China's Rural Financial Reform Study

Both the theory of developing economy and the economic development practice of developing country will face the same question which can not be exceeded, that is the relationship between the economic development and the finance development in countryside.Our country is a big agricultural country with a broad area and a large number of population. Now, countryside covers 90% of the whole area and have 80% of all the population. Agriculture is still the basic industry of our national economy. As it states in the statistics, agricultural economy still plays a decisive role in national economy although the urban economy has an increasing contribution rate to the whole rate of economy. Agriculture development, countryside's prosperity and the peasants' well-off, are both the basic of our national economy's comprehensive development, coordinated development and continuously development, but also the basic of long period of stability. Our party and government have always been laying a high stress on agricultural areas and peasants. For many years, the no.l documents from the party centural committee and the state council had always emphasized these three questions on countryside. It is self-evident that to develop agriculture and agricultural economy is the key to the prosperity on agricultural area and the peasants' well-off.What is the developing courses and current condition of agricultural finance whose purpose is to serve for the development of agriculture and agricultural development; what is the necessity of deepening reform; which country's experiences on agricultural finance could be used for us on reference? How to deepen our agricultural finance reform by integrating our country's reality andforeign country's beneficial experiences? All the questions above are in a good need of answering and resolvement. So some research on the principle of combination on practice and theory has both theorial meaning and practical meaning.Being the heart of modern economy, agricultural finance takes on a historical responsibility in the development of agricultural economy. In the course of developing from agricultural economy to industrial economy in developing countries, the key factors' growth and inside structure's reform in agricultural finance plays a key role in the development of agricultural economy and national economy. But due to a lot of reasons, the development of our agricultural finance is not satisfying, which limits the development of agricultural economy. So, in order to solve the three questions in agriculture and speed up the development of agricultural economy, agricultural finance reform must be deepened. In these years, a lot of research has been taken on the relationship between the development of agricultural economy and agricultural finance and the reform on agricultural finance by theory circles and practical departments, but seldom of them were combined with the experiences of the developed country. Which is a characteristic of this article. The second characteristic of this article is the systematic research on the supporting mechanism of agricultural funds' counter-flow.This article has three parts:In the first part, some researches were made on our country's agricultural developing courses and current condition. After the foundation of new china, with the developing and reform of economic and finance system, our country ' s agricultural finance system experienced the courses of developing from nothing, from small to big, tortuous development and being prefect continuously. After the development of fifty years, especially the twenty years after the reform and opening, we gradually form a basic agricultural finance structure with acombination of finance granted by policy, commercial finance and cooperate finance; with a tremendous strength and good devision and cooperation; with a good service for peasants and agriculture and agricultural economic.The second part states the relationship between agricultural finance and agricultural economy, and the necessity of deepened agricultural financ...