A Research On The Development And Measures Of Rural Credit Cooperative Of Jilin Province Microcredit

The early 1990s, rural micro-credit has been operated in many provinces of China and obtained some achievements, which made part of the poor out of poverty. The Jilin Province is one of the less developed regions in China. The National Bureau of Statistics shows that the per capita GDP of China is 22698 RMB in 2008, while Jilin is 18126 RMB, which is significantly less than the former. Meanwhile, according to Chongqing Municipal Statistics Bureau data, the urban and rural per capita disposable income in Jilin Province in 2008 are 12,829 RMB and 4,933 RMB respectively. It is clear that the farmer's income is far less than the urban income. In order to increase farmer's income and improve their living conditions, People's Government of Jilin Province formulated the "new socialist countryside of Jilin Province 2006-2020 Construction Program (Draft)" in the February 24, 2006. It is clearly stated in Article XII that the government should continue to deepen reform of rural credit cooperatives, improve the governance structure and operating mechanism further, to play better the role of main force in serving the "three rural".Rural credit cooperatives play an important role in the process of promoting the rural financial system and the rural financial environment in Jilin province, and central role in the implemental process of Jilin province's rural micro-credit. However, some problems has been gradually showed under the existing modes of operation, such as unreasonable period of credit, low efficiency of credit business, imperfect risk prevention systems, which will be quite difficult to ensure providing the credit services for farmers sustainably. In this paper, internal and external reasons for the problems in implementation of micro-credit in rural credit cooperatives are found, such as the huge gap in the capacity of rural finance, the policy-oriented migration; the short of understanding the nature of micro-credit, vulnerable credit management and lagging credit system functions. And then the related feasible measures are proposed to make the rural micro-credit run smoothly.Firstly, this paper describes the theory about the mode of operating rural micro-credit, compares the three foreign operation modes, introduces the successful operation modes in two domestic regions, analyses the difference between domestic and foreign models, and concludes some good and successful experience. Then it introduces the development situation of rural credit cooperatives implementing rural micro-credit in Jilin province and the problems to be solved urgently. Meanwhile, it investigates the actual conditions and collects relevant information and data. Additionally in order to verify the feasibility of the rural micro-credit improving household income, a kind of statistical method is used which involves multiple linear regressions about farmers' amount of credit in some region. Finally, focusing on the existing problems, in order to extend rural micro-credit services sustainably and apply the GB model in rural credit cooperatives, the corresponding countermeasures were proposed, such as sounding the legal system of micro-credit; strengthening the rural financial ecological environment; using the insurance mechanism as a protection etc. If these suggestions are implemented effectively, they will accelerate the sustainable development of rural credit cooperatives on operating rural micro-credit.