From June 6 to 11, as part of the overall arrangement of the poverty alleviation and development leading group under the State Council, the Deputy Governor Liu Shiyu of the People s Bank of China (PBC) headed a joint working team to Jiangsu and Anhui on a research mission for improving the system of poverty alleviation strategy and policies.
The research group conducted on-site research in five counties and spoke highly of their accomplishments. Deputy Governor Liu pointed out that these counties have established a comprehensive poverty alleviation and development mechanism featuring strong leadership, good planning, effective resource allocation and coordination, innovation and sound assessment.
They have not only realized the goals set in the National Poverty Alleviation Program (2001-2010), but also contributed experiences for rural poverty alleviation and development program nationwide.
During the field study, Deputy Governor Liu emphasized the urgency and importance of accelerating rural poverty alleviation and development. With the progress of socialist market reform, agricultural industrialization and modernization and profound changes in rural economic structure, the development of agriculture, farmers and rural areas raised new requirements for service modality and management philosophy of rural financial products and services.
The financial sector should make continuous efforts to improve financial services. In 2008, the PBC and China Banking Regulatory Commission (CBRC) jointly released the Opinions on Promoting the Innovation of Financial Products and Services in Rural Area. In 2009, the PBC, the Ministry of Finance, CBRC, China Insurance Regulatory Commission (CIRC) and State Forestry Administration (SFA) jointly issued the Guiding Opinions on Improving Financial Services to Support the Reform of the Collective Forest Rights System and Forestry Development to guide the financial institutions to carry out pilot projects on the innovation of financial products and services.
In practice, many counties in Jiangsu, Anhui and other areas in China have explored new models of financial service in rural areas, including "leading enterprises plus rural households", "rural economic cooperatives plus rural households", "guarantors plus rural households", "orders plus rural households" and "collective mutual guarantee of rural households".
The above-mentioned rural financial products are well received and should be further improved and promoted.
Deputy Governor Liu remarked that accelerating the innovation of financial products and services should follow market-based and financially sustainable principles. The financial service for agriculture, rural areas and farmer and the support for poverty alleviation and development in rural areas should ensure smooth loan extension and recovery and focus on benefiting the farmers in loan pricing and process management.
PBC branch offices at all levels should make joint efforts with relevant agencies to organize agro-linked financial institutions to disseminate financial service and legislation knowledge, promoting rural financial products and services with simple explanation and vivid cases.
Deputy Governor Liu pointed out that poverty alleviation is an integral part of China s overall development strategy, and poverty alleviation and development is a long-term and challenging task with evolving goals. The ongoing international financial crisis has brought new challenges and pressures for poverty alleviation and development in rural areas.
Realizing the goal of lifting abject poverty by 2020 put forward at the 17th CPC Congress requires persevere efforts of all parties concerned. He urged the financial institutions in Jiangsu and Anhui to make fresh efforts in development -oriented poverty alleviation in rural areas. He encouraged the relevant agencies in Jiangsu and Anhui to provide more microcredit for rural households, increase poverty alleviation and development loans, strengthen subsidized interests and risk compensation for rural leading enterprises, further improve the loan guarantee system for agriculture, farmers and rural areas and build guarantee provision capacity to create a more facilitating financial environment in rural areas.
