Research On Financial Investment In Building New Socialist Rural Areas

After more than thirty years of reform and opening up, China has become the world’s second largest economy, and the city has also made notable progress. However, compared with the rapid development of economy and city, the vast rural areas are still a shortfall in supply of basic public services, such as infrastructure, health care and education. The gap between cities and rural areas was a growing trend. In order to balance urban and rural development, and narrow the gap between cities and rural areas, the CPC Central Committee puts forward the important task of building new socialist rural areas in2005. The task is comprehensive and systematic, which includes all aspects of society in modernizing agriculture, developing rural areas, and increasing farmers’ income, and cannot be accomplished at one stroke, which needs long time and continuous investments. All of these determine that it needs a steady flow of funds to support the new rural construction. But the high risk and low income of agriculture determine it can not only rely on farmers’own funds and social capital to complete building new social ist rural areas. In addition, building new sociaIist rural areas also be I ongs to the scope of public goods in some extent. So, it requires the government to play a leading role, relying on the financial investment to start and guide the construction of new socialist rural areas. In fact, the financial investment plays a significant role in supporting the construction of new socialist rural areas, but there are many problems in the field. How to support to build new socialist rural areas more effectively by optimizing and innovating financial investment is an important topic.Firstly, the paper defines the concepts of the new rural construction and financial investment, and analyses the theory and significance of the financial investment in the construction of new socialist rural areas. Secondly, thispaper summarizes rural financial investment policies in the different periods of the financial system. Thirdly, the paper analyses the policies and content, the current situation and the problem of financial investment in the field of building new socialist rural areas. Fourthly, the paper summarizes the experience of financial investment in supporting for the new rural construction of Japan, South Korea and Chengdu. Finally, based on the valuable experience of the domestic and international financial support for the new rural construction and China’s actual conditions, the paper puts forward five proposals to improve the way of financial investment in building new socialist rural areas. They are to integrate existing financial funds in supporting for agriculture in the stock, broaden the sources of the financial investment funds in the incremental, optimize the directions of the financial investment, innovate the strategies of financial investment, and improve supervision and management mechanisms of financial investment in building new socialist rural areas.