FINANCIAL INCLUSION AND POVERTY ALLEVIATION: RETHINKING THEORY AND INTERVENTION STRATEGIES BASED ON RURAL PRACTICE IN CHINA

Abstract

This study argues that poverty is not only a lack of income and consumption for individuals and families, but also a lack of opportunities and rights, particularly in terms of financial access and capability. Therefore, to comprehensively address the issue of poverty, it is necessary to increase individuals' opportunities to access financial services, improve their financial literacy and enhance their financial health and overall financial well-being. Although China has set a target of eradicating absolute poverty in rural areas by 2020, poverty reduction efforts in China still face a more challenging situation. First, the majority of families lifted out of absolute poverty are dependent on government subsidies and lack independent sources of income and livelihoods, making them extremely vulnerable to falling back into poverty; second, the economic gap between urban and rural areas is widening; third, rural residents face challenges in increasing wage income and household business income, while asset-based income remains low; finally, the severe ageing of the rural population and the lack of human capital have resulted in slow economic growth in rural areas. In order to alleviate rural poverty and promote balanced and integrated urban-rural development, the Chinese government has adopted a strategy of tilting financial resources towards rural areas and is continuing to develop financial inclusion in rural China. However, as rural residents in China typically lack basic financial literacy and are unfamiliar with the variety of financial products and services available, combining financial services with social services is necessary to enhance the poverty alleviation effectiveness of financial inclusion. Social work plays a valuable role in improving the financial literacy of rural residents and promoting the use of financial inclusion products and services in rural China.