Research On Poverty Reduction Path Of Inclusive Finance

In recent years,my country has attached great importance to poverty alleviation of the poor.Through the unremitting efforts of 1.4 billion people across the country,in2020,all 9,889 rural poor people in my country will be out of absolute poverty under the current standards.However,poverty has multi-dimensional characteristics.Insufficiency in education,medical care,employment,and social relations will all become the causes of poverty.Especially in recent years,the phenomenon of poor households returning to poverty and intergenerational transmission of poverty in rural areas in my country has frequently occurred,which has highlighted the importance of studying poverty from multiple dimensions such as education,medical care,employment,and social relations.In the process of poverty reduction,my country has always used finance as an important means of poverty alleviation.However,farmers in poverty-stricken areas lack credit records and mortgage collaterals,resulting in them being excluded from the financial system,and it is difficult to use financial resources to achieve poverty alleviation;moreover,the traditional financial poverty reduction model still lacks certain "blood-making" capabilities.The emergence of inclusive finance helps solve the problem of financial exclusion.Inclusive finance takes the poor as one of its key service targets,and promotes multi-dimensional poverty alleviation through its human capital effect,material capital effect,and social capital effect.It is a powerful weapon to solve the poverty problem.On the path of poverty reduction,inclusive finance promotes multi-dimensional poverty alleviation from three aspects: human capital,material capital,and social capital.First,the human capital effect of inclusive finance can help alleviate the education and medical poverty of the poor.In terms of education poverty,inclusive finance relieves education poverty by providing low-interest or interest-free loans to the poor and increasing the incomes of the poor;in terms of medical poverty,inclusive finance provides medical credit and expanding insurance coverage.To alleviate the cost of medical poverty.This article analyzes the education credit provided by Grameen Bank in Bangladesh,the industry-driven income increase in Yanchi County,Ningxia,the "Medical Consumer Loan" in Kaiyang County,Guizhou,and the "Medical Insurance Reinsurance Project" in Taihe County,Anhui as examples.Second,the material capital effect of inclusive finance helps poor groups increase their incomes and promote employment and entrepreneurship.In terms of increasing income,inclusive finance promotes the income of poor groups by supporting the development of agriculture-related economic organizations;in terms of promoting employment and entrepreneurship,inclusive finance promotes entrepreneurship and employment of poor groups by providing entrepreneurs with credit support and other channels.This article analyzes the poverty alleviation model of “Pandan” in Xia County of Shanxi Province and the poverty alleviation model of inclusive finance in Lushi County of Sanmenxia,Henan Province as examples.Finally,the social capital effect of inclusive finance helps the poor to expand their social network and strengthen their standard and credit awareness.In terms of expanding the social network,inclusive finance expands the social network of poor groups through both horizontal and vertical dimensions;in terms of enhancing norms and credit awareness,inclusive finance uses credit and loan lines to link up,and cultivates credit-worthy behaviors of the poor.Examples such as "Community Investment and Sharing Fund" and the establishment of a credit system in Lushi County have all proved the social capital effect of inclusive finance.In reality,due to the poor willingness of the poor to use financial means,the low enthusiasm of commercial banks to participate in inclusive financial poverty reduction,and the existence of elite capture in the process of inclusive financial poverty reduction,the role of inclusive finance in promoting poverty alleviation has failed.Effectively be played.To this end,it is recommended that measures such as enhancing the willingness of the poor to use financial means,increasing the enthusiasm of commercial banks to participate in inclusive financial poverty reduction,and overcoming the predicament of elite capture in inclusive financial poverty reduction,promote the function of inclusive finance for poverty reduction.