To Promote Government Economic Functions Of The Rural Microfinance Development

With the developing mode of the microcredit which has been introduced to China since 1993, its performance in both poverty supporting and financial innovation fields are significant. The achievements of the recent 20 years confirmed that microcredit exerted crucial influence on the development of rural economy in China and also embodied that the socialism's purpose are perfectly associated with the market economy's regulation.On the base of the more than 10 years'development of the microcredit, we can figure that it could decelerate the failure of rural financing market to some extent and satisfy the needs of funds from the lower-income class. At the same time, one of the efficient methods and steps to carry out financial deepening and financial innovation is to promote the development of microcredit. The government also plays a critical part in the microcredit promotion, but the issue exists among the theorists on what kind of effects, on which aspect, the depth and width of the effect exerted by the government during the period of social transformation. Some scholars deemed that the important prerequisite of microcredit development is credit institution should maintain good relationships of corporation with the government, the latter can accelerate the growth of microcredit; but others considered that the excessive intervention on the operation of microcredit by government would result in the loss of the credit institution'independence which is harmful to form an effective operational mechanism.This dissertation based on the current situation of China and instructed by the standpoint, viewpoint and methods of Marxism wholly analyzed the development, effect and problems of Chinese microcredit form vertical and horizontal dimensions. Based on the information mentioned above, this author uses analysis tools such as interest rate decisions model to further analyze the influence exerted by government on the development of rural microcredit. The advice and solutions about microcredit would also be proposed in this thesis.The thesis consists of the following parts:Part one:Introduction. The introduction summarizes the background, theoretical and practical significance of the article and designs various structures and diverse levels of the article from the macro-frame work. The detailed contents include the significance of the topics, the related conceptions and definition involved and research ideas. The second part: Related theories of Marxism. By sorting out and summarizing the related ideologies of Marxism on the comprehensive development of human, agriculture, credit and economic functions of government, we can relatively easily acquaint and understand the role and position of government'functions and the nature of microcredit from the deep sense.The third part: The current situation and problem of microcredit in China. By analyzing the evolutionary history of Chinese rural microcredit, the author analyze the of the status and existing problems of the development of rural micro-credit from an empirical point of viewThe forth part: The analysis on mechanism of the government's economic functions during the development of the microcredit. The author analyzes the mechanism of government's functions which affected the development of microcredit and rural economic market using economic models. The existing problems and reasons which are involved in the current government's economic functions are also revealed during the development of the microcredit.The fifth part: Rural microcredit development strategies and suggestions. To handle the problems which arose during the development of rural microcredit, the author reasonably arranged the government's economic functions and absorbed and learned from foreign experience in the successful microcredit model. Countermeasures and suggestions from the micro level and macro level are also given to deal with the problems.