Study On Financing Mechanism Of The Non-profit Rural Infrastructure

Agriculture infrastructure is a whole set of materials and other objectives which including the total needs of farmers and manufacturing in rural areas. The non-profit agriculture infrastructure is an important part of the whole. And it can exert great influence of the development of the rural area in China and enhance the farmers'income as well. However, investment in such kind of infrastructure will take years to get all the money back, and the profit margin sometimes can be quite narrow. Without the stimulation of the return of profit, usually, it is quite difficult to raise money to establish those infrastructures.According to the current situation, especially for the difficulties in financing the non-profit ones, this article made analysis on how to financing the non-profit items (including the module, mechanism and the structure), under the assumptions of the theory of Public Goods, financing and investing, economy, the Game theory, program managing ect.Firstly, this article demonstrated the different financing modules under different situations, and how to improve the current modules of financing those non-profit agricultural infrastructures. Secondly, the author made analysis on the financing module, from both internal and external aspects. The article is trying to find appropriate solutions coping with different financing problems. Thirdly, based on the analysis about how to finance the hydropower program in the rural area, the author pointed out that it is practical to use PFI module to raise currencies for the program. Adopted the concept of market, there could be more methods of raising money from the public in a totally free market. Finally, it is also quite important that the government should make some economic and political contribution to the establishment of those profit-making infrastructures.This article constructs the structure of study on how to finance the non-profit infrastructures in rural areas. The author is trying to make some useful suggestions on the financing module('leading by the government, public participate and operating by the market'), and also the development of rural areas and its infrastructures. The author believes that those suggestions will be quite helpful for the integration of urban and rural areas in China.