Research On The Problems Of Peasant’s Microfinance In Less Developed Areas

Peasant’s microfinance was produced in the70s of the last century,it was created by Dr.Mohamed Yunus of Bangladesh.Microfinance is known as the great financial innovation during the second half of the twentieth century,it is the product of efforts to explore changes in the poverty channel,which is based on the combination of the characteristics of households and the environment of economic development.because of the unique operating mechanism and significant effects on supporting the poor,it has been recognized and spread widely in the world.China began to popularize the model of peasant’s microfinance in1993,which is the combination of social effect and economic effect,although the development history is very short and late,the development speed is meteoric, it plays an important role in relieving capital constrains of households,reducing poverty and promoting the rural financial reform.But our country has a vast territory,regional economic development level is unbalanced,there is a huge difference in the main supply,scale,shape and purpose of peasant’s microfinance between the developed regions and the underdeveloped regions.Throughout the development process of peasant’s microfinance in china’s less developed areas,it has been deeply influenced by the lag and slow economic development, natural conditions and historical policy and so on,as a result,it has many problems to be solved in the further promotion and stable operation. Therefore, in the new situation,how to make better use of microfinance to activate the rural financial market in less developed areas, alleviate the financial difficulties of farmers,enhance the farmers development ability and promote the sustainable development of rural economy is very important and urgent.This paper is based on the related theory and foreign successful case of peasant’s microfinance, then taking Luocheng County of Guangxi as a typital example to study if the rural cooperatives can preferably meet the need of peasant’s credit funds in less developed areas, the problems which restrict the further promotion and smooth running of the peasant’s microfinance.then putting forward some operable suggestions.This paper first introduces the related concepts, the connotation and the related concepts of microfinance, then focus on analysis of the necessity and history of the development, the achievements and the operation mode of microfinancet in less developed areas, so we can has a more comprehensive analysis and summary on the development of microfinance in less developed areas,then analysis the successful typical abroad case which the less developed areas can learn from. In reference to the basis of these theories,then taking Luocheng County of Guangxi as a typital example to make thorough analysis on the development situation of microfinance in less developed areas,which is carried out in two aspects,the credit demand of households and the supply of microfinance by rural credit cooperatives. Through the analysis of the above two aspects,this paper sum up the main factors which impact the sustainable development of microfinance in less developed areas especially in Luocheng County, including the current microfinance system itself is not reasonable;management and operation mechanism of rural credit cooperatives is not reasonable; the lack of policy support and supervison; the operation of microfinance business risk is extremely high;the rural credit system is imperfect.Finally,this paper put forward relevant policy suggestions to solve the problem,such as the establishment of local and unique service system of the microfinance;efforts to establish a credit system which is centered for farmers;developing agriculture insurance and establishing security mechanisms;deepening the reform of the credit cooperatives and improving management and supervision level;providing policy support and strengthening supervision and so on, so the less developed areas can promote the healthy and sustainable development of peasant’s microfinance.