A Study On Government Responsibility Of China’s Rural Financial Development

Agriculture is the foundation of national economy, finance is the core of modern economy. Under the condition of market economy, solving the "three rural issues" is inseparable from the modern finance support.In the period of social and economic transition,the reform and development of rural financial in China is facing an unprecedented opportunity.Our government has taken the policy that limiting interest rate and the credit rationing to control the rural financial market directly for a long time,but financial resources flow to industry and city through mandatory configuration, it was limited to the development of the rural economy. And China’s rural financial market is an incomplete market, externality, monopoly, information asymmetry, these market failure factors are fulling of the rural financial market, and using price of the automatic adjustment mechanism can not make the allocation of resources to achieve the optimal state. At this time, we need the government initiative, in a reasonable manner involved in the rural financial market, in order to further deepen the rural financial reform to provide strong external environment.In this paper, the "responsibility" is cited as the quote, the relationship between government and market as the main line, reasonable definition of the scientific meaning of "market failure" and "government failure", to seek the coupling between the two, to explore a best path, so as to promote the construction of government responsibility in rural financial development. The contents are as follows:The first part mainly analyzes the three basic meanings of responsibility, responsible government, and government responsibility, and make a clear definition of its. Under the guidance of the concept of responsibility, put forward the responsibility of the government’s task is to build nomocracy, limited, transparent and services government, and then on this basis that government responsibility under the Perspective of Economic Law requires the government to do:Role not misplaced, benefits shall not conflict and everyone can be held accountable.The second part introduces several typical rural financial organizations, to explain that our country in order to promote the development of rural finance, not only reform the existing rural financial institutions, also vigorously support the development of new-type rural financial institutions, but in the end found to fall short, in the final analysis, because the establishment of on the dual economic structure of rural financial existence of "market failure" and "government failure".The third part through further analysis, pointed out that the rural financial markets have external and the pioneer of high cost, coupled with the farmers vulnerable psychological and strong dependence, government become the best choice to correct the "market failure". The same time, in order to prevent new failure caused by the government itself, which requires to define the functions of the government, introduce the competition mechanism, reasonable to prevent risk, effective to promote the development of rural finance.The fourth part based on imperfect competition theory perspective,to build the basic principles of the development rural finance government responsibility. This is an opportunity to put forward the government’s responsibility and improve relevant laws and regulations, establish a standardized and orderly market access and withdrawal mechanism, strengthen the financial supervision, promote risk sharing and compensating mechanism, provide systems, procedures and risks to develop the rural financial,and thus formed a wide range of rural financial service system.