Research About Rural Microfinance

In China, the agriculture-base country, major part of people populate in broadcountryside.Statistical datas indicate that people 20 percent of the total population stays on thelow-income group, most of which from countryside. The core concern of establishing socialism"new-agriculture" and resolving "three-agricultural issues" becomes another issue how to increasefamer income. Providing financial services to poor people, microfinance as a new financial facilityhas been introduced into China to be an effective way to improve the poverty and to promoteemployment. All of these will accelcrate this fields to grow and gain a remarkable achievement infighing poverty and activating agriculture financing marker.However, as known, the present development situation of rural microfinance can not meet thedemand of agriculture economy development, many problems in existence, Such as, the legal statusof non-financial institutions still unconfirmed;lack of constant supervision and management whichinfluencing its long-term development; formal financial institution—rural credit cooperativerunning the microfinance business alone, the result of this situation leading to many problems oflower coverage and difficulty to loan. Meanwhile, insufficient capital, high risk, difficultmanagement and obsolete service all confine the existence and development of this microfinancefinancial organizations, nevertheless, whether these problems should be solved, soundly, not onlythe survival and the development of microfinance organizations,the supporting fund safeguard forthe peasant to increase the income,but also the countryside credit market order and the ruralmicrofinance development, and parricular directly, our country "new-agriculture" developmentshould be heavily affected. Therefore, this paper analysises detailly the exising questions about ourcountry rural microfinance,finds the methods and the measures to solve these problems, providethe feasible suggestions for the healthy and sustainable development of China rural microfinance,and makes the contributions to the construction of "new countryside" in China.ChapterⅠis introduction of the background, the purpose and the significance of the research, thepaper's structure, the method and the mail content of the research, as well as simple introductiondomestic and foreign research situation about microfinance.ChapterⅡis introduction of the basictheory about rural microfinance.ChapterⅢmainly explains the main problems exisiting in ruralmicrofinance market, i.e. lack of agriculture financial institution, unbalanced demand-supply ofagriculturel capital, the risks of rural microfinance institutions and lack of the sustainabledevelopment and its negative influences. ChapterⅣis simply summary to the success experiencesabout the foreign microfinance development, and the author analyzes how to develope the ruralmicrofinance in China by absonbing foreign success experiences; ChapterⅤaccording to the mentioned problems in chapterⅡ, the auther explains his opinion how to establish diversifiedagricultural financial system, to solve the unbalanced demand-supply of agriculturel capital, to avoidthe microfinance risk, and to develope sustainable plan about microfinance organizations.ChapterⅥon the basis of the methods to sovle exisiting problems about rural microfmance, explainthe author's opinions that the rural microfmance health development is advantageous to"new-agriculture" enen to our country. The auther's main idea, is that the positive influence on the"new-countryside" should be brought by the agriculture microfinance health development.There are some shortcoming in this paper, inadequate material and relative data hard tocollect made some experimental analysis supported weakly. In addition, author's knowerledgecoverage, limited research ability should cause some mistakes here or there. Tbe author welcomeyour indication and teaching.