A Tentative Study On The Financial Support Of Sand Industry In Inner Mongolia

Sand industry is one of emerging industries in the 21 century. The development of sand industry not only can improve the ecological environment of arid areas in our country but also can develop diverse industries based on the different quality of arid areas, such as agricultural, farming, breeding industry, forestry and industry, promoting regional economic development, improve the production and living standard of local residents. Inner Mongolia Autonomous Region is one of the most serious desertification districts. In recent years, the rapid development of sand industry becomes one of the important factors that promote economic growth of Inner Mongolia. However, the development of sand industry is still in its infancy in China, the problem that lack the fund to achieve further development, to expand the scale and to extend the chain becomes prominent.Finance as the core of economy and the blood supply system is an important factor to support and promote economic development, also, it is very important for sand industry. But, in Inner Mongolia, the insufficient scale and low efficiency of sand industry finance support are seriously restricted the development of sand industry. Under this circumstance, what should financial department to do to achieve supporting is a big problem which has important practical significance need to be studied and resolved.This paper's subject is divided three parts studying sand industry finance support. The first part is based on the present situation of sand industry and financial support it received in Inner Mongolia, researches current situation of sand industry financial support, and the relationship between finance and sand industry. The second part mainly analyses the problem existing in the present sand industry financial support, and find out the reasons for this from following aspects:sand industry itself, the national policy, financial department and enterprises. The third part proposes corresponding countermeasures and advices on the basis of industrial economics, finance and other related theory as a source of reference and considered the current conditions:firstly, enhance the absorption of capital formation and development funds in sand industry. Secondly, improve current financial support, including credit policy preferences, financial product innovation and so on. Thirdly, devise risk-compensation mechanism, set up support funds, and develop diversified financial services and such government support methods. Fourthly, the sand industry enterprises should enhance self-development in order to establish up a benign interaction between the development of Inner Mongolia's sand industry and financial support.With the increased industrialization of sand industry in China, it becomes increasingly important to develop and complete the sand industry financial support system for the industrialization of sand industry. The countermeasures and advices have been made out in this paper have important practical significance for economic development of Inner Mongolia autonomous region and the development of sand industry of China.