The Microcredit Support To The Sustainable Development Of Forestry In China

China forests are a major source of rural employment,a major contributor to Environment protect, and a major provider of rural energy.While there has been significant development in forestry in the last several decades,forestry has lagged behind other sectors in many places.Increasing attention has been paid to the question of whether the financial institution can support the development of forestry,and how the acking of the loan funds links with poverty reduction in the mountainous regions.An investigation show that in the mid 90's,the farmer or the small business enterprise in forestry area seem to be more difficulty in obtaining the loans from banks,Lack of financial inputs and access to microfinance services is often a problem for local producers of forest products.Little documentation is available on the specific subject ofmicrocredit in relation to forest communities and small-scale enterprises.This research examines microcredit needs and constraints of farmer or small-scale enterprises in forestry area.It analyses the different types of finance institutions, the role that they can play in supporting the forest sector development.The main contents include the following aspect:(1)Researching the farmer and small-scale enterprise's activities in forestry area,find out the main characteristics of their financial demand,in order to the design of microcredit mode to support the development of forestry communities.(2)After the research of the rural area service system of China,we find the characters of three major financial instruments,including forestry interest subsidiary loan,forestry microcredit loan,forest right collateral loan,modeling a method in researching the three kinds of forestry loan product at the market economy.(3)Four case studies were carried out to look at different institutions providing microfinance services to forest farmer or small-scale enterprises,including:a micro-enterprise development programme in Parbat district in Nepal;the provision of microcredit and microfinance services to forest concessionsin the department of Peten,Guatemala by two commercial banks;opportunities and challenges in applying microfinance in the Sudan through an association of gum arabic producers in Elmirehbiba village;the microfinance services available to Brazil nut harvesters in the Department of Madre de Dios,Peru.(4)Researching the most importance forestry loan product-forest right collateral loan,carrying on analysis of forest right collateral loan practice in Fujian province,establishment a value analysis model of forest right collateral loan,building an monte carlo model to carry on risk analysis of collateral loan value.(5)carrying on a research towards taking the forestry community as object of the loan movement mechanism,analysis Group Lending,Dynamic Incentives,Regular Repayment Schedule,Collateral Substitute in the microcredit,researching the example of community fund in HuoShan couty in in Anhui province.(6)It is hoped that this research will be a useful reference point and inspiration for financial institutions involved in designing microcredit policies and projects for the development of forestry communities.The primary innovation is as follows:This research presents success examples of microcredit in forest area,aiming to provide a basis for orienting decisions when trying to expand the outreach of finance institutions in forest communities.To establish and support the provision of microcredit services on a viable basis for the sustainable development of forest farmer or small-scale enterprises.