On The Government Behavior Towards The Developent Of Rural Non-governmental Finance In Our Country

Rural economic reform in our country has changed the single industry structure and ownership structure in the past, which leads to the development of commodity economy in rural areas; diversification of fund demand whose subjects are farmers therefore arises. However, it's difficult to meet the diversified fund demands only through financing supply and services from institutions of regular finance. Consequently, there is a vast market potential for non-governmental finance, and various rural non-governmental financial activities in terms of either form or content appear correspondingly.To a large extent, a vigorous non-governmental financial market supplements the financial shortage in rural market under the circumstances of reconstructing new socialist countryside, betters financial resource allocation in rural areas, speeds up the development of rural economy, and helps the farmers overcome the difficulties in production and life. Nevertheless, as governments and financial administration departments at various levels have never incorporated rural non-governmental financial activities into the regular system, rural non-governmental finance always exists in a "grey state"; meanwhile those unregulated behaviors in the market have aroused bad effects on the society.So, in rural financial macro and the micro field, the government needs to further transform government functions, more economic and legal means rather than administrative means to manage the rural financial market. The government through the legal system and policies to improve the rural folk appropriate financial deregulation and strengthening management, reversing the traditional concept of supervision and bilding "service-oriented" financial system, establishing a suit of rural financial system which rflect the establishment of a fair,just,including private banking. In order to guide and regulate the rural non-governmental finance, for the farmers to meet the main demand for funds.The body part of the present paper can be divided into four sections.In Section 1 we at first define the concept of rural non-governmental finance as well as other related ones; then we summarize various forms, characteristics, and institutional efficiency of rural non-governmental finance in our country. Meanwhile we study the government behavior towards its development in recent years at three levels, i.e., policy-level, value-level and technique-level.We begin Section 2 with the description of the present state of rural non-governmental finance, including its scope, farmers' financing behavior and the problems in itself. After analyzing the original reasons and causes of its emergence and development, we then point out that the government's strict control will not bring about an expected result, and that it has greatly sped up the development of rural non-governmental finance during recent years.In section 3 observing our government's supervision over rural non-governmental finance nowadays, we point out that the problem mainly lies in the deficiencies of relative system of laws as well as institutional construction and it also lies in the government's over-control under the condition that financial supply in rural areas is not sufficient. Such a situation, which does not confirm to the requirement of market economy, fetters the development of rural economy, hampers the solution to "three agricultural problems" and the construction of new socialist countryside.In the last section we propose a series of strategies on the basis of the analysis above, i.e., the government should relax the control but reinforce the administration, reduce the conditions for market access, carry on market-oriented interest rate and establish a service-oriented financial system. In this way the development of rural non-governmental finance will be well guided and regulated.The main contributions of the present paper can be described as two points. On the one hand, we emphasize that the existence of rural non-governmental finance is reasonable and efficient, and that its emergence results from the government's over-control; on the other hand, we work out an idea that the government should relax its control but strengthen the management in order to establish a service-oriented financial system in the rural areas.