The Social Capital And Microcredit Legal System In Rural China

Since the1960s, Muhammad Yunus founded the Grameen Bank in Bangladesh and the huge success of microcredit, as the eradication of poverty, improve the income of poor farmers an important way in worldwide (especially in Asia, Latin America and Africa and other less developed countries) has caused widespread concern and to emulate. China as a developing agricultural country, increase farmers’ income, and the important work of eliminating absolute poverty in rural areas has been the national economic and social development. Microcredit began in the late1980s was introduced to China, soon aroused the universal concern of the theory and practice, and soon to be promoted across the country. Relevant international and non-governmental organizations, commercial banks, rural credit cooperatives, rural banks, rural credit union funds and other institutions and organizations have launched microfinance programs, but because of the characteristics of rural credit markets, as well as micro-credit, these organizations microcredit programs are commonly encountered sources of funding, risk control and other issues, affecting the continuing operations of microcredit programs, commercial microfinance company in this context but to flourish, thereby contributing to the theory and practice to think deeply to promote the main reason for the success of commercial small loan companies and small loan companies in China to further improve the main direction is along such logic, on the basis of comparison of the theoretical analysis and practical, revealing the internal operation and management mechanism of small loan companies, analysis of the basic status of China’s small loan companies, and the corresponding perfect proposal. Specifically, the article is divided into the following sections discusses: Introduction to part and related literature comb combing through the problem, found in the process of the operation and management of small loan companies, the social capital inherent in the social networks play an important role of social capital to resolve the lack of rural credit markets, a common loan guarantees, credit The system is not perfect, the risk of operating the project and other issues, social capital is the key to the success of microfinance in rural credit markets. Therefore, the analysis of micro-credit system, you must start from the analysis of social capital.The first chapter focuses on the analysis of social networks and social capital. In modern society, individual behavior is embedded in social networks, network relationships influence and constraints of individual behavior, individuals can gain prestige through social networks, trust and social capital, Where trust is the most important factor of social capital, trust, emotion, identity, reputation and other factors constrained by people not engaged in damage to the interests of members of the internal network behavior. Chinese style is a "human society", the operating rules of the different network levels is not the same in their loved ones, acquaintances network allows members of mutual respect and protect each other’s interests, and will not choose the "selfish" behavior. In a relatively closed social networks in rural areas, micro-credit through the relevant system design to strengthen the interests of the members of the same social networks stickiness, thus ensuring that every borrower will be the repayment schedule. This is the key to the success of the microcredit system.Chapter II systematically analyze the course of development of micro-credit at home and abroad. The origin of modern micro-credit system, founded by Professor Muhammad Yunus in Bangladesh Grameen Bank, the project held great success, the micro-credit system soon worldwide. rapid spread, and gradually formed the Asian model, African patterns and the Latin American model. Due to the great significance of microfinance in the eradication of poverty, increase farmers’ income, the micro-credit soon after introduced into China since the1980s, the great concern of the theory and practice community, and spread rapidly across the country. Relevant international and non-governmental organizations, commercial banks, rural credit cooperatives, rural banks, rural credit union funds and other institutions and organizations have launched microfinance programs, but because of the characteristics of rural credit markets, as well as micro-credit, these organizations microcredit programs are commonly encountered sources of funding, risk control and other issues, affecting the continuing operations of microcredit programs, commercial microfinance company in this context but to flourish.2008 the CBRC, the PBOC issued "small loan company pilot guidance" for the establishment of small loan companies, funding sources, the use of funds, supervision and management aspects of the guide specifications, under the guidance of the provinces and cities nationwide have been introduced Measures for the Administration of the region’s small loan companies. This part of the management approach of the nation’s major provinces were analyzed to reveal the status quo of China’s small loans management companies, and reveals the main factors affecting the development of small loan companies in China.Chapter Ⅲ specific analysis from the perspective of social capital within the micro-credit operation and management mechanism to reveal the root cause of the success of micro-credit system. The article first analyzes the typical micro-credit system on behalf of Grameen Bank and the People’s Bank of Indonesia, the local banking system, respectively summarize the basic characteristics. On this basis, the article further noted that the system of group loans, small loan companies in the operation and management mechanism, the joint and several liability, the order of loan amortization, secured alternative full use of social capital in social networks to effectively resolve the rural credit market information asymmetry brought about by adverse selection, moral hazard problem, which is a micro-credit in the world generally the key to success.Chapter Ⅳ is the perfect proposal of microcredit system. To further enhance the social capital functions in micro-credit system, this section from the internal corporate governance, improve the channels of information, the establishment of the Association of small loan companies, to strengthen government support, such as small loan companies in China to further improve the system recommended.The last part of the conclusion, the full text of the main conclusions are summarized and generalized, and pointed out that the article further study the possible direction.