A Study Of Chinese Rural Folk-Lending With High Interest Rate

The folk-lending has been discussing for a long time, it makes significant influence to the development of Chinese rural economy. The correct understanding and treatment of current Chinese rural folk-lending, will be benefit to deal with Chinese rural folk finance correctly, to develop the rural economy further.This article began the topic of the folk-lending from the debate of usury with counter-usury. Then it proved the relative rationality of the folk-lending interest rate and then the folk-lending, through analyzing to formation and decision of he folk-lending interest rate, elaborating the low or even negative effect of the "counter-usury" from both theoretical and practical aspects, expounding the causes of the folk-lending's existence. And then it gave the conclusion of "the folk–lending should not be simply forbidden", etc., and proposed the principle to treat with the folk–lending, that is, making the small-scale production to the socialized big production so that to eliminate the high interest, by developing productive force. Finally, proposing some measures to solute the folk-lending problem from several aspects, such as, reasonably protecting the folk-lending in laws, developing rural economy, developing the folk-lending itself to eliminate high interest rate and so on.To obtain the correct attitude to the folk-lending and finance, and then to find concrete measures to develop China rural finance and to improve the quality of Chinese peasants'life, through analyzing and then correctly understanding the folk-lending and finance, is the purpose and significance of this article.This article's research is based on multi-viewpoints, such as the view-point of productive force, the viewpoint of analogy or contrast from ancient to modern, the viewpoint of life-value, the view-point of rational persons and so on. This article utilized many kinds of research techniques, for example, balance analytic method, margin analytic method, induce method, historical diagnostic method and so on.To prove the folk-lending's relative rationality through proving the folk-lending interest rate's relative rationality, is this article's innovation in research view-point. In analysis of the interest rate, there is some innovation too. That is, it introduced the new concept of "life value" from history study, and established an interest rate model to survive-lent, and also established a new model to developing-lent.