Farmers' Specialized Cooperative Economic Organizations, Institutional Change

The integration of rural home management system and cooperation system has been proved to be an efficient rural system. Using the systematic economics and international cooperation theory, this paper offers detailed analysis and case study to the specialized cooperative organizations of farmers, and raises the right development mode accordant to China's national situation and current developing stage. The study is made in the following aspects:1) System and Systematic Reformation Involved in This StudyThe system theory experts have a series of classic description on the connotation and essentials of the term of system. It is a theoretical system with strong logistic relationship in the description of social economic system in Marxism theory. Seeking for systematic balance is the foundation and impetus for the systematic reformation. The systematic reformation can be understood as a substitute by a higher efficient system from the lower one.2) On Origination of Cooperation and Theory of The ArtelOne sufficient condition for the cooperation production is that the mutual impact or co-existence is more than one-off. The collective behavior is from the rational choice of individuals, when the expected return in the collective action is larger than the cost, the dispersed individual actions will develop into collective actions. The cooperation economy is the necessary product of market economy. The International Cooperatives Alliances formed 8 basic principles by concluding the Rochdale Principles. In China's current four types of economic organizations, the only one, fit for the above principles, are some specialized cooperation organizations formed after the Reform and Open-up.3) Origin and Development of China's Specialized Cooperative Economic Organizations of FarmersUnder the market economy, to meet the demands of agricultural marketing, industrialization and modernization, a new organization is needed to substitute the scattered small-scale household management mode and the service system supported mainly by the state-owned economic and technical departments. The state policy creates suitable systematic environment for developing the specialized cooperativeorganizations of fanners and speeds the specialty cooperation of farmers. The development of China's specialized cooperative organizations of farmers should follow the developing rule of cooperative organization.4) Type, Current Situation and Features of China's Specialized Cooperative Economic Organizations of FarmersAccording to the cooperation layer and closeness degree, the specialized cooperative economic organizations of farmers can be divided into three types: specialty association, specialty artel and stock artel. In recent 20 years, the specialized cooperative economic organizations of farmers have developed fast in China;the said three types of organizations co-exists meantime;these organizations play important role in rural economy and comprehensive social development. Seen from the organizing form, management system, developing layers, some cooperation organizations are relatively canonical;the total development is still in preliminary period.5) Certain Case Study: Shandong Provincial Specialized Cooperative Economic Organizations of FarmersThe paper offers analysis to two classic modes: the Laiyang mode and Ningjin mode, points out the reason of success and the questions needing to perfect. Case study is made to the organization form, operation system, management mode and organizational interests on the Dairy Association of Linqu County, Lanshan District Flower Association of Linyi, and the Apiculture Association of Linqu County. The right cooperation mode fit for China's rural situation is raised by comparison.6) Suggestions Raised for Specific QuestionsThere exist many questions in both outside environment and self-development toward the specialized cooperative economic organizations of farmers. The author holds, in developing the specialized cooperative economic organizations of fanners, three principles should be held: 1) run by the people, managed by the people and interests for the people, 2) starting from actual situation, adjusting the measures to local conditions, 3) leading reformation with governmental pushing. Efforts should be made to artel knowledge publicizing and training, to clarify its legal stand, to complete its operation mechanism, and give more policy support.ConclusionThe specialized cooperative economic organizations of farmers is the necessaryproduct of market economy, the organizational development is irregular. The author holds the current Shandong province and even the whole country should embark the way of entity/enterprise-in-organization form and member-as-clients, to realize the unification of between organization and enterprise, between member and clients, to conduct "limited cooperation", the above method is the real practical way, worthy of affirmation and extending.