Study On Alternatives And Strategy For Solving The Problem Of Village Debts

At present, China is on the key phase of growing from general better-off to overall better-off, and village debts is becoming the obstacle influencing the consolidation of rural tax and expenses system reform, stable functions of grass root regime and further development of rural economy and society. Village debts intensify the conflicts between people and cadre, and make the relationship between communist and local people alienation, and prevent normal functioning of village organizations. Furthermore, it is influencing rural economic development and rural social stability. It has important implications in both practical activities and theoretical research for doing research on the solutions and strategies on village debts in China. This research makes a case study on village debts in Yizheng, Jiangsu Province, focusing on the systematic analysis on the reasons and characters of village debts, through data collection, sampling survey, specialists' consultation, field reconnaissance, and practice validation. Led by participatory development theory and sustainable development theory, practical suggestions of village debts solutions are generated, adapting to local situation.There are some direct reasons explaining the origins of village debts. Village enterprises are set up blindness, without any justifications, so most of them do not get benefits and are even bankrupt. Village organizations borrow money for submission fanners' tax and expenses that could not be afford by the farmers. Commonwealth activities are implemented advance with the ignorance of local situation. Too much productive expenses of the village are due to unorganized management. Collection and apportion of investment is for reaching the requirements from higher administrative level. Historical problem is one important reason. Natural disasters and events are leading to some debts too.Some institutional problems are real critical reasons. Administrative nature of village economic organization makes unbalance of the financial and administrative functions, so farmers could not afford investing and generate debts. Land ownership is virtual, leading to common property and vague relationship of 'administration and enterprises' and 'administration and collective', which could not identify the responsibilities. Irrational decision-making and corruption contribute a lot to village debts.There have been many solutions for dealing with village debts in Yizheng for different targets. It is put more energy on taking back debts from those institutes and individuals with enough payment capacity. Payment plan and agreements have been made to those with difficulties. Justice is mobilized to help capturing the debts from those with enough capacity but rejecting return the loans. Houses, water area, small-scale agricultural irrigation infrastructure of village collectives are reformed to cash or new function system, through the approaches of selling, lending, contracting etc. Some interests that are exceed state legal standard, have been reduced. Some debts induced by commonweal activities are solved by discussing, negotiation through 'one t topic one discussion' mechanism. Multi or triangle debts are solved by the adjustment of account subjects, concealing and transferring.Main strategy for solving village debts problems includes: 1) Building up mutual decision-making mechanism for rural common products, representing needs of most villagers, which could avoid the debts induced by irrational decision-making and unreasonable needs. 2) Making Village Committee as a real independent autonomous organization, separating administrative and enterprises, administrative and cooperatives. 3) Identifying the mandates of village organizations to avoid taking the central government transferring expenses. Supports for national common products should be taken by state but not grass root organizations. 4) Canceling agricultural tax for improving rural development. 5) Accelerating the construction of rural social security system for improving the capacity of defending...