A Study On The Long-term Mechanism Of China’s Rural Financial Funds To Reduce Poverty

Under the strong leadership of the Communist Party of China and the joint efforts of the Chinese people,by 2020,all 832 national poverty-stricken counties in China have been lifted out of poverty,all the rural poor have been lifted out of poverty under the current standards,all 128000 poverty-stricken villages have been listed,the overall regional poverty has been solved,the arduous task of eliminating absolute poverty has been completed,and remarkable historical achievements have been made.In order to further consolidate and expand the achievements of poverty alleviation,the Party Central Committee has decided to strengthen monitoring of people who are prone to return to poverty,so as to achieve early detection,early intervention and early assistance.Industries in poverty-stricken areas should be cultivated and supported for a long time to promote endogenous sustainable development.Follow up support should be given to the people who have moved to other places to help the poor.A five-year transition period will be set up for counties that get rid of poverty from the day they get rid of poverty.During the transition period,the overall stability of the main assistance policies will be maintained.The central government has put forward the "four no takers" : "no takers of responsibility,no takers of policies,no takers of assistance,no takers of supervision".Rural financial funds are used as various expenditures in the national financial budget for rural areas,including agricultural production,capital construction,comprehensive development,poverty reduction and so on.All expenditures of rural financial funds play a positive role in poverty reduction.At the same time,special funds for poverty reduction are arranged in the rural financial funds budgets at all levels,especially the special poverty alleviation funds of the central government.In the poverty reduction practice led by the government in China,the special poverty alleviation fund of the central government is an important financial guarantee and main carrier for the government to lead the poverty reduction practice and perform the poverty reduction function,and plays an extremely important leading role.From2012 to 2020,China’s central government has invested 689.6 billion yuan in special poverty alleviation funds over the ten years.After the poverty alleviation goals and tasks were fully completed as scheduled,the original special poverty alleviation fund of the central government was renamed as the central government’s subsidy fund for Promoting Rural Revitalization [notice on printing and distributing the administrative measures for the central government’s subsidy fund for Promoting Rural Revitalization(CAI Nong [2021] No.19)],continued to assume the responsibility and mission of the special poverty alleviation fund of the central government,and focused on supporting the consolidation and expansion of the effective connection between poverty alleviation achievements and Rural Revitalization.The investment scale,investment structure,management level and use efficiency of bridging funds will have a direct bearing on firmly holding the bottom line of not returning to poverty on a large scale,consolidating and expanding the effective connection between poverty alleviation achievements and rural revitalization,and establishing a long-term mechanism to solve relative poverty.In2021,the state will allocate a bridging fund of 156.1 billion yuan,accurately implement assistance measures,increase support for industrial poverty alleviation and employment poverty alleviation,and strive to solve the outstanding problem of "two worries and Three Guarantees".In 2022,the bridging funds will be allocated165 billion yuan in accordance with the principle of only increasing but not decreasing,and will be tilted to areas where the task of consolidating and expanding the achievements of poverty alleviation is heavy and the foundation for promoting rural revitalization is weak.The battle against poverty has been won,but poverty alleviation is not out of date.The state requires that we pay close attention to the households that are unstable in getting rid of poverty,the marginal households that are prone to poverty,and the households that have serious difficulties in their basic livelihood due to large rigid expenditures or substantial reduction in income due to diseases,disasters and accidents,and improve the dynamic monitoring and assistance mechanism for preventing poverty.The "fourteenth five year plan" and the outline of long-term goals for 2035,the opinions of the CPC Central Committee and the State Council on realizing the effective connection between consolidating and expanding the achievements of poverty alleviation and rural revitalization,as well as the "fourteenth five year plan" of the State Council to promote agricultural and rural modernization and other documents and policies,all contain statements such as assistance and poverty alleviation project funds.The problem of relative poverty that we have to face and solve for a long time after the transition period is still an extension of poverty alleviation.Poverty reduction is a long-term process,and the investment and utilization of poverty reduction funds need to build a long-term mechanism.China’s poverty reduction practice shows that,whether it is the central government’s special poverty alleviation fund in the poverty alleviation stage,the bridging fund in the five-year transition period,or other special financial funds used to reduce poverty in the future to solve the problems of target identification,accurate fund investment,scientific fund management and poverty reduction performance evaluation,so as to build a long-term mechanism for poverty reduction.This paper takes "the long-term mechanism of China’s rural financial funds to reduce poverty" as the main content of the study,takes the special funds used for poverty