Research On Farmers’ Co-operatives Deviation And Its Governance

It is shown in the35years of reform practice in China that the rural household contract systemcan effectively solve the low efficiency problem generated from ineffective supervision duringlabor dispersion in agricultural production. Therefore, the system can further promoteagricultural production&development and food supply in our country powerfully and canprovide strong motivation in smooth promotion of various kinds of reform in our country.However, the government promotes a land allocation policy with an “average distributionsystem”, which will certainly result in relatively small land management of peasant householdsand a current situation of farmland fragmentation. Especially, it is reflected prominently thatpeasant households with decentralized and small-scale management are always passive in theface of fluctuations in sales price at agricultural products market in the tide of market economy,so that a disadvantaged ending with increase of peasants without income increase is brought. Ifthe situation is developed for a long term, not only long-term rural development will be harmed,but also harmonious economic and social development of the whole country will be influenced.More and more domestic scholars recognize that the vigorous development of peasants’cooperatives not only satisfies the historic trend of agricultural development of most countriesin the world, but is a realistic choice for China to accelerate promotion of agricultureindustrialization and modernization.The paper mainly adopts questionnaire survey and statistic analysis as well as other manners,applies modern economic theories such as transaction cost, information economics and rationalexpectations, combines survey data of effective samples of127peasants’ cooperatives in68counties (districts) in30cities in Guangdong Province and Anhui Province and applies aPrincipal Component AnalysisEffects generated performance measures and alienation offarmercooperatives.It is shown in the research that, in order to promote healthy and stable development of currentpeasants’ cooperatives in our country better and to continuously increase peasants’ income, thefollowing work shall be done Three conclusions: at first, relevant functional departments of thegovernment shall preferentially consider the peasants’ cooperatives of which each subject isdefinite when examining and approving the establishment of peasants’ cooperativeorganizations, shall assist cooperatives in delimitation of property rights and shall avoidpossible occurrence of opportunism events which may bring harms to cooperative developmentand will finally result in breakdown of the cooperatives due to lack of subjects. Secondly, on the premise of definite subjects, establishment of various regulations and legal systems shall befurther perfected. Meanwhile, ability of managers in cooperatives shall be improvedcontinuously and governance of cooperative organizations shall be strengthened. Specialattention shall be attached to the reflection of willingness of organizational members and theirappeals of performing various kinds of power in order to realize non-balance and incentivecompatibility in system arrangement of peasants’ cooperatives. Thirdly, efforts shall be madeto solve interest conflicts, agency problems and the problems related to governance including“tunnel effect”, which exist inside organizations. In this way, peasants’ cooperatives can bereally built into the cooperatives in which “users own and control cooperatives and get benefitstherefrom”, and occurrence of various opportunism behaviors going against positivedevelopment of peasants’ cooperatives is prevented.