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(1)The Analysis of General Circumstances on the Reform of Rural Land (Community) Shareholding Cooperative System in Zhejiang Province of China* Zhao Weiqing. Abstract The paper summarizes basic circumstances, experiences, and main features in the reform of rural land (community) shareholding cooperative system of Zhejiang province, at the same time points out that there are also many problems to be resolved, which include identification by law, the contradiction between nominal share right and market economy, tendency for development, and etc., finally puts forward such suggestions as Setting up social security system, enacting regulations to enforce standardized administration, adjusting the relationships and functions between rural land (community) shareholding cooperative and other communal organizations, establishing provincial association of land (community) shareholding cooperatives, and so on. Key Words: land (community) shareholding cooperative system; farmer’s rights and interests; suggestions for development. JEL Classification : F306.4. Rural land (community) shareholding cooperative system is to quantify lands and. other assets collectively owned by community (village) to household and person, communities organize cooperatives to manage land and other assets, farmers become shareholders. Rural land (community) shareholding cooperative system is an innovation of owned form of rural collective property and an effective way to improve governance of collective owned assets and make best use of agricultural lands. 1．Background and its importance for rural economy and society1) 1.1 Background Chinese rural land is collectively owned by community (village), which also has other assets (such as facility, building, and fund) besides lands. China introduced a household contract responsibility system, which will keep unchanged for as long as 50 years, farmers can only make use of collective land in contracted form. In the process of promoting industrialization and urbanization, farmers are mainly engaged in nonagricultural industries in some areas of Zhejiang province, agricultural income only occupies a small portion of total income, some contracted lands by farmers were expropriated by governments, communities were merged, and farmers became citizens. Under new circumstance, it is a pressing problem for governments how to protect farmer’s interests and realize effective management of communal assets, consequently local governments adopt land (community) shareholding cooperative system to combine farmer’s interests.

(2) 18 （18）. 横浜国際社会科学研究第 12 巻第 1 号（2007年 7 月）. with industrialization and urbanization and take it as important supportive way of constructing new countryside. 1.2 Its importance for rural economy and society Rural land (community) shareholding cooperative system innovates rural basic managerial system of our country under the condition of household contract responsibility system, it is an effective way to promote reasonable flow of land’s utilized right and realize agricultural management of scale and transfer agricultural labors toward nonagricultural industries while keeping contracted right unchanged; it is beneficial for farmers to increase their income and maintain their legal interests; it is helpful to improve democratic governance of collective assets, develop collective economy, establish social security system, and promote harmonious development of rural and urban society. 2．Basic circumstances 2.1 Total number of land (community) shareholding cooperatives The reform of rural land(community) shareholding cooperative system in Zhejiang province has entered into a new stage of development, governments of some areas take it as important tasks of constructing new countryside, leaders are highly conscious of its importance, farmers participate in the reform actively. By the end of October of 2005, 502 villages with over 1 million Yuan collective assets for each village have completed the reform of shareholding cooperative system, total values of quantified assets are up to 14930 million Yuan, 0.535 million members get benefit from shareholding cooperatives2). 2.2 Conditions of reform Local governments all persist in principles that villages can make choices according to own conditions, classified guidance should be implemented, and progress should be made step by step. They put more efforts on villages of good conditions, at first exemplary shareholding cooperative is established, when conditions are ready, reform will be implemented in large scale. Requirements for the reform of land (community) shareholding cooperative system can be said as follows: villages(community) should have certain amounts of assets and steady managerial income; leaders of villages (community) have strong consciousness of reform and social cohesion; most of farmers are desired for the reform. 2.3 Types3) There are different forms of rural land (community) shareholding cooperatives in our province, but they can be classified as three kinds of main forms, first one is pure land shareholding cooperative, which is to quantify land to household and person by contracted land areas or contracted rights; second one is comprehensive shareholding cooperative, which is to quantify managerial assets (such as facility , building, and fund ) and land assets to household and person; third one is shareholding cooperative with only quantified managerial assets, which is to quantify only managerial assets to household and person. 2.4 Procedures Procedures for establishment of rural land (community) shareholding cooperative in Zhejiang province are divided into preparatory and implemented stages. Preparatory stage includes contents of three aspects, which are to establish leading team of the reform of land (community) shareholding cooperative system, hold mobilized convention and other kinds of symposia to unify thinking of cadres and farmers, and carry out investigation in detail and search for associate materials. Implemented stage includes contents of seven aspects, which are to check land and other net assets, work out.

