Study On Financial Support In Our Rural Development Process Of Urbanization

China has been an agricultural country for thousands of years. The development ofagriculture and rural economy is crucial to the development of the whole nationaleconomy. However, due to many historical and realistic factors, our government hasalways attached great importance to the development of heavy industry. And for a longtime, we pursued a policy of "priority to the development of heavy industry". This makesthe rural economy stay in a state of being exploited. The pace of development of the ruraleconomy is very slow. In recent years, the CPC central committee has recognized theimportance of "agriculture, rural areas and farmers". They has set up the overall andfundamental status of agriculture in the development of economic construction. And anumber of measures have been introduced, for example, establishing a system of directsubsidies to farmers, the exemption of agricultural tax and taxes on special agriculturalproducts nationwide and so on. These measures to a certain extent, ease the seriousness ofthe problem of "agriculture, rural areas and farmers". But to solve the problem of povertyand achieve prosperity of rural areas, the most essential aspects is to realize ruralurbanization. Accelerating the rural urbanization process has important practicalsignificances to realize the agricultural development, increase the farmers’ income andeliminate the urban-rural dual economic structure gradually. In addition, the developmentof rural urbanization, the implementation of agricultural industrialization and ruralindustrialization require a lot of capital accumulation and investment. They cannot leavethe financial support. But now our rural financial services are imperfect.Rural creditcooperatives and Agricultural Bank of China can’t meet the capital demand of ruraleconomic development. Furthermore, agricultural loan interest rate is high and the timelimit is short. These problems have become the bottleneck of restricting the ruralurbanization. Thus, how to recognize and solve the problem of financial support in theprocess of rural urbanization needs our deep study.This paper first distinguishes the related concepts of rural urbanization andsummaries the process of urbanization and the content and significance of financial support. Then, the supply and demand contradiction in the process of rural urbanizationand the present situation of the various financial support are introduced. It concludes4aspects. The public of rural infrastructure and the earnings of financial institutions arecontradictive. The high demand of capital and the outflows of funds are contradictive.The diversity of capital requirements and few financial support species are contradictive.The simplify of financial services and the diversity of financial needs arecontradictive.Besides, the foreign financial support roles in the urbanization process ofthe countries are compared. The American government finance the construction of thetown by municipal bonds, asset securitization and the establishment of infrastructure funds.It also establishes a well-developed rural financial system to support the development oflocal agriculture. The French government is also using its well-developed capital marketsto finance the construction of the town. Their ways are more diverse, for example, finance,taxation, fund bond investment, business investment, bank loans and insurance agenciesand so on. The Japanese government is more concerned about the introduction of privatecapital. At the same time, they encourage the businesses to set up in the rural areas,establish the rural financial institutions and issue local bonds to raise capital. At last, itconcludes the main problems of financial support in the process of rural urbanization, andput forward suggestions and measures for strengthening financial support.