Inverse Industrialization: A Historical Perspective Of China's Monetary Economy And Rural Finance

The problem of rural economy is an arguable problem through the long history of China. It is quite natural for a country that has a long history of thousands of years. As- a post-developing agricultural country, the process of modernization is closely related to the development of agriculture. The rural problems of China are fairly comprehensive because of its intimate relationship with the agriculture and industry civilization. Therefore we can study and solve this problem from various aspects. The author is trying to avoid the traditional paths and to rebuild the new form of rural financial system from the whole parts, so as to carry out a further comprehensive question of anti-industrialization. It is one of the goals of this paper.Looking through the long history of China, on the basis of monetary economy ,the author analyses the rural economy and the financial system which is in the process that agriculture civilization converts to industry civilization. It is an innovation of this paper to major on the anti-industrialization. It arises from the theory of the original industrialization. The theory holds the point that : When human beings step into industrial society. It is not pushed by the Industry Revolution but by the rural economy. Early before the Industry Revolution, the phenomenon of original industrialization which leads to the Industry Revolution has already existed in the rural areas. But I do not think that every original industrialization will certainly cause the Industry Revolution because of limiting factors. In the areas which do not have suited conditions, the Industry Revolution only leads to the anti-industrialization. Or the cycle comes , original industrialization —anti-industrialization—original industrialization — anti-industrialization...... Withthe development of Chinese agriculture civilization, the phenomenon also shows a picture, the development of commodity economy—the enforcement of natural economy — the further development of commodity economy — the furtherenforcement of natural economy…….The agriculture civilization of China is forgingahead to the industry civilization and keeping rebound repeatedly along theChinese history. It is right due to the topic of anti-industrialization, that the agriculture civilization is related to the industry civilization. Therefore, we can analyses the monetary economy and the role of the financial system in rural industrialization.Starting from the monetary and rural economy in the view of history , Firstly, this paper analyses the inevitability that the development of the monetary and rural economy lead to the anti-industrialization and studies the reasonable position of rural financial systems in the reciprocity process. Secondly, this paper analyses dynamic operation of the whole financial monetary system under the conclusion of the anti-industrialization. Lastly, based on ancient and up-to-date characteristics of the rural financial system , as well as the operation of finance system from the reformation of China ,the author argues the rural financial system of China in the view of history and also makes several suggestions accordingly.