The Rural Cooperative Financial System In Innovative Research

Rural cooperative finance (RCF) of China, characterized by rural credit cooperatives, has developed for 50 years in China. It now becomes a controversial subject in Chinese rural economic and financial theory field, owing to its problems in managerial system, operational direction and financial risks. Over a long period of time, RCF have not developed steadily, basically because of the government guiding model of financial development, under which the governments at various levels institutes the policies and measures as agents, inevitably causing improper administrative intervention~ It is necessary to probe the development and institutional innovation of RCF in socialist market economy through reviewing the cooperative economy theory. This is of great theoretical and realistic significance. Keeping to the Marxist stand of dialectical and historical materialism, based on Marxist cooperative economy theory and cooperative principle, accompanied with adoption of the theories of property right, transaction cost, incomplete contract and trust agency in nec梚nstitutional economics as analytic tool, this paper combines the 揵asic core?of Marxist cooperative economics and the 搑ational core?of neo-institutional economics on institution and institutional transition to explore the innate mechanism and approaches selection of RCF institutional innovation. The paper consists of three parts. The first part makes necessary preparations of relative theory and analytic tool for the following part. It reviews the cooperative economy theory founded by Karl Marx, Engles and their successors, clarifies the necessity for cooperative economy to keep to the principles of cooperative institution, and briefly introduces the methodology foundation, research scope and basic viewpoint of western nec梚nstitutional economics. The second part is the main body providing grounds of arguments for the thesis. It analyzes the institutional structure from different sides and expounds the history, present situation as well as problems of RCF. The third part is conclusion and countermeasures, expanding on the orientation, surroundings, operational mechanism and the selection of measures of RCF institutional innovation. The main contents are as follows: Part I Theory, Method and Enlightenment Chapter 1 begins with the systematic exposition of the ideology of cooperative economy and its practice. Then analyzes the necessity of developing cooperative economy and cooperative finance in Chinese socialist market economy background. It stresses the importance of cooperation principle in developing cooperative economy and finance, namely, the need for rural diversified economic form to exist and flourish, the e need for RCF organization to self-control and expand, the need for RCF to compete and grow. Chapter 2 emphatically explains the methodological foundation, research scope and basic viewpoint of western institutional economics. Based on classical economics, neo-institutional economics extends its research scope from resource allocation to relations of production and transaction between people by introducing numbers of new variables. The basic viewpoint of neo-institutional economics property tight, transaction cost, incomplete contract and trust agency are also outlined in this chapter, with an ending that exposes the possibility...