Social Capital And The Prosperity And Decline Of Village Collective Enterprise

From the early 1980s of the 20th century to the late 1990s of the 20th century, China's rural collective enterprises had undergone an evolution from the prosperity to decline. This evolution has an important and far-reaching impact on China's economy and society. The paper, which takes Bi Village's collective enterprise of Anhui as a case, obtained a wealth of information and the full grasp of the relevant historical events through in-depth research and investigation. From the perspective of the social structure, the paper analyzes how the existence and extinction of social capital influenced the prosperity and decline of the rural collective enterprises. Firstly this paper analyzes that there was lots of social capital in Bi Village Community in the early 1980s of the 20th century, which was represented by the form of trust, norm and the network of reciprocity and cooperation. In the period of creation and development, Bi Village's collective enterprise got the access to the necessary material and human capital conveniently and cheaply through the efficient use of social capital of Bi Village. In my opinion, this is the key point that Bi Village's collective enterprise can rise and develop. When analyzing the reason why Bi Village's collective enterprise declined in the late 1990s, the writer firstly analyzes the gradual decline of social capital in Bi Village community. It shows that the decline of social capital led to the decline of Bi Village's collective enterprise from the review and analysis. In my view, it was the decline of social capital in Bi Village community that led to the happening of key historical events which had a significant impact on the development of the enterprise. These key historical events led to the decline of Bi Village's collective enterprise in the late 1990s. Therefore, the final conclusion of this paper is the existence and decline of social capital in Bi village community led to the prosperity and decline of the village's collective enterprises. Social and economic changes led to the structural changes. It should be specially explained that all these analysis is predicated on the assumption that all of the state's macroeconomic policies on the rural collective enterprises is the same.