A Suitable Scale Of Household Management Is The Goal Of Remodeling Agricultural Micro-economic Organizations In China

The only way out from the "Three Problems of Farmer, Countryside and Agriculture" is in the agriculture itself, i. e. to persistently upgrade agricultural productivity. Based on the theory of New Institutional Economics and analysis on the current status of Rural Household Contract Responsibility System in China, the author of this thesis holds the opinion that system innovation is the utmost along with technological innovation, in the course of improving agricultural productivity. It is therefore an important thing in system innovation to remodel agricultural micro-economic organizations. Only when those rural micro-economic organizations that fit in with China's market economy system and the current level of productivity, can the market be given full play in improving effective allocation of agricultural resources.A suitable scale of household management is the goal of remodeling agricultural micro-economic organizations in China. Such a suitable scale will be in line with the features of agricultural production in China, the requirement of market economy, and most importantly, national development situation featured huge population but land shortage and low productivity level in rural China. This is a cost-effective reform that will meet less resistance. The rural cooperative organizations can in a certain level help complement the weaknesses of small-scale household management, but it is not able to solve the deep-rooted problems since it is only a complement tool. If it is the kind of cooperation between LARGER household management bodies, such a similar agreement of cooperation will be quite stable and reliable, further saving transaction costs and generating more cooperation surplus which will jointly upgrade cooperation efficiency.The formation of new rural micro-economic organizations is a time-consuming and more notablly, natural process of evolvement. With the establishment of a sound land transferring system as the core, a good rural social security system as the supporting facility, we still need to completely reform the current Household Registration System, enhance education in the countryside, peel off the affiliated function of social security from the land by an arrangement of a variety of new systems, and promote improved allocation of agricultural production materials including the land and rurallaborers. As a result of those efforts, a suitable scale of household management can gradually be achieved and a brand new type of rural micro-economic organizations will come into existence.