A Study On The Incentive Mechanism Of "Nanjie Model"

Nanjiecun,Henan Province has created a very special "Nanjie Model" with its high-speed economic development and the operation of "Constructing a small communist community".Scholars have given different opinions by studying it from different fields. But so far the comparatively systematic ,complete study on it from the view of the incentive mechanism has been absent. The thesis tries to show the process of Nanjiecun before and after the Reform and Open Policy,generalize the characteristics of the operation of "Nanjie Model"by gathering,comparing and colligating all kinds of literature about Nanjiecun and investigating there by myself,and explore the impetus behind its high-speed economic growth and the puzzle in its further development from the angle of the incentive mechanism.The incentive mechanism of "Nanjie Model" meets the participation constraint and incentive compatibility constraint comparatively successfully in the particular social transitional period and its specific conditions. "Nanjie Model" attracts the leaders of Nanjiecun,the villagers,outsiders,the country and local government and the bank. So it has gained the great superiority over organisation,labour and capital. The ideology enhancing the collective spirit and rigid supporting measures stimulate the enthusiasm of those people concerned,embody the incentive compatibility constraint and solve the frequent "free ride" caused in collective economy comparatively effectively accordingly. It is the effectiveness of the incentive mechanism of "Nanjie Model" in the particular period that has achieved the "miracle" of the collective economy in Nanjiecun.However,it may be difficult for the effiency of the incentive mechanism of Nanjiecun to continue with the progress of society and the gradual maturity of socialist market economy. The nature of the power of control of enterprises will puzzle the participation constraint of the leaders of Nanjiecun. The mobility of essential factors of production will gradually weaken the participation constraint of the villagers,outsiders and the bank. So the superiority over organisation,labour and capital will be reduced in Nanjiecun. Human comprehensive development will advance new demands to the incentive compatibility constraint in Nanjiecun. The effectiveness for a given period of time of the incentive mechanism of "Nanjie Model" will be its puzzle in its further development.The incentive mechanism of "Nanjie Model" provides us with reference and enlightenment on exploring a good interface between market economy and socialism and developing New Countryside Construction.