Research On Rural Financial Reform And Development In Shanxi

It was since the independence of the people’s republic of China that our national finance system had been developed promptly from the blank to the exist and from the micro to the macro. No mater under the conditions of the planning economy system market-economy system nowadays, the finance had made a very important contribution to our national economy development. At the same time, rural-finance as one of the parts of our national finance system had improved the agriculture productivity and promoted the development of the rural economy.Rural economy in China cannot develop without financial support. In order to develop rural economy, the current major task should be directed to promoting strategic adjustment of rural economic structure through either urbanization to transfer surplus rural labor or agricultural industrialization to restructure rural economy, both of which need accumulation and reinvestment of large amount of capitals. Only with financial support can this task be done. Current situation, however, is that most social capitals are invested in non-agricultural and highly profitable industries, and most rural capitals that are already very short in rural areas are devoted to urban areas via various channels, which severely limits the rural economic development in most parts of China. Investigation showed that since mid1990s, it has become more and more difficult for rural enterprises and farmers to obtain loans. The shortage of appropriate financial institutions providing efficient services to the economic entities in rural areas and meeting their financial demands puts rural economic development in a difficult position. It is also one of the reasons for the slow increase in farmers’income. Meanwhile, the operation of Chinese rural financial institutions has been restricted in many aspects, which gives rise to many conflicts regarding the financial aggregate, structure, and regulations in rural economic development.In order to address these issues thoroughly, a comprehensive study is conducted in this thesis on rural finance supporting rural economic development, with a focus on the current status of rural finance and the extent to which it contributes to rural economic developmentThe exiting problems and their corresponding causes are also explored in this thesis, and some suggestions are provided therein as potential solutions. The test analyzing the existent problem and difficulty, using the successful experience of oversea rural-finance’s construction and development for reference,this thesis has put forward the more principle of the national rural-finance reformation...