The Government's Responsibilities In Development Of Rural Financial Mutual-Aid Organization In Our Country

In recent years, a kind of banking financial institution with community mutual-aid characteristic, which provides services of deposit, loan and settlement etc. for community members, has been established by farmers and small enterprises spontaneously in townships (towns) and administrative villages in our country. As a kind of newly-emerging civil financial organization and one form of cooperative economic organization, it was actively supported and responded by local farmers. This article, from theory and practice, objectively describes and analyzes the meaning, producing background and functions of rural financial mutual-aid organization, and expounds its great significance in adapting to the rural financial demand market in our country and satisfying farmers'needs of fund for production and life as well as pushing forward the financial reform in countryside. In addition, the countermeasures for supporting its development in law construction and policy-making are put forward.Firstly, this article analyzes the producing background of rural financial mutual-aid organization. Since the Third Plenary Session of the Eleventh CCCPC, great changes have taken place in countryside, and life of farmers has been greatly improved. But in the middle of 1990s, the income-increase of farmers slowed down, and the income gap between city and countryside became larger. Although a series of reform measures were issued by the Central Committee, the contradiction of individual farmer's small-scale production and large market was not solved fundamentally. Meanwhile, a series of measures were carried out by government to reform the rural financial system, which failed to improve the fund deficiency in production and life in countryside. This article, on the one hand, concludes that although a series of changes were made in systems and institutions, such as the People's Commune, Rural Credit Cooperative and the Rural Supply and Marketing Cooperative lost their cooperative characteristics due to state control, and the phenomenon of"dispersed business lacks unified management"resulted in farmer's family contracting reform, and the industrialized business policy of"company + farmer"in countryside, the contradiction of small-scale production and large market become more serious. On the other hand, a series of financial reforms in countryside, such as resuming the Agricultural Bank of China, constructing Agricultural Development Bank, deepening the reform of Rural Credit Cooperative, and the commercialization of Agricultural Bank of China, Agricultural Development Bank and Rural Credit Cooperative, make it worse of fund deficiency in countryside. For the financial reform in countryside was not improved essentially inside the system, increment becomes the best solution for it. Therefore, rural financial mutual-aid organization, a new type of rural financial institution, emerges.Secondly, this article introduces the development status of rural financial mutual-aid organization. Taking 10 financial mutual-aid societies in Siping City, Jilin Province as cases, the writer introduced the development status of Baixin Rural Financial Mutual-Aid Society in Yanjia Village, Lishu County, Jilin Province, which was approved by China Banking Regulatory Commission, and the development status of other 9 rural financial mutual-aid societies established by farmers spontaneously, and make comparisons of development of various kinds of rural financial mutual-aid societies by detailed data. And then the writer summarizes the four functions of rural financial mutual-aid organization as connecting farmers, production, market and government, and its active effect in organizing farmers and accelerating financial reform in countryside.The third of this article analyzes the predicaments in the development of rural financial mutual-aid organizations in our country in deeper level. The predicaments consist of following problems: the main-body status of the organization is low, the fund source is deficient, the specialized talents are insufficient, and the tax burden is too heavy and the orientation of mutual-aid deviates. Then this article summarizes the development of cooperative finance in our country. On the basis of the summarization and using the successful experiences of Japan, South Korea and Taiwan for reference, the writer definitely puts forward five responsibilities, which should be taken by our government in the development of rural financial mutual-aid organizations, from the view of economics. The first is to accelerate the progress of cooperative financial legislation. The second is to strengthen the support and enlarge the capital of rural financial mutual-aid organization and financing channels. The third is to treat differently and reduce the admittance restricts of business administration department, tax department, public security department and fire control department. The fourth is to establish scientific and strict supervision system to prevent risks. The fifth is to make popularization and training plans to ensure sustainable development of rural financial mutual-aid organization.