A Study On Microfinance And Analysis In Model

Since 1970's, some developing countries and reforming countries under the help of international organizations, like United Nations office for development plan, and some developed countries had successfully applied a kind of new finance system and tool called microdinance. The way for it to operate is as follows, helping the poor and those out of job that could not get traditional finance serve because of their unfavorable social or economical status to obtain a small sum of capital to do pioneering work and realize self-employment. The direct purpose of developing microfinance is to enlarge social enployment and decelerate serious pressure from unemployment. The long-term purpose is to contribute to market economy maturity, to realize long-term effective economical increase and push social development completely.Based on the reality and important meaning of microfinance, the thesis first gives a general introduction of microfinance, and then points out the problems it has, finally does some economic analysis of it. The first step is to explain what microfinance is, including the definition and characteristic, development and reality, general principle. And then introduce international experience of developing countries and developed countries. The next chapter is the practical experience and shortcomings of our country, including low coverage, poor sustainable development capabilities, and inadequate funds. Through the analysis of Credit rationing model the thesis gives explanation of microfinance and give some suggestion of policy recommendations.To come to the end of the paper, microfinance is a very important way to promote the development of social productive forces and we must pay more attention on it.