A Research On The Development Of New Rural Cooperative Financial Organizations In Ethnic Areas

Finance is a strong pillar of economic development.The country of modern economic development has good financial industry and capital market as a supporting force.Nowadays,the developed countries,such as the United States,Britain and Japan,all use finance to modernize their country,and constantly achieve technological innovation,and people's living standard is continuously improving.The emerging countries also attach great importance to financial development.In the early 60 s of last century,Korea made financial reform with the help of Shaw's theory of financial deepening,boosted the Korean miracle of economic development,and promoted Korea to the developed countries.The developing countries also attach great importance to financial help in promoting rural poverty,rural economic development.Yunus' s "Grameen Bank",established in Bangladesh,has achieved good results in loans to Bangladesh farmers,especially rural women.It has been praised by the United Nations as an innovation in the field of poverty alleviation.The Chinese government also attaches great importance to the work of rural finance,build from the last century,in 50 s 90s,rural credit cooperatives have been the rural cooperative fund at the beginning of this century,such as rural banks,hoping to achieve rural economic development through the rural financial institutions and other commercial banks,narrowing the gap between urban and rural areas,different things.But under the background of market economy,commercial banks and other financial organizations seek high returns and low risk business objectives.In addition,farmers in China's rural areas,especially in ethnic minority areas,can not afford loans because they have no property,but also have no good credit conditions and records,such as stable income and good credit records,so it is impossible to share the results of the rapid economic growth of our country and the great economic development.According to economic theory,the output depends on the factors of production(such as capital,labor and Technology)investment,while the majority of farmers,especially poor farmers in ethnic regions,the capital can not be obtained through loans,making it unable to expand production and increase revenue,it has been limited to the "financial poverty" described by Deaton,the Nobel prize winner in 2016.This paper chose to study rural finance in ethnic areas,because in the Middle East of China,especially in economically developed coastal areas,rural areas is relatively rich,abundant social capital to form a large number of banks,microfinance companies,Guarantee Corporation,so as to solve the problem of farmers loan.Therefore,facing the lag of economic development,the low income of farmers and the rural areas with widespread distribution in the poor areas,it is very important to explore how to develop rural finance and solve the problem of rural loans in all levels of government and society.The theoretical significance of the study is that the framework of a new rural cooperative financial system can be constructed in a backward rural economic system: on the basis of mutual fund in rural areas,the government's poverty alleviation funds as guarantee capital,the production and sale of agricultural products as the source of income,the commercial banks as the main institutions to provide loans.Under this framework,commercial banks lend money to the rural specialized cooperatives under the guarantee of the government's poverty alleviation funds.The professional cooperatives help the commercial financial institutions identify the borrowers' credit and risk with a wide range of social relations.The result is: farmers and cooperatives to obtain loans,development of production with adequate financial support,the agricultural harvest and sales revenue;commercial banks not only to avoid credit risk(by mutual funds risk identification and the government guarantee funds and loans),and obtained the interest income;government service the poor,but also solve the employment of farmers,promoting the development of the rural economy,but also increased the revenue of the government.Such a new rural cooperative financial system can make the financial institutions,farmers,professional cooperatives and the government gets a win-win situation,which has the ability of sustainable development and promotion.The practical significance of the thesis research is: the new rural cooperative financial organizations can alleviate and even promote farmers' loans,will help promote the development of agricultural production,increase the income of farmers,help farmers out of poverty in minority areas,to provide strong support for a comprehensive well-off society,poverty in 2020.This paper is based on the self organization theory,social capital theory as the main analysis tool,combined with the actual situation of rural economic development in ethnic areas,taking three types of typical rural cooperative financial organizations in ethnic areas as the main research object.Based on the theoretical analysis of the three typical models,and based on this,qualitative and quantitative analysis is made for the institutional change process,operation mechanism,performance and function of the cooperative financial organizations in ethnic minority areas.The conclusion is: the new rural cooperative financial organizations in minority areas are one of the effective ways to solve financing problem.It is the product of the effective and uniform balance between the supply and demand of the system,the institutional arrangement of the sustainable development,and the bridge to establish a multi win mechanism;The new rural cooperative financial organizations in ethnic areas still have some problems,such as internal governance system is not perfect,capital leverage is high,interest is high,farmers' sense of risk is poor,and industrial support is insufficient.Based on this,the policy recommendations put forward by the paper are: In the self-improvement of the new rural cooperative financial organization,the first is to improve the construction of the legal system of cooperative finance.Second,improve the construction of management system.Third,give full play to the role of the leader.Fourth,to promote the establishment of farmers' consciousness of cooperation with national culture;In the new rural cooperative financial organization,the external driving force,first,improve the rural financial system construction.Second,develop the characteristic agriculture and excavate the characteristic national culture industry.Third,we should improve the construction of the cooperative system and strengthen the cooperation among the cooperatives.Fourth,give full play to the leading role of the government and change the functions of the government.