| Ecology deterioration and farmers' poverty are the two critical problems that half-grazing zone is now facing. Recent years,the construction of ecology demonstration base, which is the focus of returning cultivated land for planting trees and grass, has greatly improved ecological environment. But the reality of low-leveled income of farmers and poor living conditions is still unsolved completely.This thesis uses the method of taking positive analysis as the center, combining normative and positive analyses. Firstly, I give a brief description about the natural condition, social economy, the present condition and harmfulness of ecology environment. Secondly, I dissect comprehensively and deeply from each aspect, such as history factor, system factor and climate factor, study on the vicious circle that is the interaction and mutual effect of ecology deterioration and farmers' poverty, and also discuss the mechanism how the vicious circle is amplified and copied unlimitedly, clarify the fact that the expectant goals can be achieved only by solving two problems simultaneously, which are promoting economy and solving the problem of farmers' poverty in the region .Thirdly, taking the solution of increasing peasants' income as the reference system, evaluate the implemented policy of returning cultivated land for planting trees and grass, theoretically and practically , clarify the necessity and urgency of ecological environment construction under macroscopic regulation and control by the government. At the same time, by analyzing the externality of ecology construction, I testify the rationality that eastern area helps western area to construct ecology . Taking Wuchuan county as an example, I study on the restricted factors of increasing peasants' income, and at last, put forward some countermeasures and suggestion of ecology construction and increasing peasants' income.
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