A Study On The Financing Mode Of Rural Infrastructure In China

Agricultural infrastructure, as the current capital of agricultural development, is basic guarantee for living and production activities of farmers. However, due to the lagging-behind development of rural infrastructure, a huge gap exists between cities and countryside in economy, life and society. The problems such as the falling behind construction and management in agriculture, the insufficiency and low efficiency of financial investment have existed in China for a long time. The "NO.1 File" has continuously focused on the problems of agriculture since 2004. And the recent "NO.1 File" published in January 30th brought about the urgency of development of water conservancy facilities. Under such circumstance, the thesis makes sense to discuss the financing modes of infrastructure construction in rural areas.Agricultural infrastructure financing mode is a kind of the general and regular program which is used in the process of agricultural infrastructure financing. The thesis divides the agricultural infrastructure financing mode into three major modes, including fiscal financing mode, market-oriented financing mode and the other financing mode. The first two modes, which are the main financing modes carried out in China, are also the focus of this thesis.According to the analysis of the current agricultural infrastructure financing mode in China and comparing to India, America, and Japan, the author find out:1) financial investment is not sufficient and the fiscal financing mode lacks a structured mechanism of accountability. Although the aggregate investment in rural has grown year by year, the speed of investment growth is not stable and some indexes even decrease. Investment in agriculture is far behind the necessary demand and relatively low compared to the investment in urban areas. At last, the local government revenue accounted for 47% of state revenue, while expenditures account for nearly 80%.2) the practice of market-oriented financing mode is limited. Many objective factors obstruct the application of market-oriented financing mode, such as the public nature of agriculture infrastructure, the lack of laws and regulations of investment and financing, the imperfect of rural finance system, and the underdevelopment of rural.According to above problems, the dissertation thinks that:1) the financial financing mode will still play an important role in the future and the increment of financial investment in agriculture infrastructure should be enlarged and regulation functions should be strengthened.2) Establish a structured mechanism of accountability which would strength the sense of responsibility and increase the utilization of financial resources.3) market-oriented financing mode is the indispensable part of agriculture infrastructure financing modes and has a good development prospect.4) Government guidance, project portfolio, and improvement of the financial environment could increase the marketization level and promote market-oriented financing mode.5) Both fiscal financing mode and market-oriented financing mode are intended to finance agricultural infrastructure, agricultural infrastructure financing requires the government’s regulation and support, as well as the efficiency and diversification of market.