The Investigation Of Rural Financial Poverty Alleviation System

Poverty is the world-class complicated issue, and also shackles our country's development all the time. However, poverty can be resolved sufficiently by providing poverty alleviation loan to those impoverished people who desire a better life and are able to make it accomplish. Our country has considered financial poverty alleviation system the best solution to the poverty problem and enforced it since 80s last century, but nevertheless it has become the burden of the development of financial system because of its imperfection. As a result, massive non-performing loans have been created. So the theme of this paper is to discuss the ways that can make the financial poverty alleviation system function well.Based on the history and status in quo of our country's financial poverty alleviation system, this paper screens the framework, function and outcome of the system. The problems includes:The money cannot arrive in the impoverished crowd, the outcome cannot achieve the expectation, and the fund cannot be circulated. The reasons to these problems are analyzed as:the existing traditional credit operation pattern as well as the collusion between local authority and the financial institution cause the fund cannot be released to the people who need it; Agricultural natural risk and social security flaw influence the efficiency use and property quality of poverty alleviation fund; The high market monopoly has created high transaction cost, thus influence the sustainable circulation of the financial poverty alleviation.This paper focuses on the causes of the issues in the financial poverty alleviation system, and provides some reasonable suggestions. From the view of credit operation, our country should foster the microfinance and announce its explicit legal status. From the view of risk prevention, the authority should make the agricultural insurance and hedge mechanism being perfected, as well as attempt to combine the derivative instrument and poverty alleviation loan; From the view of competition, the qualification range should be expanded to allow the foreign investment coming in so that poverty and economic goals can be bettered off.