The Problems Of Financial Development In The Western Counties

The practical experience from home and abroad has proven that, highly efficient financial activities can not only give an area a good arrangement of economical resources, but also improve this area's economical development. As our country's market reform gradually goes in-depth, the finance starts to affect economy evidently. Under the condition of market economy, the execution of the exploitation of the west and the development of the western counties cannot avoid the connection with county finance. However, from the current condition of financial development of the western counties we can see that, the serving function that county finance has for economy declines stepwise. The organization of county finance lessens the commitment to the credit and loan of the economy, and through its own system, distributes the county capital that has prevented the development of county economy. Therefore, studying the problems of financial development in the western counties has important significance to developing the economy of the western counties, narrowing the gap between the west and the east, and building a harmonious society.This thesis bases on theoretical analysis, formulates the connotation of the development of county finance, analyses the important impacts that the financial development has for the economical development and the mechanism of their mutual effects. It concludes that current improvement of financial efficiency and the mode of"supply-leading"financial development is the main direction for the financial development in the western counties. It also proposes the idea that county finance and economy should develop mutually. Base on this, according to the Qinghai case, and through the illustration and analysis of the development of Qinghai counties'finance and economy, it can be found that the economy and finance cannot develop mutually and positively is the main problem which the development of the western counties is facing now. Besides, from the county economy, the arrangement of financial system and the external environment, these three factors, this thesis makes an in-depth analysis about the reasons of this problem. In the end, it raises some counter plans and suggestions which aims at strongly developing county economy, rebuilding county financial system and founding a good external environment of credit policy.