Abstract:

Mutual aid fund for development at village level is a new channel of rural financing following up the credit guarantee, collateral, non-governmental lending and foreign aid fund used by our government, which is an innovation and exploration of using financial and credit fund to support the development of the poverty-stricken areas and peasant household. This article introduced the model of mutual aid fund operation and its effects, analyzed the problems which existed at moment, and pointed out the measures to raise the efficiency of funds utilization in the next stage through conducting an investigation and study on procedure of fund use in two targeted villages in Pengyang County, Ningxia.