Research On Microfinance Poverty Alleviation In Rural

The poor group in China has been facing the difficulties for lower demand for capitals and insufficient supply for capitals for a long period, which has clogged the development path and trapped the poor group in vicious circulation of poverty. The occurrence of microfinance has broken said vicious circulation to a certain extent, to assist the poor group with some capabilities for self-development and self-employment, so as to make the production and life enter a benign circle. However, in terms of demands, the poor farmers are fragile and face more risks in production and other activities compared to other farmers, so that the poor group would be restricted by conditions of resources of various aspects for the need of risk elusion when making decisions in credits. As such, the demand for microfinance is bound. In terms of supply, the gap between the microfinance supply, which is mainly provided by rural credit cooperatives, and the de factor demand for credits of poor farmers, is increasingly enlarged, which shifts up the target clients of microfinance and moves down the efficiency of poverty alleviation. As a result, the function poverty alleviation is continuously weakened.This article makes an in-depth research on the current conditions microfinance poverty alleviation by making an on-spot investigation upon the sample area, Hongze Jiangsu Province, from the view of point of poor farmers. Regarding the demand, the conditions of demand for microfinance of poor farmers is described and analyzed in the first place, and then the conclusion is drawn that the demand is most seriously restricted by material resources and also restricted by human resources and social resources to some extent, through an evaluation of the characteristic indexes of the demand for microfinance by using the statistical method, in the aspects of human resources, material resources and social resources. Regarding the supply, by using the qualitative analysis in combination with quantitative analysis, starting from the satisfaction on the current conditions concerning provision of microfinance and the impact of microfinance on welfares of poor farmers, it is found, by means of research on the status and efficiency of supply of microfinance by rural credit cooperatives, that the amount, process and term of microfinance is in serious unconformity with the de facto demands for microfinance by poor farmers. An operable proposal on policy is formulated to address the problem of the weak function of poverty alleviation, based upon the aforesaid discussion.In a word, the "Twelfth Five" poverty alleviation project would directly depend on the development of microfinance poverty alleviation. Therefore, it coincides with the requirement for scientific outlook on development and has a significant sense to discuss and evaluate the problems existing in the present microfinance poverty alleviation practice and render a proposal on policy thereupon.