scholarly journals Inclusive Financial Development and Multidimensional Poverty Reduction: An Empirical Assessment from Rural China

2019 ◽  
Vol 11 (7) ◽  
pp. 1900 ◽  
Author(s):  
Yanlin Yang ◽  
Chenyu Fu
Keyword(s):  
Financial Development ◽  
Financial Institutions ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Rural China ◽  
Multidimensional Poverty ◽  
The Poor ◽  
Financial Exclusion ◽  
Working Age ◽  
Working Age Population

Inclusive finance is often considered to be a critical element that makes growth inclusive, as access to finance can enable the poor to lift themselves from income poverty. However, can it play such a role when the poor are in multidimensional poverty? Why does financial exclusion and poverty still exist in countries with vigorous development of inclusive finance? We build an evolutionary game model to analyze the equilibrium strategies of inclusive financial institutions and the poor in poverty reduction activities to find the answers. As there is a high incidence of poverty and serious financial exclusion in rural areas of China, we test the poverty reduction effectiveness of inclusive financial development on the poor with different labor capacity in rural China from 2010 to 2016 based on survey data of China Family Panel Studies and relevant statistics collected from 21 provinces. Our study finds there are differences in poverty alleviation effects of inclusive financial development among the poor with different labor capacities; if financial institutions target the service precisely to the working-age population in rural areas, they will achieve the dual goals of maintaining institutional sustainable development and alleviating poverty; And the development of inclusive finance in aspects of permeability, usability, and utility can significantly reduce multidimensional poverty. Therefore, to further improve the multidimensional poverty reduction performance and stimulate the endogenous motivation of the poor, it is necessary to strengthen the support for financial resources served to the working-age population, and to improve the development of rural inclusive finance in aspects of quality and affordability.

scholarly journals Evaluating the Impacts of Smallholder Farmer’s Participation in Modern Agricultural Value Chain Tactics for Facilitating Poverty Alleviation—A Case Study of Kiwifruit Industry in Shaanxi, China

Agriculture ◽  
2021 ◽  
Vol 11 (5) ◽  
pp. 462
Author(s):  
Hongyu Wang ◽  
Xiaolei Wang ◽  
Apurbo Sarkar ◽  
Lu Qian
Keyword(s):  
Value Chain ◽  
Rural Areas ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Smallholder Farmers ◽  
Multidimensional Poverty ◽  
Well Being ◽  
Reduction Degree ◽  
Poverty Level ◽  
Storage Technology

Market-based initiatives like agriculture value chain (AVC) are becoming progressively pervasive to support smallholder rural farmers and assist them in entering larger market interventions and providing a pathway of enhancing their socioeconomic well-being. Moreover, it may also foster staggering effects towards the post-era poverty alleviation in rural areas and possessed a significant theoretical and practical influence for modern agricultural development. The prime objective of the study is to explore the effects of smallholder farmers’ participation in the agricultural value chain for availing rural development and poverty alleviation. Specifically, we have crafted the assessment employing pre-production (improved fertilizers usage), in-production (modern preservation technology), and post-production (supply chain) participation and interventions of smallholder farmers. The empirical data has been collected from a micro survey dataset of 623 kiwifruit farmers from July to September in Shaanxi, China. We have employed propensity score matching (PSM), probit, and OLS models to explore the multidimensional poverty reduction impact and heterogeneity of farmers’ participation in the agricultural value chain. The results show that the total number of poor farmers who have experienced one-dimensional and two-dimensional poverty is relatively high (66.3%). We also find that farmers’ participation in agricultural value chain activities has a significant poverty reduction effect. The multidimensional poverty level of farmers using improved fertilizer, organizational acquisition, and using storage technology (compared with non-participating farmers) decreased by 30.1%, 46.5%, and 25.0%, respectively. The multidimensional poverty reduction degree of male farmers using improved fertilizer and participating in the organizational acquisition is greater than that of women. The multidimensional poverty reduction degree of female farmers using storage and fresh-keeping technology has a greater impact than the males using storage and improved storage technology. Government should widely promote the value chain in the form of pre-harvest, production, and post-harvest technology. The public–private partnership should also be strengthened for availing innovative technologies and infrastructure development.

Poverty Relief Programs in Postcommunist Countries: A Case Study on the Albanian and Chinese Programs

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110278
Author(s):  
Gentian Qejvanaj
Keyword(s):  
Rural Areas ◽  
Cash Transfer ◽  
Basic Income ◽  
Transfer Program ◽  
Means Testing ◽  
Poverty Relief ◽  
Private Expenditure ◽  
Working Age ◽  
Working Age Population ◽  
The Cost

Social assistance is a cash transfer program targeting the poorest households. China has created the Dibao (DB), meaning minimum livelihood guarantee, the most extensive unconditional cash transfer program globally with over 70 million people covered, whereas in Albania, the Ndhime Ekonomike (NE) meaning financial help covers around 15% of the total working-age population. Both programs are means-tested, have strict requirements for eligibility, and have been enlarged and modified in time to improve targeting and tackling leakage. In this article, we will look at similarities and common issues first, and then calculate the cost of enlarging both programs to all working-age population with no means-testing. We argue that a UBI (universal basic income) can increase private expenditure in health and education while costing less than 1% of gross domestic product (GDP) in both countries’ rural areas. We will conclude by looking at how the COVID-19 outbreak is pushing developing countries toward a UBI by first adopting a temporary basic income (TBI).

