The Fiscal And Financial Choices Which Will Lead China Countrysides To Boom

The reform of economic system in China was began in rural area. Since the reform and openning-policy have been in motion, rural economy has acquired prominent development. However, in recent years, the development of agriculture and rural economy has been almost stagnated, the growth rate of peasant's income has been decelerating and even dropping down. The rural surplus labor is quantitive and can't be transferred appropriately.Many peasants lives poverty-stricken. Indeed, there may be some reasons causinging those problems,but one of the most important reasons is fund shortage.Despite it is a good choice that uses fiscal means to sovle rural financing problems, in fact which is lack of feasibility. Consequently, in current the most urgent thing is to resolve the problem of financial repression which is feazing the development of rural economy and the growth of peasant's income.Finance plays a very important role in modern economy. At present, the rural finance meets all kinds of problems.The rural finance organizations exist limitations, the state commercial banks withdraw their rural embranchment; the Agricultural Development Bank cuts its policy service to sustain agriculture; the Post Savings were allowed to take deposits and unable to crediting, although the reform has began, the result still was not remarkable; the Rural Credit Cooperatives' assets is poor, leaning to non-agricultrue, and so on. All of the problems directly lead to those peasants couldn't raise enough money timely, and lost many investment opportunities in vain. Thus rural economicd evelopmentis constrained, and peasants couldn't shake of poverty and build up a fortune too.This artical takes the financial development theory and economic growth theory as the foundation, utilizing the finance, the cameralistics, the developing economics, the institutional economics as well as the historystudy, the sociology and other correlated basic theories. Futhermore, based on the analysis of the current condition of rural finncial, this article makes forefront analysis of Chinese rural financial practical problems .It proposes the target and principles of rebuilding a new rural financial system, also proposes the concrete measure to reconstruct the new rural financial system and to improve finance service.At last it gives political suggestions on how to make them effective.This article consists of 10 parts:Part 1: It's the preface.There is the simple introduction of the background and significance of this theme,the chief theoretic viewpoints of existing works,the methods,thoughts and structure of research and its innovations and demerits.Part 2: This part has systematically illuminated the theory of financial development and rural finance, which is the theoretical foundation of this paper. Furthermore, this part has discussed the relativity among financial repression, financial deepening and economic growth deeply, and thinks that financial development theory is highly adaptive to research China's present rural finance question.Part3:This part analyses the particular tradition of fiscal restrictions to rural economy development, points out the existent problems of countryside finace, analyses the far-reaching impacts of cancaling agricultural tax, and clarifys it is infeasible that uses fiscal means to solve countryside financing problems in the short term.Part 4: After a brief review of the history of China rural finance, it inspects the current situation of rural finance, then thinks that, at present, rural financial supplies is insuficient and inefficient, the risk is ralatively bigger than before, and the rural financial system is fragile. So we have a conclusion that there are some actualities of financial repression in China and it has influenced the economic development in rural area.Part 5: This section introduces the rural financial development and operation in some developed countries and developing countries (regions) respectively, and analyzes the characteristics after comparing the rural finance of some typical countries such as America, Japan, France and India, etc. At the end, the article gives a summary to their experiences.Part 6: This section puts forward some new aims, principles and essential methods of new rural financial coustruction, by establishing the overall policy guidance,on the basis of analysing of Chinese rural economic characters as well as its demands for financial service at present stage.Part 7: Reconstruction of Chinese rural financial system. This section gives some useful ways and reform measures to construct each rural financial institution of diferent natures by analysing each kind of constructive methods. Part 8: By analyzing the financial service, the part discusses the development direction of China's rural finance, and thoroughly analyzes the factors which make rural finance ineffective. It put s forward some proposals aiming at the questions and characters of the demand of rural finance.Part 9: This section is to creat foundational enviornment and conditions for the good Operation of rural finance. It expounds that we must regulate motive financial foundational facilities, provide good social economic enviornment and faciliated policies for rural financial system in order to perfect it.Part 10: In order to scale the situations of financial development in different stages accurately, this section attempts to design a system of statistical indexes, named"regional financial containment ", and puts forth the analysis and explanation for it.