Community Development Fund For Sustainability Research

Involving financial loan in poverty alleviation work in countryside is continuouslyconcerned by the society. And the Rural financing always catches public attentions withsolving peasant households’, especially the low income ones’, financing problemscontinuously investigated by academes. Though there are lots of investigations on ruralfinancing problems, rarely general consensus is made on the effective applicable solutions tothis issue. Using financial tools on poverty alleviation work become one necessary option toboost rural economy and increase local income, and many parties are trying in this way. Formany years, the Chinese government has been putting their efforts on Involving financial loanin poverty alleviation work, and made some progress, but still lacking some effective schemeor mode.As the Rural Bank small-scale loan mode from Bangladesh is adapted in China in the90’s last century, China started using small-scale loan in poverty alleviation work. While inthe process of implementation small-scale loan, some kind of Community Development Fund,arising but different from small-scale loan, appears in many forms. This kind of fund onsmall-scale loan, which is self-managed and self-serviced by the community, is called MutualFund, or Community Fund, or Village Fund, hereinafter in this article called CommunityDevelopment Fund.Regarding to the background stated above and referring to the theories on Rural Financeand financial loan in poverty alleviation work, based on the theory of small-scale loan andCommunity Development Fund and sampling from different types of Community Development Fund casesall over China, this article analysis the operation scheme and function of the CommunityDevelopment Fund, investigates the sustainability of Community Development Fund by usingempirical analysis、comparative analysis、quantitative and qualitative analysis method，andmakes suggestions on forming sustainable Community Development Fund.Through the case study on external-support and self-conducted Community DevelopmentFund, the article finds the sustainability on funds turn-over、loan structure design、and operationscheme of Community Development Fund. The factors that influence such sustainability include the sustainability of community’s financial management ability and change of financial policies.In summary of the analysis, the article makes the recommendations on forming suchsustainable Community Development Fund, including: maintaining an external support; reinforcingcommunity’s financial management profession; involving more funds based on the good reputation ofCommunity Development Fund.