The Research On The Effect Of Microfinance To Income Increase Based On Capitalism Of Agricultural Economic

We can not go without the support and transition in agricultural department whentrying to realize the transition from dual economic structure to monistic economicstructure. And the development of agricultural department is closely related to thedynamic accumulation of funds: low accumulation of funds and per capita fundsstorage might cause slow development in the long run. As a result, to realize thetransition from low-level equilibrium to high-level equilibrium, we have to stress therole of fund mechanism.And fund mechanism is highly related to the financial mechanism. In1976,Grameen Bank started this important financial institutional arrangement——microfinance, which has developed so fast all over the world. As the essentialeconomic method, it is the provision of financial services to low-income clients orsolidarity lending groups including consumers and the self-employed, whotraditionally lack access to banking and related services. In this way, it could helpincrease the income and satisfy the strategic target of The12th Five-Year Plan.The thesis start with the background of the12th Five-Year Plan, focus on whethermicrofinance could improve income increase in the rural area. The core part of thispassage is to use relative capitalism theory of agricultural economy, and search realdata to assess the influence degree of microfinance to different groups of countrypeople qualitatively and quantitatively. The passage ends with the developingdirection of microfinance in the rural area. The thesis answer four questions accordingto logic: what is the status quo of microfinance in the rural area? What is the existingproblems? Could microfinance affect income of the country people positively? what istheory basis of that? Is the influence degree of microfinance to income of differentgroup of country people the same? According to the analysis, what is the developmentdirection of microfinance in the rural area in the short run and long run respectively?By answering these questions, the thesis attempt to explore the feasible developmentroad of microfinance, then apply to the practice so as to improve the income of thepeople in the rural area and shorten the income gap between urban and rural areas.