Research On The Rural Credit Cooperatives In The Less Developed Regions Of China

Through the development of more than fifty years, rural credit cooperatives, which contribute a lot to the progress of rural economy, have became an important part of Chinese financial system. However, rural credit cooperatives are facing many problems which need to be settled while they are contributing to the economical development of the country's rural areas. In the year of 2004, after the publishing of , another wave of rural credit reform began spreading all over China. During this process, the rural credit cooperatives of developed regions began to transform into the pattern of rural commercial bank or rural cooperative bank. As far as rural credit cooperatives of the less developed regions are concerned, which is better? To imitate the pattern of the developed areas or to find another way? Nowadays, Chinese economy is not developing in a balanced way. Consequently, comparing to the developed areas, the farmers of the less developed regions are in a badly need of financial services of rural credit cooperatives. At the same time, the local governments also need the rural credit cooperatives to increase investment in agriculture, rural areas and farmers. However, the survival and progress of local credit cooperative is being seriously restricted by the existing problems. So, it is meaningful not only theoretically but also practically to research and explore a suitable developmental way according to the natural, social and economical conditions of the local areas.. This dissertation is divided into five parts. First of all, it defines the concept and intension of cooperative finance theory and investigates the practice and pattern of this theory in foreign countries .On this basis, it studies what China can learn from it. Chapter two discusses the present condition and problems of China's rural credit cooperatives after viewing the growth of cooperative finance. Chapter three gives a definition of less developed areas. Then it deeply studies the developmental conditions of the rural credit cooperative in these regions, especially the problems like the heavy historical burden, shortage of property right system, unsound administration and ill external environment. Chapter four explores that in the process of rural credit cooperative reform, the normative system of cooperation is the best choice for the backward areas. Aiming at the existing problems, chapter five comes out with the corresponding suggestions on the reform measures of the rural credit cooperatives in the less developed regions (changing the system of property right, retaining the legal person status of the grass-roots unit, perfecting the administration structure of corporation aggregate, carrying out business, completing the series of administration system) and external environment support (support granted for policy consideration, financial legislation, setting up the system of agricultural insurance, consummating the land-property right, construction of the credit environment). Heartily, the author hopes that the reform of the rural credit cooperatives in the less developed regions can draw on some experience from this paper.