The Study On The Innovation Of Rural Financial Organization System From The Perspective Of Farmers' Demand: The Case Of Hainan

Hainan is the only tropical island province in China, with unique advantage in developing its tropical agriculture. With the restriction of the overall economic environment, the level of financial services in rural areas of Hainan is relatively low, and the rural financial organization system is urgently needed to reform and innovate to meet the demands of industrialization and large-scale production of tropical agriculture. This paper is composed by five chapters. And it analyses the theoretical basis of the rural financial organization system innovation in Hainan, and its practical problems, as well as the characteristics of farmers' financial demands and the reform direction of rural financial organization.Chapter 1 is the introduction. It outlines the background of this paper, theoretical foundation, research methods, innovations and shortcomings. This chapter emphasizes that the rural financial reform must realize the change of paradigm due to the regional agricultural development, which it is to say, from the past "institutional paradigm" to "functional paradigm". We must attach the importance to the characteristics of regional farmer and their agricultural production financial demands, rather than simply adjusting the number of banks or establish several new institutions to solve the problems of rural finance in Hainan.Chapter 2 describes the agricultural development in Hainan and its characteristics of the rural financial organization system, as well as the problems existing in the financial services.Chapter 3 makes a comparison of Hainan and the whole nation using the empirical data collecting from Hainan typical survey and special survey, the comparison showing that farmers in Hainan has its traits in the uses of funds and credit quota, etc. And this chapter also outlines the policy implications of farmers' financial demands.Chapter 4 further puts forward the basic principles to establish the rural financial organization system in Hainan and proposes all types of financial institutions should take up different functions. At the same time, this paper specially emphasizes on the development of micro-credit, the establishment of new rural financial institutions.Chapter 5 draws the conclusion that the reform of rural financial organization system is required to shift from "institutional paradigm" to "functional paradigm" to meet the demands of farmers.