| The growth of the rural financial system results from the market endogenous force, and the market has played a fundamental role in it. However, the nature of rural inclusively financial system itself requires that every person in poverty shall enjoy the equally financial rights, thus market failure is inevitable, and the government has become an important force to improve the efficiency of the rural financial system. In theory, market failure can be resolved by governments policies and compulsory contract; however, the high cost of enforcing contracts and high cost of organizations will lead to government failure, while the rural community can make up for the market and the markets and the governments double failure to some certain extent. Therefore, to better provide financial products and services for rural poor and low-income people, we must construct the rural inclusively financial system of the “Trinity” between the market, the government, and the rural community. |
