Research On The Rural Cooperative Financial Institution Of Less Developed Areas

For a long time, the three agricultural issues plaguing China's development has always been fundamental issues. Specific to rural finance, it means that in rural areas the financing needs of broad masses are not met, seriously hampered the development of the rural economy. Which financial system should be established to meet the needs of local people in rural, many experts and scholars have commit themselves to this subject. As a vast territory, the culture and level of economic development of our country vary widely, the financial systems in rural areas are also in great differences. This paper aims to find out in the less developed districts in western China, which financial system is really needed? Through field investigation, we found that what local people really need is the cooperative financial system. Based on the field investigation materials and data, this paper researches the importance of the co-operative financial system in the less developed areas, as well as how to establish the co-operative financial system in line with local conditions.This paper studies the cooperative financial system in rural areas, which is inseparable from the issues concerning agriculture, countryside and farmers. In recent years, with regard to issues concerning agriculture, countryside and farmers, many scholars put forward a number of settlements, but most of them are with limited effects. This paper reckons that the emergence of issues concerning agriculture, countryside and farmers has its own institutional reasons. The reasons are that social institutions have changed and farmers have decentralized in the process of Chinese community transferring to marketing economy. In the competition, scattered farmers are always located at the end of the allocation of social resources. In that case, rural areas and agriculture have inevitably become relatively behindhand. In order to strengthen farmers'bargaining power, we should enable farmers to unite into a stronger organization. However, if scattered farmers form a union, its transaction costs are enormous. So, it will be a good way to build cooperative financial system. This article will also discuss the relationship between cooperative financial system and policy-oriented, commercial financial system. In addition, the paper focuses on cooperative financial system, and then involves in civil rights theory which is a theory of building rather than destruction. Through the study of cooperation finance institution, this paper try to prove that in less developed rural areas, cooperation finance institution will be a powerful complement of the existing rural financial system and will satisfy public finance need. What's more, it can promote the development of local economy.