Research On Government Behaviors In The Development Of Rural Non-Governmental Finance

Based on kinship, affinity, geographical reason, rural non-governmental finance have been existing in China’s vast rural areas for a long time. On the one hand, because of its low cost, high efficiency and compensate for the lack of formal finance, the emergence and development of the rural non-governmental finance enlarges the financing sources of famers and rural enterprises, improves rural financial markets and rural economic development. On the other hand, due to its high financing price, lack of effective guarantee, covert transactions, the risk not easy to control and other factors, it can easily form a risk of disrupting the financial and social order, and distorting the national macro-control policy, thereby affecting social stability.In this paper, the government behavior towards the rural non-governmental finance is the writing entry point. According to the basic idea of serving "Three rural" and realizing the healthy development of the rural non-governmental finance, the paper adopts theories and methods of public administration and economics to make an in-depth and comprehensive analysis of the rural non-governmental finance from both theoretical and practical aspects. In addition to the introduction and conclusion, the paper is divided into four parts. The first part makes the definition of the relative concepts of rural non-governmental finance and government behavior, and explicates the theoretical basis of development of rural non-governmental finance and governmental intervention into it. The second part analyzes the reasons of our government’s participation in rural non-governmental finance and elaborates our government’s behavior towards it since the founding of new China, finding that the government’s behavior is the policy adjustments according to the different socio-economic stages based on the rural non-governmental own development and the problems caused by itself. The third part, illustrated by the case of Sihong,firstly elaborates its status quo of economic and financial development, the current situation of the rural non-governmental financial development and the government’s behavior, then focus on the2011block-buster "BMW county illegal fund raising case" and analyzes the causes of the illegal fund-raising phenomenon particularly from the government’s side, finding that the lack of laws in the central government and the absence of supervision in local government exacerbate the risk of illegal fund raising. The part IV firstly reasonably positions the rural non-governmental finance and defines the government role, then suggests the choices of government behavior under the premise of standardizing and guiding the healthy development of rural non-governmental finance from improving the laws and regulations on rural non-governmental finance, cultivating a good social credit system and regulating the local government’s behavior and so on.Finally, the conclusions of this paper include:it is evitable for the government to intervene into rural non-governmental finance; the development of the rural non-governmental finance is the endogenous institutional arrangements induced by demand, which has positive effects and negative impacts; because of its dual sides impacts on the society, the government cannot be absent in the development of the rural non-governmental finance; the right way to its development is standardizing and guiding it; it is essential to establish relevant laws and mechanisms to regulate the government’s behavior due to its roles of referee and athlete.