The Survey Of The CCP's Financial Policies And Practices After Reforming And Opening

Since the Third Plenary Session of the Eleventh CentralCommittee, our party has made major a decision that we transferredthe party's working stress to socialist modernization focusing oneconomic building. At the Thirteenth National Congress, keepingeconomic development as the central task was held as the core contentof basic line in the primary stage of socialism. The Charter ofFourteenth Nation Congress of the CPC's has pointed out that theparty must concentrate on economic building, organize and coordinatethe strength in all aspects to work around the economic building withfull cooperation and with unity of purpose. Economic building is oneimportant part of the party's history. Financial is the core of moderneconomy and each country can not develop without the support offinancial industry. Financial safety is the core of economic safety ofour country while the greatest risk always is financial crisis duringeconomic development. This paper examines from the combinationview of financial policy and financial practice of the CPC's, and itspoint of departure is to ensure financial safety and take precautions tofinancial risk. It analyses systematically and summarizes the party'sfinancial policy and practice in the past more than 20 years sincereform and opening up. It shows the history of financial developmentfrom one aspect and illustrates that the CPC has the ability ofcontrolling market economy. It also gives plan to further reform anddevelopment, in view of our country's financial safety issue under the condition of financial globalization.This paper includes two parts. The first part is summary, or thefirst chapter, which reviews and analysescomprehensively and systematically on the emergence anddevelopment of our country's financial organization system, theemergence and development of financial market system, theestablishment and improvement of financial macro controlling system.It gets basic experience in seven aspects, they are: the base to developeconomic sustained and balanced is to keep RMB's value stable, thepremise of financial industry's healthy development is to remainfinancial system operating independently, the essential way to enhanceour financial industry's competition and innovation power is to adhereto reform and opening up, the fundamental mean to ensure country'seconomic safety is to strengthen financial supervision, the key factorto improve economic operation efficiency is to preserve harmonybetween direct and indirect financing, the major base to implementmacro control effectively is to cooperate well between monetarypolicy and fiscal policy, the inevitable demand of the socialist marketeconomy is to let market decide the interest rate. The second part hasthree chapters. It analyzes deeply and summarizes the CPC's financialpolicy and practice on state-owned banks, rural credit cooperativesand financial supervision three subjects separately which are of vitalimportance to the nation's economy. Firstly, it reviews theestablishment and development of state-owned banks. It discusses theurgency of state-owned banks reform, analyses the target and steps of reform, remarks the effect of reform and gives the plan of reformingdeeper state-owned banks. We can come to the conclusion that theparty's ability to control market economy is higher and higher throughthe state-owned banks reform process. Secondly, it reviews the courseof rural credit cooperatives developing and reforming, analyses thethesis and policy made by the party about rural credit cooperatives,then gives remark and prospect on credit cooperatives' reform anddevelopment. We can see that the CPC looks highly on "agriculture,rural and peasant" issues and has taken effective actions to improvethe rural reform and agriculture's growth with prudent and logicalattitude on specific measure. Thirdly, it looks back and analysessystematically on our financial supervision policy, concludes the basicexperience of financial supervision work in the past more than twentyyears. It also expounds the future of intemational financial supervisionand puts forward imagination of China financial supervision. Finally,standing on the international economy and financial advanced level tokeep country's economy safe, it proves the conclusion highly properthat the CPC hold that financial supervision is the very emphasis.