scholarly journals CREDIT CO-OPERATIVES AND THEIR ROLE IN POVERTY REDUCTION IN RURAL CHINA

2017 ◽  
Vol 1 (2) ◽  
pp. 97
Author(s):  
Li Zhao
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Poverty Reduction ◽  
Social Connectedness ◽  
Rural China ◽  
Modern China ◽  
Primary Data ◽  
Field Investigations ◽  
Local Embeddedness ◽  
New Type

Financial constraints may contribute to poverty traps. In the underdeveloped capital markets of rural China, many poor farmers in disadvantaged areas are financially constrained and denied access to formal financial services. A few attempts have been made to reform rural credit co-operatives but with limited impact. Recently, the development of rural mutual co-operatives, as one of new-type rural financial institutions, has gained increasing attention among scholars. While scholars predict that it would be difficult for true co-operative financial institutions to establish themselves and develop in China, this study discusses the conditions for the development of rural mutual co-operatives and identifies their institutional advantages in poverty outreach and financial sustainability. The analysis of the study is largely based on the primary data collected from field investigations and case studies. The study reveals that these organizations have played a significant role in promoting financial inclusion and become a sustainable driver for poverty reduction. This observation is in contrast to the widely-believed prediction that it is hardly probable for true credit co-operatives to establish themselves in modern China due to excessive government intervention and China’s peculiar political culture and social context. The findings also suggest two conditions be necessary to achieve their potential, namely, the co-operation between credit co-operatives and agricultural co-operatives, and local embeddedness with good social connectedness.

Multiple Dimensions of Impoverishment in Iran

2020 ◽  
pp. 26
Author(s):  
Hosnieh Mahoozi ◽  
Jeurgen Meckl
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Poverty Reduction ◽  
Multidimensional Poverty ◽  
Well Being ◽  
Capital City ◽  
Income Poverty ◽  
Rural And Urban Areas ◽  
Rural And Urban ◽  
Multiple Dimensions

Concerning the demands of Sen’s (1984) Capability Approach to the assessment of human well-being, we estimate multidimensional poverty and compare the results with traditional measures of income poverty in Iran. We detect poverty in urban and rural Iran over 1999-2007, a period with relatively high GDP growth. The results reveal that the pace of income poverty reduction is much faster than the pace of multidimensional poverty alleviation. The pace of poverty reduction is much slower in rural areas than in urban areas and the capital city, Tehran. Hence, inequality between rural and urban areas increased over the time. We also show how policymakers may benefit from applying the multidimensional approach in targeting the subgroups by the most deprived aspects.

Financial Inclusion in India

2016 ◽  
pp. 95-104
Author(s):  
Rohit Bhattacharya
Keyword(s):  
Financial Services ◽  
Poverty Reduction ◽  
Significant Proportion ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Working Paper ◽  
Road Map ◽  
The Poor ◽  
Financial Exclusion ◽  
The World

The concept of Financial Inclusion is not a new one. It has become a catchphrase now and has attracted the global attention in the recent past. Lack of accessible, affordable and appropriate financial services has always been a global problem. It is estimated that about 2.9 billion people around the world do not have access to formal sources of banking and financial services. India is said to live in its villages, a convincing statement, considering that nearly 72% of our population lives there. However, a significant proportion of our 650,000 odd villages does not have a single bank branch to boast of, leaving swathes of the rural population in financial exclusion. RBI has reported that the financial exclusion in India leads to the loss of GDP to the extent of one per cent (RBI, Working Paper Series (DEPR): 8/2011). Financially excluded people, consistently, depend on money lenders even for their day to day needs, borrowing at excessive rates to finally get caught in a debt trap. In addition, people in far-off villages are completely unaware of financial products like insurance, which could protect them in adverse situation. Therefore, financial inclusion is a big necessity for our country as a large chunk of the world's poor resides here. Access to finance by the poor and vulnerable groups is a prerequisite for poverty reduction and social cohesion. Present paper is an attempt to highlight the present efforts of financial inclusion in India its future road map, its challenges etc.

An Overview of Agriculture Development Programs for Poverty Reduction in Rural Areas

2021 ◽  
pp. 255-269
Author(s):  
Muhamad Rusliyadi ◽  
Wang Libin
Keyword(s):  
Rural Areas ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Rural China ◽  
Strategy Development ◽  
Development Programs ◽  
Level Of Evidence ◽  
Integrated Rural Development

The purpose of this chapter is to provide an overview description of important differences in agricultural development China and Indonesia in poverty reduction efforts in rural areas and some strategy. This chapter hopes to provide an objective picture of the development from agricultural sector level of evidence both Indonesia and China. China and Indonesia are agriculture-based countries with a program of integrated rural development as a whole to be a target of poverty reduction programs. Several farm programs related to poverty alleviation have been launched and had a good impact or significance, especially in China that is able to reduce extreme poverty from 30% in 1978 to less than 3% in 2008. Certainly many lessons can be obtained from this success, especially the concept and strategy development in rural China to be a reference of other states in its development model, especially for poverty alleviation programs.

