| This dissertation firstly constructs a theoretical framework of Poverty Alleviate Farmers’Cooperative (PAFC) on the basis of the academic literatures. Learning from the success offoreign public welfare micro-finance organizations (PWMO), it then reviews the seven-yearexperiment experience and achievements of PAFC in China. Choosing Shandong Province asthe sample area, several methodologies were conducted such as questionnaire investigation,PROBIT measurement model and dynamic game analysis, in order to draw a systematicpicture of PAFC operating scheme which is composed of5parts: financing, management,operating, earning scheme, risk supervision and poor targeting scheme. The main conclusionsare as follows:(1) The PAFCs are a specific form of PWMO, which is aiming to alleviate the ruralfinancial development’s lag behind, lack of financial products, and farmers’ lack of funds. Itis different with the Rural Cooperative Fund Associations in many ways, such as the attributeof the organization, the property structure, resource of the funds, inner control capacity andallocation scheme. The PAFC has much similarity compared with the rural mutualcooperatives, but they are much different in orientation and operating scheme. From the viewof social capital theory, it is found that social capital has a remarkable effect of incentive andrestraint mechanisms, which reveals not only in formal institution but also in informalinstitution e.g. social norm, private regulation, cultural practices, etc. From the angle offinancial cooperation theory, we consider PAFC belonging to the category of cooperationorganizations.(2) The success of micro-finance overseas light the way for PAFC in China. ConsideringChina’s specific situations, the operating scheme of PAFC should reflect an accurate marketpositioning, a flexible product design, marketed loan rates and reasonable ways of risk control,by which the PAFC could realize its goals in both financial sustainability and effect coverageof the poor. The dissertation reviews the7-year practice of the PAFC in China, and found thatthe PAFC is unique in the history of poor alleviating by finance power for its rapid coverageand considerable speed of development. But after we analyses the features, advantages andfunctions of PAFC, its historic development is most understandable for it meets the highdemand for financing service from rural areas in China. The initial success of PAFC showsthe enlightens as follows:①it obeys the principle of democracy；②it inclines to the poor； ③it stresses the design of property right；④it applies flexible and diverse means in operating；⑤it relies on the effective guidance and supervision of the government.(3) Shandong province is representative within national scope and thus suitable for thesample area. The main features of PAFC are: the overall development is rapid butregional differences stands out; there are aids for the poor but they are not effective; thefinance power is in the leading position but it has no connection with the distribution of thepoor; the economy condition of the villages varies greatly. Findings from the questionnairesare: both members and management staff hold a positive attitude towards the effect of PAFC,they are satisfied with the transparency of the finance, but as to the funds supplying, decisionmaking and loan rate parts, PAFC does not meet their demands.(4) PAFC is still in the pilot phrase, its financing scheme reflects a feature of diversity.This dissertation found that financing subjects are clear, while social donation fundsaccounted for a relatively low proportion. Although some PAFCs starts innovating the financemode, making efforts in setting linkage with financial institutions, there are still impedimentsin the legal framework, PAFCs are mainly rely on outer source of financing. In order toresolve the dilemma above, the government could firstly consider the mode of “Funds fromBanks, Fiscal and Private”, thus to explore the financing channels and help forming "GreatPoverty Alleviation" pattern; secondly, China Agricultural Development Bank should bepointed as the aiding bank of PAFC, so as to provide agricultural policy loans, liquidity aswell as deposit and settlement support.In views of the division of property rights, PAFC in Shandong province mainly applies3ways: stock cooperative, common holding and combination with the Professional Farmers’Cooperatives (PFC). Behaviors of characteristics are then be strengthened, which proves theconstraint power of the social capital in rural area. But there are also difficulties lies inproperty right transaction, to some extent the funds right is being dually held by both farmersof the community and the local government. Also, the complexity of the relation betweenPAFC and the village committees is affecting the democratic management. China is nowedging away from a centrally planned socialist economy to a "social market" one, thus it isadvisable to keep the collective ownership of PAFC, while strengthen the stock ownershipinside the organization in order to maximize the total welfare.(5) By analyzing the current outer management framework of PAFC, it is found thatPAFC is facing several challenges e.g. the division of responsibility between the Civil AffairsDepartment and Poverty Alleviation Department, the clarity of its legal identity, the generalization of PAFC’S grading system, etc. While the inner management system hasproblems e.g. internal regulation is far from perfect, the quality of the management staff isless than satisfied and e-informatization can hardly be promoted. The government can solvethe above problem by strengthening the external institution supply, innovating the financeentrust model and upgrade the management power from both the inner and outer side.(6) As to the lending status of PAFC, it is found that the current quota can hardly meetthe demand of the farmers; there is no specific rule for loan rates, preference measurementsfor the poor are absent in some PAFCs; loans are prescribed so strictly that farmers have totake the pressure of consumption; the cooperation between PAFC and PFC brings about moremarket risk. After a systematic analysis of the returning scheme, it is found that the efficiencyof capital turnover is highly connected with the main way of returning in PAFC, but thepractical maneuverability is also need considering; the current returning rate is relatively highbut there are potential risk of default; group lending is widely accepted in global range,however its local adaptation in Chinese culture is still to be verified; there is a margin fordiscussion whether bonus should be kept or not. This dissertation holds that overemphasis onthe role of shares and dividends is not advisable, while the government should broaden theloan purpose, explore “PAFC+PFC” mode, set stepped rate, switch the group lending schemeto a flexible guarantee scheme.(7) PAFC is under speed development while its poverty alleviation effect is relativelyunpleasant.533questionnaires collected from poverty villages in order to analysis theinfluencing factors on the poor’s borrowing willingness. It is found factors that play the mainrole are gender, education background, supporting proportion, household cash and savings,satisfaction on PAFC’s financial publication, etc. Suggestions are proposed on the basis ofanalyzing e.g. establish and improve focusing scheme on the poor; offer themindustry guidance; design supporting measurements on the poor with preference;promote poverty alleviation micro insurance.(8)Through the analyzing of the main risk and its courses, the outer and inner riskmanagement scheme, it is found that there is no effective "Constraint-incentive" mechanismworking between the local government and PAFC management staff. By using a two-stagedynamic games tool to analysis the gaming activities of the two parties, we found that there isan inspiring trap which conflicts to its subject goal. Optimizing solutions are: improve theinspiring scheme of the local government, strengthen the outer auditing supervision, anddesign the risk reserve system according to the PAR of the PAFC. As to the inner riskmanagement, it is advised to clarify the regulatory responsibilities of the parts, build a coordinated control system.(9) Two cases analyses are applied in Chapter9, which are Wangjiaquan mode (one withsuccess) and Qingyun mode (one who failed). The former one’s success thanks to its goodrelationship with the two PFCs in the same village, its great management staff, and itsfinancing cooperation with the local banks. While the latter one’s huge size brings difficultiesto its social capital effects, democratic management and as well as the risk control, its failureis understandable and predetermined. |
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