Microfinance Project Theory And Practice

Poverty includes the backwardness of economy, society, culture and ecological enviroment, a state of being deficient in life necessities, services and in absence of development opportunities and means, resulted from low income. In order to alleviate and eliminate extreme poverty, Chinese government has long invested tremendous manpower, material resources and funds to aid it. Fund is one of the most important means to aid the poor people and the poor area. How to use the povertyalleviation funds effectively and flexibly has become the focus of the practice and theory circles. The Chinese overtyalleviation Credit project, started in I 984,has played a great role in the process of shaking off poverty. Since microfinace povertyalleviation project had a pilot text in china in 1993,it has resolved the age-old hree lows problem in using the povertyalleviation funds he low ratio of funds reaching the pauper, the low ratio of item success and the low ratio of funds comeback, improved greatly the funds effects and economic benefits. This method has been hailed with extensive praise and comfirmation. Using the means of evaluation of investment projects, on the basis of analyzing the rise and operation of microfinace, exploring its theory assumption and characteristics and contrasting the GB mode with BRI mode, this paper sets the microfinace povertyalleviation principles and procedures, establishes it index system. The project of microfinace povertyalleviation in Wu-long Country has made a remarkable achievment. However, there are also some unneglectable problems. Taking the practice of mirofinace project in Wu-long Country as an example, on the basis of study on the problems and reasons in practice of the microfinace povertyalleviation project in China, this paper gives some advice on consummating the project: Improve the standard of leadership and management, and pay more attention to the study of the theory and practice of the project; consummate the evaluation of the niicroflnace project, set up a scientific and perfect standard system for the prQject; establish a new management system which China Agricultural Bank takes the lead, and the local government supervise, a loan relationship built between the bank and the poor people, the povertyalleviation organization help the poor people use the funds efficiently, so that a new running system may come into being under the combined management of the government, bank and the povertyalleviation organization; lunch the microfinace project in regard of the regulations and laws; the perfect service organization of microfinace project is the key and premine factor ;consunimate the loan-related management and services, with the regard of some successful examples.