Institutional arrangement of participation and self-organizing and the effective operation of CDF, taking the Word bank's Baishui CDF projects in Shanxi Province as an example

• 1、Institute for Rural Economy and Finance,School of Agricultural Economics and Rural Development,Renmin University of China, Beijing 100872

Abstract：In recent years, as an important supplement of the traditional rural business finance, community development fund carry out a wide range of poverty alleviation practices in developing countries, but its effect is still waiting for the test. Beginning with the characteristics of rural finance, based on the principal-agent theory, from the perspective of the institutional arrangement of property rights and organization governance strategy we first inquire into the institutional needs for effective operation of CDF, which has external fund. Then this paper takes the Word bank's Baishui CDF projects in Shanxi Province as an example, studies the relationship between self -organization management under multi-stakeholders' participation and Operation performance of CDF. The result shows that empowerment and decentralization, the incentive and constraint under multi-stakeholders' participation, self-organization management of Grass-roots cooperative finance are the key of the effective operation of CDF.

Keywords： community development fund participation incentive and constraint self-organization and management