Study On The Vulnerability Of Rural Households Under Inclusive Financial Background

Since the reform and opening up,China has made remarkable achievements in development-oriented poverty relief.With the development of China’s economy,The number of poor people is reduced dramatically,who has made tremendous contributions to poverty.However,a basic real observation is that China’s rural poverty is still very serious,which mainly reflected in the following two aspects.Firstly,according to the National Bureau of statistics released data,there were still seventy million one hundred and seventy thousand poor rural population at the end of 2014.Secondly,the high rate of poverty.The poverty-return rate of poverty alleviation is still high.Thus,Chinese poverty alleviation is facing the final bastion of capture stage.We should transfer from flood irrigation type to drip irrigation in poverty alleviation.Besides,vulnerable farmers means that we should eliminate the potential root of poverty.Among the causes of poverty in many rural vulnerable groups in China,the lack of family self-accumulation and funding sources is particularly prominent.Financial poverty alleviation which serves as an important means of developing anti-poverty accepted fact in the world.Poor families broke the original balance of poverty through the injection of external funds and achieve self-value rediscovery,what’s more,which let the poor families get rid of poverty with dignity.The appearance of inclusive finance which is derived from micro-credit service is an effective measure to further clear the vulnerable groups to obtain resources obstacles.It breaks through the single problem of fund shortage for the traditional financial poverty alleviation and reveals comprehensive use of financial instruments such as credit,insurance,savings account and so on.So,could inclusive financial intervention reduce farmers’ vulnerability effectively and enhance farmers’ resilience?Based on these problems,this paper will make a theoretical analysis and empirical study through the main carrier of inclusive finance,hat is,micro-credit,micro-insurance and savings account.To begin with,this paper will make a historical review and diachronic analysis on the development of poverty theory and farmers’ vulnerability from the perspective of institutional change.It is indicated that the research on farmers’ vulnerability is the result of poverty concept evolution and is also the necessity of theory and practice.In the study of poverty concept review,this study explores the change of poverty concept,from lack of basic living needs,insufficient development ability,eventually,to deprivation of development ability,which reflects human rights demands from living right to development right The recognition change of poverty concept brings about the poverty standard and measure.The poverty standard changes from single dimension of basic life need to multidimensional standards of education and health.The poverty measurement is improved from the past static observation to the prior dynamic prediction,which further promote anti-poverty policy scientifically.The change of poverty concept,standard and measurement transforms traditional farmers’ poverty study into vulnerability analysis.The farmers’ vulnerability connotation mainly reflects risk exposure and risk management,including the diversification of impact protection and welfare,which introduce the possibility of people’s viability and the choice rights which is infringed resulting in poverty feasibility.Therefore,the poverty vulnerability measurement is mainly risk impact which reflects the strong and weak recovery possibility of farmers,who is under the minimum poverty standards or in the minimum standard of poverty.Then,this paper respectively demonstrate Chinese farmers’ agricultural income and non-agricultural income which is in the short term and steady state characteristics of conservative economic behavior through inelastic agricultural products demand,actual labor market segmentation theory and Huang Zongzhi theory.On this basis,this study puts forward the vulnerability index,namely low income farmers’ short-term income follows normal distribution and take the standard line of low-income farmers in Jiangsu(per capita net income of 6000 yuan per year)as a reference index,use quantitative analysis tools which measure 511 sample household vulnerability in the northern of Jiangsu,and find samples farmers’ vulnerability index distribution in two large,middle and small pattern.In agreement with actual situation poverty in Jiangsu,poverty alleviation has been further explained to the final stage of tackling tough stage.This paper demonstrate the promotion function,which inclusive financial intervention benefits farmers’ development based on the theory of rural financial development in China,separate financial constraint theory and financial exclusion theory,and further study the influence mechanism of farmers’ inclusive financial fragility:micro-credit increases farmers’ income,eases liquidity constraints,further reduces the imbalance of income distribution among farmers and slow farmers’ vulnerability.On one hand,micro-insurance increase farmers’ income with borrowing and lending association.On the other hand,micro-insurance directly ensure farmers’ income smoothly and stably.On this basis,poverty alleviation micro-finance contributes to the slow release of farmers’vulnerability.Also,the analysis results are further proved through the stability test.In order to investigate the practical effect of inclusive financial intervention comprehensively,this study introduces the resilience concept through the vicious Circle of Poverty Theory and Sustainable Livelihoods Capital Theory.Besides,this paper establishes farmers’ resilience analysis framework through the sample farmers’ data in 2015 and 2016,uses principal component analysis and observes the changes inclusive financial intervention and sample farmers’ resilience.Finally,it is obvious that inclusive financial intervention has some effects on farmers’ resilience enhancement and consummates the demonstration of farmers’ vulnerability.Finally,based on the inclusive financial needs of poverty alleviation micro-finance practice in Jiangsu province and N village as an example,problems are found in the development of inclusive finance.In addition,this paper also explores the optimization path of rural inclusive financial anti-poverty vulnerability in China.Based on the above conclusions,the policy implication of this research is very clear:Inclusive Finance can release the vulnerability of farmers,is to enhance the ability of farmers out of poverty and reduce poverty effective way possible.