A Research Into Human Capital Investment For Its Countermeasure And Impact On Solving Poverty Issues In China's Rural Areas

The Fifth Plenary Session of 16th Central Committee of CPC has put forward a historic task of building the socialist new countryside. Of which, bringing forth a well-off living standard in the new countryside construction is the fundamental requirement. China has seen a drastic change in the economy of the vast rural areas through reform and opening-up. However, the trend of income gap widening between the city and the country has not been radically reversed and the regional poverty issues still exist. These have undermined the construction of new countryside, and as a result, the goal of bringing about well-off living standard has not been achieved completely.Therefore, we must get an overall understanding of the formation of poverty in the rural areas, scientifically analyze its cause so as to find out the bottleneck that blocks the settlement of the problems, and make a strategy with scientific measures to combat poverty.The study is based on a method of combining theory with empirical analysis. Through the analysis of political, economic factor as well as the makings of fanners themselves, it has come to this point of view: The literacy deficiencies of farmers is the core element that results in rural poverty; the key factor is inefficiency of human capital investment, which bars the raising of farmers' competency and casting off poverty. Positioned on this standpoint, the paper takes the situation of Fujian as an example by using the method of empirical analysis. Through this and the study of how human capital investment affects the settlement of poverty problems, it puts forward corresponding ideas of countermeasures: 1. Raise rural social security fund from multi-channels to ensure capital stability. 2. Increase investment on rural education to improve the educational system in rural areas. 3. Improve training mode for farmers to ail-roundly raise their competency level. 4. Develop primary health care, set up a suitable mechanism of health care for farmers. 5. Strengthen service and protection mechanism for labor export so as to lower the immigrant cost for farmers.