reduction in rural financial funds as the research object,and takes the analysis of poverty reduction efficiency as the starting point.Because it has only been put into use for more than one year,the time is too short for the research on the poverty reduction performance of the bridging funds.Therefore,this paper takes the special fund for poverty alleviation in the rural financial funds in the poverty alleviation stage,that is,the special poverty alleviation fund of the central government,as the research object,analyzes in detail the poverty reduction efficiency-management efficiency and allocation efficiency of the special poverty alleviation fund of the central government,and discusses in depth the targeting,investment direction The management and assessment mechanism will further provide a solid theoretical foundation for China to strengthen the supervision and performance evaluation of bridging fund management,build a long-term mechanism for poverty reduction,consolidate and expand the achievements of poverty alleviation in the transitional period,do a good job in strategic practice effectively linked with rural revitalization,alleviate and eliminate relative poverty,and realize agricultural and rural modernization.The main contents of this paper are as follows:Chapter 1,introduction.This paper introduces the research background,significance,content,logic and methods of this paper;This paper summarizes the existing literature from the aspects of the causes of poverty,anti-poverty policies,rural financial funds / rural financial poverty alleviation funds / efficiency of bridging funds and poverty reduction funds,and the new development stage,affirms the effectiveness of the existing research,and points out the shortcomings of the existing research: first,there are great differences in conclusions;Second,there is insufficient research on the efficiency of rural financial poverty alleviation funds;Thirdly,it ignores the relationship between the management efficiency and allocation efficiency of poverty reduction funds.Fourthly,there are few relevant studies based on bridging funds.Chapter 2 combs the relevant theories of poverty and anti-poverty,financial poverty alleviation and poverty reduction fund efficiency.This paper reviews and combs the domestic and foreign poverty and anti-poverty theories,the financial fund poverty reduction theory and the poverty reduction fund efficiency theory,in order to lay a theoretical foundation for the further research of this paper.Chapter 3 analyzes the composition and evolution of rural financial poverty reduction funds.Combing the sources and composition of rural financial poverty alleviation funds,describing their evolution characteristics,and describing the establishment,use and distribution of bridging funds,provide policy and practical background for further research in this paper.Chapter 4 explains the logic of building a long-term mechanism for rural financial funds to reduce poverty in the new development stage.These analyses are based on the negative "spillover" effect of poverty and the internal mechanism of financial funds to reduce poverty,the historical logic of summarizing and drawing lessons from the experience of poverty reduction of China’s financial funds,the practical logic of the analysis of the efficiency of poverty reduction of rural financial funds and the value logic of realizing the common prosperity.Besides,based on the data of key poverty-stricken counties in China from 2002 to 2010,this paper makes a descriptive analysis on the economic output effect,residents’ diversified life improvement effect,income,expenditure and poverty alleviation effect of the financial poverty alleviation funds;Based on the source data of national financial rural poverty alleviation funds from 1981 to 2019,taking various poverty alleviation fund inputs as input variables,poverty gap index and poverty incidence index as output variables,the use efficiency of rural financial poverty alleviation funds is analyzed by using mind W model.The results show that: first,the rural financial poverty alleviation fund has played a role in reducing poverty;Second,in general,the efficiency of rural financial poverty alleviation funds needs to be improved,especially the efficiency of provincial financial poverty alleviation funds is not high.Therefore,there is still much room to improve the efficiency of rural financial poverty alleviation funds.Chapter 5,the basic framework of the long-term mechanism of China’s rural financial funds to reduce poverty in the new development stage.This paper expounds the prerequisites for the construction of a long-term mechanism for poverty reduction from three perspectives: consolidating and expanding the achievements of poverty alleviation and rural revitalization,alleviating and eliminating relative poverty,and agricultural and rural modernization.It has established five principles for building a long-term mechanism for reducing poverty with rural financial funds: adhering to the party’s overall leadership,focusing on the people,adhering to common prosperity,adhering to the bottom line,and adhering to special fund support.From the perspective of system theory,this paper analyzes the conditions for the realization of the long-term effect of financial funds on poverty reduction.Using the system analysis method,this paper puts forward the target identification,accurate investment in poverty reduction funds,scientific management of poverty reduction funds,effective assessment of poverty reduction performance and the synergy of the four subsystems,and puts forward the specific composition of the long-term mechanism for poverty reduction of financial funds based on system theory.Chapter 6,the target identification mechanism of China’s rural financial funds for poverty reduction in the new development stage.First of all,it analyzes the main problems existing in the current identification of rural assistance objects: the technical dilemma,the dilemma