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Establish China’s Financial System and Formulate Agricultural Policy between Government and Non-government Sectors(No. 47, 2017)


By Xiao Junyan, Research Team on “Enhancing a Competence-Oriented Agricultural Policy System”, Research Department of Rural Economy,DRC

Research Report No. 47, 2017 (Total 5121) 2017-04-24

Abstract: At present, China’s financial departments’ support for agricultural development still remains inadequate. For instance, the commercialized operation goals of current financial institutions are incompatible with its service for agricultural development, the leading role of agricultural policies and financial organizations is not in place, policies supporting cooperative finance is not strong enough, and government support is on the whole still relatively limited. Viewing from the experience of foreign countries, it is advisable for China to adopt the “public-private” model, that is, government’s agricultural policy-based financial institutions could cooperate with various kinds of cooperatives and commercialized financial institutions and various forms can be adopted for the establishment of agricultural policy-based financial institutions. Besides, rural credit cooperatives, rural supply and marketing cooperatives as well as specialized farmer cooperatives can form cooperative financial unions or establish cooperative financial systems respectively and conduct policy-based financial businesses entrusted by the government. Currently, the strategic task needs to focus on the following aspects: a national modern agricultural trust fund and a modern agricultural policy-based financial institution need to be established; relevant government departments need to dispatch representative to the board of directors of financial institutions to supervise policy implementation; the government needs to support the cooperative finance for further development; policy-based agricultural mortgage and guarantee agencies and postal savings bank systems need to render support to farmer cooperative organizations.

Key words: agricultural policy-based finance, main issue, optional pattern, operation strategy