Research On The Impact Of Poverty Alleviation Microfinance On Farmers’ Livelihood Ability

In 2020,China will achieve its first centenary goal as scheduled.According to the current standards,all rural poor people have been lifted out of poverty,all poor villages have been listed,and all poor counties have been removed.Although all poverty-stricken counties have been lifted under the current standards,most of the poverty-stricken counties belong to the old,young,border,and poor areas with harsh natural conditions and weak economic foundations,which have a greater risk of returning to poverty.To this end,China actively promotes poverty alleviation micro-credit policies to help farmers solve problems such as financing difficulties and high financing costs,and at the same time improve farmers’ production,living and community conditions to reduce the vulnerability of family livelihoods.Napo County in Guangxi is located in the typical old,young,marginal and poor rocky desertified mountainous areas,and has a strong representation.Therefore,this paper takes Napo County,Guangxi as an example,to study the impact of poverty alleviation microcredit on farmers’ livelihood ability,which has important practical significance for consolidating the achievements of poverty alleviation and helping farmers to achieve poverty alleviation and prosperity.Through literature review,this paper refers to the definition and evaluation index of livelihood ability generally recognized by the academic community,and defines livelihood ability as a series of assets or abilities that farmers rely on to survive and improve their lives,using human capital,natural capital,physical capital,and social capital,and financial capital.Based on the sustainable livelihood framework,this paper designs a questionnaire and conducts field investigations in Napo County,Guangxi.Taking 215 samples obtained from the survey as the research object,the propensity score matching method(PSM)is used to empirically analyze the effect of poverty alleviation microfinance on the livelihood ability of poverty-stricken farmers.Influence.The main contributions of this paper are: using PSM to clarify the net impact of poverty alleviation microfinance on the livelihood ability of farmers,effectively solving the endogenous problem of sample selection bias in previous studies;Suggestions on giving full play to the utility of microfinance for poverty alleviation and improving the livelihood ability of farmers.Through the research,this paper draws the following conclusions:(1)Through the analysis of hierarchy process and entropy method,it is found that the livelihood capital value of each farmer is relatively low before and after participating in the loan,indicating that the household livelihood ability of the surveyed households is relatively fragile,the reasons for their fragile livelihoods lie in the lack of income sources,lack of livelihood skills,and poverty due to illness.(2)The livelihood ability of farmers participating in poverty alleviation microfinance has been significantly improved,which is embodied in the obvious growth of natural capital,physical capital,social capital and financial capital.(3)According to the PSM measurement,the ATT effect of poverty alleviation microfinance on farmers’ natural capital in 2021 is0.0132,which is 3.67% higher than that of farmers who did not participate in poverty alleviation microcredit;the ATT effect of financial capital is 0.0120,which is similar to Compared with the capital value of farmers who did not participate in poverty alleviation microfinance,the capital value increased by 3.36%.Based on the above conclusions,this paper believes that the poverty alleviation micro-credit can help enhance the livelihood ability of farmers.Based on the above research conclusions,relevant suggestions are put forward:(1)Improve the rural financial service system and enhance the availability of financial capital for farmers.The specific measures are to increase the issuance of micro-credit for poverty alleviation,establish a risk compensation mechanism,strengthen loan inspection and supervision,and increase financial support for industrial development.(2)Improve the utilization efficiency of livelihood capital and enhance livelihood capacity.The specific measures are: promoting the improvement of human capital through compulsory education and vocational education,increasing the input of means of production to improve the utilization efficiency of natural capital,increasing the input of living means to improve the stock of physical capital,actively cultivating the level of social capital,and promoting financial Integration of capital and industry.(3)Improve the social security system and solve basic livelihood problems.The specific measures are: improving the basic medical system,increasing the insurance coverage rate of "anti-poverty insurance",investigating hidden dangers of water use,and strengthening the construction of village-level infrastructure.