The Practical Logic Of The Customary Law In Informal Finance

The basic view in this paper can be summarized in one sentence as follows. As a practice of customary law, the informal finance firstly is a series of actions and events in community life, and secondly is a set of the norms and principles that interact with the state policy, formal law and other environmental factors. There are five sections support this view in full text: an issue, a perspective, a method, a case and a conclusion.The "practice of customary law" in informal finance is the main issue of this paper that contains two dialogical focuses. Firstly, dialogue with the previous academic conventions of some grand perspective such as financial repression, asymmetric information and institutional change, etc. introduce informal finance into a customary law study and Re-observe the grass-root situation of the contemporary informal finance in a micro-approach. Secondly, dialogue with the research paradigm and ontology to customary law based on the theoretical logic and nationalism, analyze the current norms and principles of the customary law and reveal its practical logic as "daily do but never be aware " in action, establish a interpretative framework based on pluralism and ordinary life to accumulate a knowledge preparation that contribute to the governance by Rule of Law.Toward the issue and dialogical focus above, this paper through practical perspective brings the customary law study back to the real activities of various community factors. This paper analyzes the practical logic of customary law by all details from daily life in three dimensions such as Urgency, Independence and Totality of the practice itself. The practical logic is closer to the real social world than the theoretical logic, so a stronger description and explanation to the issue is given with more deep regard to the academic dialogue.The critical case research method preserves the originality and authenticity of practical experience. Its specific technical route as follows. It formats the longitudinal axis of the analytic advance to summarize the events and process from the field work material; and it formats the horizontal axis to thick describe the key scenes and relationships. The complementary dual process of "process-event" and "scene-relationship" makes a fresh and vivid panorama of the whole practice.The critical case is a business career of several farmer-turned-enterprisers in "Ounan county" Wenzhou since the Reform and Opening up. The main line is Lin Yongqing's financial adventure: how he pioneered, made money, elitelized, failed, escaped from debts and endangered the family corporate into bankruptcy. The sub-lines are other people's commercial life in Lin's family and business circles. This enterprisers-centered case shows the real process of customary law's recovery and development in the Han ethnic areas at present,gives a real example for the pros and cons of the grass-roots financial governance in China and also individually reveals how the practical logic change in the practice of customary law.This paper concludes the practical logic as the core of the customary law in informal finance. Comparing the customary law, the practice of customary law has different content. The practice of customary law is a set of rights and obligations that come from the actors continue to practice a series of activities such as imitate, learn, apply and create the customary law itself, and customary law's external shape and internal logic is constructed and format construction by the practical mechanism. As an expression of the change in the practical logic, this paper summarizes an common type according to the update of the Field and Habitus in Ounan community, and classifies the practice of customary law into three sub-types: rural livehood, Commercial Management and political participation.The rural livehood sub-type occurs in the natural villages to kin trust as the core, its "mobilization-participation" mechanism concentratelly performs an interaction within informal finance between the primary groups and leaders. Petty farmers'survival logic is the fundamental and initial, and dominates this sub-type.The commercial management sub-type is a new product by the tradition that is introduced to the private economy, its trust mechanism expands to the local business circle along the "acquaintance-semi acquaintance" network too, and its "mobilization -participation" mechanism concentratelly performs an interaction within informal finance between the local private business elites. Merchants'profit-seeking logic becomes a new backbone of this sub-type. The political participation sub-type appears after the "Wenzhou model" be approved by the state, a few private business elites use various strategies of political participation (charitable donations, leading the chambers of commerce, be elected a deputy to the NPC, etc.) and achieve "a excellent merchant can become an official" as double elites. Its trust mechanism expands to the local politics circle along the "acquaintance-semi acquaintance" network, and its "mobilization-participation" mechanism concentratelly performs an interaction within informal finance between the private business elites, double elites and local officials. While the local officials participate in the elites group and become authoritative defenders of the new order of the customary law, the public figures'power -pursuit logic leads this sub-type.In order to develop a specific description of the common type above, this paper expands it into a case experience-based specific type on the practical status. The practical statuses of customary law are multi-layer combination that can't be canceled by each other, but the initial status overlaps and affects the hind one significantly. For example, the commercial management sub-type still has the original color from the rural livehood. Corresponding, the practical logic of customary law is changing gradually, flowing between the new and the old to and fro, but the hind logic may turn to the initial one backwards sometimes. For example, once private business elites are defeated in the competition of political power, they will turn to the survival logic again, gather new resources from their kin trust.This common type and specific type above more aptly describe the covert mechanisms in micro-level HOW the practice of customary law externalizes norms, principles and actions. Based on the conclusion, this paper propose for the resources of the rule of law turn to the product, we should break the bottleneck both in ideal and technical level, and discussed how "customary law into the legal methods and the idea of Rule of Law" themes.