Development Of Rural Economy And Reform Of Financial System In China

Agriculture is the foundation of the national economy. Since the introduction of opening-up policy, Chinese rural areas have undertaken amazing changes. The development of rural economy has played a very important role in the rapid development of macro-economy, the security of national economy and political stability. However, since the mid-90s of 20th century, the agricultural production have developed slowly, town and township enterprises have been enduring the hardship in the second pioneering work, farmers' income has been increasing slowly, and the income gap between farmers and urban residents has been increasing. After China's entry of WTO, agricultural production is being threatened by the great impact of agricultural products from foreign countries. Under such pressure from both home and abroad, Chinese rural economy will encounter greater difficulties than ever. Therefore, it is of practical and theoretical significance to study the development of rural economy. Academic circles have pointed out many solutions to the problem of rural economic development such as, restructuring of agricultural production and expansion of small towns and cities. However, all solutions share the same problem?梐 shortfall in the amount of money. This article discusses an efficient method for the rural financial reform so as to provide sufficient financial support for the development of rural economy.The article starts with the present state of the rural economy, and continuously talks about the financial requirement for the rural economic development. Furthermore, the reform direction of financial departments in the countryside has been pointed out through the method of combining comparative analysis, theoretical analysis and logical analysis. [Different from discussions about financial reform in the past which only focus on the support of rural economy but neglect the financial institutes as the main body, this article highlights different support of financial institutes on the basis of their own characteristics. Therefore, sufficient financial support is available for rural areas and, at the same time, the benefits of financial institutes are avoided from damage. A win-win effect can also be achieved, that is. the rural economy can develop rapidly and the benefits of financial institutes in countryside can increase.Name:Li Wen/heMajorAgricultural Economic ManagementSupervisor.'Prof.Li Youhua...