Research On The Intervention Of Grass-roots Organizations Into Microcredit For Poverty

With the work of poverty alleviation in China entering into a tough stage and accurate-targeted poverty alleviation becoming the strategic guiding ideology in new period, this thesis has analyzed the development situation of microcredit of rural commercial bank via taking the T County as example. As is demonstrated in the analysis, the intervention of grass-roots organizations has provided strong supports in carrying out microcredit programs of rural commercial bank in T County and this kind of programs have been widely promoted and developed in a short period of time. Farmers strive to develop programs for livelihood after obtaining loans, which in return contributes to the great change of backwardness in rural areas. However, rural microcredit, with the intervention of grass-roots organizations, has fallen into the dilemma of poverty alleviation as well in terms of its departure from low-income households and poverty-stricken households.Through analyzing the intention of the governments’ and financial institutions’ promoting grass-roots organizations at village level into the process of microcredit and the reason why the grass-roots organizations intervene into microcredit, it is found that the governments are for the sake of rural development and administration, the financial institutions for the sake of both profits and reputation, while rural grass-roots organizations for supplying services and enhancing management. After all, the intervention of rural grass-roots organizations into microcredit programs is the final consistent choice of all these three interest subjects with whose benefits comprehensively weighed and competed. It is the very competition of gaining the complex interests that triggers the departure of the microcredit of rural commercial banks from low-income and poor households, thus leads to the dilemma of poverty alleviation.By virtue of their exclusive advantage of resources in rural areas, the grass-roots organizations exert influence on the issue of microcredit of rural commercial banks. Such influence is specifically realized through the relationship between the organizations and individuals, social resources and cultural promotion. During this process, the rural community of interest and the pattern of interest division have come into being and exerting effects in the distribution of resources from above to below due to the differentiation of rural society. The credit resources gradually flowing from the village elites to the high and medium income households and then to the low income and poor households has become a system of distribution and circulation that impedes the low income households and poor households that tend to be disadvantaged to have access to the finite credit resources, hence the dilemma that microcredit misses its target, i.e. the poor, has come into being.The conclusion of the research basically falls into the following, the intervention of grass-roots organizations into the microcredit contributes to the capitals of microcredit flowing toword the countryside,hence the mission of microcredit,that is poverty alleviation is not fullfilled,only to be with the emergence of dilemma that the target of poverty alliviation is transfered onto the medium or high income households.Accordingly,the critical point of poverty alleviation through microcredit lies in the methods either institutional,cultural and the like that facililate the trend that the grass-roots organizations act as concervation-oriented economic orgnizations on behalf of the majority of farmers...