New Cooperative Finance: the Core and Source of strength of Rural Reform

2014 is the first year of China's political reform. The central government has clearly put forward the reform requirements for developing new rural cooperative financial organizations. We need to improve our understanding and unify our thinking, do theoretical homework and research preparations, and welcome the arrival of the new cooperative financial era. General Secretary Xi Jinping pointed out that the rural financial problem is still a long-standing problem. To solve this problem, efforts should be made on the top-level system and mechanism, farmers should be encouraged to carry out cooperative financial pilot projects, top-level design and grass-roots exploration should be promoted to interact positively and organically, and a new financial system suitable for agricultural and rural development should be constructed.

I. The important position and role of the new rural cooperative financial organization

Developing new rural cooperative financial organizations is the foundation of constructing new rural financial system. Theoretically speaking, it is because there is no community cooperative financial organization with farmers as the main body that China's rural financial system has not been constructed; practically speaking, there is only nominal cooperative finance in China-rural credit cooperatives have long been alienated into commercial finance, so it is difficult for the current rural financial system to adapt to the development requirements of agriculture and rural areas. In fact, China's rural cooperative financial organizations are still in a blank area, which determines that rural savings resources can only be allocated to cities through commercial financial organizations, but rural savings can not be used for community development, accelerating the outflow of rural funds, and then promoting forced labor transfer, rural areas become 386199 population areas, resulting in more serious "three rural" problems. To solve the problem of agriculture, rural areas and farmers, we must speed up the development of new rural cooperative financial organizations and lay a good foundation for the new rural financial system. This is the only and correct reform direction and road.

Developing new rural cooperative financial organizations is the core of constructing new agricultural management system. With the development of market economy, it is difficult for single rural family management system to participate in market competition and cooperation, which is manifested in the contradiction between small production and large market. Small production has the risk of bankruptcy at any time in large market. For a long time, we have advocated a two-tier management system based on household contract management and unified management, but the cooperative and joint management system and system have not been established. Reflecting on this problem, in addition to the lack of systematic supporting policies, what is more important is that there is a problem in the direction of rural financial reform. Instead of reconstructing the new rural cooperative financial system as an important part of the agricultural management system, it resists the development of cooperative finance, supports commercial finance to enter the countryside, further promotes the bankruptcy of the small-scale peasant economy through the hand of commercial finance, and eliminates the basic unit for constructing the new agricultural management system. He made the directional mistake of counter-reform by sending rural funds to cities and urban commercial capital to villages. The new rural cooperative financial organization is the core of rural economy. We must understand the importance and urgency of developing new rural cooperative finance from the perspective of production relations, and firmly grasp the core of new rural cooperative finance reform, so as to promote the establishment of a new agricultural management system that meets the requirements of market economy development.

Developing new rural cooperative financial organizations is the link to construct new rural production relations. The relationship between farmers and farmers, agriculture and market, rural areas and government are the basic relations of the three rural issues, namely "three major relations". Adjusting and developing the "three major relations" can solve the "three rural problems" well, otherwise it can only make the problems more and more serious, and it will make the reform subversive direction mistake. This is a question of understanding and, more importantly, of practice. How to deal with the "three relations" must be understood from the height of adjusting and perfecting the rural production relations, starting with the new cooperative financial ties connecting the "three relations", firmly grasping the golden key to solving the "three rural problems"-developing new rural cooperative financial organizations, and promoting the adjustment of the relations between farmers and farmers, farmers and markets, farmers and governments. Deng Xiaoping said: Finance is the core of modern economy. If finance is done well, it will be alive in one move. The author thinks that if cooperative finance is done well, then it will adjust and perfect the three major rural relations, realize the harmonious development of rural social production relations, the mutual development of urban-rural relations, and the benign development of economic grassroots and superstructure.

II. Construct a new rural cooperative financial organization system with perfect functions

Accelerate the construction of a new rural cooperative financial system at the county level. (a) The organizational structure of the association. The new-type community (village and township) rural mutual fund organization is the basic unit, which maintains the status of independent legal person and establishes the cooperative financial organization with its own risk. This is a necessary condition for constructing a new rural cooperative financial organization system at the county level. After the cooperative financial organizations are fully developed in each community, these standardized new cooperative financial organizations shall initiate the establishment of county-level federations, which are independent legal persons and owned by all new cooperative financial organizations. They shall exercise the duties of industry management, auditing self-discipline, fund adjustment and government coordination for each member society authorized by the members 'congress. (ii) Integrated business systems. New cooperative financial organizations are allowed to carry out banking, trust, insurance, securities and other businesses under prudent operating conditions, give full play to the portfolio effect of financial instruments, promote financial development and prevent financial risks. (3) Education and training system. Guide new cooperative financial organizations to learn from themselves and carry out training and education on new cooperative finance, encourage qualified institutions and personnel in society to train and guide new cooperative financial organizations, and support new cooperative financial organizations to go out and invite in experience exchange activities.

