Research On Investment & Finance Institutional Initiation Of China's Rural Public Goods Supplies

With the construction of China's harmonious socialist, "the issue of agriculture, countryside and farmers " is becoming the bottleneck of economic development. Both from the theoretical analysis and the practice at home and abroad, we find that rural public goods effective supplies are positively correlated to rural economic development, the rise of farmers' income and countryside stability, however, insufficient effective supplies has been the fundamental root of "three agricultural " development. The dissertation focuses primarily upon the existing problems and underlying restrictive factors during investment & finance of China's rural public goods supplies and provides some countermeasures and proposals. Some theories and background of investment & finance of rural public goods supplies are introduced at the beginning; then investment & finance institution of China's Rural Public Goods Supplies is generally analysed in addition. On the basis of positive review over investment & finance institutional transition of China's rural public goods supplies, the existing problems and underlying restrictive factors are analyzed afterward and some countermeasures and proposals are provided finally in this article.The main research conclusions of this dissertation are as follows:1. Investment & finance institutional initiation of China's rural public goods supplies is one of the most important innovations to develop "three agricultural".A perfect rural public goods supplies system is objectively needed because of agricultural fragility and foundation status. Due to inadequate understanding on the multilevels and corresponding characters, in recent years the proposal of diversified financial subjects has not been in practice, so it is very significant to in-depth study new. investment & finance mechanism under the new situation of building comprehensive and multilevel rural public goods supplies system. The functions to initiate investment and finance institution of China's rural public goods supplies include: (1) It is necessary to continued, stable and developing agricultural production. It can improve total amount in insuficient and structure out-of-balance, increase investments such as agricultural infrastructure and maitain uninterrupted and stable agricultural development. (2) It is necessary to stablize our society. (3) It is necessary to coordinate development of urban and rural ecomomies and development of economy and society in the new situation. Now China's rural reform has stepped into a new comprehensive stage with the goal of coordinated development of urban and rural economies. It is indispensible for urban modernization to extended to the rural when it reach some stage and at the same time good rural public goods just become the bridge connecting urban civilization with the rural. So China's current investment and finance institution of rural public goods supplies must be initiated to improve rural public goods supplies through coordinating compulsory education, public health, and social security system between the urban and the rural in order to build agricultural security mechanism step by step and completely change the long-formed, the rural and urban divided dual-structure system.2. Investment & finance institutional initiation of China's rural public goods supplies involves many factors.There is a special economic background of investment & finance of our rural public goods supplies. We ought to think about all the fields and all the related factors in the optimization and initiation of investment & finance institution of China's rural public goods supplies. These factors include: (1) The subjects of investment & finance of rural public goods supplies chaos. Lack of investment mechanism and effective interest-regulation mechanism, the absence and dislocation of investment subjects appear. It's the farmers that invest rural public goods, not the government which is lack of funds. (2) The channels for financing is very narrow. In the past long years under the condition that the central and local government has been insufficient of financial funds for rural public goods, the financial investment ways has always been funding and loaning, which are mostly free while other methods such as state equity participation and holding, capital investment and guarantees, interest subsidies are not effectively used. Financial institutions, particularly rural credit cooperatives and post offices transfer rural deposits from the rural to the urban under the business trends and national policy guidance, which results that the rural with anemia keeps continuely donating blood to the urban. With the decline of their economy, rural collectives are even unable to burden rural public goods supplies with huge cost but high social benefits. (3) The dicision-making system about investment and finance is non-scientific. The plane investment dicision-making system pattern results that the distribution of investment projects launch blindly with huge losses; Investment and financing activities order to all levels of government's approvals and arrangements, which leads to arbitrary dicision-making, with bad results such as executive prone awareness and power dicision-making. (4) The management system of investment and finance institution of rural public goods is not improved. When managed and used, funds are unable to be tracked, monitored and fedback with institutionalization and standardization, which declines the efficiency and reduces rural public goods supplies in addition.3. It is necessary to initiate investment & finance institution of China's rural public goods supplies according to our national situation.Research on investment & finance institutional initiation of China's rural public goods supplies on the base of the rural reality. (1) to strengthen China's government's public financial institution-building. Central and local governments should increase public financial aid to rural public goods supplies, reform the up-to-down institution, clarify the responsibilities between the central and local governments, build scientific investment dicision-making management system, deepen the reform of the system of tax allocation, standardize the financial transfer payment system so as to further reform governments' investment and finance management institution and improve the efficiency of the funds and capitals. (2) to make rural financial system perfect. Agricultural Development Bank should expand the scope of credit to provide funds and capital for urgent rural public goods supplies, effectively supervisor and manage rural financial institutions. (3) to comprehensively improve the situation of investment and finance of rural public goods supplies. Improve the investment enviornment to attract capitals that outflowed from the rural to the urban. As well fully mobilize pravite capitals to participate.Based on the above research conclusions, several policy recommendations are proposed at the end of this dissertation: (1) to focuse on the financial structure and investment priorities. (2) to implement the property right reform. (3) to improve the investment environment and introdue private capitals. (4) to actively explore various investment and financing models.