Improving Financial Ecological Environment And Revitalizing Traditional Northeastern Industry Base

Financial ecology is a relatively new concept. It was introduced bypresident of central bank, Zhou Xiaochuan, at "Forum of 50 Economists" inthe report named "Perfecting the Legal System and Improving the FinancialEcology" on December 7th, 2004. He extended the ecological concept intothe financial area and later derived the concept financial ecologicalenvironment from financial ecology. The revitalization of the traditionalnortheastern industry base needs good financial ecological environment. Thetraditional northeastern industry base has made a major contribution to thedevelopment of new China in the past. It accelerated the industrialization andpromoted the development of entire national economy. However, with theestablishment and improvement of the socialist market economy, itsdevelopment has encountered bottlenecks. In such cases the governmentadvanced a strategy that we should revitalize the traditional northeasternindustry base. Different from articles before discussing about therevitalization of traditional northeastern industry base, this thesis tried todiscuss it from a new perspective. It was revitalizing the traditional industrybase by improving its financial ecological environment. Therefore this thesisattempted to solve these problems: 1, the content and distinction betweenfinancial ecology and financial ecological environment. 2, how is theactuality of financial ecological environment of traditional northeasternindustry base? What kind of role the improvement of the financial ecologicalenvironment plays in the revitalization of traditional northeastern industrybase? 3, how can we improve the financial ecological environment oftraditional northeastern industry base?This thesis included three parts.Part one is about theories associated with financial ecology and financialecological environment. It mainly included scholars' discussion aboutconnotations of financial ecology, analysis from the perspective of ecology,the concept and connotation of financial ecological environment and relationsbetween financial ecology and financial ecological environment. Both theconcept of financial ecology and concept of financial ecological environmentcome from ecology. On the basis of Chinese national situation, ZhouXiaochuan introduced ecological concepts into economic and financial fields.There is no corresponding study abroad and it is a creative production.Finance ecology is a relatively new concept;therefore scholars have differentunderstandings, mainly divided into "Bionics View", "Environment View"and "Value Relation View". As the financial ecology comes from ecology,this thesis attempted to analyze financial ecology from the perspective ofecology. Through the analysis, it is found that financial system has manysimilarities with ecosystem, such as: similar with ecosystem, financial systemalso experienced from simple to complex, from low level to high level duringits development process;this process is dynamic evolution;financial factorsare interrelated and interdependent;financial ecology also has adaptability.Financial ecological environment deriving from financial ecology is also abionic concept that has broad sense and narrow sense. This article mainlydiscussed on narrow sense. Besides, this thesis also differentiated financialecological environment and financial security zone. A good financialecological environment is corresponding to a good financial security zone,but a good financial security zone does not certainly have a good financialecological environment. On the basis of above analysis, finally concept offinancial ecology was defined and relations were discussed between financialecology and financial ecological environment.Part two is about actuality of financial ecological environment oftraditional industry base and necessity to improve it. It mainly included thefollowing three aspects: First, good results in improving financial ecology innortheast region;second, financial ecological environment is still notoptimistic;third, it is necessary to improve it. Since the concept of financialecology was brought forward, northeast region was paying attention to it. Thefinancial knowledge, honesty and credit were being well publicized andconstruction of credit was being promoted actively, so credit environment hasbeen improved. Governments at all levels also gave attention to it, supportedto improve the financial ecological environment and actively constructed andimproved financial ecological environment. The relationships between banksand local authorities, banks and enterprises, to a certain extent, wereimproved either. During the improvement of the current financial ecologicalenvironment, though there have been some good results, financial ecologicalenvironment is still not satisfying. Overall credit environment remains poor.The deficiency of legal system disturbs the healthy growth of financialfactors. The fact that economic development is heavily dependent on bankcredit burdens banks. Direct financing develops slowly. The agencies cannotsatisfy the economic development. There are also many problems inenterprises. To revitalize the traditional northeastern industry base, we mustimprove financial ecological environment. It will promote the economicdevelopment of northeast region and be conducive to growth of the financialinstitutions in northeastern region in size and ability and the reform ofstate-owned enterprises also needs a good ecological environment.Part three is about ideas and measures to construct traditionalnortheastern industry base. Construction of financial ecological environmentis a systematic project, involving all aspects of economic life. First, weshould speed up the establishment of the credit system and regulate creditsystem of financial ecological environment;perfect the incentive andconstraint mechanism of credit system by using legal, economic, media, andother means synthetically to maintain punishment mechanism for socialcredit;improve information sharing system, nurture credit reporting marketand improve credit guarantee mechanisms;enhance accounting and auditingstandards to ensure that they are really strictly implemented in enterprises.Second, it is necessary to improve the legal system and create a good, soundlegal environment. For this purpose we should perfect laws;enhance thefairness and efficiency of law enforcement;eliminate all kinds of illegalfinancial institutions and illegal financial activities. Third, exert thecomparative advantages of northeastern region, cultivate core economiccompetitiveness and seek new economic growth points. Vigorously developthe petrochemical industry, the automobile industry, the equipment industryand food-processing industry. They are the industries of core competitiveness.Cultivate high-tech industries and pharmaceutical industry as new economicgrowth points. Fourth, we should strive to develop agency service institutionsand improve service. Standardize the development of social intermediaryservice institutions. By using Market-oriented reform as a breakthrough, instrict accordance with corporatization and market principle, develop standardsocial agency service institutions and strengthen market competition ofagency services. Fifth, optimize ownership structure and vigorously developthe non-public economy. Sixth, we should use financial innovative means toimprove the financial ecological environment. Seventh, governments shouldplay a leading role in improving the financial ecological environment.