| Poverty is an international problem, and China, a developing country, can not evade this problem too. Lin Yifu, a well-known economist, said, "The principal contradiction in China's current wealth gap is not that the rich are too rich, but the poor are too poor!" It tells the crux of the problem. However, in the process of economic development and out poverty alleviation, fund plays an important role. Microfinance is internationally recognized as the most effective tools for alleviating poverty.Originated in developing countries, microfinance is committed to the dual goals of economic growth and poverty alleviation in rural areas. The United Nations designated 2005 as the "Year of Micro-credit". In 2006, Muhammad Yunus, the founder of Grameen Bank, won the Nobel Peace Prize. And our government also pays more and more attention to the role of micro-credit in the rural economic development. Central Document NO.1 "A number of opinions on increasing intensity of urban and rural development and further consolidating the basis of agriculture and rural development issued by CPC Central Committee and State Council" officially released, which specially discussed how to improve the quality and level of rural financial services.The paper is mainly divided into five parts:the first part is the research and theoretical review at home and abroad; the second part mainly discusses the situation of China's rural poverty. By analyzing a rural survey, we found the major obstacle to the development in rural areas is insufficient supply of funds, which not only lead to a slow increase in income in rural areas, but also restrict the second and third industry. And with the return flow coming in it is not conducive for farmers to start their own businesses; the third part is mainly to analyze the development of rural micro-credit status and the problems from abroad and domestic markets. Through an analysis of international rural micro-credit model, we can understand its advantages and feasibility, which is a reference on the development of our rural micro-credit. At the same time, China's rural micro-credit problems in the development process was put forward, such as risk prevention capability of China's rural micro-credit which is not strong, the interest rate out of market development, and so on; The fourth part focuses on the role of micro-credit for poverty reduction. Through the analysis of the supply and demand of China's rural financial, we found that the demand for capital amount of farmers is relatively small, and the timely appearance of micro-credit can alleviate the contradiction; the fifth is mainly for problems found during the study, inadequacies for rural micro-credit in reducing poverty to propose viable solutions.In this paper the main points and conclusions is that micro-credit in rural areas alleviated the contradiction between supply and demand of funds in rural areas to help farmers reduce poverty. There are still some problems in the operation of rural micro-credit, which requires the government, the micro-credit institutions, farmers individuals and other social organizations to work together to improve the micro-credit operation mechanism. In summery, this is based on rural poverty to find the causes of the slow development of the rural economy and farmers'long-term poverty and the practice and development of micro-credit to address this issue a whole new way of thinking. We must constantly improve the development of micro-credit in theory and practice to better address the difficult issue of financing of the rural poor families, to raise the income level of China's poor farmers and to better serve the building of a socialist harmonious society and new countryside construction. |
PDF Full Text Request