The Reform Of Rural Credit Cooperatives Development Model Discussed

As an important part of Chinese financial system, Chinese Rural Credit Cooperatives play a more significant role in agriculture and rural economic development. However, CRCC has brewed some unprecedented troubles as well, with loss of the whole industry, high risk and low management level etc. How to extricate from the difficulties? Where's the entry? Is the cooperative principle worth sticking to? No agreement has been reached till now.The article begins with exploring origin of the cooperative principle, and then discusses the possibilities of conducting traditional cooperative principle in the present, thus advances the new pattern of CRCC system reform. The first part of the paper lays a theoretical foundation for the whole article. After introducing the evolution of rural cooperation financial theory, the author clearly illustrates the connotation of the cooperative principle. Based on comparison between the Cooperative principle and joint-stock principle or policy financial form, the concept of the stock-cooperative system has been put forward. In part 2, the author uses overseas experiences for reference, and reveals the general rule among the development of other countries' rural cooperative finance and background of the change. In part 3, the author reviews the course of CRCC development from the state foundation, then analyzes the current situation and the problems existing in most of CRCC. Stressing the conflict of the cooperative principle, the author points out the difficulties if sticking to cooperative principle or joint-stock principle, which leads the necessaries of cooperative principle innovation. As demonstrated from the macroeconomics, part 4 discusses the external situation of CRCC, including Chinese rural economic and financial reform, rural fund supplyand demand, thereby advances the feasibility of cooperative principle innovation. In the last part, the author hold that it should be reasonable for the most CRCC to carry out stock-cooperative reform, and elaborates the steps as well as other measures.From the article, the author gives such an idea: the unsuccess of the previous reforms are mainly due to vagueness of rural cooperative rights, which serves as the heart core and basis of the reform, and only by rebuilding the property right, can the reform gain the substantial progress. It is difficult to adhere to the traditional cooperative principle, for the current rural cooperatives have already disobeyed their original purposes, while the joint-stock principle still can't be available with the unstable foundation as well. But joint-stock-cooperative principle takes into account the positive sides of two principles and will by all means have enormous vitality and applicability in present economic and financial situations.The author adopts the comparison analysis as the main method to perform the research, assisted with the demonstration analysis method and discourse the article step by step with logical reasoning. The major contribution of the article is to have introduced the property right economics and management theory, by which the author anatomizes the development progress of Chinese rural cooperatives and studies the reason of their dissimilarities, and discusses the necessity and feasibility of the system innovation from visual angle of property rights. Practical supervision experience over the rural cooperatives of the author are adopted, as abundant facts and cases in the article. In the last part of count-measure and conclusion, the author raises the scheme of the joint-stock-cooperative principle which is both practical and innovative and positively convincing.