Study On Rural Trust And The Operation Of ROSCA

To solve the farmers'investment and financing problems is essential for agricultural efficiency, rural development and the improvement of farmers'incomes. But in the current rural society, the formal financial system is not perfect, so there are still many deficiencies in meeting the farmers'financial needs. Because of the pressure from cost, rural formal financial network just set to the township level. In the vast rural areas, there is no set point that penetrates to households. The construction of rural capital mutual aid organizations is in its infancy, and has not been promoted wide spread yet, so many farmers still do not quite understand the organization. As a traditional non-formal financial organization, the ROSCA is formed by independent farmers, with self-management and the body cycles of funds, which have traditionally played an important role to meet farmers'investment and financing needs. However, the ROSCA has also disrupted the rural financial order, facing the fate of the banned. At present, in the context of the country encouraging the development of various forms, various types of rural financial institutions, the question that how to develop the ROSCA is worth considering. Therefore, this paper chooses the ROSCA as a resaearch object, with the trust as a starting point, to study the mechanism of its existence and to analyze the future development path.This paper is analyzed in the background of the rural social relation changes since the founding of new country, with the clues of Chinese history, taking Fujian as an example, using the methods of questionnaires, descriptive statistics, Logistic regression and typical cases analysis, from the theoretical and practical angle to dynamically study the evolution of rural trust and its effect to the ROSCA. On this basis, this paper puts forward some targeted policy recommendations to the development of ROSCA from the perspective of trust.Specifically include: (1) to introduce the theory used in this paper, and to define and elaborate the concepts, in order to establish the theoretical framework and lay the theoretical basis. (2) To make a brief analysis to the survival mechanisms and operation mechanism of ROSCA in rural society, paving the way for the later analysis. (3) To deeply analyze the change of rural social relation in three historical stage and its effect to the trust. On this basis, to further analyze the effect from the change of trust to the development of ROSCA. (4) To make a realistic study to the current rural social relations, trust and the work of ROSCA on the base of previous analysis, then to propose five assumptions from the three aspects of personal characteristics, social interaction, the control of ROSCA. After this, this paper made an empirical study to the impact from trust to farmers'membership behavior. (5) To make a typical case analysis of Nanan LD village with the collected material, in order to provide evidence to the preceding theoretical and empirical tests on the basis of the micro analysis to the run of ROSCA. (6) To propose targeted policy recommendations to the run of ROSCA base on the reality of rural trust, the running of ROSCA and the former conclusion.With theoretical analysis and empirical test, we draw the following conclusions:(1)The features of traditional rural society, such as closure, autonomy, lack of mobility, ensure the effectiveness of rural trust to constraint human behavior, which achieve the smooth running of ROSCA.(2)Rural social relation experienced mandatory institutional changes under the effect of national power since the founding of new country. Particular trust and universal trust is in the imbalance of development. The particular trust is strong, universal trust is more fragile, and the trust crisis is emerging. The transformation of the rural trust has a significant impact in the development of ROSCA: co-increasing complexity of members, the enhanced capabilities of investment and financing, the use of funds has become more subtle, the risk that hidden in the ROSCA is increasing.(3)The variables including Communist party membership, household annual gross income, attitudes of future life, whether to restrict the membership, the size of social networks, whether social circle has become broader, the time interval to contact with relatives and friends, have a significant positive effect on the behavior of rural households to join the ROSCA. And the variables including whether served as village cadres, attitude to the current life, participants signed the membership agreement, have the deceived experience, and arrangement of free time have a significant negative impact.(4)The case study of LD village in Nanan City, Fujian Province showed that the embedding of the village community and particular trust to the ROSCA make the risk of ROSCA is small.The innovation of this paper is choosing the changes of social relations since the founding of new country and the transformation of trust in rural areas as the starting point, taking Fujian as an example, using descriptive statistics, Logistic regression analysis, and typical cases analysis, to make a systematic, comprehensive, dynamic study on the trust and the running of ROSCA, in order to deeply analyze the impact of trust on the running of ROSCA, finally got some conclusions, which provided the further enrichment and improvement to the previous studies.