Financial targeted poverty alleviation in China: Practices in Hubei

Absztrakt (kivonat)

The aim of the Thesis Work Poverty is a worldwide problem. Since last year, the whole world has been hit by the pandemic. By 2020, China had overcome many difficulties and realized the plan of lifting all poverty-stricken rural residents out of poverty. One of the most important approach to the success of the plan was targeted financial poverty alleviation. Having a look at real practice in Hubei province gives us a better understanding how poverty alleviation measures work and how well they are implemented. Also, it can reveal to all some problems and limitations in the process of poverty alleviation, particularly in financial terms in this thesis work. This paper aims at answering the question whether the development of financial system helped the poverty-stricken people get out of poverty and improve their life standards in Hubei. There are some contrasts on the relationship of poverty alleviation and financial development with other countries like Vietnam, Belarus, and France. Methodology used There are two main methods used to illustrate the problem. First, from a macro-level point of view, main financial indicators about the economy of Hubei from 2009 to 2019 were collected as secondary source from which we can indirectly illustrate the social, economic, financial and environmental changes that happened in rural areas in Hubei during last decade. Second, I interviewed in total fifteen rural residents from five different counties who were randomly selected from three age groups. Interview questions were set based on several financial concepts. The answers were the feelings and comments from rural participants about the relationship of the development of financial products and services and their quality of lives in different perspectives. Thesis Structure This thesis work contains five main parts. The first chapter offers an introduction to the era background of poverty alleviation in China since 1978. The second chapter reviews the literature of the development of the rural financial market and rural financial services in China. Followed by several financial concepts related to poverty reduction, an introduction of Hubei province and the characteristics of rural poverty in Hubei will be also presented in the second chapter. Then, the third chapter mainly deals with the research methodology used and the form of research. Next, the fourth chapter shows the analysis process and results of the research. Finally, the last chapter concludes the whole thesis work with limitations and suggestions discussed. Result The living standards and quality of living for rural residents had improved with the development of rural financial system and diversification of different financial products and services. During the interviews, I found out the traditional financial institutions failed in lending to the poor, while internet-based financial service companies won the dominant position in lending microcredit loans to rural individuals quickly and sufficiently, especially for younger generations. Another finding is that the financial awareness of some rural residents is still quite low. They are not familiar with the mechanism of financial products and services, so they decline to use the new opportunities. The last finding is that the insurance coverage policy still needs to be expanded and polished to better fit the needs of rural residents.