The Property Right Reform Of Rural Credit Cooperatives In Underdeveloped Areas

Rural Credit Cooperatives(RCC)has developed for more than60years in China, and become an important part in rural financial system and dedicated much to Chinese national and rural economic development. However, when RCC supported the fast development of our country’s agriculture and rural economy, it also faced many accumulated problems which needed to be settled as soon as possible.In2004, after" The General Office of the State Council Concerning Opinion that Further Deepening the Reform of Rural Credit Cooperatives Pilots" was released, the new reform of RCC started within the whole country. A series of projects of funds supporting have been adopted, which has created the unprecedented developing opportunities for RCC, such as increasing capital and principal, reducing taxes, releasing central bank note and reloan. According to the general requirements of clearing property right relation, enhancing the stipulation mechanism, strengthening the service function, and making the provincial government responsible for RCCs with the appropriate support of the state government", RCCs in developed areas have turn into rural commercial banks or rural cooperative banks. When it comes to how RCCs in underdeveloped areas realize the target of "paying money for mechanism" by using state-aid policies,and whether they should follow the existing model in developed areas or take a different tact, there is no definite answer in decision-making level. In fact, because of the imbalance in Chinese economic development, the farmers in underdeveloped areas need more financial service from RCCs than in developed areas, and local governments also need more RCCs to support agriculture, rural areas and farmers. But, owing to many problems such as insufficient capital, indefinite property rights, heavy stock of ill-capital, inefficient administrative systems, poor operational situation and abominable development environment outside, RCCs have fallen into a desperate situation. It is essential to probe into a suitable way of development according to local natural, social and economic situation. This is of great theoretical and realistic significance.This thesis is divided into three parts:Firstly, the direction of the reform of Rural Credit Cooperatives is introduced. The second part mainly focuses on the background of nationwide property right reform of rural credit cooperatives, including the implements, problems and the promotional value of Sichuan rural credit cooperatives during the process of reform. The third part is the analysis of the direction of property right reform by taking the rural credit cooperatives in underdeveloped areas as an example...