A Study On New Type Of Rural Social Endowment Insurance Policy Of Jiangmen

The peasants’ living security matters much to the country’s prosperity and stability, as goodas to achieve the goal of modernization construction, because China is a large agriculturalnation. In2009, the State Council issued “Guidance for new type of rural social endowmentinsurance pilot projects”, which marked the start of the nationwide new agricultural insurancepilot projects. The new agricultural insurance policy has been playing a vital role in coveringthe shortage of family endowment and land endowment, meeting farmers’ basic needs,safeguarding social fairness, promoting coordinated development of urban and rural areas sinceits implementation. Jiangmen also started this pilot project in2009，and reached full coveragefor peasants in the end of2011.New agricultural insurance policy of Jiangmen has beenachieving a qualitative leap. However, implementation of the policy in Jiangmen also meetssome problems, which are greatly influencing effectiveness of the policy.Based on the analysis of development status of new agricultural insurance policy ofJiangmen, with the use of theory on market failure, public finance, welfare economics, thispaper discusses the necessity for the government to play a leading role in the new agricultureinsurance policy, and points out shortages of the policy, including low security level, absence ofnormal increasing mechanism for pensions and incentive mechanism for payment,disequilibrium of government financial burden sharing, lack of financial restraint mechanism,and so on, which are seriously hindering the positive development of the policy. Through theempirical analysis, this paper finds out the main reasons for policy defects: The governmentfinancial investment is insufficient; Regional economic strength is of extreme variation; Peasantand village collective economic financing ability is poor; The legal positioning is not clear.With referencing to agricultural insurance experience at home and abroad, this paper proposedcountermeasures and suggestions to further perfect new agricultural insurance policy ofJiangmen, including strengthening institution construction; Perfecting financial aid structures ofgovernment in the city and county levels; Improving new agricultural insurance system design;Broadening fundraising channels; Strengthening the propaganda.