Research On Operation Performance And Management System Of Rural Microfinance Project

Microfinance programs have been introduced into China represented by Grameen Bank of Bangladesh, and they have been rapidly developed as an important complement to reduce poverty since the 1990s. Because of the cultural differences between different regions and resource endowments, some microfinance projects have displayed a nonprofit credit localization characteristics and poverty alleviation model that has characteristics of both the Grameen Bank and national culture, continues to play its effectiveness on reducing poverty; some have been gradually shrinking, quit the rural market; others closely followed the market trend, and transformed to commercial microfinance model after 20 years of its development. Among them, the nonprofit microfinance in poverty alleviation as goal-oriented, by allowing poor farmers to participate in project selection, decision making, management, administration, benefit from the whole process, and achieved remarkable results in improving the income levels of poor farmers and development capabilities. However, with the accelerated process of a variety of emerging new rural cooperative organizations in the market, microfinance model which relied on running the project has also facing many problems, how to improve management system of the project to ensure sustainable operation of the microfinance projects, and to improve projects operational efficiency, has become an important practical problem to be solved. In this context, this paper takes rural microcredit project for the study, the cost-benefit theory and stakeholder theory as the basical theory, case analysis and surveys as a means to study the combination of theory and empirical research, running for the microfinance project performance management system with an in-depth study.This paper examines several foreign typical microfinance operation models, describes the operation mechanism of microfinance, poverty reduction and performance assessment methods for this study, microfinance projects and related concepts are defined, and from microfinance institutions, the principal-agent relationship between the perspective of poor farmers, government departments, such as multiple poverty, to build a general framework for the study and performance management systems to run microfinance projects, and proposed theoretical basis of this study.In order to ensure the sustainable operation of microfinance programs to play better its role in poverty alleviation, on the basis of the comparison of two case studies between domestic microfinance models, the paper summarized the NGO microfinance projects mechanism including targeting, credit, installments and organizational management, clarify the logic of microcredit project with the repayment mechanism of interaction. In order to run a more comprehensive analysis of the performance of microfinance projects, verification of the factors item category, microfinance facility, project management, human operators and other capital projects on the operating conditions, the paper constructes a classification of discrete multi-variable regression model based on project-based business conditions, the empirical results show that:microfinance facility and operating conditions of the project did not show a significant positive relationship, compared to farming projects, business and planting projects more likely to earn profit, and it also showed that the project category for the project operations is an obviously impact factor, and it has a significant impact for poor farmers’ income.According to the differences in types of projects, we use Cobb-Douglas production function extended form, constructed the input-output regression model for planting, breeding, business project, from the microscopic point of view to analysis the impact from different types capital investment of the project including small loans, personal investment, human operators and other factors that affecting the output, and to verified that the role of micro-credit funds for the project’s output was significantly higher than the role of personal investment, it indicates that by implementing microfinance projects, it can effectively promote poor farmers’ income, and thus gains its poverty reduction effects.Based on the current status of microfinance programs practices, this article referring to enterprise project management system, and grounded on the stakeholder interest theory, builds a hierarchical level from country, province, county and village microfinance project management system that designes "1+X+XX+XXX" pyramid organizational structure, and divided the project into four operational phase, and attributes to the integration functions of the project management system:to reduce project operating costs, to constraint operator behavior, to control operational risks. So far, the project will rely on a sound microfinance management system to better development.