ORIGINAL ARTICLE
Research on Financial Precision and Poverty Alleviation in Frontier
Ethnic Areas
Jicheng Liu*, Cuibai Yang
Institute of International Law and Comparative Law, Sichuan University, Chengdu 610065, Sichuan, China. E-mail: [email protected]
Abstract: Given multiple superimposed causes of poverty, the frontier ethnic regions have a larger number of poor people. Poverty levels of these regions are serious and poverty alleviation work is also difficult, which is a major difficulty of China's precise poverty alleviation. Targeted financial poverty alleviation is related to poverty alleviation and the rural financial system improvement under the circumstances that the effect of the traditional industry's poverty alleviation is slow, and ex situ poverty alleviation and relocation are not applicable. This article expounds suggestions on improving financial precision poverty alleviation in terms of improving the financial service system, innovating financial products, enhancing the awareness of integrity, strengthening the information construction of poverty alleviation, and promoting linkage mechanisms.
Keywords:Frontier Ethnic Regions; Financial Precision Poverty Alleviation; Poverty Alleviation
In the frontier ethnic areas, the economic and social development is relatively lagging, natural conditions are poor, the industrial development foundation is weak, and the ethnic cultures are quite different. Multiple causes of poverty lead to the slow population income growth in the frontier ethnic areas, and multidimensional matters in terms of housing, education, and health. Poverty and targeted poverty alleviation has entered a difficult period. In recent years, the issue of targeted financial poverty alleviation in frontier ethnic regions has become a focus of social attention. However, subject to the actual situation, financial services in border regions are at a low-level and single basic stage. Under the historical opportunity of poverty alleviation in China and the comprehensive construction of a well-off society, this article is to explain the significance of financial precision poverty alleviation in poverty alleviation, analyze how to advance the precision of financial poverty alleviation and to implement financial precision poverty alleviation in accordance with the actual conditions of frontier ethnic regions, and discuss measures to promot the fight against poverty.
1. Concept of financial precision poverty alleviation
Financial poverty alleviation refers to a form of economic assistance in which financial institutions support the poor through the provision of small loans and financial wealth management products. To make great differences between different poverty-stricken areas and poor people, financial poverty alleviation must be done and focused. After the strategic idea of “precision poverty alleviation” was put forward in 2013, it also put forward “precise” positioning requirements for financial poverty alleviation. Financial precision poverty alleviation refers to the special financial needs of the poverty alleviation targets established by the file and relevant financial institutions to Copyright © 2019 Jicheng Liuet al.
doi: 10.18686/fm.v4i2.1605
This is an open-access article distributed under the terms of the Creative Commons Attribution Non-Commercial License
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provide them with personalized financial service products and precise financial support, so that the financial needs of the poverty alleviation target groups can be effectively met and their incomes can be promoted on improved levels and poverty alleviation successfully achieved. With the rapid development of the market economy, the status and role of financial precision poverty alleviation in the battle against poverty in frontier ethnic regions has become increasingly prominent.
2. Current situation of precision poverty alleviation in frontier ethnic areas
2.1 Status of poverty alleviation in frontier ethnic regions
First, the poverty reduction effect of traditional industries is not very effective. Most of the border areas have poor geographical conditions, poor natural conditions, fragile ecological environment, inadequate agricultural development conditions, restricted development of the secondary and tertiary industries, weak industrial development foundations, and poor poverty alleviation policies of traditional industries.
Second, the development potential of featured industries has not been effectively released. After "Belt and Road" initiative being put forward, the frontier ethnic regions become the frontiers of foreign trade. These regions usher in the historical opportunity of opening up to the outside world, featuring resources of border tourism. However, affected by factors such as geo-economic politics, backward transportation infrastructure, and policy differences between countries, tourism and border trade in ethnic minority areas have insufficient incentives for poverty alleviation, and their poverty alleviation effects are limited.
