The Research On Rotating Savings And Credit Associations Standardized Operation From The Social Capital View

Solving the financing problems of rural villagers is essential to the increase of farmers’ income, rural development and urbanization construction. In most rural areas, the financing channels less and formal financial supply can not satisfy the rural financial needs. However Rotating Savings and Credit Associations marked as a spontaneous and mutual aid organization play an important role in meeting the demand for funds in rural area. Rotating Savings and Credit Associations have ever disturbed financial order in rural areas. Due to the lack of normative operation rules and the effective supervision, the government suppressed Rotating Savings and Credit Associations. At present, China government is encouraging the development of diverse folk financial organizations. How to regulate the standard of Rotating Savings and Credit Associations is a problem worth pondering. In the article, the research object is Rotating Savings and Credit Associations and the perspective is theories of social capital. The article analyses the operation mechanism, the existing problems and future development path of Rotating Savings and Credit Associations. Following parts are the main contents of this paper.In the introduction part elaborated the research background, research questions and the significance of the research, analyzing the research status about the Rotating Savings and Credit Associations in at home and abroad and introducing innovative research methods. The first part mainly defines the concept of Rotating Savings and Credit Associations, introducing the essential theories of the article-- the social capital theory. There are four basic dimensions in social capital theory. They are social network dimension, normative dimension, trust dimension, functional dimension.The second part is the introduction of cases. The part analysis the Rotating Savings and Credit Associations’ operation methods in various stages based on the perspective of social capital theory. Rotating Savings and Credit Associations can be divided into four stages from the appearance to the end, they are invitation, gathering, winning the bidding, and final sitting. The operation methods of Rotating Savings and Credit Associations’ four stages are closely related with the social capital. Social capital is the power in the establishment of Rotating Savings and Credit Associations, making the Rotating Savings and Credit Associations run smoothly, maintaining Rotating Savings and Credit Associations’ existence and development. It is essential in the establishment and development of Rotating Savings and Credit Associations. In this part the author analyses the operating model of rural Rotating Savings and Credit Associations and Credit Associations. In addition, through the investigation of S town in Fujian province, we can know the role of social capital in the development S town. The part analyses the dissolution reasons of Rotating Savings and Credit Associations in S town. Reasons are open trust structure, weakness of credit checking, over-involvement of social network relationship and lack of informal norms.To solve the problems in the development of Rotating Savings and Credit Associations, the third part put forward relevant measures, taking the social capital as theoretical support. First of all, government should construct the rural social network; Secondly, government should strengthen the social and cultural construction in rural areas; Finally, improving the social capital and rebuilding the social trust are necessary.