strategy Of Western Development In The Financial Research

Since reform and opening-up, while China's economy is increasing fast, the disparity among the eastern region, the center region and the western region expands obviously and the western region is the most backward, which brings great challenge for China's economic development, social stability and national unity. How to accelerate the development of western region has a strategic significance.Under the condition of financial economy, economy transition and demand restraining ,the finance function supporting the western economy emerges day by day. The immediate cause which makes the western regions lagging lies in lower rate of return on capital, while the basic reasons lie in the unreasonable economic structure and the lagging economic system .The regional development needs capital support, but under the market economy, capital follows a principle that is " to chase profit but avoid danger". So, whether the development of western region succeeds, its keys lie in not only raising enough funds, but promoting western economic system change, optimizing western economic structure and improving rate of capital return by changing financial institution .As a result, an automatically increasing mechanism that entity economy and financial economy promote each other favorably can form.Past research shows: Financial development can promote capital formation, improve economic structure; Financial development can exceed entity economy. Looking statically, western financial development may accelerate the monetary process, optimize industry structure and promote the state-owned enterprises reform; Looking dynamically, the course of western regional development can be divided into four stages theoretically. The four stages are an evolution progress in which the western investment environment is improved gradually. As the corresponding risk characteristic and rate of capital return are different at different stages, the financial service needed is also different to some extent.From the point of financial support, the relation between the government and market is an important problem that can't be avoided during the course of development. At the initial stage, the task is to improve infrastructure mainly. The main body for investment isthe government, whereas market strength is just participated in limitedly; With the risk for development reducing, the market becomes the leading strength gradually. Concretely, at the earlier stage, the investment sources are transfer payment, policy banks, state-owned banks and government bond. At the later stage, commercial banks and security market are important investment strength. The western development should implement the strategy that" the government guides, the market operates and the finance coordinates previously".At present, the financial development level in western region is not only behind mat of the east, but also behind the western economic development, forming " vicious circle trap " named by Nakse. The western monetary institution change is urgent. First, offer the financial privilege in the west in order to construct the financial policy "depression" and form the "hemotopiesis" mechanism. Second, as the western monetary institution change belongs to the supply-oriented institution changes, the entity economy development should be led by the financial economic development.The financial structure of the west not only faces the change of financial mode in the meaning of Goldsmiths, but also the transition of bank system. In general, the content includes: regional adjustment for the unified monetary and financial institution, system reform of state-owned bank; diversified transformation of financial organization structure; multi-layer transformation of the financial market.