The Present Situation、Problems And Solutions Of Financial Policy For Wuling Mountain Region’s Poverty Reduction

Wuling Mountain region is located in Central China, running from Chongqing andEast Guizhou to West Hunan where is one of the largest ethnic minority areas. There aremany ethnic groups and its has rich ethnic culture and abundant natural resources.However, as its historical reasons, inferiority in regional location and environmentalfragility, it became in China’s poverty-stricken regions. Its economy development ismost concern for the government. Finance is the core of modern economy. Governmentis willing to use the financial policy for the poverty reduction. But its imperfectfinancial system and its insufficient financial institutions service ability that seriouslyimpedes the economic development. Therefore, how to effectively improve its financialenvironment and achieve poverty reduction effect is the responsibility of localgovernment and the financial sector. This paper is based on actual research data andpractical investigation and combined with theory, analyzing the problems existing in thelocal financial system to put forward the corresponding suggestions.This article introduced the concept of financial development and economic growth,financial support and relevant theory about poor people to implement financial policyfor the poverty reduction. And it also used practical experience that has beensuccessfully applied at abroad as a way of providing a new concept of financial policyfor poverty reduction. Then, from the real situation of Wuling mountain region’sfinancial institutions, through the local financial authority to figure out the changes offinancial networks numbers and the number of people employed in finance andintroduced the formal financial institutions and informal financial branches andagricultural insurance system to affirm implementation situation of the povertyreduction. Because of financial policy for poverty reduction, lots of poor people havebeen lifted out of poverty and promoted industrial development and improved theinfrastructure and gave the support of the leading enterprises and promoted thedevelopment of local enterprises.The financial policy for poverty reduction played a very important role inincreasing the poor people’s financial condition and shaking off their poverty, but thereare still some obstacles and challenges, such as lacking of development conditions,financial reform falling behind, low quality of financial services and its products lack of innovation. All of those problems restricted the implementation of financial policy tothe poverty reduction.There are some practical suggestions in this paper would probablybe good for those problems.