Empirical Study On Micro-Finance Practices Made By The Chinese Agricultural Sector Through World Bank Loan Projects

In recently years, by borrowing relevant experiences from home and abroad, some World Bank Agriculture Loan Projects have made pilot efforts in the micro-finance operation models while providing financial support of policy considerations to the agricultural sector in China. These pilot efforts have proved to be very effective.Although it is more than ten years since the initiation of developing micro-finance practices via World Bank Loan Projects in the agricultural sector, there is no systematic summarization available in this field. The author of this thesis hopes to fill in this gap through the research. Through the pectination of the practices, core mechanisms, development experiences and existing problems, the assumptions for the development of future micro-finance projects will be put forward in order to contribute somewhat to the design, implementation of the future loan projects financed by international financial organizations and to the micro-finance development in China.This thesis consists of the following fives parts:the emergence of micro-finance and its development in China; the status of micro-finance practices in World Bank Loan Agriculture Projects; core mechanisms of micro-finance practices in World Bank Loan Projects; contributions and problems of micro-finance practices in World Bank Loan Projects; assumptions for developing micro-finance through loan projects financed by international financial institutions.Based on full and accurate materials and information, the thesis will make an empirical study and a profound analysis on the micro-finance practices and operations in World Bank Agriculture Loan Projects and summarize their successful experiences so as to provide guidance to the design and implementation of future projects.Hence, the author comes to the following conclusions:In the future projects, the government's involvement can be gradually reduced and the new modes with non-governmental organizations as main lending bodies can be explored; more flexible interest rate policies can be proactively probed and differentiated interest rate can be promoted; the risk control mechanism and surveillance framework of micro-finance can be established and relevant laws and regulations can be perfected.World Bank Loan Projects shall continue to play a pioneering role in institutional innovations, promote the rural micro-finance development and bring into play its functions of poverty alleviation and serving the farmers. At the same time, within China's policy and financial climate, bold explorations and innovations shall be made constantly in order to work out demonstration modes that can be duplicated by other rural micro-finance projects and the experiences and lessons accumulated can guide the design and implementation of future projects.