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By Meng Chun, Department of Macroeconomic Research, Ma Yurong, Almanac of China's Economy & Jin Jun, Asset Management Office of DRC

Research Report No 185, 2015 (Total NO 4870) 2015-12-4

Abstract:

Poverty alleviation through development bears on the building of a well-off society across the board and preserving of long-term national peace and security. The Department of Finance in Gansu Province jointly works with banking and financial institutions within the province to conduct the project of special loans for poverty relief with targeted measures, forging a financial product for the poor population across the province. The project focuses on accurate objects, risk compensation, preferential policies, flexible use, and clarified responsibilities. Main features of the project include taking fiscal discount as the key and government guidance as the guarantee, supporting by category to help the poor in a lean manner, leveraging funds to expand domestic demand, lowering risks to guard against breaking the bottom, and encouraging the sharing of development benefits through labor. The targeted special loans model for poverty relief project implemented in Gansu Province is well-designed and easy to operate and follow. Viewing from the angle of “promoting coordinated regional development”, in order to facilitate accurate poverty relief and alleviation in western rural areas, we need to adjust fund directions and channel more funds to poor rural areas; improve taxation policies and reduce taxes levied on banks for issuing special poverty relief loans; apply the PPP model （Public-Private-Partnerships） and improve “hardware” in poor rural areas; innovate poverty relief approaches and explore the model of “Internet Plus poverty alleviation”.

Key words: poverty relief, financial discount, accurate special loans for poverty alleviation, Gansu Province