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Community Development Funds: A New Vehicle for Poverty Alleviation in China?

Author: ENJIANG CHENG AND ROSA Y. LI
Published in PFM, Vol. 9 No. 1

Disappointed with the performance of poverty loans and the rural financial system in targeting the poor communities and households, the Chinese Government is currently piloting community development funds (CDFs) as an alternative instrument for poverty alleviation and development in China. This paper examines the development of CDFs in the last decade and draws lessons for the government led CDF programs. The focus of this study is on the innovations employed by the CDFs for poverty targeting and risk management and the key challenges faced by the CDFs in China.

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