The Analysis On The Institutional Changes Of Property Right Rural Credit Cooperatives Of Our Country

We have witnessed many reforms of rural credit cooperative's property right system (RCCPRS) aiming at clarifying property right. But due to restrictions of historical factors, deep-rooted problems and conflicts, and insufficient supporting reforms, those reforms failed to clarify property right and severely hindered the development of rural credit cooperatives (RCCs). The failure of the reforms also undermined the function of RCCs as a bridge between principle provider of rural finance and farmers and had negative effects on financial stability, agricultural development, income increase for farmers and social stability of rural areas. So, based on financial property right system, using systematic view to revisit and study RCCPRS and a method combining theory with practice, this paper analyses the transformation of RCCPRS and puts forward a method to deepen and improve RCCPRS. This paper is of significance to guide RCCPRS.This paper introduces three stages of transformation of RCCPRS after the foundation of P. R.C, points out that the biggest problem for RCCPRS lies in the property right system, using the data from RCC of Province A and RCC of County B as the sample for the property right reform of RCCs, and elaborates on the main contents, effects and problems during the stage three of RCCPRS since 2003, on the basis of the theories of institutional economics, institutional transformation, touches upon the reference value for China's reform of RCCPRS after studying the experiences of reform of RCCPRS in USA, Germany ,France, Japan.In this paper, taken the contract nature of rural credit cooperatives as contact point, the author pointing out that the arrangements for the property rights system of rural credit cooperatives should follow the "contractual" logic. Rent of the RCCs should be possessed and controlled together by the shareholders, savers, managers, as well as the workers of the credit union, that is, besides the institution of the shareholders of the General Assembly on behalf of the Council, the original board of directors and board of supervisors, a new institution - the General Assembly on behalf of the stakeholders, should be founded to oversee and balance the union, thus to achieve the common goal - maximizing the interests of the stakeholders. This article holds that the path of reform depends on whether the following formula can call into being: Institutional Change revenue / cost of Institutional Change> 1. The practical approach is to minimize the costs of institutional change, and increase its revenue. As the ripening of the conditions, the reform of the RCCs should be transformed gradually from state (or local government) - leading to trade organization (credit unions)– leading, namely to gradually substitute mandatory institutional transformation with tempting institutional transformation.