Study On The Effect Of Rural Financial Development On Poverty Improvement In Yunnan

Poverty is not only a very complex problem,but also a constraint to the sustainable development of economy.Foreign experience shows that a sound financial system is a powerful weapon to solve the problem of poverty.Since the 80s last century our country started the experimental field of rural financial poverty alleviation,and Yunnan province also began microfinance experiments in the early time,but over the years,financial poverty has not achieved the desired results,and the financial operation process also exposed many problems.How to effectively solve these problems in the work of poverty alleviation,how to make capital allocation more reasonable,how to make the financial system to reduce poverty,all these problems needs to be studied deeply.Based on the theory of financial development and poverty alleviation,this paper briefly introduces the current situation of poverty alleviation in Yunnan province.This paper focuses on the analysis of the characteristic of the rural financial system in Yunnan Province:The coexistence of formal financial system and informal financial system.From the two perspectives of scale and degree of financial development,this paper has analyzed the situation of rural finance in Yunnan.The core part of this paper is to discuss the problems and causes of the rural financial system in Yunnan province.There is a problem of target conversion in the process of granting loans.In the use of funds,there is a problem of the lack of efficiency.And in the process of loan recovery,there are sustainability issues.In this paper,we find the three reasons from three aspects:the provision of service products,the supply of loans,the demand for loans,which are the single financial products,the imperfect risk prevention mechanism and the weak legal consciousness of the main body.To solve these problems,this paper puts forward the corresponding policy recommendations:First is perfect financial system,second from the perspective of product is to innovate financial products,third from the perspective of lenders is to improve the risk mechanism,forth from the perspective of borrowers is to enhance the legal awareness,and last from the perspective of service government is to perfect the social guarantee system and support infrastructure.