The Study Of Rural Minimum Living Security Fraud Based On Information Asymmetry Theory

The rural minimum living security was set by our government to guarantee thebasic livelihood of the poor family in the rural areas. However, its running mechanismis not perfect and there are many problems in the entire system due to the short timethat the rural subsistence system has lasted for. Especially, the fraud of rural minimumliving security has aroused extensive concern. The fraud reduces the efficiency in theuse of relief funds, produces new social injustice, and runs against the purpose of thesecurity system. For these reasons, it is necessary for us to study the fraud problems.There exists remarkable information asymmetry between interests parties in thesecurity system from the dates obtained through my investigation. The parties withinformation superiority will seek illegal gains using their prominence positions. Therelief recipients will use information edge to make fraud action. And the governmentstaff will make use of its agent qualification to harm the interests of the government,they may not devote themselves in careful fulfilling their duties which gives otherschances to fraud, more seriously, they may directly involve in the fraud. This articlehas carried out research on the action of relief recipients and government staff based oninformation asymmetry theory. It builds a fraud game model to analyses relevantfactors which influence the fraud action, studies the incentive and monitor in theprinciple-agent process among staff member and government, and it put forward thatrational motivation and supervision can both regulate the conduct of the staffeffectively and reduce staff member’s participation in the fraud, thus setting up aneffective defense against fraud. In the end of this text, it comes up with a serial ofanti-fraud measures such as the implementation of hearing systems, a joint workmechanism against fraud, the introduction of workfare, establishing an effectivemotivating and monitoring mechanism so as to make contribution to our fraudprevention in the field of social assistance.