Government's Rural Financial Resources Controlling and Its Effect

Under planned economic system,in order to advance industrialization strategy,the central government,relying on the state authority,controlled the rural financial system and fund deployment.After reform and opening,as an endogenous variable of China's economic growth,the local government,with violence potentiality as well,has gradually obtained the actual power of controlling the rural financial resources especially fund resources.Both the central government and the local government have poor efficiency when they control the rural financial resources,what impairs the financial transaction,does no help to the rural financial system innovation and the development of agriculture and countryside.Reform of government's function and rural administration structure is the available way to reduce the government controlling of rural financial resources.