Tuesday, 23 July 2013

An Analysis on the Influence of Community Stock Cooperative System on Rural Women’s Rights for Collective Economic Income Distribution


The Rural Community Stock Cooperative System is adopted in economically advanced areas as a new system to clarify collective property rights. Since the system was implemented, it has gained a lot of attention in China. Compared to traditional collective ownership, the design of the Community Stock Cooperative System is to satisfy the interests of three parties: rural villagers, village organizations and local government. It improves resource distribution within communities, and moves them towards Pareto Optimality.
I. Advantages and Disadvantages of Community Stock Cooperative System in Protecting Rural Women’s Collective Property Rights
From the perspective of rural women, Community Stock Cooperative System is very beneficial. First, it changes the joint possession of collective property to several possessions, which has clarified women’s ownership. Second, it has embodies a modern corporate governance structure, which could effectively eliminate the kind of gender discrimination that is prevalent in the old collective income distribution system. Third, the new system distributes mainly monetary assets instead of more substantive assets, such as land. It directly allocates stock shares to individuals, and highlights individual rights. The stock cooperative system clearly gives stock rights to female individuals through a process of shareholder verification, public announcement, and stock share certificate issuance, to prevent any potential violations of women’s rights by household joint possession.
The Stock Cooperative System is innovative not only for recognizing farmers’ economic income rights by contracting land under collective ownership, but also for guaranteeing collective members’ right to share profits from the added value of non-agricultural land. The benefit of non-agricultural land is higher than agricultural land, and the rights to it are based only on identity, therefore, the recognition of villagers’ stock share qualification is stricter than that of household contracting rights.
The Community Stock Cooperative System is more advanced because it has clearer property rights than traditional collective economic organizations. But, the new system’s flaw still lies in it’s imperfect property rights clarification, and incomplete, inefficient governance structure. The new system still has features of joint possession, and its distribution is still based on collective membership, thus it is still possible for the collective to exclude women. The Community Stock Cooperative System strictly confines shares in the community boundary; if you want to have stock shares of this village, you must have collective membership in this village community. The system separates collective stock shares into "individual stock shares" in order to reflect that "everyone" has the right of membership under collective ownership. The system divides the profit sharing classes by different years of working, or farming experience, to comply with traditional quota of collective ownership. It regulates membership changes caused by population migration by adjusting the stock shares quota. This process of distribution and allocation in the new stock share system still maintains the basic structure and contents of collective ownership, which could prove to be problematic. As an expert pointed out, “Women’s land rights are violated because their collective membership is constantly challenged, therefore, individualization of rights becomes the optimal measure for protecting women’s rights, so as to realize the change from social identification to social contract”.
Quasi land ownership has also seen many changes. It was once obtained freely by membership, but now it is bought. In addition, the land obtained by the members was not transferable, but now it is, making the property rights of rural landowners gradually more complete. The new shareholding system changed from an old, closed, community form of system to a new, open, enterprise form of system. Although the current reform of stock cooperative system is not complete, the measures taken have improved it, and helped to get rid of the influence of an informal system of collective income distribution, which was more often than not discriminatory to women.
II. Violation of Women’s Rights in Rural Community Cooperative System Reform
Rural Community Stock Cooperative System is a completely new system with many new conditions and problems. Due to various reasons in the past and present, rural women’s rights are sometimes violated in the new Stock Reform System. In some parts of Jiangsu province, about 20% of women were not treated equally mainly in the four aspects below:
1. Some rural women did not get land in the second round of land contracting, thus they could not receive equal treatment when collective assets were quantified.
2. Illegal village rules have violated women’s rights. For example, some village rules permit only 25-50% of land acquisition compensation for married women. In a city in southern Jiangsu, the municipal government’s documents and the share cooperatives charter states “when married women migrate, their household registration is moved to their husbands’ village, but if they have not migrated within 5 years, they shall not get stock shares.” This kind of proclamation is against law.
3. Some rural women are forced to migrate when they marry urban husbands. Under the former household registration system, rural married women could not move their household registrations to the city, so they just leave the registrations with their parents in the countryside. The new household registration system has lowered the threshold, which enables farmers to gain urban registrations. As a result, some villages force women who have married urban men to migrate out of the village, then cancel their relevant economic rights and interests. However, things have changed over recent years. Some villages enjoy a very favorable collective welfare, as a result, there is no pressure on women to marry urban men, and even if they do, they would not migrate.
4. The long-existed “live with your husband” pattern still stops rural women and their children from fully enjoying shareholding interests from stock cooperative system reform.
III. The Impact of the Community Stock Cooperative System Reform on Rural Women’s Economic Rights
The reform system’s design and implementation has both advantages and disadvantages for rural women’s economic rights:
1. There are no clear rules identifying members of collective economic organizations, thus leaving the rights of married and divorced women unprotected. In economically advanced areas, a key issue in women’s land rights, especially stock rights, is how to distribute property to “married out women”. “Married out women” are those women who did not marry residents of their own villages, and have to leave their household registration, as well as their children’s, in their original villages.
“Married out women,” and children are usually excluded from the category of identified shareholders (villagers) during a stock reform. Because there is no theory or law concerning the identification of membership, household registration is used as the first step of identifying village membership. The next step is to ensure that the villager has fulfilled their obligations to the community, such as complying with the family planning policy. It is also important that the villager resides in, and has a contract to operate land in the community. Other informal elements influence membership as well, such as traditions, family influence, and the village authorities.
The system of Identity-based collective profits distribution, combined with the difficulty in identifying village membership, has allowed the collective will of the villagers to selectively exclude “married out women”. According to the survey of Professor Lu Ying from Sun Yat-sen University, 80.1% “married out women” have lost their stock dividends after married, while divorced women are also unprotected, because with their stock share cancelled, and household registration repelled, they are left with nothing.
2. Periodic adjustments of stock rights have encouraged people to move into the community, like new wives for example. A community periodically adjusts stock rights by retrieving stock rights from those who passed away or moved out, and reallocates them to the new community members. Such adjustments have protected the rights of the new population, but also brought many conflicts. First, as population increases, dividend per share drops and affects every shareholder. Second, as only villagers can get a stock share, people do not move out, and village population explodes, putting a heavy burden on collective economy. Third, complicated population flow has made it increasingly difficult to identify village (collective economic organization) membership, giving rise to more disputes. Since 2003, some villages have allowed no change in stock rights allocation.
3. Fixed stock rights allocation has varied influence on rights of the new villagers. A innovation in the Stock Cooperative system fixes down shareholders, and the total number of stock shares in order to prevent disputes over resource allocation. However, if a married woman and her children changed their household registration in recent years, before the stock rights distribution was fixed, they would not receive stock shares.
4. Clarifying women’s stock share ownership helps to get rid of the potential infringements, which existed under the system of household joint possession. In the past, the family unit distributed and managed the household land, and the land rights were subject to the joint possession of family members. Joint possession by family members meant that individual property rights were not clearly divided between husband and wife. When there was a divorce the woman’s claim to her land would often be overshadowed by that of her husband. “Family is a double-edged sword. It can both protect and jeopardize women’s land rights.”

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