Rural Credit Union Reform Policy Design Concept

Author: Mu Zhengshe
Publisher:
Publish Date: 2006-01-01
Features: The author personally participated in the formulation and implementation of the central bank's fund support scheme and completed the postdoctoral exit report "Positive Incentives, Credible Threats, and 'Buying Mechanisms with Money'—The Design Philosophy of the Central Bank's Fund Support Scheme" based on this work. This book is a comprehensive revision and expansion of that report. It studies the design philosophy, principles, and logical framework of the central bank's fund support scheme, arguing that the scheme fully reflects the fundamental ideas of incentive mechanism design theory. It provides financial support to rural credit cooperatives to help them digest historical burdens by granting them the autonomy to make choices, implementing comprehensive, sustained, option-based, performance-based, and dual incentives, establishing multi-layered credible threat measures, and enhancing the efficiency of positive incentives. This encourages rural credit cooperatives and provincial governments to actively participate in and deepen reforms, establishing sound incentive and constraint mechanisms for rural credit cooperatives and management systems for provincial governments over these cooperatives, achieving the goal of "buying mechanisms with money," and promoting a virtuous cycle of interaction between "spending money" and "buying mechanisms." The viewpoints presented in this book accurately target the core and key points of the fund support scheme, offering insightful guidance for effectively supporting rural credit cooperatives financially and deeply understanding the spirit of their reform.