A Research On The Mechanism And Effect Of Financial Aid Funds

Poverty has always been the focus of public attention,which not only restricts economic development,but also seriously affects social stability and peace.Poverty eradication has become a real problem that must be faced in the process of social development.Since the reform and opening up,China’s rural poverty alleviation has made remarkable achievements.By adopting the current rural poverty standards,the number of rural poor people in China has decreased from 770 million in 1978 to 30.46 million in 2017,and the incidence of poverty has correspondingly decreased from 97.5%to 3.1%.The above achievements are due to the rapid development of China’s economy and the continuous investment of large-scale the financial aid funds led by the government.Looking back on the development process of China’s rural the financial aid funds,it has roughly gone through four stages:incubation and germination(1949-1985),formation and standardization(1986-2000),comprehensive development(2001-2013)and precise improvement(from 2014 to now).Financial anti-poverty fund is specially arranged by the central financial budget to accelerate the economic and social development of poverty-stricken areas,improve the basic production and living conditions of poverty-stricken objects,enhance their self-development ability,and promote targeted poverty alleviation and poverty alleviation in rural areas.In the process of continuous promotion of poverty alleviation,financial aid funds play an important role in alleviating rural poverty in China through three poverty reduction functions:smoothing living consumption,factor media and independent production.Relevant data show that before the stage of comprehensive development,due to the poor farmers’ weak family material foundation,the rural infrastructure construction has not been improved,the financial aid funds mainly play a poverty reduction function of smoothing living consumption,and the purpose of using financial aid funds in this stage is to solve the problem of absolute poverty in rural areas.After the comprehensive development stage,especially since the precise improvement stage,the rural infrastructure construction has been continuously improved,and the poverty reduction function of financial aid funds has gradually turned to factor media and encouraged independent production.Among them,cultivating the independent production capacity of poor households is the core purpose of financial aid funds in this stage.Therefore,from the perspective of capital construction investment and industrial poverty alleviation,this paper expounds the poverty reduction mechanism and effect of financial aid funds,empirically analyzing the poverty reduction effect of capital construction investment and industrial poverty alleviation funds in accordance with the logical framework from village to household.In addition,this paper analyzes the guarantee effect of different assistance subjects on capital construction investment and industrial poverty alleviation funds from the perspective of transmission channels,so as to further optimize financial aid funds,the improvement of poverty reduction efficiency and the help of poverty alleviation and rural revitalizing provide a reference basis.The paper is divided into nine chapters.The main research contents and related conclusions are as follows:Research content 1:the development process,operation principle and poverty reduction effect of the financial aid funds in China.The results show that with the continuous improvement of the financial poverty alleviation policy,the status of rural infrastructure construction and industrial poverty alleviation in the anti-poverty measures is constantly improving.Since the implementation of the targeted poverty alleviation strategy,rural infrastructure construction and industrial poverty alleviation funds have become an important investment direction of financial aid funds.However,the investment in the"labor-oriented" industrial poverty alleviation with high market risk is more prudent,and more attention is paid to the "given" industrial poverty alleviation with relatively low technical threshold.With the increase of financial investment,the rural infrastructure in poverty-stricken areas has been continuously improved,and the rural poverty reduction has achieved remarkable results,showing the characteristics that the benefit poverty population is greater than the benefit poverty area,but the income structure of farmers is not reasonable,and there are still some risks in the stability of poverty alleviation.Research content 2:statistical description of sample data.The results show that rural infrastructure investment and industrial poverty alleviation fund are the important directions of the current financial aid funds,among which,the "giving type" industrial poverty alleviation fund used to household has strong pertinence and wide beneficiary groups;in the current industrial poverty alleviation,more attention is paid to the investment of "given" industrial poverty alleviation fund.The poor households with lower poverty alleviation ability tend to participate in the poverty alleviation of "giving type" industries,while the poor households with higher poverty alleviation ability tend to participate in the poverty alleviation of "labor type" industries.Government assistance has advantages over social assistance in infrastructure investment and industrial poverty alleviation;Besides,in the aspect of "labor-oriented" industrial poverty alleviation,the "foreign aid" social assistance is more advantageous than the "internal aid" social assistance.Research content 3:Research on the poverty reduction effect of infrastructure investment and industrial poverty alleviation funds at the administrative village level.The empirical analysis shows that the poverty reduction effect of infrastructure investment is significantly positive,but the efficiency of poverty reduction is lower than that of "giving"industry poverty alleviation funds.The poverty reduction effect of "labor-oriented"industrial poverty alleviation funds(including agricultural "labor-oriented" industrial poverty alleviation and non-agricultural "labor-oriented" industrial poverty alleviation)is not significant,and the efficiency of poverty reduction is less than that of "giving"industrial poverty alleviation.Research content 4:Research on the poverty reduction effect of infrastructure investment and industrial poverty alleviation funds at the level of heterogeneous poor households.The empirical analysis shows that the long-term poverty reduction effect of infrastructure investment is better than that of the short-term,and the poverty reduction effect of infrastructure investment is stronger for poor households with lower poverty alleviation ability.The poverty alleviation of "giving type" industry is conducive to the poverty alleviation of poor households with lower poverty alleviation ability,while the poverty alleviation of "labor type" industry is conducive to the poverty alleviation of poor households with higher poverty alleviation ability.In addition,in the long run,infrastructure investment is more conducive to the development of large-scale industry at the village level.In the case of limited market demand,the rural collective industry may squeeze the individual industry.Research content 5:Research on the guarantee effect of infrastructure investment and industrial poverty alleviation funds on the transmission channel level.The empirical analysis shows that the guarantee effect of government assistance on poverty reduction of financial aid funds is better than that of social assistance,and the guarantee effect of"external assistance" social assistance on poverty reduction of financial aid funds is better than that of "internal assistance" social assistance,which through ensuring the poverty reduction effect of rural infrastructure investment and "labor-oriented" industrial poverty alleviation funds.Based on the above research results,this paper puts forward the corresponding policy suggestions:(1)Financial aid funds should be given priority to "giving type" industrial poverty alleviation projects,developing "labor type" industrial poverty alleviation projects according to local conditions,and strengthening rural infrastructure support.(2)Accurately identify the objects of financial aid funds.For the poor households with higher poverty alleviation ability,technical training should be strengthened to improve their ability of stable employment;for the poor households with lower poverty alleviation ability,"giving type" industrial poverty alleviation funds should be increased,and employment opportunities created in the process of rural infrastructure construction should be made good use of.(3)Optimize the channel guarantee mechanism of financial aid funds to reduce poverty,ensure the accurate and efficient transfer of financial aid funds,and strive to build a long-term poverty reduction ecosystem with industrial poverty alleviation as the main body,infrastructure investment and "pair of help" as the two wings.