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Analysis on Economic Effects of Anti-poverty Ability Oriented Financial Poverty Alleviation Standard

Author: LuoWen
Tutor: WangShanPing
School: Hunan University
Course: Accounting
Keywords: Anti-poverty ability financial poverty alleviation standard Economic effects
CLC: F812.8
Type: Master's thesis
Year: 2011
Downloads: 25
Quote: 0
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China’s poverty alleviation work has made remarkable achievements in this decade since from the’China Rural Poverty Alleviation and Development Outline (2001-2010)’. The poverty people number has been reduced by58,250,000, at the62%speed, and the poverty incidence is also decreased from10.2%to3.8%and expected to drop below3%at the end of2010. China’s Fiscal poverty alleviation contributes indelibly for the economic development, political stability, national unity and social progress, among which financial poverty alleviation standards has played an important role in targeting the real poor. Since the early2008the absolute poverty line and low-income poverty line have combined into a new RMB1,196. China has treated the low-income and the absolute poor the same way and increased the investment to benefit poor communities and improve their self-development to help achieve a virtuous circle.Based on the of anti-poverty ability perspective, this paper analyzes the factors, methods and economic effects of financial poverty alleviation standard. By interviews in depth with local staff and questionnaires on the poor, it integrates theory with practical analysis of the standard direction and the main three common factors using factor analysis:the survival ability to basic health and knowledge, the ability to participate in the social division of labor and potential development, and the ability to fight against poverty risks. Then it calculates the amount of financial poverty trends by the extended linear expenditure model ELES. It builds anti-poverty-oriented economic effects evaluation index and validate it with data of2005-2009. The conclusion is the positive consequences both in micro-economic effects including farmers’capital accumulation and macro-economic effects about government investment. Finally, the policy suggestion is that risks from the edge of the lower income groups falling into poverty should be more concerned, especially in the housing projects and post-disaster reconstruction. In addition, besides annual net income the poverty alleviation standard should have a richer evaluation system, such as rural investment and entrepreneurial project selection and assessment standards, to encourage the majority of the poor population to attract investment and self-development rather than rely on the government only.

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CLC: > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Rural finance
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