Research On The Development Of Inclusive Finance And Its Effect On Poverty Reduction In Ethnic Areas

The "13th Five-Year" poverty alleviation plan "pointed out that,by 2020,the rural poverty-stricken population under the current standards will not worry about food and wear whlie compulsory education,basic medical care and housing security are guaranteed,it means that all poor people will lift out of poverty by 2020.Poverty reduction needs all aspects of support while the development of Inclusive Finance is an important way to boost the targeted poverty alleviation.Inclusive Finance reduces poverty and reduces the incidence of poverty mainly through consumption smoothing,reducing transaction costs and easing the credit constraints,reducing the poverty population vulnerability and promoting economic growth and some other mechanism.Inclusive Finance is mainly manifested in three aspects: the penetration of financial services,the availability of financial services and the efficiency of the utilization of financial resources.Based on the axiomatic research method of Chakravarty and Pal,this paper selects 10 indicators to build Inclusive financial comprehensive index and measure the development level of Inclusive Finance in ethnic areas.The Inclusive financial development level in Ningxia is higher among ethnic areas,the pace of development in 2016 began to slow down;The Inclusive financial development level in Tibet is lowest,but has been significantly improved during the period of 2010-2016;The development of Inclusive Finance in Yunnan is the slowest;The remaining five provinces' Inclusive financial development level in ethnic areas also showed a rising trend.In general,the level of Inclusive financial development in ethnic areas is constantly improving.Driven by the development of Inclusive Finance,the poverty population in ethnic minority areas has been decreasing since 2010,and the incidence of poverty has been also decreasing.The incidence of poverty has dropped from 34.5% in 2010 to 9.3% in 2016.But from a nationwide perspective,the proportion of the poverty-stricken population in the ethnic areas accounts for more than 30% of the total poverty population in the past seven years,which indicates that poverty in ethnic areas is still the key and difficult point of tackling poverty in China.Through the empirical analysis of the relationship between the development of Inclusive finance and the poverty alleviation,it is found that the development of Inclusive finance has a significant role in promoting the reduction of poverty.The Inclusive financial development level increased by 1% and the incidence of poverty decreased by 0.707%.Among the control variables,the per capita GDP increased by 1%,and the incidence of poverty decreased by 1.339%;the level of fiscal agricultural expenditure increased by 1%,and the incidence of poverty decreased by 0.989%.The significant poverty reduction effect of Inclusive Finance shows that ethnic areas should develop Inclusive Finance from the aspects of innovating financial poverty alleviation mode,implementing Inclusive financial policy and raising financial awareness of poor people.