Harmonious Development Of Finance Between Urban And Rural Areas

Inconformity between urban and rural areas in our country is one of the majordifficulties we meet. How to reduce the development differences between urban and rualareas by virtue of the power of finance has some kind of significance both in theory and inpractice. Many domestic researchers have gained plenty of study in this area in depthnowadays. But it is a great regret that a burgeoning theory—the democratization of finance,which was been put forward at the background of uncertainty of economic development andaim at solving economical inequality has not been paid attention to. Financial democracyconstructs a new developmental frame in revenue, credit, insurance, macro markets,intergenerational social security, international risk shared agreements areas. It can bring manybeneficial suggestions to realize the harmonious development of financial development in ourcountry. It is a pity that it has been overlooked all the time. This article tries to summarize thistheory in system, and apply it so as to realize the harmonious development of finance betweenurban and rural areas.This paper contains three parts mainly:Firstly, summarize the theory--the democratization of finance in system. Discuss itsbackground and theoretical frame, and give definitions both in broad and narrow sense.Meanwhile, in consideration the specific situations of the financial development in ourcountry, discuss the applicability of this theory to the difficulties we confront nowadays.Secondly, in view of the theoretical frame of financial democracy, give discussions onthe financial differences between urban and rural areas in revenue, credit, insurance, macromarkets,, international risk shared agreements areas areas separately. Statistic result indicatesthe gap of finance development between urban and rural areas is great and may deteriorate inthe near future if we let the problems alone continually. At the same time, analyze the reasonswhich caused such disparity in two aspects--in theoretical source and in realistic route.Thirdly, on the basis of the specific questions discussed above, give suggestions andcountermeasures from the point of view of financial democracy, which mainly including the following areas—on one hand, enrich financial information datebases, enhance electronicpayment systems so as to strengthen the basic infrastructure of financial democracy, on theother hand, boost financial innovation and speed up the pace of financial democracy.