The Problems And Countermeasures Of Village Debt

The issues of village debt are common and increasingly serious in China. Village debt issues that have became outstanding issues which constrain the economy development and endanger the stability of society in rural, affect the government image and relationship between cadres and groups. The formation of village debt has macro aspects reasons including the present affairs, system and laws in our country and both micro aspects such as rural weak economic foundation, capital shortage. Those reasons are essentially a comprehensive reflection of rural economic and social problem.The village debt not only hinders the development of the rural economy, but also affects the rural social stability, the government image and relationship between cadres and groups. The huge debts at village level have become the burden of rural economic development in our country. The vast village debts which can not be repaid by the increasing weakness of rural finance,together with the vast interest payments make village debts into a vicious circle. The author thinks that we should be in line with "Do not act with undue haste, Do not increase farmers' burden, Ensure rural stability" principle. According to the new campaign which is"Don't add new debt, Resolve old debt, Handle by classifications, Digest gradually", the author explores two kinds of methods to resolve the problem in the policy, laws and regulations permit range. The first one is to find out the reasons of the debts, and then to resolve and reimburse them according to their classifications. The second one is to repay the village debts with the rural credits. In order to prevent the new debts, the government should increase the transfer payment to the rural. Ensure the agricultural policies benefit the farmers and really reduce the burden of the farmers.