Practice On Disposal Of Rural Collective Assets And Reform Of Joint-stock Cooperative System In Jiangbei District, Ningbo City, Zhejiang Province, China

Along with the rapid advance of industrialization and urbanization in our country in recent years, a great deal of collective lands in rural area have been requisitioned. During land requisition, the compensation should be paid to the land owner, forming village-level collective monetary assets. How to effectively dispose the monetary assets is not only tough problems with which local government is faced, but also problems which need to be solved urgently by village-level collective organizations.To put forward the disposal procedures for land requisition compensation in rural area, a case study on the disposal of the village-level collective monetary assets was conducted at Jiangbei district, Ningbo City, Zhejiang Province, China, in combination with the investigation results from other cities such as Hangzhou and Jinhua of Zhejiang Province and Wuxi of Jiangsu Province, China. The disposal procedure includes four steps. The first is to pay resettlement fees for land-lost farmers. The land requisition compensation contains resettlement fees which is only a limited subsidy for land-lost farmers and is stipulated in the Land Administration Law of the People's Republic of China. The second is to pay for pension protection fund for land-lost farmers, constructing the basic livelihood guarantee system mainly based on the old-age security system for the farmers. This is due to the lack of the livelihood guarantee for rural residents compared to city residents in the past. According to the policy of balanced development of urban and rural areas, the implementation of the old-age security system for land-lost farmers and the gradual change of livelihood of old-age farmers from living by land to the social security is significant to protect farmers'interests and perfect the social security system in China. The third is to implement joint-stock cooperative system reform under the condition of the implementation of the above two steps. The joint-stock cooperative system reform on the rest of the collective assets is an effective way to finally dispose the village-level collective assets. It has a very important practical significance to urban and rural economic and social development, enhancing rural collective economic strength, safeguarding the interests of farmers, guaranteeing the stability of rural society and accelerating urbanization of rural area.There are some problems existed in the practice of the joint-stock cooperative system reform, and further reform has been conducting and the measures for the deepening of reform have been exploring all over China. Currently the main problems of the joint-stock cooperative system reform in Jiangbei district have two aspects:one in common with other areas in China, and one in specificity. The common problems include that:firstly, the joint-stock cooperative system does not yet function as main body in market. The village-level collective organization bears the function of not only developing the collective economy, but also the community public service. Neither industry and commerce registration, nor body corporate registration has been conducted for the organization. Thus, the organization is neither enterprise and business entity, nor corporations. Secondly, the state of unclear property right has not been thoroughly changed. The collective ownership of stock returns no clear relationship between shareholders and property ownership. The only quantification made is in real income distribution and the nominal ownership, but not the ultimate property ownership. Thirdly, operation management follows the original administrative management mode. The principle of rural acquaintances society is still followed in the management. It is difficult to introduce management talents. The specific problems involve that:Firstly, the operation management mechanisms are closed, mainly because the equity ownership transfer mechanism is not established. Secondly, the development potential is restricted mainly by the lack of land resources. Thirdly, the following works for perfecting the system are slow because of various contradictions brought by slow transformation from village management to community management in rural area. To overcome the common and specific problems, four directions in deepening further reforms are put forward:The first is advancing equity ownership transfer and regulating its management. Through the equity ownership transfer, the all shareholders property should be given. The second is the assets reorganization and innovation of management mode, i.e. separating the new cooperative operating assets, reorganizing the property, partitioning the ownership and management, being voluntary for the stock contribution and transfer, and being consentaneous in the manager benefit and the operating risk. The third is constantly perfecting the management system and promoting the collective economic development. Study on the establishment of the corresponding mechanism and more meticulous internal management system should be conducted for ensuring healthy, stable and sustainable development of the new cooperatives. The fourth is exploring the exit mechanism and promoting urban and rural integration. If the cooperatives had no business income and did not assume their duties, it should be exited. In addition, the assets range, the approved assignment of equity ownership, the relative separation of the community public service function and business management function of the village-level collective organization, and the reform policy in the transitional period are also expounded in order to provide information beneficial to the areas with a rapid industrialization and urbanization.