Rural cooperatives in China: policy and practice

Abstract

Purpose

The paper sets out to consider the impact of China's reform dynamics on its cooperative economy, examining developments both within the statist sector and beyond, in the variety of experimental quasi‐cooperative forms that have grown between plan and market.

Design/methodology/approach

The paper employs a field study approach, examining the roles of farmers' specialised cooperatives within the agro‐industrial chain with experiments in Shandong province.

Findings

The paper shows that reforms in the cooperative economy have been gradual, uneven and jerky, favouring the more entrepreneurial or better‐placed farmers to pursue new market opportunities. Creating a sustainable mechanism that would protect and even enhance the interests of the poorer farmers is proving to be far more difficult.

Research limitations/implications

The field study of this paper covers just one region. A further investigation of the impact that the reform dynamics has on the cooperative economy is planned for the near future.

Practical implications

China's approach has favoured experimentation, encouraging initiatives from below and developing a more flexible relationship between government and farmers. This broad bottom‐up approach has allowed for a diversity of models adapted to local conditions, but has also led to uncertainties about the limits of local government influence and the extent of autonomy, with many cooperatives taking an investor‐oriented direction.

Originality/value

The paper adopts a broader social economy perspective that offers a fruitful way to evaluate developments and consider the future for China's cooperative economy.

Citation

Clegg, J. (2006), "Rural cooperatives in China: policy and practice", Journal of Small Business and Enterprise Development, Vol. 13 No. 2, pp. 219-234. https://doi.org/10.1108/14626000610665926