Construction Of Less Developed Areas Of Small-scale Rural Cooperative Financial Organization

Cooperative finance, which is one of the financial innovation help for poor labors especially rural labors, is an important rural financial organizations and playing the influential role in promoting the rural economy's development in every country. But in China, the traditional rural cooperative financial institution-Chinese Rural Credit Cooperatives (CRCC) has been through repeatedly the twists and turns in reality. For quite a few times, the "cooperative" finance almost become government-run and has departed form the principle of "cooperative" into the commercial track. On the stage, because of the lack of genuine rural cooperative finance, a series of problems like peasants having difficulty access to loans, the abnormal activity of private finance, and prevalent usury financing activities in rural areas, have serious impacted on the stability of rural society and the sustainable development of rural economy. Presently, the main demanders of rural finance in underdeveloped areas of China remain the vast number of peasants, whose financial needs are small, scattered and short term. Because of these features, the majority of peasants have been excluded from the credit markets of formal commercial financial institutions; thus, it is imperative to develop rural cooperative finance in underdeveloped areas. Based on the above, the central point of this thesis focuses on:how to construct the genuine rural cooperative financial organizations that can fit on the peasants'financing demands in underdeveloped areas.The frame-work of this research:Firstly, based on the difference of other private finances, this article defined the research subject, the rural micro-cooperative finance, and describes various theories related to private finance; Secondly, taking the financial cooperative behavior of peasants in underdeveloped areas as a starting point, this article combines the theoretical research and empirical research, and testify to the necessity and feasibility of building the rural micro-cooperative finance in underdeveloped areas; Finally, the article proposed a tentative operative mode for underdeveloped areas developing the rural micro-cooperative finance, and tests its practicality by using the specific cases in reality.The main points and conclusions of this paper:Firstly, Chinese Rural Credit Cooperatives (CRCC) does not equal cooperative finance; the CRCC departs from the cooperation system principle does not prove that the necessary conditions do not exist in our country for developing cooperative finance. Secondly, the vast of peasants in China's rural especially in underdeveloped areas entails cooperative finance; developing cooperative finance is the optimal choice for the peasants. Finally, majority of peasants in underdeveloped areas with a strong financial cooperative will and they prefer in a familiar group to participate in financial cooperation; it is feasible for underdeveloped areas implementing financial reform as cooperative finance to main contents.Special explanation:This study is one of the sub-projects of the project-the research on household financial cooperative behavior in backward area (70673081) supported by National Natural Science Foundation of China.