Rural-Based Development and Potential for Enhanced Credit Access in Modern China
This paper attempts to address the absence of qualitative information on the development of Chinese microcredit among Western scholars. It presents lessons from China through a survey of the Chinese context for development oriented rural financial services, and factors in the potential for and development of formal microcredit in China.
The paper examines the role that enhanced credit access could play in China's economy. It demonstrates salient aspects of the microcredit sectors development in recent years through ten case studies conducted in rural China. It concludes that the prospects for enhanced rural credit access in China have brightened in recent years, although there remain some important barriers which must be addressed to promote further progress. Conclusions include:
- Road to success for Chinese microcredit institutions is paved with the impression of sustainability among a wide range of stakeholders;
- This impression enables an operation to thrive, by enabling its opportunity capital;
- China has achieved great progress in building the parts necessary for an enhanced credit access system;
- Obstacles to its progress include macro, legal and institutional factors;
- Group effort will be accomplished in China, given rural China's entrepreneurial capacity and examples of development.
