The Research On The Micro-credit In China

Micro-credit have had great success and been a good manner to poverty reduction in the developing country since it came into being in 60s, 20th century. It is different from the traditional manner of poverty reduction which only relying on the state finance and the donative capital. As a new manner of poverty reduction, it is a standardized mechanism somewhere. Why do such a new system give much help in poverty reduction in the developing countries?This paper give us some new advice on Micro-credit of our country by discussing the development processes of Micro-credit worldwide and the practice of our country :1,Our institution of Micro-credit should find enough public capital to make it better than the traditional institution that only relying on the state finance or donative capital, In one word, there is about 950 billion $ underground in our country. We should manage to attract so these capital to attend in poverty reduction, in another word,much capital that deposit in the post saving institution and the rural credit institution have outflow away the rural region because of lacking of investing channels. 2,We also should look for more and more manners to build the micro-credit institutions. there are many manners to build micro-credit institution such as upgrade manner,degrade manner,green field manner and so on. In China, the latter two manners may play an important role.3,In China, the institution should provide correlative service for the poor besides the credit service to avoid backing out to poverty, and eliminate poverty ultimately.