Research On Survival And Development Mechanism Of Farmers’Mutual Fund From Institutional Perspective

In order to solve the problems of insufficient rural financial supply, inadequate competition and credit constraint of farmers, the state adjusts to relax rural area banking financial access policy to promote the diversified development of rural finance, encourage various types of capital to set up new financial institutions in rural area and provide financing service for agriculture, farmer and rural area. Farmers’ mutual Fund organization created spontaneously by farmers is also the focus and shining point in the new rural finance policy. From a practical point of view, Farmers’ Mutual Fund provides financing channels of lower transaction costs to farmers, enlarges the financing capacity of ordinary farmers and has a positive role in supporting farmer to establish their own businesses and increasing farmers’ income.This paper comprehensively uses rural financial theory, cooperation financial theory and basic theory of organization analysis and other analysis tools, takes Jiangsu and Zhejiang farmers’ mutual funds organization pilots as analysis objectives, establishes a unified analytical framework by reviewing the development process of rural credit cooperatives and rural cooperative fund associations in order to conduct systematic theory and empirical study of the internal and external factors of farmers’ mutual capital organization and the institutional characteristics of "productive cooperation" and "capital mutual organization".The structural framework of this paper is general-specific-general and the paper is divided into seven parts.The first part introduces topic selection basis, purpose and significance of the study, briefly describes the main content, study methods and expected conclusion, outlines the analytical framework and technology roadmap, and streamlines the possible innovation and deficiency of the study. In the second part, the author studies and summarizes the required theoretical tools as well as the reasons, organizational type, operation mechanism, performance and existing problems of Farmers’ Mutual Fund studied by domestic and foreign scholars.In the third part, the author reviews the development process of rural credit cooperatives and rural cooperative fund associations that put tremendous impact on China’s rural financial system, provides useful suggestions on the institutional improvement and innovation of Farmers’ Mutual Fund and accordingly selects the analytical framework for this study. According to "Organizational Field" theory, the author analyzes the impact mechanism of government regulation, concern from rural credit cooperatives, farmer awareness and inter-organizational imitation other external system factors on the operating performance of Farmers’ Mutual Fund and takes Yancheng pilot as the example to verify the theoretical hypothesis in the fourth part. In the fifth part, the author follows the cooperative game paradigm of organization’s internal distribution of benefits, implants reconfiguration cost that reflects element replaceable degree, deeply analyzes the contradiction between the cooperative game equilibrium of members and classic governance mechanism of fund mutual cooperation and verifies the theoretical hypothesis of M town fund mutual cooperation case in the south of Zhejiang Province.In the sixth part, based on the pervious study, the author takes "productive cooperation" and "capital mutual organization" case of Yancheng H town as the sample to explore its internal and external institutional factors, establishment conditions and scale of operation. The seven parts summarizes and concludes the pervious study and proposes corresponding countermeasures and suggestions on this basis.Main conclusions can be drawn based on the analysis:Government regulation, concern from rural credit cooperatives, farmer awareness and inter-organizational imitation and other external system factors affect the institutional pressure of Farmers’ Mutual Fund and put great impact on its operation.2."One person one vote","same vote same right" and other cooperative financial principle cannot ensure the rational allocation of internal credit and earnings of Farmers’ Mutual Fund so that the internal governance mechanism will inevitably have some degree of "alienation".3. Compared with traditional Farmers’ Mutual Fund, the foundation and growth conditions of "productive cooperation" and "capital mutual organization" are different, which is closely related to the institutional entrepreneurial functions of local government and cooperation leader and transaction costs transfer mechanism of Farmers’ Mutual Fund.Based on the above conclusions, the paper proposes the following policy recommendations:1. Promote the legalization process of Farmers’ Mutual Fund.2. The local government should integrate financial regulatory forces to the supervision of Farmers’ Mutual Fund.3.Arrange farmer with more options in the internal institution of Farmers’ Mutual Fund.4. Create a good environment, and guide the rural elite to participate in the Farmers’ Mutual Fund.5.Establish government "support" exit mechanism.