The Best Institutional Selection Of Rural Credit Cooperatives In Underdeveloped Area

Rural Credit Cooperatives (RCC) has developed for more than 50 years in China, and become an important part in rural financial system and dedicated much to Chinese nationaland rural economic developing. However, when RCC supported the fast development of our country's agriculture and rural economy, it also is faced with many accumulated problems and which need to be settled as soon as possible.In 2004, after"The office of state department concerning opinion that turns the Rural Credit Cooperatives to reform the experimental unit further and deeply",released, the new reform of RCC start within the whole country. A series projects of the funds supporting that have been adopted, which has created the unprecedented developing opportunity for RCC,such as increasing capital and principal, reducing and avoiding the revenue, releasing central bank note and loan again. According to the total request of "clearing property right relation, enhancing the stipulation mechanism, strengthening the service function, and the provincial government is responsible for RCC with the appropriate support of the state government", RCC in developed area have turn into rural commercial bank or rural cooperative bank. RCC in underdeveloped how to reform, to choose what mode, and whether should mimicry developed area's mode or look for another one, which has no definite answer. In fact, the large number of farmers in underdeveloped area even more needs financial service from RCC, the local government also needs RCC to support "three agricultures". But to RCC here, owing to many problems such as insufficient capital,indefinite property rights, heavy stock of ill-capital, inefficient administrative system, poor operational situation and abominable development environment outside, RCC has fallen into a desperate situation. It is essential to probe into a suitable developing road according to the natural, social and economic situation. This is of great theoretical and realistic significance.There are five parts of this paper:Firstly, this paper introduces the purpose and significance, research summarization of rural credit cooperatives in our contry, and puts forward the research ways; The second part, based on reviewing the history of RCC of our country, this part discussed the characteristics and problems of RCC in underdeveloped area; The third part contrastively analyses present situation of RCC between underdeveloped and developed area, and expounds institution transition of RCC in underdeveloped area by using economics methods. Then, this part demonstrates the suitable target of RCC in this area, based on the case study.the fourth part comb the historical data of rural credit cooperation in Ganzi to examine the proposed theory. The last part provides the corresponding measures at some aspects, such as clearing property right, optimizing the structure of legal person, establishing supervisory and administrative system, innovating the mode of operation, and improving external development environment and so on, which will benefit to the reform of the RCC in underdeveloped area.