The Survival Tendency Of ROSCA

This paper focuses on three cases of Rotating Savings and Credit Associations (ROSCA) of Fuan in Fujian. Specifically, it is analyzed that the crowd structure, the organization principle and the standard structure, the manifest function and the latent function of ROSCAs in the paper. Based on this, the author proposes his opinion about the trend of ROSCA's lasting in future.First, ROSCA's crowd is analyzed from three aspects, including the interpersonal structure and the knowledge structure, the sex structure and the age structure, the income structure and the status structure. In interpersonal structure, most of members come from blood, genetic and geographical groups; sex structure is dominated by female; revenue structure is mainly on the medium level. The research indicates that the knowledge, the age and the status structure do not have remarkable effect, and the head's natural quality and the social attribute decide the member's chief feature in ROSCAs. Then the paper pointed out that the feature of the crowd structure was the foundation which made ROSCAs lasting.Next, the paper analyses the organization principle and system standard of ROSCAs. Its organization principles are induced through the inspection and analysis of ROSCA's establishment process and opening of bids flow. Then from the origin and the formulation, the content and the form, the potency and the characteristic of ROSCA's system standard, the study shows that ROSCAs have the unique system standards which are different with the official organization. This research thought that ROSCA's organization principles and the system standards have safeguarded its lasting.Once more, through analyzing the organization goal and the member goal of ROSCA, the article induces four manifest functions and three latent functions which exist in ROSCAs. Four manifest functions are cooperation reciprocal benefit and smooth expense, union deposit and jot credit, enhancement social welfare and insurance, credit risk and transaction cost minimum. Three latent functions are the reinforcement of social interaction and relations integration, the cultural integration and the credit establishment, the promotion of consumption and industrial investment.Therefore, the conclusion is drawed that ROSCAs existence and growth are inevitable.Based on this conclusion, the paper furthers in-depth discussion about the ROSCA's survival environmental factors, population composition, the practical needs and its governance and the possibility of legalization.