Operating Mechanism Of Rural Special Cooperative Economic Organization In China

Rural special cooperative economic organization of our country includes two organizational forms which interests relation degrees are different, special association and special cooperation. Although it's still at preliminary developing stage at present, it has already displayed the powerful growth momentum, playing an increasingly important role in increasing peasant's income, promoting the agricultural industrialization. Such serious problems as unstandardized and insufficient self-development ability exist in the organization at the same time.Under the basic frame of economics of transaction cost, the theory of labour division by specialization using new classical economics is analysed to find that the inherent gradual progress of labour division takes place in the district with ripe industry, products forming scale advantage and policy producing proper effect. As the organization safeguarding peasant household's own interests, the special cooperative economic organization appears inevitablely, economizing a large number of endogenous transaction cost.As far as financially operating mechanism is concerned, rural special cooperative economic organization of our country has not totally followed the two major cooperation interests distribution principles of capital limited remuneration and the surplus of cooperation returned to members according to the proportion of turnover between member and cooperation, mainly because the fund is comparatively scarce in initial stage for development, requiring fund input of a few members and external strength, which goal of profit pursuit causes dissimilation of trade and bonus sharing in special cooperative economic organization. Certainly the profit distribution of the special cooperative economic organization will also be bound to the restriction of external interests form.As far as organizationally operating mechanism is concerned, the institutional framework and decision-making mechanism of special cooperative associations in the endogenous and external type are different to some extent, which will exert an influence on agent cost of the special cooperative association in various degree. The rural special cooperative economic organization of our country deviates from the internationally current cooperation operating principle of democracy and cooperative, among which the dissimilation of stock structure is a main decisive factor, at the same time little planting scale of peasant household which influences the saving of transaction cost will lead to his low enthusiasm for participating in decision.The policy environment that rural special cooperative economic organization of our country faces is not loose presently, which legal status has not got clear asserting yet, at the same time all parts have a greater difference in support policy favourable to the cooperative association. The government should offer some concrete public service accordingly while offering loose policy frame, try one's best to avoid administrative interference, such as implement the financial support, raising peasant households' prospective earnings, strengthen the legal institutional improvement, organize studies and trainings etc..