(3) The Analysis of General Circumstances on the Reform of Rural Land (Community) Shareholding Cooperative System in Zhejiang Province of China（Zhao Weiqing）. （19）. 19. implemented plan based on discussion and asking for opinions of member representatives, hold member representative convention to discuss feasibility of implemented plan, elect shareholder representatives, draw out cooperative rules, write out certificate of share rights, and hold founded convention of shareholding cooperative to pass through various decisions and elect boards of directors and inspectors . 2.5 Establishment of share rights Some land (community) shareholding cooperatives quantify land and other managerial assets, some cooperatives quantify only land assets, therefore they set up different kinds of share rights. Forms of share rights can be classified as individual shares, collective shares, cash shares, mobilized shares, and contracted right shares. Most of shareholding cooperatives set up only individual shares, collective shares are set up for expenditures of public things. Most of shareholding cooperatives set up share rights mainly by population and labor contribution, pure land shareholding cooperatives set up share rights by contracted land area or contracted rights, cash share is set up for new villagers after the reform. 2.6 Operating mechanism All land (community) shareholding cooperatives have established system of board of directors, board of inspectors, and representative assembly. Board of directors is engaged in managerial and administrative activities according to cooperative rules, shareholder representative assembly will be held regularly to discuss and decide important matters of land(community) shareholding cooperative. Land (community) shareholding cooperatives get revenues mainly from rents. Cooperative rule stipulates that about 40% of annual revenues should be used as public cumulative fund and commonweal fund, establishment of other fund can be decided by shareholder representative assembly, surplus will be used for member distribution. Some shareholding cooperatives distribute dividends by the way of ration, most of shareholding cooperatives distribute income by the way of basic dividends plus fluctuated bonus. 2.7 Support of government In order to promote the reform of rural land (community) shareholding cooperative system, Zhejiang Provincial Government issued document Opinions on the Reform of Shareholding Cooperative System of Rural Economic Cooperatives, Provincial Department of Agriculture issued Exemplary Rule of Village’s Shareholding Economic Cooperative of Zhejiang Province, local governments also set up supportive policies and provide good services for the reform of land (community) shareholding cooperative system. 3．Characteristics Based on practical investigation, the reform of rural land (community) shareholding cooperative system of Zhejiang province has characteristics as follows: 3.1 Fast development In recent years, the number of rural land (community) shareholding cooperatives of Zhejiang province is increasing rapidly as the system is gradually accepted by cadres and farmers. In accordance with substantial content of convention of the reform of land (community) shareholding cooperative system held in December of 2005, our province will basically complete the reform of shareholding cooperative system of all suburb villages and villages with over 1 million Yuan net income during 11th five year plan, some developed areas work out plans and implement the reform of land (community) shareholding cooperative system group by group and term by term, for example, by the end.

