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Dual Incentives and Dual Asset Building: Policy Implications of the Hutubi Rural Social Security Loan Programme in China

Published online by Cambridge University Press:  01 July 2008

BAORONG GUO ,
JIN HUANG ,
MICHAEL SHERRADEN  and
LI ZOU
BAORONG GUO
Affiliation:
Assistant Professor, University of Missouri-St Louis, 590 Lucas Hall, One University Boulevard, St Louis, MO 63121, USA email: guob@umsl.edu
JIN HUANG
Affiliation:
Doctoral Student, Washington University, St Louis, Missouri email: jhuang@gwbmail.wustl.edu
MICHAEL SHERRADEN
Affiliation:
Benjamin E. Youngdahl Professor of Social Development, Washington University, St Louis, Missouri email: sherrad@wustl.edu
LI ZOU
Affiliation:
Project Manager, Center for Social Development, Washington University, St Louis, Missouri email: lzou@wustl.edu
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Abstract

The Hutubi Rural Social Security Loan programme is a policy innovation in a rural area of China, which loans savings in social security accounts back to peasants for them to buy assets for agricultural and other development. In contrast to the nationwide recession in rural social security, this programme has shown its success in proliferating rural social security funds and retaining social security participants. With a focus on the administrative data of the loan programme, this study aims to provide an in-depth understanding of the loan programme and examine how asset building is possible for the poor when institutional incentives are offered. The findings show that when proper policy incentives are provided, poor peasants can build assets. The Hutubi programme may be a good model for other rural areas in China and other developing countries.

Type
Article
Information
Journal of Social Policy , Volume 37 , Issue 3 , July 2008 , pp. 453 - 470
Copyright
Copyright © Cambridge University Press 2008

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