The Mutual Aid Funds In Poverty Village: Operation Mode, Performance & Their Correlationship

The mutual aid funds in poverty village (funds) is a poverty alleviation measure. It is the combination of fiscal poverty alleviation investment and peasants' free money, and be common owned, managed, and used by all member farmers. The funds provides convenient and pledge free microfinance to poor peasants, and help them to cope financial shortage in livelihood. The funds is a poverty alleviation measure, which has been experimented and extended by Chinese government (the State Council Leading Group Office of Poverty Alleviation and Development and the Ministry of Finance) from 2006 and tried to improve fiscal poverty alleviation investment's targeting and efficiency, alleviate peasants' financial restriction, and support socialistic neo-village construction in poor area.Because of differences in region and understanding to funds, there are different operation modes and therefore achieve different performances. Through examine the data from nationwide sample investigation to the financial mutual aid fund in poverty village in July 2009, we can found differences in operation mode and performance of the funds in investigation, then we can found close correlationship between the different modes and the different performances by statistic method.From the correlationship between funds' operation modes and performances, we can conclude that some special operation modes have better performance. For instance, the microfinance with market interesting ratio, strict installment and group guarantee can increase loans getting opportunity to poverty farmers and reduce overdue loans, and actively promote mutual and cooperation between peasants and participate in neo-village construction can expand funds' member foundation and poor farmers'participation, and so on. Based on these correlationships, we can give several advices for funds experiment to improve its performance.