Study On The Development Pattern And Operation System Of The Mutually Cooperative Organization Of Funds In Rural Areas Of Jiangsu And Zhejiang Districts

The issues of China's farmers, rural areas and agriculture have attracted great attention in recent years from the government at all levels and the whole society. The development of rural economy, the increase income of farmers and the establishment of harmonious rural society can never be achieved without the development and support of rural financial organization. However, since the National Conference on Financial Work held by the CPC Central Committee in 1997, a large number of state-owned commercial banks have withdrawn from rural areas, while the rural co-operative, the main financial organization for rural areas, is now going increasingly far from China's farmers, rural areas and agriculture. What's more, the current service of rural normal financial organizations cannot at all meet the need of credit loans with the development of rural economy and the increase of farmers' income. From the year 2004 to 2010 seven "central first documents" have been successively put forward to encourage financial reform in rural areas and promote the development of rural mini-financial organizations. The rural-fund mutual cooperative organization, as a new born rural mini-financial organization, has obtained the confirmation and support of national policy. The development of rural-fund mutual cooperative organization has proved that it has played an increasingly important role in relieving the contradiction between supply and demand, as well as satisfying farmers'need to credit loans.The research takes different types of rural fund mutual cooperative organizations in different parts of Jiangsu and Zhejiang districts as subjects, collecting and interpreting the non- governmental "cooperative committee" contracts scattered in the society, and, by using cooperating financial theory, theory of transaction cost, theory of property right and theory of institutional change, the paper makes a research on the current condition of development of rural fund mutual cooperatives, the organizational pattern and operational system. According to the research, the conclusions are obtained as follows:1) The rural fund mutual cooperative organization develops on the basis of the system evolution of non-normal financial organizational which is born from the rural financial market. Its development can effectively relieve the current insufficiency of loan supply at rural areas and the lack of service from normal financial organizations.2) The evolution of rural fund mutual cooperative organization has a profound historical cultural foundation. The non-governmental "cooperative committee" tradition in the south of Yangtze has a cultural incentive effect on the current development of rural fund mutual cooperatives in Jiangsu and Zhejiang districts, while its operational pattern, its risk prevention, as well as trust mechanism have been sworn off by the current management of rural fund mutual cooperatives.3) The rural fund mutual cooperative organizations are developing fast, but the general coverage is still limited. The organizational form is diverse, but because of the lack of united rules, all kinds of problems exist in the organization such as the unsystematic internal management, the imperfect improvement of risk control system and a lack of efficient supervision. All the problems existed in the process of the rural fund mutual cooperative organization development include problems in aspect of macro-policy and financial supervision and are resulted from the various limits of the system design and of itself, which all have a bad effect on the healthy and consistent development of cooperatives. 4) The national supporting policies and the improvement of laws will play an essentially important role in the development of rural fund mutual cooperatives. Therefore, to further promoting the development of rural fund mutual cooperatives, the following steps should be taken:first, to make a further amendment and improvement of policies and laws so as to create a good policy environment for its development; second, to strengthen its own construction and implement strictly the rules and regulations make by the government on the rural community mini-financial organization so as to improve the credit of rural fund cooperative; third, to improve the supervision system, regulate the development of the organization so as to offer a good system environment for its development.The research has made achievements in such aspects as putting forward physical evidence of non- governmental "cooperative committee" of the southern Yangtze river, relevant analysis about it and making classification on the rural fund mutual cooperative organizations in China's developed districts. However, it does not cover every aspect of the solution for the topic, which needs continuous exploration and improvement in the successive research.