Institutional Analysis Of Chinese Rural Share-based Co-operative Reform

The Rural Share-based Co-operative Reform is a reform that a village-based (eitheradministrative village or geographical village) rural joint-owned organization apportions itspart of or all property (refer as to its collective operative asset) into equity shares among itsmembers without changing the ownership of these property, and runs the Co-operative like ajoint-stock company or joint-venture. The Co-operative follows the organizational structure ofa corporation with Shareholders' Meeting and Board of Directors. Each member of theCo-operative participates into its operation with their voting rights and gains dividend on theshares they have.The Co-operative, in one way, realizes the ownership of farmers, balancing the mutualbenefit between the organization and its members, assuring the members' legal rights; in theother, farmers are actually involved in the process of its operations, supervision, and profiting,—all linked to managerial and decision-making democratization, which effectively amendsthe relationship between the Party and citizen, as well as the relationship between leaders andmembers. For the more, farmers, besides the welfare they had before the reformation, increase their income by dividend income from the Co-operative. They bear no loss evenwhen they move to other places because they have equity shareholder's certificates at theirhands to guarantee their ownership and interest of the Co-operative. The Co-operative alsohelps rural labors mobility and expedites the urbanization.This study, based on the practice and research on Chinese and overseas Co-operative, summarizes its institutional features, advantages, problems arose and significance. Upon theabove findings, the study analyzes the reform's initiatives, reasons behind the institutionalchoices, features and shortage of the reform. Finally, suggestions on policy-making for furtheradvancement have been put forward...