Reference Of International Microcredit And Research Of The Development Of Chinese Non-profit Microcredit

In the1970s, the economist Muhammad Yunus created the Grameen Bank, starting the microcredit services for the poor. As a new method for poverty alleviation, microcredit has been growing vigorously in the world, especially in developing countries. In the1990s, microcredit was introduced into China as an internationally recognized tool for poverty alleviation. With the unremitting efforts in the past20years, microcredit has made a big contribution to reducing poverty in rural China, becoming an effective supplement for rural finance. The world’s experience in development of microcredit shows that in order to achieve long-term goals for poverty alleviation, the non-profit microcredit institutions must always keep in mind their purpose of providing credit opportunity for poor people in order to reduce poverty. Meanwhile the institutions must ensure their own sustainable development. However, the most non-profit microcredit institutions in China still depend on donation and could not achieve self-financing purpose. Due to the unstable funding and the low-level management, the development of non-profit microcredit institutions in China is sluggish. Therefore, both the academics and the non-profit microcredit institutions are focusing on the ways of sustainable development and the trends of development in the future.This paper consists of five parts. The first part elaborates the analytical background, the research significance, the research mentality and the main research methods, and then summarizes the research content of related literature at home and abroad. The second part defines the concept of non-profit microcredit, introduces special features, and analyzes the necessity and function of non-profit microcredit institutions as well. After analyzing the practice pattern of several foreign microcredit institutions, the third part summarizes some experiences as the inspiration for the development of current non-profit microcredit in China. The forth part describes the history of non-profit microcredit in China, analyzes the case of CFPA Microfinance, which is the largest non-profit microcredit institution in China, and then indicates the difficulties that all the non-profit microcredit institutions in China are experiencing in this tough period. According to the foreign and domestic experiences, the fifth part provides some suggestions for the development of non-profit microcredit institutions in China in the future.