Study Of Service Capabilities Of China's Grain Cooperatives

Along with our country encouraging the reform of grain marketization and the operation of grain industrialization, grain cooperatives emerged as the times required. They have been playing an active role in reducing grain production cost and promoting comparative benefits of grain. But compared with their counterparts in the developed countries, the present service functions of our country's grain cooperatives are not as good as desired. In order to perfect the service capabilities of our country's grain cooperatives, we must start with external support and internal mechanism and plan the arrangement as a whole. This disquisition comes to the following conclusions for perfecting the service capabilities of our country's grain cooperatives:The fact that the service functions of our country's grain cooperatives are not working very well is due to several restricting factors such as relatively high costs for implementing the system of grain cooperatives and providing services, which can be represented as follows: (1) Our country has not issued any legislation on farmers' special cooperative economic organizations, which has resulted in ambiguity of the legal status of grain cooperatives and the lack of policy and finance support. (2) The vested interest groups formed under the traditional planned economy system create barriers to the development of grain cooperatives. It certainly needs to pay quite a lot of conflict cost to overcome the resistance of the vested interest groups. (3) Due to lack of economic strength, some grain cooperatives have to operate under the names of other organizations instead of on their own, and depend on other organizations' charity to gain little post-production profits.The fact that the policies and regulations do not support each other, that the development environment is not so comfortable, and that the operation mechanism is not complete, determines that in order to perfect the service capabilities of our country's grain cooperatives, we must, under the precondition of nailing down the final goals, have the final goals in mind, start with details and effectively dissolve and apportion the costs for providing services.Establishing grain cooperatives' status of legal persons is the systematic guarantee for...