A Blueprint for Credit Under Rural Reconstruction
By 1929 agricultural credit and broader access to institutional credit for farmers became a guiding principle for the national government. China’s banking system at that time was so underdeveloped that progress was slow. Consequently, the KMT prepared a ‘blueprint’ for modern rural financial institutions. This was in part pushed by rural reconstruction, but also Sun Yat-sen loyalists were pushing the populist message of the Three Principles, and finally—and most important to Chiang Kai-shek—was the growing communist threat. Consequently, a meeting was called on December 5–11, 1929 by the Ministry of Agriculture and Mining, to develop a blueprint for an ideal rural financial institution system. This chapter provides an overview of this blueprint, and its impact on agricultural credit.