The Empirical Analysis Of Farmers' Participating Behavior In VCMAO And Determinant Factors

Village-level capital mutual aid organization (VCMAO) is a new kind of micro-credit organizations which based on financial funds and villagers voluntarily pay a certain money as a share capital to participate. It is a development fund which established in poor villages and owned by people, used by people, managed by people and for the people. It's relied on Mutual Aid Cooperative and as a non-profit mutual aid cooperative voluntary participated by poor villagers.Village-level capital mutual aid organization firstly piloted in 14 central and western provinces in China by the State Council Poverty Alleviation Office and the Ministry of Finance and expanded to 6 eastern provinces of China in 2007. It has played a positive role in easing the farmers' credit constraint in undeveloped areas and improving the poor funds utilization efficiency.Thejiang province also carried out the piolts since 2008 in 26 less developed counties and targets to establish comprehensive Poverty Alleviation Micro-finance system in 2010. But how does the village-level capital mutual aid organization developed? How does the farmers'participation? Does the design of the system along the direction of the goal? The answers to these questions is of great significance to thinking about parctical results and further expanding the scope of practice. Thus, this paper tries to study the anti-poverty credit policy and identy characteristic of Poverty Alleviation Microfinance Project participants by the research of five villages in Jinyun County in Zhejiang Province from the perspective of farmer participation.The results shows that the development of village-level capital mutual aid organizations still need to regulate, as its poverty target object moved higher. The empirical study of this paper uses 164 households survey data, and establishes a Probit model to analyze the factors which influence farmers to take part in the organization. The results show that 12 variables including the age of household head, years of schooling, village cadre status, user information, family income level, the proportion of expenditure on productive investment, private loans ease, satisfaction of financial services, the understanding of the organization and the role of evaluation, the villages economic development and the distant to the nearest financial institutions that significantly affected the behavior of farmers to take part in the village-level capital mutual aid organizations.Based on above analysis, several policy recommendations are given in order to improve the development of village-level capital mutual aid organizations:First, we must strengthen propaganda to raise the farmers' understanding of the organization. Second, regulation is needed and we must use the micro-credit technology to improve the degree of poverty targeting. Third, strengthening supervision and promote the healthy development of village-level capital mutual aid organizations. Fourth, select villages on the competitive basis and focuses on the villages that lack of financial services as the pilot areas.