Third, the issue of "two care-free and three guarantees" is outstanding. The level of public service security in frontier ethnic regions is low. Public services in some areas with poor natural conditions are difficult to cover, and basic conditions such as housing, education and health are difficult to guarantee. The outstanding problem of "two care-free and three guarantees".
Fourth, relocation is restricted. Affected by the natural environment and location factors, the production and living conditions in the frontier ethnic areas are poor. However, the frontier areas shoulder the important responsibility of keeping the soil and borders.
2.2 The necessity of precise financial poverty alleviation in frontier ethnic areas
First, it helps to improve China's financial system. The rapid development of a market-oriented economy has shaped China's new financial system. The proposal of financial precision poverty alleviation constitutes part of the financial system, helps to improve our financial system, and injects new vitality into the economic and social development of border areas.
Second, regarding the effectiveness of poverty alleviation, poverty alleviation in frontier ethnic areas is a weakness. Financial targeted poverty alleviation is related to the poverty alleviation development system and effectiveness in frontier ethnic areas, and it has great and far-reaching significance for the positive development of comprehensive poverty alleviation in China.
Third, the effect of traditional poverty reduction policies is not obvious. With the strong support of the national targeted poverty alleviation policy, poverty alleviation in the frontier ethnic regions has achieved some results, but due to natural and social factors, the traditional targeted poverty alleviation measures have not achieved significant results. Breakthroughs are needed in the form of poverty alleviation assistance.
3. Problems in precision financial poverty alleviation in frontier ethnic
areas
Financial precision poverty alleviation has had a positive effect on the poverty alleviation in frontier ethnic regions, but some problems have also been highlighted during the implementation process, mainly in the following
areas.
3.1 Financial services coverage is too narrow
The financial institutions in frontier ethnic regions are relatively simple. Generally, they are mainly rural credit cooperatives. The financial poverty alleviation force is insufficient. The development of financial infrastructure services is relatively backward. Financial services such as asset evaluation and guarantees are lacking. Insufficient availability of financial services. Restricted by the level of regional economic development, the expansion of financial institutions aimed at profitability and difficulties in business development have affected the level of financial poverty alleviation services in border areas.
3.2 The financial product is single and the design does not conform to reality
At present, the design of financial products in frontier ethnic regions is not realistic and relatively simple. Moreover, the needs of the aided objects are various, such as the diversified and increasing amount of funding needs and the need for an extended capital use cycle. With the adjustment of the agricultural economic structure, the agricultural production cycle requires a longer capital cycle, which restricting the function of financial precision poverty alleviation in frontier ethnic regions.
3.3 Backward financial consciousness and financial consumption skills
Affected by various factors such as region, culture, nationality, language, etc., financial advocacy and education services in the frontier ethnic regions are struggling. Most people lack basic financial knowledge. It is common to trust only passbooks and credit cards, and only to accept counter services but not transfer payments. Backward financial thinking.
3.4 The credit risk of financial poverty alleviation funds is high
Inadequate repayment ability and lack of integrity of lenders in frontier ethnic regions lead to greater credit risk for financial poverty alleviation loans. On one hand, the regional environment, market supply and demand, and the fragility of agricultural production have greatly affected the ability of lenders to repay. On the other hand, the lack of financial knowledge and financial integrity education in frontier ethnic regions affects the consciousness of lenders' repayment.
3.5 Information sharing channels for financial precision poverty alleviation need to be further
unblocked
Financial precision poverty alleviation is to effectively meet the special financial needs of the poverty alleviation targets issued by the file. Therefore, the precise implementation of financial precision poverty alleviation policies depends on the accuracy of information on poverty alleviation targets. However, precision poverty alleviation in the frontier ethnic regions are currently limited by environmental, location, and transportation factors. In most regions, the basic information of targeted poverty alleviation targets is asymmetric, and information sharing channels are not smooth, which affects the effective use of financial targeted funds.
3.6 A Multi-level and diversified rural financial poverty alleviation service system has not
yet been established
The financial markets in the frontier ethnic regions are mainly rural credit cooperatives' agricultural loans, and the capital market has observed slow development. Although China has invested heavily in policy funds in the frontier ethnic regions in recent years, yet the use of special fiscal poverty alleviation funds has been inefficient, credit, capital And the linkage mechanism of agricultural insurance is lacking.
