In socialist market economy,because of market is ineffective in regional capital running and the defect of market function in the vicissitudes of system,the regional government must conduct macro-regulation and control for regional capital running.

Western economics takes market externality as an important field of study and regards it as one of the basic phenomena of market defect.

The paper makes a systematic analysis of the phenomena and causes of market defect and government ineffectiveness,and put forward an ideal method to solve the two problems.

The market defect does exist in the operational process.

This paper analyzes government failure from a practical angle: on one hand, market failure demands government s interference, because of many reasons, market defects have been exaggerated, which leads to too much interference from the government; on the o.

A Primary Study on the Functional Defects and Improving Approach of Rural Financial Organization System

However,it exist many functional defects.

This article analyses the non-market limitation according to China present condition and makes us clear the main characteristic of non-market limitation and puts forward the present choice of government in economy,politics and system.

Chinese theoretical system has the feature of plane interpretation,which determines the functional limitation of Crime Confirmation Theory in China,the worst of which lies in the hidden trouble to human rights.