Research On The Village-level Poverty Reduction And Development Funds Operation Model In Gansu Province

Gansu province has introduced the model of Integrated Village Development as the main approach for poverty reduction after long-term regional development and poverty reduction actions under the institutional arrangement and framework of the LGOP.But because of the harsh natural condition,low economy development the situation of poverty is still very difficult and it is not easy to finish the task of poverty reduction.The gap between fund for poverty reduction supplement and need is very huge and at the same time the efficiency of fund usage is very low.Under this background,the practicor in poverty reduction explored the model of Village-level Reduction and Development Fund as main chose for poverty reduction combining ideas of the traditional approach and micro-credit model.This research focused on Village-level Reduction and Development Fund.Firstly,the paper summarized systemically the function,rules and procedure of management by the review of the history of model development.Secondly,the paper showed the effects and impacts of model of VRDF with typical case studies.Finally,the paper pointed out the innovation of model of VRDF.The main process of VRDF is that we took out some fund from Financial Fund for Poverty Reduction to the village and injected into one farmer organization.The organization members will be elected by the villagers and drew some regulations to manage the fund usage.The fund will be used by the farmers' discussion with the principles of government monitoring,self decision making and managing,cycle-mobilization with payment.This key meaning of the new benefit-transfer mechanism is to promote to transfer the outside government-driven intervention to inner benefit-driven need of the poor households and put the poor household on the position of mail role in process of poverty reduction.The benefit transferring mechanism become to the reality by the VRDF Committee.The model of VRDF is a development trend of poverty reduction policy.It combined the advantages of market mechanism and local politics arrangement,social and economic conditions and operation mechanism.It can match the need of poor household and can improve the efficiency of fund of poverty reduction.It can promote the fund of poverty reduction to arrive to the poor households.VRDF Committee is one kind of Non Government Organization which is very different with the financial organization.It did not exclude the local village party secretary and village committee's participation and had good interaction with them.As a new model of poverty reduction the VRDF also met some institutional difficulties,such as lack of the clear policy position,the blurry function boundary with financial organization and conflicts with the actual regulations about the fund for poverty reduction.And at the same time the new model of VRDF also need to be improved in the practical process.In the paper some recommendations has been point out to solve the upper problems.