Orderly Transfer Of Rural Labor And The Functions Of Middle Organizations

All the economic development experiences in the world and the theory deductions show that, it's impossible to develop without the process of Labor transfer from rural area to urban area. After the reform and opening-up, China government loosened the strict restrictions to the flow of rural labors, large quantities of farmers turn into their frenzied hunt for work in cities, which have imposed great impacts to the cities. People have to consider a more effective way to transfer rural labors in an orderly way with the transfer trend unchanged. The government then began to push "orderly-flow project" and certificate policy to prevent labor force from sightless flow and release the pressure on cities through a complete control of labor flow. But it finally went to a failure and led to a number of troubles much more complicated.This paper tries to probe into a new way of governance to achieve orderly transfer. And it argues that, an orderly state should be described as, every part from urban and rural area in labor transactions organize themselves by free-will base on a common benefit, and cooperate fairly and smoothly under the organized rules. It also argues that, during a certain stage, middle organizations are a kind of organizations that accord with order and do help to improve order. That is because middle organizations come into being from bottom to top in the urban-rural labor transaction, every part together form a kind of self-conscious governance structure that make use of both the transaction cost cut by organization and the supervise cost cut by market. An economic analysis proves that, middle organizations restrict the disordered rent-capture behavior by every parts, in order to decrease the rent-dissipation of labor, that result in a stable and orderly production participation of labors.