An Analysis of Evolution of Lending Patterns of IFAD China’s Rural Financial Project

This paper tells us briefly the background and aims of the foundation of IFAD. It points out that IFAD plays an important part in helping the development of agricultural and food production in developing countries, and in reducing the poverty conditions in the poorest countries. It tells us that IFAD has offered donation to China for 8 times, with a total amount reaching to 56.839 million dollars. With the development of the economy of China, IFAD has changed its leading financial policies to China from a highly beneficial policy to a moderate lending policy. The operation of the loan projects have greatly improved the living conditions and of the local and the conditions of agricultural production, promoting the improvement of economy, social stability, and environment. It discusses several lending patterns of IFAD China’ s rural financial projects. The government-lending model, which is represented by the IFAD financial loan. Market-oriented model of formal financial institution, which is represented by IFAD Rural Credit Cooperatives, with market oriented. Government supporting as secondary model, which are dominated by IFAD Women’s lending patterns and Village Development Fund lending model. In this paper, advantages and disadvantages are analyzed and evaluated. It discusses the development trend of IFAD financial lending patterns in terms of Rural Credit Cooperatives and a pattern which is community –oriented and farmers-benefited.