Reform Of Rural Credit Cooperatives Cooperative Study

Cooperating finance has become a common financial phenomenon in world scope as its system becomes more and more integrated in developed countries and its organization becomes more and more universal in developing countries since its establishment 150 years ago. There is a set of principles suitable for cooperating finance that is the fundamental tutorial norm although the managerial pattern and organizational system of Cooperating finance is different from one country to another.Chinese farmers feel difficult in applying for commercial loans because of the characteristic of china rural economics and the weak social status of farming and farmer. In addition, the normal supply of rural finance is severe hard up. So the contradiction of the supply and demand of the agricultural fund is prominent. Chinese rural credit communes have become semi-stated financial organization after they deviated from their collaborative principles under the control of government. They cannot fulfill the financial demand of farmers with their poor management and low efficiency although farmers have thirsty will to cooperate with each other in financial aspect.An ideal cooperating financial organization has the mechanism that can promote the social exchange and convert the earnings of this social exchange into economical profit. Under this ideal mechanism, members can also possess their exchange profit too, so there is coincidence between members' aim and cooperating financial organization' s target, which determines its superiority over normal commercial corporation. The dilemma of cooperating financial organization does not lie in the defect of its collaborative principle, but lies in the deviation of it. In conclusion, cooperation is the infallible direction of rural credit commune reform. The reform must fall to doing at both general and narrow aspects, and carry forward little by little from inside system switching and outside environment rebuilding. Only in this way, rural credit communes can regain its people-owned and people-managed nature, and fulfill the formers' financial demand with more efficiency.