subject: Guangdong and other coastal areas appear again this shortage reflects China's rural economic development [print this page] Opposed to rural financial liberalization of people actually confuse regulatory and "control" of the two different concepts. Regulation mean that the use of funds in line with the original design intent. Credit funds designed originally to the development of the rural economy, to provide funding for the Member, but now it's moved his Government with, for example, to erect a building, this is a regulatory failure. Bangladesh's small loan revolution Yunus to Wedding Shoes figure out a reason: to make the regulation effective, democratic, just let farmers mutual supervision, similar to a joint guarantee of the system, if you do not pay, I also have a responsibility, this greatly reduces the regulatory costs, mutual supervision. Do you need a prerequisite is that farmers should have its own power to organize and participate in the supervision of financial institutions. But in more emphasize is top-down control, if the farmer control would not give him a loan, this is China's logic. Therefore, to the development of rural finance, a need to change not only the capital flows, but the entire rural financial system and to reform the political system, give farmers more meaningful.
Guangdong and other coastal areas appear again this shortage reflects China's rural economic development
