Study On Peasant Household Financing Mechanism Of China

In recent years, a lot of investigation and research show that peasant household need funds urgently. Shortage of funds constraints the development of the agricultural economy, progress of rural social, and increase of the farmers'income seriously. In order to construct harmonious society, achieve the magnificent goal of modernization, we need to deal with the problem of financing first.There is no way to loan, to be short of a pledge to financing,and lack collateral. Apparently, the above are the reason of the problem of financing. In my opinion, the most basic mentality and countermeasure are to establish financing mechanism of Chinese peasant household which suits the peasant household's financing characteristic, adapts China present socio-economic development condition and meets the requirement of market economy.Since the founding of the People's Republic of China, it has gradually established the Agricultural producers'co-operatives and the People's communes. The peasant household lost the agricultural production organization's status completely, and become a basic consumption unit. Along with the establishment of planned economy system, financial leading financing mechanism has formed. The problem of financing of peasant household appears to be not so important. After the reforming and opening up, China gets rid of the highly centralized planning system. The national income distribution pattern changes deeply. Capital which distributed by finance in the past now flows into the banking system. At the same time, progressive reform in China also needs the power of bank to maintain the stability of systems of macroeconomics and finance, and to ensure the socio-economic system operating orderly. Therefore a financing mechanism that dominates only by the bank load has been formed, which assumed the cost of reform, powerful supported the reforming, opening up and economic construction. But providing capitals to the economic organizations by bank which is the only channel, not only depressed the development of capital market, but also misled the enterprises'excessive liabilities operating. So the great risk of operating transformed from enterprises to banks, which seriously handicapped the coordinated development of national economy. So the single bank loan-based financing mechanism must be broke, instead, the market-oriented financing mechanism will be established so that to adapt to the market economic system.At present, we are in the period of the shift from the planned economy to the socialist market economy. All aspects of the market economic system, including financing mechanism are establishing and improving. Traditional agriculture transits to modern agriculture. Agriculture management model changed from small scale to large scale. However, owing to the constraints of land system, labor system, the social security system, urban and rural structure will not to be broken so easily. It can be predicted that agriculture business model in China will continue to be peasant household manage centered for a long time. In the transition period should be established a"composite peasant household financing mechanisms"which reflects a transitional nature. In order to construct a"composite peasant household financing mechanisms", it must clear peasant household's dominant financing position, explore innovative means of financing, make scientific decision-making, establish and perfect risk prevention system and improve the environment and conditions system under the expanding market system.This paper with regard to the research into construction of the"composite peasant household financing mechanisms"falls into nine chapters.Chapter one: Introduction. The background, purpose and significance of study were elaborated. A brief review of dynamic studies at home and abroad was introduced. Thesis research ideas, methods, content and possible innovation was unfolded.Chapter two: The theoretical basis of research into peasant household financing mechanisms was introduced. The connotation of the basic concepts, such as peasant household, peasant household management, peasant household financing, was analyzed and defined. This chapter also discussed the framework of financing mechanisms and theoretically divided development stage of financing mechanisms in China.Chapter three: Evolution of Chinese peasant household financing mechanisms,which recalls the three stages of its development process. Before the liberation, peasant household had an independent operating status, and private lending was their mainly financing channels, accounting for about 70%; credit guarantee and land mortgage were main financing means; financing borrowing rate was high and very risky; the goal of financing was for life. Before the era of reform and opening-up, our country formed financial leading financing mechanism. This kind of mechanism was advantageous in concentrating financial resources and promoting various industries, including agriculture, to rapidly develop. But as the socio-economic development, financial leading financing mechanism is gradually emerging low efficiency to allocate of resources. Thus, in the initial of the reform and opening up, bank loans-oriented financing mechanism was implemented. With the establishment of the system of market economy, the bank loans-oriented financing mechanisms also highlight the problems. In this chapter, on the basis of investigation of 1130 peasant households'financing condition and mechanism, which scope over east, middle, western 12 provinces, city and autonomous region of China,our country's current peasant household financing mechanisms was analyzed.Chapter four: The establishment of peasant household financing mechanism during economical transition period. First, it analyzes the background of the economy system and reform of the establishment of composite peasant households financing mechanism; defines the goal that build composite peasant households financing mechanism under the condition of uncertain market system; proposes a basic idea of innovation of peasants households financing mechanism at economy transition period, and outlines the frame content of composite peasant households financing mechanism. Composite peasant households financing mechanisms requests: peasant households which are enterprise management as financing main body, innovative financing means as a core, the market mechanism as a means. Our country must gradually establish a peasant household financing decision-making mechanisms and risk-control mechanisms, and create a favorable environment and conditions for peasant household. This chapter concludes that with the development of the market economy, it is necessary to gradually establish a market-oriented peasant household financing mechanisms.Chapter five: Innovation of peasant household financing means. Innovative peasant household financing means are key and core of"composite peasant household financing mechanisms". While continuing to develop peasant household credit loan financing, it must promote multi-household and joint guarantee loan, play the role of peasant family property and focus on innovation of long-term assets financing, peasant household biology property financing and peasant household land employment right financing. Base on above, peasant household direct financing method which depends on peasant household cooperative economic organizations will gradually form.Chapter six: Decision-making mechanism of peasant household financing. This chapter introduced the content and the principle of peasant household financing, analyzed the impact factors and discussed the methods of peasant household financing decision-making.Chapter seven: Risk control mechanism of peasant household financing. This chapter analyzed the risk type and producing mechanism of peasant household, introduced and discussed the methods of risk assessment, and put forward a risk prevention mechanism which relies on each household financing risk earlier warning system and risk-sharing mechanism.Chapter eight: Environment and conditions construction of peasant household financing. Rural financing market system construction,rural property right trading market construction and rural capital market system construction are discussed which constitute the environment and conditions of peasant household financing.Chapter nine: Conclusion. I give a summary of this paper and develop some further issues that should be discussed.