Study On The Executing Process Of The Laid-off Workers' Microfinance Policy

In the view of the varying international society and opportunities, the world is being focused on China. Facing the challenge of the global financial crisis, China puts forward a series of policies to ensure the growth of economics, the people's livelihood and the social stability. It is further emphasized that more efforts should be given to promote large-scale employments. To achieve this, the Microfinance Policy (MP) is quite helpful, the rise of which indicates that the concept of anti-poverty policies has been changed from the income-based ones for satisfying the people's basic needs to the asset-based ones focusing on the people's long-term development. At present, the social policy research has been paid much attention. Furthermore, the policy process and the application of"Assets Building"have been the hottest research topics and the most cutting-edge questions in sociology in 2009. Under this background, the study on the executing process of the Microfinance Policy for the Laid-off Workers (MPLW) becomes more important and meaningful.However, there are still some disadvantages existing in the previous research. Firstly, it is only focused on the changes of the laid-off workers'income while discussing the welfare effects caused by the MP. Obviously, it has neglected the welfare effects on nonmaterial aspects, which is precisely the key point of the Productive Anti-poverty Policy being able to help the poor out of poverty thoroughly. So after deep consideration, it has been selected as one important research topic of this thesis. Secondly, most studies ascribe the issues to the defects of policies themselves when analyzing the inefficiency of the MP, but none of them discuss the executing process of policies and the organization responsible for implementation in detail. Because they haven't caught the essence of things, the author chooses this perspective as the other research topic of the thesis. Based on the mentioned above, the paper starts with the executing process of social policies, and the research object is the executing process of the MPLW in Fushun City. Two issues are mainly discussed. One is the survey of the welfare effects brought to the individuals by the policy on nonmaterial aspects, as well as the ones brought to the society on social aspects, and the underlying origins of the welfare effects. The other is the analysis on the reasons why the inefficiency of the MP appears, and its relationship with the cognition discrepancy from different executives.Besides considering the feasibility of the research, another important reason to select Fushun City is because it is on behalf of the resources exhausted cities and Northeast Old Industrial Base. Moreover it shows us multiplicity during the executing process of the MPLW. This paper is based on 64 official documents of Fushun and Liaoning province, and 31 interviews with the civil servants, policy executives of community and laid-offs. It concludes that, firstly, through participation in the MPLW not only improves the income and consumption ability, but also benefits from the welfare effects on nonmaterial aspects for their whole life and will thoroughly help the poor out of poverty. In addition this model could provide more other people with jobs if one carves out a new way, so it is more suitable for China's conditions to help the poor. However the welfare effects should be attributed to the effective management of governments, while not coming automatically. Secondly, the inefficiency is caused by the game among all the policy executives. Due to different social statuses and backgrounds, the executives usually have different understandings. If there is a large difference on expectation between the winners of the game and the constitutors, the policy will be of necessity inefficient.Through these case analyses, the author had an innovational thought about the theory and practice of the MPLW. First, using the western assets building theory as reference, and setting up the ideas of employment driven by entrepreneurship, and constructing anti-poverty theory with Chinese characteristics. The western assets construction theory meets the opinion of shaking off poverty from improving life way to producing way in our MPLW; The assets construction theory on developing economics is in consistent with the MP of expanding domestic demands, promoting the economic growth and the people's livelihood; The welfare effect of household assets in assets construction theory is similar to that caused by the MPLW. It means the theory should be a good reference for the construction of our MPLW. However, the western theories are based on the local economic and social environment, which is not fit for Chinese economic conditions and cultural background. So exploring the suitable"Chinese experience"is the only way of academic development. And policy makers have also pointed out how important the goal is for the implementation of the MP. It's not only related to the individual policy participants but closely interrelated to the whole country's development. Therefore the opinion of employment driven by entrepreneurship is in Chinese characteristics. Second, there are still some defects during the executing process of the MPLW. The present two-line operational mode of the MPLW not only separates the government with banks, but also lacks of communication with the third department, and easily produces irreconcilable contradictions between them; The present recycling risk system can not seize essence of problems, and just enhance the reinvestment, but neglect the basic functions-"Nip in the bud". These will aggravate the difficulty in repayment. The agency bank's highly centralized power and the lack of government accountability mechanisms will easily cause the failure in entrepreneurship programs, and even affects the policy participants sustainable degree of shaking off poverty. So the author considers that it is necessary for the policy working better to break the two-line mode and improve the recycling risk system and strengthen the feasibility of entrepreneurship programs.In conclusion, the theory and significance in this paper are as follows: it is based on using the Michael Sherraden's Asserts Building as reference, emphasizing the localized reality, and further discussed to promote its growth and development in China; It takes practical social policy as an object of study and analyzes the social policy executing system by tendency judgment and provides a new perspective for re-employment; Starting with the social reality, it provides anti-poverty theory in China and foreign countries, and the practical achievement, which will favor the government releasing the new round re-employment policy for the laid-off workers.