The Governance Structure Of New Rural Cooperative Economic Organizations Of China

In the1980s, the new rural cooperative economic organizations emerged anddeveloped rapidly in China. For the peasants in China, the new rural cooperativeeconomic organizations contribute to the improvement of Chinese peasants’negotiation ability, economic status and income. For the agriculture in China, the newrural cooperative economic organizations help to create the agricultural technologypromotion system, improve the technological content and competitive power ofagricultural products and promote the agricultural industrialization operation. On thewhole, the new rural cooperative economic organizations play an important role insolving the contradiction between the “small peasant households” and the “big market”against the background of market economy, agricultural industrialization andglobalization.Though the effect that the new rural cooperative economic organizations in ourcountry will take is thought highly of, the new rural cooperative economicorganizations in our country have some imperfections, since they are pretty in theprimary stage. For example, there are some imperfections in the governance structureof the new rural cooperative economic organizations in our country: on the one hand,vague property rights, unreasonable decision-making mechanism, inefficientoperational mechanism, useless supervisory mechanism, unreasonable distributionmechanism, and incentive mechanism with limited incentive function exist in theinternal governance structure of new rural cooperative economic organizations in ourcountry; on the other hand, ambiguous legal status, insufficient government supportand a shortage of external financing channels are the problems existing in externalgovernance structure. The imperfections that the new rural cooperative economicorganizations in country show hinder them from taking effect to a large extent. So, it will provide them with more development space if the problems existing in thegovernance structure of the new rural cooperative economic organizations in ourcountry are solved or alleviated.This dissertation will mainly research on the governance structure of the newrural cooperative economic organizations in our country. The problems existing in theinternal and external governance structure of the new rural cooperative economicorganizations in our country will be explored respectively. Under the guidance ofprincipal-agent theory, stakeholder theory and property rights theory, and on the basisof using the experience of other countries for reference, corresponding measures willbe explored, too.This dissertation consists of five chapters.Chapter One, Introduction. The background, objectives, significance, ideas,methodology and probable innovation of this research will be presented.Chapter Two, Relevant Conceptions and Theoretical Basis. In this chapter, theconception of new rural cooperative economic organizations will be defined first.Then, the categories, characteristics and functions of new rural cooperative economicorganizations will be shown. Finally, the theoretical basis, principal-agent theory,stakeholder theory and property rights theory, will be introduced.Chapter Three, The Problems Existing in New Rural Cooperative EconomicOrganizations in China. The deep problems in new rural cooperative economicorganizations in our country will be explored on the aspect of internal and externalgovernance structures. On the one hand, vague boundary of property rights,unreasonable decision-making mechanism, inefficient operational mechanism, uselesssupervisory mechanism, unreasonable distribution mechanism, and incentivemechanism with limited incentive function exist in the internal governance structureof new rural cooperative economic organizations in our country. On the other hand,ambiguous legal status, insufficient government support and a shortage of externalfinancing channels are the problems existing in external governance structure.Chapter Four, The Governance Structure of the Cooperatives Abroad and theReference from Them. In this chapter, the governance structure of the cooperatives in Germany, Japan, and America will be introduced and a salutary lesson of thosecountries will be explored.Chapter Five, The Measures of Improving the Governance Structure of NewRural Cooperative Economic Organizations in China. In this chapter, suggestions toimprove the internal governance structure of new rural cooperative economicorganizations in our country will be given from the aspects of property relations,decision-making mechanism, operational mechanism, supervisory mechanism,distribution mechanism, and incentive mechanism. At the same time, advice to perfectexternal governance structure of new rural cooperative economic organizations in ourcountry will be given from the aspects of legislation, orientation of governmentalfunction, and fiscal and financial support.