Give farmers full guarantee of financial operation rights

In his speech at the Central Rural work Conference on December 28, 2011, Premier Wen Jiabao pointed out: "the right to contracted management of land, the right to the use of residential land and the right to distribute collective income are legal property rights granted to farmers by law. No one has the right to deprive them of it, whether they still need it or not, and whether they stay in rural areas or enter cities and towns."

In addition to land contractual management right, homestead use right and collective income distribution right, there is also an important property right, namely farmers' financial operation right, which needs to be established and returned to farmers as soon as possible. so that farmers have sufficient and guaranteed financial operation rights.

What is the financial operation right of farmers?

The so-called farmers' right of financial operation refers to the right of farmers to set up financial institutions, operate and benefit from financial products and services, and obtain financial services from financial institutions under the permission of national policies and laws.

For a long time, the ownership and contracted management rights of rural collective land in our country cannot be transferred or mortgaged, and any possibility of "capitalization" of rural land can be cut off from the floodgates only after it has been collected, stored and sorted out by the government of the city to which it belongs. Only then can it be auctioned at a "sky-high price" far higher than the price compensated to farmers, and the income mainly belongs to the government. Extremely strict financial repression is carried out in rural areas, and there are more farmers whose money is not in use for the time being. These currencies can only be deposited in government-run rural credit cooperatives, agricultural banks and other financial institutions, and do not have the opportunity, platform and right to add value to these currencies through their own financial organizations.

In order to achieve social fairness, we must truly care for, care for and help the poor. Under the condition of a market economy, it is necessary to give back to the poor completely and thoroughly the right of the poor to obtain loans to develop family business and increase income, rather than detain, block, or prohibit them.

Are farmers willing to have the right of financial operation?

Whether farmers want the right of financial operation or not is an issue that has not been agreed upon for a long time in our country. At the end of 2006, the State Banking Regulatory Commission agreed to relax the access policy for banking financial institutions in rural areas, and experimented with three types of financial institutions: village banks, micro-loan companies and rural mutual fund cooperatives, among which rural mutual fund cooperatives were the most snubbed. Only a dozen of them have been registered nationwide so far. Some people take this as strong evidence that farmers do not need their own financial organizations and financial operation rights.

However, after many rural investigations, we found that farmers generally ask for financial loans, generally require the establishment of their own financial organizations, and generally demand the right of financial operation. I accompanied Mr. Liang Luohui, UNU project officer, and Professor Kanok Rerkasem of Chiang Mai University, Thailand, to Shale, Nanjian Autonomous County, Dali Prefecture, Yunnan Province and Houqing Yi Township, Yun County, Lincang City, Yunnan Province. In response to the assessment of GEF / UNDP-funded project sites, villagers asked for help in coordinating loans in front of international experts.

Farmers are unable to get loans for the development of household business, especially for poor households. According to the statistics of the CBRC, at the end of 2007, there were about 230 million rural households in China, of which about 120 million had loan needs. Among them, more than 78 million farmers received micro-credit loans and co-guaranteed loans from rural cooperative financial institutions, accounting for 33.2% of the total number of rural households in the country. That is to say, 64.8% of Chinese farmers still have no or no access to loans. If the repeated loans of large rural households and well-off households are excluded, this proportion will continue to decline.

According to China Economic Times reporters Li Guopeng and Yang Ming on June 10, 2012, Zhang Shuzhong, secretary general of Henan Institute of Finance, said in an interview with reporters that mutual fund cooperatives, small loan companies, rural credit cooperatives and restructured rural commercial banks, rural cooperative banks and rural banks In addition, the rural financial departments of China Postal savings Bank, China Development Bank, Agricultural Development Bank, Agricultural Bank of China and other banks have formed the diversified pattern of Henan rural financial system. But really play a role, the effect is too lack, the overall evaluation is that the rural financial dilemma is still the same.

So why is the development of rural mutual aid cooperatives designed for farmers almost at a standstill? The real reason is that rural mutual aid cooperatives are farmers' own financial organizations, and the relevant departments advocate, encourage, and organize the development of rural mutual aid cooperatives, generally speaking, there are no benefits, and there may be risks, so they have no enthusiasm or even hinder them. The CBRC's prudent supervision and regularized operation requirements make its operating costs overwhelmed. In addition, it is also related to many people's lack of understanding of the status and role of rural mutual cooperatives in the rural financial system, and only regard rural mutual aid cooperatives as a supplement to the rural financial market. If we can not fully understand the function and role of farmers' own finance, it will be difficult to promote rural financial reform, and the rural financial system cannot be established.

Do farmers have the ability to operate finance?

Some people often cite the rural cooperative funds tested in the middle and late 1980s (according to data, by the end of 1996, there were 21000 township-level and 24000 village-level rural cooperative funds across the country, with a financing scale of about 150 billion yuan). The lesson of being banned across the board in 1999 demonstrates that farmers are incapable of operating finance. In fact, the reason for the problems in the Farmers' Cooperative Fund at that time was that there were unclear property rights, poor management, excessive government intervention, lack of effective supervision, large-scale payment risks, and even a run in some areas. the most important reason is that the county and township governments and their officials intervened in the foundation and turned the foundation into an "cash machine for officials". As some scholars have pointed out, it is a principle consistently advocated by our party and government to seek truth from facts and determine the policy of work in accordance with the actual situation. The rural situation in our country is very different, and the rural cooperative foundation is not a situation, a model, or a problem. On the contrary, the actual situation is that some are poor and some are good. For those who do well, we should help them sum up their experience, make it better and better, and apply their experience to other places; for those who do badly, help them sum up lessons, correct shortcomings, defects and mistakes, and make their causes better; for those with serious problems, they should be cleaned up, rectified and banned. However, instead of adopting such a policy at that time, it banned them all in an across-the-board manner.

It is very inappropriate for the relevant government organs to take such actions as "managing, blocking, oppressing, blocking, rectifying, and beating" farmers' financial affairs. First, this is totally inconsistent with the requirements of government organs' duties such as "serving the people wholeheartedly" and "three represents"; second, it is totally inconsistent with the requirements of modern market economy, such as respecting farmers, serving farmers, giving farmers autonomy and so on. Third, by taking actions such as "managing, blocking, suppressing, blocking, rectifying, and cracking down" on farmers' finance, government organs have killed rural finance and even rural economy, seriously affecting the country's economic construction; fourth, suppressing peasant finance for a long time may eventually lead to social instability.