Accelerate the policy support system for supporting new rural cooperative financial organizations. (i) Market supervision system. As soon as possible, formulate regulatory measures that meet the requirements of law and financial prudence, meet market needs and reflect the essence and laws of cooperative financial system, unify new cooperative financial regulatory standards, implement regulatory subjects, improve the quality of regulators, and improve regulatory service capabilities and levels. Establish a three-level supervision system based on self-discipline of members, industry audit as the core and administrative supervision as the guarantee. It is necessary not only to effectively supervise, maintain market order, protect the interests of depositors of members, but also to reduce the cost of social supervision and maximize the waste of social supervision resources. (b) Monetary policy support system. The central bank should formulate measures to provide revolving loan support to the new rural cooperative financial organizations, the financial supervision institutions should guide commercial financial institutions to wholesale funds to the new cooperative financial organizations, and a certain proportion of rural deposits absorbed by commercial banks should purchase financial bonds issued by the new cooperative financial organizations. (c) Financial support. Support for start-up expenses of new rural cooperative financial organizations, tax relief support, loan discount and income subsidies for cooperative financial organizations will be given to jointly bear agricultural market risks and natural risks. Financial support for rural project funds should be issued through new cooperative financial organizations to loans.

Establish a new rural cooperative financial organization system to prevent regional and systemic risks. Support new rural cooperative financial organizations to carry out mutual insurance to prevent regional risks caused by force majeure factors, such as liquidity payment risks caused by non-institutional reasons such as earthquakes, floods and epidemic diseases; Support the establishment of a new rural cooperative financial stability fund to prevent and deal with payment risks that may arise from insufficient liquidity of individual new cooperative financial organizations, thus causing regional and systemic risks. The stabilization fund financed by government finance should be no less than 10 per cent of the total cooperative financial stabilization fund, and more market-based measures should be taken to reduce or avoid administrative bailouts. Each province shall establish a management committee of the new cooperative financial stability fund, and the chairman of the management committee shall be elected by the members and appointed by the governor.

3. reform must rely on the strength of the masses of the people to carry out

The peasant masses are the source of strength to promote the comprehensive deepening of rural reform. Deepening rural reform in an all-round way involves all aspects, and many of the contents are complicated. The accumulated contradictions and problems cannot be solved by one hand. The interest game of reform is becoming more and more intense, and the ignition point of contradictions has reached the lowest level. The reason for the reflection is that our reform farmers for more than 30 years have no right to speak, and farmers have not become the main body and beneficiary group of the reform. Since the 18th National Congress of the Communist Party of China, the Party Central Committee headed by General Secretary Xi Jinping has adhered to the mass line and relied on the strength of the people to promote various reforms. A broad consensus has been formed that the society will promote reforms. The people have become the main force of reform and participated in the new reforms. Deepening the reforms in an all-round way not only ensures the correct direction of reform, but also gathers the source of strength for reform. The reform should rely on the masses, and the results of the reform should benefit the masses. We should not pay lip service to them. We should not fight against the people under the guise of reform. The author believes that this is the consensus on reform formed since the 18th National Congress.

The main body of the new rural cooperative finance is farmers, which is the production relationship to ensure that the benefits of reform benefit hundreds of millions of people. The development of new rural cooperative financial organizations is a great reform of rural production relations. By improving farmers 'credit organization and using financial levers to pry various rural reforms, it will achieve twice the result with half the effort, and it can reduce the resistance of all parties and obtain the greatest common divisor of society. The development of new rural cooperative financial organizations can organize scattered farmers through financial institutions, make them the main body and beneficiary of reform, and be the general grasp of reviving rural civilization and friendly city health. Deng Xiaoping pointed out: What form of rural production relations is good depends on whether the peasants support it or not. Once the new rural cooperative financial organization has been put into practice, it has been supported and responded by the masses of the people. Farmers 'property income is increasing, production is re-developing, and employment in villages is increasing. This proves that the cooperative financial cause is a noble cause for the welfare of most people and a production relationship representing the interests of the overwhelming majority of the people.

The new rural cooperative finance can promote the development of rural undertakings in an all-round way. The new rural cooperative financial organization is not only a part of rural financial system, but also a part of rural economic system. It is located at the intersection of rural financial system and rural economic system, so it has natural two-sided attributes. Cooperative finance, on the one hand, participates in market competition and cooperation as a market subject, on the other hand, it belongs to financial support subject as a rural economy; Cooperative finance can support industrial development as an investment subject, and can stimulate the development of investment subject through financial support consumption demand; Cooperative finance makes economy and finance twin into one, such as enterprise group and financial company, creating supply and demand on one hand; Cooperative finance can be operated in debt or managed in assets. It can not only support investment and consumption with financial leverage to promote economic development, but also use economic dividends to fight poverty and develop various social undertakings. Cooperative finance is the full development of individual freedom and the realization form of collective economy. Cooperative finance can not only be independent and fast, but also realize mass travel through joint efforts. Cooperative finance can mobilize internal savings concentration, but also gather external resources to go to the countryside. Cooperative finance can not only improve the status of small production, but also transform social capital. In short, once the cooperative financial production relations develop, they will certainly promote the development of rural economy and other social undertakings in an all-round way.