based on the action decision-making of poverty relief subjects at the county and township levels,the dilemma based on the action decision-making of village cadres and rural elites,and the dilemma caused by the problems of modern rural governance;Secondly,two game models are used to explain the dilemma of helping object identification theoretically from the two aspects of grass-roots government performance and rural elite capture;Finally,build mechanisms or methods including targeted identification based on "big data",dynamic targeted identification,improvement of farmers’ self-organization ability,combination of qualitative and quantitative methods,normalization of legal education and moral education,etc.Chapter 7,the precise investment mechanism of China’s rural financial funds for poverty reduction in the new development stage.First of all,it explains the operation mechanism of the financial poverty alleviation funds,which lays a theoretical foundation for the construction of the operation mechanism of the precise investment of poverty alleviation funds;Secondly,it analyzes the difficulties faced by the precise financial investment from the aspects of the homogeneity of poverty alleviation industrial planning and layout,the insufficient investment in education and infrastructure poverty alleviation,and the slow progress in the equalization of public services;Thirdly,we will build a precise investment poverty reduction funds mechanism relating to six aspects: industrial layout,education and training,infrastructure construction,public services,pairing and village residence,and local resettlement.Chapter 8,the scientific management mechanism of China’s rural financial funds for poverty reduction in the new development stage.First of all,it describes the three characteristics of the operation management system of rural financial funds in the practice of poverty reduction: bureaucratic management,principal-agent relationship management and multi head management,and points out its inherent difficulties: the total investment of poverty reduction funds is insufficient,fragmented,each doing his own thing,the government comes from many sectors,the supervision is missing,the investment system is distorted,and the investment direction of funds is misplaced;Secondly,the "multi task" principal-agent model and prisoner’s dilemma game model are constructed to theoretically analyze the behavior strategies between the central government and the grass-roots government,and the behavior strategies between the relevant poverty reduction functional departments of the government,and to analyze the reasons for the loss of the efficiency of financial funds to reduce poverty.Finally,the paper proposes to build a scientific management mechanism for the operation of rural financial funds to reduce poverty from four aspects: diversified fund-raising,negative list management of the scope of use,scientific project management,inter departmental coordination and overall planning.Chapter 9,the effective evaluation mechanism of poverty reduction performance of China’s rural financial funds in the new development stage.Firstly,it analyzes the practical dilemma of the construction of an effective performance appraisal mechanism for poverty reduction funds;Secondly,an effective assessment mechanism should be established from four aspects: the assessment of poverty reduction effectiveness,the assessment of poverty reduction fund investment and use,the assessment of poverty reduction fund management,and the assessment of poverty reduction fund work;Finally,under the guidance of the goal orientation,pertinence and comparability principles of poverty reduction and elimination,this paper puts forward the specific indicators for the assessment of the above four aspects: poverty reduction effectiveness,satisfaction of helping objects,source structure,scope of investment,mode of use,etc;Finally,it points out the application fields of the performance appraisal results of poverty reduction funds: the distribution of poverty reduction funds,the withdrawal of assistance objects,the management of local government cadres,and so on.Chapter 10,conclusion and prospect.The main points and possible innovations of this paper are summarized,and the future research directions are prospected.This paper puts forward that the marginal per capita income effect,marginal living consumption effect,marginal durable goods consumption effect and marginal housing demand effect of rural financial poverty alleviation funds on rural residents have shown a downward trend in recent years.The comprehensive technical efficiency of China’s rural financial poverty alleviation funds is relatively low,and the rural financial poverty alleviation funds are underutilized.The fundamental reason why the rural financial poverty alleviation funds fail to achieve comprehensive effectiveness lies in the low scale efficiency.Therefore,the focus of its reform is to continue to increase the investment of financial poverty alleviation funds on the basis of maintaining a high fund management efficiency,give play to the scale effect,and build and improve the efficiency improvement and long-term mechanism of rural financial poverty alleviation funds: the targeted identification mechanism of poverty alleviation targets,the precise investment mechanism of financial funds Scientific management mechanism of financial funds and effective assessment mechanism.The outlook of the article emphasizes that the research will be further strengthened in the quantification of the optimal scale of the financial poverty alleviation funds and the differentiation of the efficiency of the financial poverty alleviation funds,the research will be carried out on the adjustment and revision of the long-term poverty reduction mechanism of the bridging funds in the transition period,and the extension research will be carried out on the long-term poverty reduction mechanism of the financial funds to eliminate relative poverty.