A Positive Analysis About Fixed Asset Investment's Impacts On Poverty Alleviation

Poverty is not only economic issue but also a political one. Poverty alleviation can ensure social stability and harmony, enhance social development, and protect the survival rights of human beings. In China, poverty alleviation measures can not only have respect to fasten economic development together with living standards' improvement of people in poor areas, but also can refer to regional coordinative development and stability of political order throughout the whole country. With China's rapid economic development, we have made remarkable effectiveness of poverty alleviation in the past 20 years. The poverty incidence has fallen down significantly, measured by either income or consumption. However, poverty alleviation in China still has a long way to go, even become more difficult to deal with on some extent. As experience shows that poverty alleviation, especially the fixed assets investment is the main driving force for promoting economic development. Based on this consideration, this thesis takes Ninglang County as an example to study the impact of the fixed asset investment on poverty alleviation in poor rural areas of China.At the first place, based on the causes of poverty and the investment theory of Karl Marx, this thesis analyzes the impact of the fixed assets investment on poverty alleviation in rural areas. Secondly, through the empirical analysis with the example of Ninglang County, it explained the contributions of the fixed asset investment promoting economic development and improving farmers'incomes. Thirdly, it analyzed the current situation of investment and its basic reason in poor rural areas of China. By comparing, two key problems were found out. One is the total quantity of fixed assets growing rapidly while the individual investment increasing slowly. The other is the investment direction not matching the industrial structure. The thesis analyzes the core reasons related to the two former problems from investment environment, investment sources and investment preferences of government. Finally, the thesis gives four recommended policies to improve the investment in poor rural areas of China by increasing the constructive investment of base installation, creating relaxing and helpful investment environment, inclining major project to poor areas and increasing the agricultural investment.