Research On The "Ternary Structure" System Of Rural Finance In China

One of the key and difficult points in the rapid development of Chinese economy is the agricultural, rural and peasantry problem, namely, the"three peasantry"problems that we've often heard and well remembered. It is prominently manifested as the four"numerous weak groups"centralized in rural areas of China, and secondly, the financial problem related to it. While in China, such financial problem actually indicates the rural financial problem, because urban finance or modern finance opposite to rural finance is more in line with the international market relatively since its naissance, and by comparison, the existing problem of it is not complicated like rural finance due to long history. Then, rural finance that has the"three peasantry"problem as well as financial problem appears to be beset with difficulties. In fact, whether discussing from the aspect of supply or demand, or even the unbalancing of supply and demand, there is not any controversy in China over the theoretical judgment on the existing of rural financial problem, the difference exists in seeking for the way of solving the problem.The scientific and reasonable arrangement of system can increase efficiency, relatively find out an easy, more scientific path to solve the problem, at least the problem can't become worse, and better arrangement of system is established on the basis of fully understanding the system's transition path and research on its rules. This is the analysis angle of view and analysis framework provided by new system economics. It creates a new way for economic research, and can be used for reference for study of financial problem. Therefore, the attention for solving rural financial problem in China is naturally paid to the rural financial system.Some rules can be concluded from the research on the transition process of rural financial system in China. One of the obvious characteristics is that the"ternary structure"has formed through historical evolution, composing of rural commercial finance, rural policy finance, and rural cooperative finance. Therefore, the rural financial system in China is called"ternary structure"system for the moment. It happens that there is a similar case. It is found through the comparison research on rural financial system in some foreign countries that whether developed market-oriented countries or developing countries that are transiting to the market economy have presented the"ternary structure"characteristics in their rural financial system on the whole. This may be a coincidence, but it basically accounts for that effective rural financial system should or basically be composed of the"ternary structure". Actually, tracing back to its source, the"ternary structure"of rural finance in China has its own historical cause. The hint of this problem has a 2,000 years'history in fact. Tang Yinbi had ever said that the Han nation relied on the poor land of the Yellow River valley lived more hardly than the nation in the drainage areas of the two rivers (Euphrates, Tigris) and the Ganges, which created the agriculture of intensive cultivation in the world, the demand of the country for large population, the household management of the land instead of manor or large farm, the peasants sticking to the land and the corresponding system of political management, and the special household-oriented culture. This is the historical dependence that we can not choose. It is the historical result, and even the starting point for the problem of the time. Therefore, the Chinese people have been facing the"agricultural-rural-peasantry"problem for thousands of years, but the Chinese nation does not decay, on the contrary, the nation is booming in population and advancing in culture on the poor land. This all depends on the able and virtuous men who had racked their brains in the history of China. Agriculture is the largest politics at that time. To maintain the sustainable development of agriculture, rural area, and peasantry, or maintain the sustainable development of the Chinese nation in fact, the rural financial system has been gradually developed 2,000 years ago. This is the embryonic form of the"ternary structure". The storage system, called"chang ping cang"in Chinese, has been developed in Han dynasty. The function of it is that loans were made when encountering poor harvest, and gantries were opened to relieve the poor when encountering severe poor harvest. Actually, when encountering common poor harvest in regular years, the government put into force the policy finance with the medium of barter. Up to Song dynasty, Wang Anshi fulfilled the policy of young crops subsidy, which was the comparatively self-contained policy finance with the medium of currency. The earliest cooperative finance known up to now was only represented in the cooperative organization in Song dynasty. Everybody feels the same about it. We can hardly deny that such spontaneous civilian financial system has existed early in Han dynasty. Commercial finance can be traced back to earlier time. It is recorded in the Shi Ji (Historical Records) that the three famous merchants in Chinese history Yi Dun, Bai Gui, Fan Li all had ever the so-called currency dealing activities nowadays. Even earlier, the Chinese Yinshang nation is just the nation of businessmen, who were expelled later by the people of Zhou dynasty and lose their land for cultivation and thus became the businessmen coming and going through Qi, Lu, Zheng, and Wei states. They were called the"Eastern Jews"by some historians. It can be known from above that there has been the"ternary"financial structure in early time of China. They are more complete and mutually complementary, supporting the agriculture, rural area, and peasants. This is the historical call of Chinese traditional agriculture, peasants sticking to the land and the household, highly civilized habitation culture. Then the Chinese nation can survive in colonies and multiply and develop up to now. However, there's not definite appellation for the"ternary structure"at that time, even up to now. The setup of this financial system is the historical dependence. No matter whether we'd like or not, to define the rural financial system as the"ternary structure"is a conclusion drawn from practice, and consider it as the object of research is just the original idea for research of rural financial system in China.Then, the system has to be researched to solve the problem of rural finance in China, and the subject of such rural finance system is just the"ternary structure"system. This has obviously settled the problem of object for research, and opened a door as well for solving the problem.The scientific fundamental connation and extension are given to the"ternary structure"system of the rural finance through research, and clear definition is given to the theoretical characteristics of the"ternary structure"system itself. Especially, on the basis of the functional theory and the coordinating theory of finance, three different levels of theories on the"ternary structure"of rural finance are put forward, so as to deepen the theoretical knowledge on the"ternary structure"of rural finance, make it more scientific, and most important, more close to the objective law of existing and development of the"ternary structure"of rural finance. Furthermore, based on the financial function and from the perspective integrating function and structure, the basic and special function characteristics of the three composing elements of the rural financial "ternary structure"system—rural commercial finance, rural policy finance, and rural cooperative finance have been researched respectively, more definite theoretical conclusion on the practical form and basic theoretical characteristics of it in China is reached in this dissertation.Therefore, the train of thoughts for solving the Chinese rural financial problem becomes clearer and clearer. That is, on the basis of the achievements of theoretical research on the"ternary structure"system of rural finance, analyze the transition course of rural financial system in China by comparison with concrete evidence to find out the existing systematic problem according to the analytic frame and method of the new systematic economics, and conclude the essence from it. The study proves that the essential problem existed in the Chinese rural financial system is that the arrangement of the"ternary structure"system is neither scientific nor reasonable, does not accords with the theoretical characteristics of the rural financial"ternary structure", or not completely accords with the theoretical characteristics prescribed in the"ternary structure", which leads to malfunction, fault of the subject, failure of operation, and low efficiency, even worse, some reasonless, un-theoretical, and unscientific conclusion and action have arisen in the practice of financial reform. For example, the tendency of turning cooperative finance into commercial bank, and even suppress the rural credit cooperative; disbelieve the existence of policy finance, confuse the basic concept and classification of policy finance; the tendency of simply introducing foreign strategic investor as the solution to the reform of commercial finance, hoping to settle all puzzles by selling, and so on. Therefore, the outlet should be reconstruction, reorganization, and reestablishment of the rural financial system in China following the theory of rural financial"ternary structure"system. The solution to it is to accomplish the reconstruction, reorganization, and reestablishment of Chinese rural financial"ternary structure"system by the two routes of mandatory transition and inductive transition, taking the scientific"ternary structure"system of rural finance as the objective, and the system transition theory as the basis. It is in short, the adjustment, normalization and development of rural commercial finance, bringing order out of chaos and carrying out a radical reform of rural policy finance, reconstruction, reestablishment, and development of rural cooperative finance, so as to develop a high-efficiency rural financial system, realize sustainable development of Chinese rural finance eventually, and then lay a solid foundation of finance for thoroughly settling the Chinese"agricultural-rural-peasantry"problem.