Innovation Of Precision Poverty Targeting Mechanism

To ensure that the poor person will go out of poverty by 2020,the precision of poverty alleviation has been emphasized based on system construction and top-level design in China.Since 2013,China has promulgated many key policies for poverty alleviation.In the specific practice,distinctively innovative financial poverty alleviation modes have been set up according to their actual situation in local area.Since the implementation of the policy of precision poverty alleviation,the number of poor people in our country has dropped from 55.75 million in 2015 to 43.35 million in 2016,down by 22.24% year on year.To study the innovation of micro-credit mode,this paper analyzes the existing problems of targeting deviation.Then exploring the innovation of the microfinance based on precision targeting,further estimating the effect of microfinance on the poor by the method of tendency score to match the multiplier.In this paper,we can come to the following conclusions:(1)The mechanism of precision poverty alleviation is carried out by top-down and bottom-up identification process combined with the participation of the poor.(2)The three-level credit rating and the insurance mechanism effectively alleviate the credit constraint problem faced by the poor,which enkindle the enthusiasm of the financial institutions to lend and thus makes the poverty alleviation more precise.(3)In the process of financial poverty alleviation,the microfinance based on precision targeting has a significantly positive impact,the per capital income of the borrowed poor households is 2788 RMB higher than that of the non-lenders.However,the problem of precise identification and coordination between the poor and poverty-stricken poor households is urgently to be solved.Therefore the use of poverty alleviation funds and poverty alleviation discount loans need to be adjusted according to the poverty levels and poor reasons to take different funding strategies.