Study Of Private Capital Investment In Rural Infrastructure

Non-governmental, master in private enterprises and joint-stock enterprises belongs to private equity and other forms of all belong to private enterprise and individual fund called private capital, in our country, folk capital accumulation has reached a very considerable Numbers. Most of these folk capital with bank savings way exists, another part of the stock market and may betting some investment deadline short, benefits of recycling front short industry. In recent years, our country to build new countryside, rural infrastructure construction need lots of fiscal expenditure, mere government expenditure to build the rural infrastructure construction is impracticable. Our country agriculture infrastructure construction level uneven, in the economic developed eastern regions, rural infrastructure construction has been relatively perfect, and to the private capital investment has reached the certain proportion. But in the Midwest is different, the Midwest is located in inland, economy is relatively undeveloped. Rural infrastructure construction, such as education system, traffic, electric power, water conservancy, communications, health, medical aspects of the facilities are not perfect, and need construction complete. There are some facilities although have, but the construction of disrepair, and no one on the upgrade update, early already behind the demands of The Times. Therefore the Midwest rural infrastructure needed funding gap is very great. Although our country folk capital in order to introduce the rural infrastructure construction has enacted a series of guiding policies, but still exist many problems. First, the system problems, Since the implementation of market economy, although China in accordance with the optimized system leads non-public economic development, but the government's mandatory intervention is very strong. The government department concerned to private investment pre-qualification and registered capital, land index of the way the division of implementation, business scope, investment project's permission, trade channels open, the transfer of property rights and enterprise mergers and so on many link and implement the more "lead" examination and approval formalities, resulting in private investment and multifarious, levels low efficiency, long time, private investment in and foreign, state-owned enterprises competitive qualification, competitive conditions and opportunities to compete, often at a disadvantage in contusing badly private investment confidence and enthusiasm. Second, the government issued the implementation of some of the policies on private investment growth play a very significant role. But the way these policy itself also has limitations, no integrity and grassroots for policy implementation does not reach the designated position, make folk capital investment in the development of under adverse conditions. Third, financing problems, As the market for private capital concept of distrust, folk capital investment project to want to carry on the financing is often difficult. In rural infrastructure building, the credit is mainly composed of agricultural bank, agricultural development bank and the rural credit cooperatives, assume, commercial bank is not willing to provide agriculture infrastructure funding requirements. These financial institutions widespread "wary of the loan" and "borrowing" phenomenon. Fourth, the quality of folk capital investment itself. Private investment is still in the development stage, many qualities are still not mature. In rural infrastructure construction, but also lack field of scientific budget and skill of mastery. Folk capital investors for the rural infrastructure construction didn't fully understand, are not able to plan a most reasonable use whole planning the most effectively in a certain extent, appear not harmonious, difficult to maximum effect.On the analysis of the private capital investment in rural infrastructure field after the problems existed in the paper analyze these problems cause seek Suggestions to solve the problem. Internationally, many countries have introduced infrastructure privatization system, so as to enhance the efficiency of public utilities itself, reduce the government's financial and human resources, improving the infrastructure spending, the service quality and maintenance strength. In its financing, construction period and the distribution of income in the maintenance on practice has many places in China, worth admirably selectively absorbing, and combining the domestic actual situation, to apply to the real practice. Referring to the experiences of developed countries and the enlightenment, this paper gives a better guide to folk capital investment of rural infrastructure generally put forward the following Suggestions:first, to improve the relevant laws and regulations, the government issued relevant policy documents except as soon as possible, it shall formulate a series of laws as soon as possible to judge, folk infrastructure construction market for private capital to regulate investment increase confidence. Secondly, still should reduce government direct investment in rural infrastructure construction, letting the number of folk capital investment to this field, learning from developed countries in this aspect of successful experience set up a government, private organizations to cooperate or contracting diversified financing mode. Again, in policy, give folk capital investment in rural infrastructure construction's largest convenience and preferential, simplify examination and approval procedures, lower taxes. Finally, to establish a rural infrastructure construction of special funds, on private capital investment of rural infrastructure make policy subsidies, in order to optimize the investment environment, motivate private capital to enter.