4. Suggestions on financial poverty alleviation in frontier ethnic areas
4.1 Increasing financial policy and strengthening financial poverty alleviation
The government plays a role in leadership and guidance. On the one hand, the government has increased investment in capital and credit resources in border ethnic areas, improved supporting policies such as finance, currency, taxation, and supporting policies in the form of loan risk compensation funds, while attracting social funds and improving the efficiency of financial poverty alleviation support. On the other hand, improving the coverage of financial institutions and giving play to the main role of financial institutions such as rural credit cooperatives, village and township banks in carrying out financial services in frontier ethnic regions can expand the scope of financial services through mobile business outlets and other forms.
4.2 Innovating financial products to meet multi-level financial needs
To promote the financial poverty alleviation work in frontier ethnic regions, financial institutions should increase the supply and innovation of financial products, optimize the financial product design system, and based on the actual situation of poverty alleviation targets, develop measures to adapt to local conditions and different people, and develop more suitable financial products for the poor. For example, according to the current status of regional economic development and the industry characteristics of various industries such as agriculture, forestry, animal husbandry, and fishing, specific and targeted design of financial product quotas, interest rates, repayment terms, and repayment methods, etc., to meet different levels of groups. The demand for funds and the use of loans have helped poverty alleviation.
4.3 Promote the awareness of integrity and actively cultivate the concept of financial
consumption
The honesty awareness of the aided people is related to the sustainability of financial poverty alleviation work. Efforts should be made to cultivate the people in border areas and establish a sense of integrity. On one hand, poor people can realize the importance of credit culture and foster a credit environment through extensive publicity and typical guidance. On the other hand, strengthen financial supervision, strictly correct and punish dishonesty, and continuously improve the level of financial services in frontier ethnic regions.
4.4 Promote information sharing and strengthen the information of financial precision
poverty alleviation
Accelerate the synchronization of financial information in border areas and national financial information, and build a unified financial precision poverty alleviation big data sharing platform to achieve poverty alleviation information sharing and poverty alleviation efficiency supervision, to ensure the precise use and efficient docking of financial precision poverty alleviation funds, to ensure the repayment of credit funds and credit risks of the aided objects, and to enable financial precision poverty alleviation to be carried out in an orderly and efficient manner in border ethnic regions.
4.5 Improve the financial service system and expand the coverage of financial services
Improve the financial service system with complete functions, wide coverage, and various forms. In addition to policy funds and banking finance, other commercial banks, policy banks, Insurance institutions, guarantee institutions, etc., promote the standardized and legal operation of small loan companies and other institutions, and establish a closely coordinated financial service system. According to the characteristics of regional industrial development, various financial institutions have identified entry points for financial support and increased their support for pillar industries and key enterprises.
4.6 Improve risk sharing mechanism and promote financial precision poverty alleviation
linkage mechanism
Accelerate the development of innovative models of financial poverty alleviation and system innovation in border ethnic areas, improve the linkage mechanism of financial capital, credit markets, and agricultural insurance in border
ethnic areas, improve the market-based risk sharing mechanism, and effectively promote poverty alleviation. On one hand, the reasonable transfer and sharing of poverty alleviation loan risks due to the particularity of agricultural production can establish an agricultural insurance system and increase the subsidy ratio and scope of policy-based agricultural insurance, reduce insurance premium rates, expand agricultural insurance coverage, innovate commercial insurance reinsurance support, and effectively reduce agricultural loan risks. On the other hand, encouraging the participation of social capital and supporting high-quality enterprises in frontier ethnic regions can expand their production scale and supporting to be listed for financing. Cooperatives + farmers, Internet + farmers, companies + farmers and so on can be used to shape new models of financial assistance and realize the border. The poverty-stricken groups in ethnic areas are effectively lifted out of poverty.
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