Abstract: Based on the practice of the poverty alleviation in the Southwest ethnic rural areas, the operational logic of industrial poverty alleviation policy is explored from the grassroots government behavior logic and the livelihood model shaped by ethnic minorities cultural characteristics. The grass-roots government is faced with the short-term requirements of precision poverty alleviation and the long-term contradiction between poverty alleviation, which promotes the government to change the policy and give priority to the poverty alleviation indicators, and whether the poor households can really be out of poverty is a secondary consideration. The ethnic rural areas have long formed a set of agricultural production mode embedded in the local social and cultural system; they are pursuing the agricultural production which can serve the family life and social needs. But the market-oriented industry poverty alleviation policy is difficult to adapt to the local livelihood of the ethnic minority peasants, which makes the industry poverty alleviation policy encountered the ethnic rural traditional livelihood patterns.