(4) 横浜国際社会科学研究第 12 巻第 1 号（2007年 7 月）. 20 （20）. Table 1 Number of land (community) shareholding cooperatives in typical areas of Zhejiang province Area. Yuhang district, Hangzhou city. Xiaoshan district, Hangzhou city. Beilun district, Ningbo city. Yinzhou district, Ningbo city. Shaoxing county. Wenling city. Number. 54. 41. 91. 43. 89. 14. of June of 2006, the number of rural land (community) shareholding cooperatives in Yuhang district, Hangzhou city, has reached 54, confirmed shareholders are 94749, total values of quantified collective assets are 247.65 million Yuan, quantified land areas are 1995 hectares, 26 land (community) shareholding cooperatives are registered in department of industrial and commercial administration ,Yuhang district will basically complete the reform of all villages(community) by 20104). 3.2 Concentrated in developed areas The reform of land (community) shareholding cooperative system of our province is mainly carried out in Hangzou, Ningbo, Taizhou, and Shaoxing areas, furthermore these shareholding cooperatives are mainly in suburb areas with high industrialized levels. By the end of October of 2005, total number of land (community) shareholding cooperatives of Zhejiang province is 502, but the number of several typical areas is up to 332, which is 66% of total land (community) shareholding cooperatives. 3.3 Innovation of contents Zhejiang province has some innovations of contents in the reform of rural land (community) shareholding cooperative system, for example, household share is first set up in Xitanghe village,Yuhang district, Hangzhou city, shares of land assets are divided into population and household shares, 0.067 hectares are converted into 100 shares in which percentages of population shares are 75% and percentages of household shares are 25%. Share right certificate(issued by shareholding cooperative) can be used as surety for borrowing money from banks in Ouchi village, Yinzhou district, Ningbo city, 3 persons (per household) can get 9600 Yuan loan from banks. 3.4 Rent is the main source of income In order to avoid risk of management, land (community) shareholding cooperatives are mainly engaged in renting houses and lands, they receive rents from renting workshops, nonagricultural and agricultural lands, markets of agricultural products, comprehensive hotels, and so on. Renting management is acceptable way for shareholders, risky managerial activities are strictly forbidden by administrative departments of shareholding cooperatives. 3.5 The reform of land (community) shareholding cooperative system is thorough Based on our investigation on 20 shareholding cooperatives, 14 cooperatives have only individual shares, 6 cooperatives have individual and collective shares, average individual shares for each shareholding cooperative are 1031758, average collective shares for each shareholding cooperative are 11587, average amounts of individual shares are almost 88 times larger than that of collective shares, so most shares are quantified to individuals in Zhejiang province..

(5) The Analysis of General Circumstances on the Reform of Rural Land (Community) Shareholding Cooperative System in Zhejiang Province of China（Zhao Weiqing）. （21）. 21. 4．Existed problems 4.1 Identification by law5) Now property of rural land (community) shareholding cooperatives is cooperative system, there is no associate law to identify its position, qualification of members can not be identified by law. Looking from our investigation on 20 land (community) shareholding cooperatives,7 cooperatives were registered in department of industrial and commercial administration, 3 cooperatives were registered in department of agricultural administration, 10 cooperatives are not registered. 4.2 Merged function of community and enterprise Rural land (community) shareholding cooperatives still have the function of community and have to undertake public expenditures of community, even if shareholding cooperatives that villagers have become citizens will also have obligation to pay for public expenditures of community. 4.3 The contradiction between nominal share right and market economy6) Now quantified individual share right of rural land (community) shareholding cooperative is only nominal, they lack effectiveness in law, certificate is issued inside land (community) shareholding cooperative and can only be used as voucher to get dividends. Share rights of rural land (community) shareholding cooperative of our province can only be inherited ,they can not be traded, made over, and mortgaged, withdrawal of share is difficult to get money. 4.4 Direction of development It is a controversial problem about developing direction of rural land (community) shareholding cooperative, there is also lack of identification by law. Direction of development affects managerial properties and vigor of rural land (community) shareholding cooperative. It is worthy of exploring problem whether rural land (community) shareholding cooperative will develop towards shareholding company or keep its shareholding cooperative characteristic. 5．Suggestions for the reform of rural land (community) shareholding cooperative system of our province 5.1 Adjusting the relationships among rural land (community) shareholding cooperative, committee of villagers, and party branch of C. P. C. In fact, most of administrators of land (community) shareholding cooperatives are cadres of committee of villagers and party branch of C. P. C., which results in unclear relations among 3 organizations. We should let board of directors and shareholder representative assembly play their due role independently in administrative activities of land (community) shareholding cooperatives and let more farmers with managerial skills participate in the administration of cooperatives, for example, we could stipulate that over 1/2 of administrators are farmer shareholders, at the same time the relationship between revenues and public expenditures should be clarified, functions of community should be separated from land (community) shareholding cooperatives by increasing financial transfer of rural public expenditures gradually to create good conditions for development of land (community) shareholding cooperatives. 5.2 Setting up social security system In practice, social security of some rural land (community) shareholding cooperatives is implemented by itself or resolved by common burden of local government, shareholding cooperative, and individual. In order to promote the.

