The Anti-poverty Effect Of Microfinance In Ethnic Minority Areas

China is a multi-ethnic country,and the development of ethnic minority areas has a vital role in the economic construction of the entire country.However,due to historical conditions,geographical location,etc.,the economic development of ethnic minority areas is seriously lagging behind,and a large number of poor people are gathered.The incidence of poverty is much higher than the national average,and its task of poverty aleviation is extremely arduous.As the most common and effective way of financial poverty aleviation,microfinance can play an effective role in helping poor households to get rid of poverty and increase their vulnerability,but inevitably,traditional microfinance has the target offset and high cost.Under the background of precise poverty alleviation,our government and financial institutions in order to solve the problems of traditional microfinance,will use the precise targeting of poor households,increase government subsidies and reduce credit risk as the starting point,and design microfinance and poverty aleviation policies.A combination of innovative financial poverty aleviation tools with Chinese characteristics-anti-poverty microfinance.It plays a role that is difficult to replace in other credit systems in solving the problem of lack of funds for poor households,promoting the development of advantageous industries in minority areas,and helping the establishment of cardholders to lift poverty and increase income.The paper expounds the concepts and theories related to anti-poverty microfinance,analyzes the impact of microfinance on poverty reduction and vulnerability reduction,and analyzes the mechanism of financial anti-poverty,especially microfinance reduces poverty.By selecting the case of anti-poverty microfinance in Eryuan County of Yunnan Province,the causes of poverty aleviation and poverty situations in Eryuan County were analyzed,and the status quo of anti-poverty microfinance in Eryuan County was analyzed.Using OLS,binary logistic and structural equation model,this paper analyzes the effect of poverty aleviation and the satisfaction of anti-poverty microfinance in Eryuan County,and further proposes ways to promote poor households to reduce poverty and increase income and enhance the effectiveness of anti-poverty microfinance.The main points of this paper are as follows: Firstly,the educational level of the head of household,the number of laborers,the number of farming heads and the amount of loans in Eryuan,have a stable positive relationship with the income of poor households through anti-poverty microfinance.Specifically,individuals with a higher education level are more likely to learn and use anti-poverty microfinance to aleviate poverty,and the effect of increasing production and income will be better;labor and capital are the premise of production,while other conditions remain unchanged,the increase of labor input will lead to the increase of output;dairy industry is the traditional dominant industry in Eryuan County,which can effectively increase income by expanding breeding;the more the loan amount is.Higher,the more funds available to farmers,the higher the income brought by scale effect.Secondly,Eryuan County’s poor households have higher satisfaction with the poverty aleviation effect of anti-poverty microfinance.On the one hand,based on the perspective of poor people,this paper pays attention to the practice of anti-poverty microfinance and the feelings of poor households,makes up for the deficiencies of relevant empirical evidence in Eryuan,and provides more abundant literature for anti-poverty microfinance to reduce poverty;on the other hand,it evaluates the satisfaction of poor households to poverty reduction in Eryuan,and finds out the demand of poverty reduction and poor households.The gap will provide practical guidance for other minority areas to make better use of anti-poverty microfinance.However,due to the fact that anti-poverty microfinance is a financial poverty aleviation measure with distinct Chinese characteristics,Eryuan does not disclose enough information about precise poverty aleviation,and it is difficult to obtain comprehensive data,which may lead to deviation in the research results.