Research on the Organizational Mechanisms of Local SOEs and Grassroots Organizations in the Process of Targeted Poverty Alleviation

Abstract

The report of the 20th National Congress of the Communist Party of China proposed that rural revitalization be comprehensively advanced, the achievements of poverty alleviation be consolidated and expanded, and the endogenous development capacity of poverty-alleviated regions and populations be enhanced. Targeted poverty alleviation is a key strategy for completely resolving the issue of poverty, and local SOEs are an important force in its implementation. Therefore, this study, based on a cooperative game model, explores the relationship between local SOEs and grassroots organizations in the process of targeted poverty alleviation. The study found that the relationship between local SOEs and grassroots organizations is characterized by political logic, market logic, and the organizational embedding within these two logics. Through the cooperation between local SOEs and grassroots organizations, the efficiency- and equity-oriented approaches of targeted poverty alleviation can be effectively advanced. Based on the analysis using a cooperative game model, it is concluded that local SOEs and grassroots organizations should adopt a cooperative approach to jointly promote the implementation of targeted poverty alleviation. The cooperation between the two parties is premised on the transferability of the utility of targeted poverty alleviation, ensuring that both parties in the cooperative game process are treated fairly and justly and receive a reasonably allocated share of the benefits.