(6) 22 （22）. 横浜国際社会科学研究第 12 巻第 1 号（2007年 7 月）. reform of rural land (community) shareholding cooperative system, it is necessary to resolve social security of farmers, forms can be various, such as burden by shareholding cooperatives and individual, by local government and individual, and by local government, shareholding cooperative, and individual. 5.3 Guiding the development of land (community) shareholding cooperatives by classification We can anticipate that land (community) shareholding cooperatives in Zhejiang province will develop towards different directions. We should encourage some of cooperatives with steady income and good assets to get rid of communal functions gradually and develop towards shareholding companies, some cooperatives with certain amount of lands and other assets as well as unsteady income should keep characteristic of land (community) shareholding cooperative system, some cooperatives that lands are totally expropriated by governments, villagers have become citizens, and amounts of collective assets are small, can be dissolved upon agreement by majority of cooperative members. 5.4 Setting up provincial association of land (community) shareholding cooperatives Our province should set up provincial association of land (community) shareholding cooperatives by depending on land (community) shareholding cooperatives and other corporate organizations, it should be an organization with functions of supervision, service, and coordination, which can be empowered by government. We also need to establish associations at city and county levels gradually by depending on provincial association. By depending on associations, we can set up network system of information with functions of supervision, guidance, and coordination to connect land (community) shareholding cooperatives with outside markets, so that land (community) shareholding cooperatives can provide such information as renting land and other assets for markets and advertise cooperative projects and intents so as to make use of assets effectively. 5.5 Combining development of characteristic agriculture with the reform of land shareholding cooperative system Our province has prominent advantages in industries such as tea, forestry fruits, flowers ,and seedling, it’s suitable for development of characteristic agriculture. It is necessary for government to work out development plan of characteristic agriculture, implement classified guidance, develop a group of agricultural projects with high economic benefit, and offer support of industrial policies. By means of developing characteristic agriculture and constructing modern agricultural zone, we can promote the reform of land shareholding cooperative system and agricultural management of scale, so that farmers become shareholders, they can not only get land rent and dividend, but also labor income. 5.6 Establishing regulations to enforce standardized administration Associate departments of provincial government should establish administrative regulations of rural land (community) shareholding cooperatives to identify their position, adjust relationships with organizations at basic level, clarify developmental directions and dissolved conditions, improve system of distribution and social security, and so on.. Notes 1) Wan Baorui. Thinking about Innovation of Rural Managerial System of Our Country[J]. Rural Management and.

(7) The Analysis of General Circumstances on the Reform of Rural Land (Community) Shareholding Cooperative System in Zhejiang Province of China（Zhao Weiqing）. （23）. 23. Administration, 2004, (11): 4─8. 2) Zhao Xingquan. Speeches on Convention of the Reform of Land(Community) Shareholding Cooperative System of Zhejiang Province [EB/OL]. http://www.zjagri.gov.cn/ html/main/zjAgriInfoView/2006012664002.html.2005-12-26. 3) Wang Jingxin. Surging Rural New Kinds of Cooperative Economic Organizations[M]. Beijing: Press of Chinese Economy, 2005.115─129. 4) Investigative team.2006.The Reform of Rural land (community) Shareholding Cooperative System in Yuhang District. Hangzhou city: Agricultural Department of Yuhang District. 5) Wang Zhen.The Investigation on Rural Communal Shareholding Cooperative System of Zhejiang Province[J]. Rural Management and Administration, 2004, (4): 43─44. 6) Rural Research Center. 2006. Basic Circumstances in the Reform of land (Community) Shareholding Cooperative System of Wenling City. Wenling city: Agricultural Department of Wenling City. ＊This paper is written based on investigation of 20 rural land (community) shareholding cooperatives and 500 household questionnaires, except for marked, data in this paper come from our statistics and investigation. Address: Yokohama National University Ooka International House 2─31─2 Ooka, Minami-ku, Yokohama-shi, Kanagawa-ken, 232─0061 E-mail: heilong703 ＠ yahoo.com TEL/FAX: 045─712─4389 Zhao Weiqing(1963─), male, professor, came to Japan two times as researcher dispatched by China government and got subsidization two times from the Ford Foundation, the article is essential result of research he is carrying out subsidized by the Ford Foundation, project title is For Research on Governance of Rural and Periurban Land Shareholding Cooperatives in Zhejiang Province (IIE number: FF4M002). . ［趙維清中国浙江林学院教授，横浜国立大学大学院国際社会科学研究科客員研究員］.

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