POVERTY REDUCTION IN CHINA AND INDIA: A COMPARATIVE STUDY

2020 ◽  
Vol 65 (supp01) ◽  
pp. 95-115
Author(s):  
TONGJIN ZHANG ◽  
YUAN ZHANG ◽  
GUANGHUA WAN ◽  
HAITAO WU
Keyword(s):  
Comparative Study ◽  
Development Strategy ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Rural China ◽  
Agricultural Labor ◽  
China And India ◽  
Employment Generation ◽  
The Comparative Study ◽  
Better Than

This paper attempts to explain why China performed better than India in reducing poverty. As two of the most populous countries in the world, China and India have both experienced fast economic growth and high inequality in the past four decades. Conversely, China adopted a more export-oriented development strategy, resulting in faster industrialization or urbanization and deeper globalization, than India. Consequently, to conduct the comparative study, we first decompose poverty changes into a growth and an inequality components, assessing the relative importance of growth versus distributional changes on poverty in China and India. Then, Chinese data are used to estimate the impacts of industrialization, urbanization and globalization on poverty reduction in rural China. The major conclusion of this comparative study is that developing countries must prioritize employment generation in secondary and tertiary industries through industrialization and globalization in order to absorb surplus agricultural labor, helping reduce poverty in the rural areas.

scholarly journals Agriculture Development Programs for Poverty Reduction Evidences from Indonesia and China - Comparative Study Case

2018 ◽  
Vol 8 (2) ◽  
pp. 104-118
Author(s):  
Muhamad Rusliyadi ◽  
Wang Libin
Keyword(s):  
Rural Areas ◽  
Poverty Reduction ◽  
Agricultural Sector ◽  
Rural China ◽  
Strategy Development ◽  
Development Programs ◽  
Level Of Evidence ◽  
Integrated Rural Development ◽  
Agriculture Programs ◽  
Agriculture Development

The purpose of this paper is to provide an overview description of important differences in agriculture development China and Indonesia in poverty reduction efforts in rural areas and some strategy. Obviously with the view of some of the existing literature by presenting data and facts or opinions with the collaboration of several institutions associated with the topic. This paper will provide an objective picture of the development from agricultural sector level of evidence both Indonesia and China. China and Indonesia is agriculture based country with a program of integrated rural development as a whole to be a target of poverty reduction programs. Several agriculture programs related to poverty reduction has been launched and have a good impact or significance, especially in China that is able to reduce extreme poverty from 30% in 1978 to less than 3% in 2008. Certainly many lessons can be obtained from this success, especially the concept and strategy development in rural China to be a reference of other States in its development model, especially for poverty alleviation programs.

scholarly journals Poverty reduction in rural China: Does the digital finance matter?

PLoS ONE ◽  
2021 ◽  
Vol 16 (12) ◽  
pp. e0261214
Author(s):  
Boou Chen ◽  
Chunkai Zhao
Keyword(s):  
Rural Areas ◽  
Poverty Reduction ◽  
Rural China ◽  
Rural Households ◽  
Research Field ◽  
Absolute Poverty ◽  
Financial Policies ◽  
Variable Approach ◽  
Reduction Effect ◽  
Financial Technology

As digital finance is widely spread and applied in China, this new format of financial technology could become a new way to reduce poverty in rural areas. By matching digital financial indexes of the prefectural-level cities with microdata on rural households from the China Household Finance Survey (CHFS) in 2017, we find that digital finance significantly suppresses absolute poverty and relative poverty among rural households in China, which is supported by a series of robustness tests, such as the instrumental variable approach, using alternative specifications, and excluding extreme observations. Additionally, we provide evidence that the poverty reduction effect of digital finance is likely to be explained by alleviating credit constraints and information constraints, broadening social networks, and promoting entrepreneurship. Our findings further complement the research field on financial poverty reduction and offer insights for the development of public financial policies of poverty reduction in other countries, especially in some developing countries.

scholarly journals The policy arrangements of financial deepening in rural China --

2011 ◽  
Vol 57 (No. 9) ◽  
pp. 449-456
Author(s):  
L. He ◽  
C.G. Turvey ◽  
D. Liao
Keyword(s):  
Property Rights ◽  
Financial Institutions ◽  
Rural Areas ◽  
Rural China ◽  
Chinese Government ◽  
Legal Environment ◽  
Financial Deepening ◽  
Policy Arrangements

Financial deepening has been successfully tested by many countries, which is also an optimal developing track in practice in rural China. Chinese government has implemented a variety of policies to alter the finance environment in rural areas to get to the financial deepening. These policies include making the multiform financial institutions, making a fair legal environment and clarified property rights. Based on the McKinnon-Shaw model, we test whether there exits the financial deepening in rural China to judge the policy efficiency and we find that no proof can demonstrate the financial deepening in rural China, which means policies of the financial deepening, should be improved.

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