Keynote Speech to the Forum on Poverty-Reduction and Development Fan Xiaojian Director of the State Council Leading Group Office of Poverty Alleviation and Development of China Oct. 17, 2009

CONTENTS China has entered a new period in poverty reduction and development. To cope with the impact on poor areas and the needy by the financial crisis 3. Challenges China faces in poverty reduction and development and outlook for poverty reduction 4. We will continue to promote the exercises

1. China has entered a new period in poverty reduction and development. Since the reform and opening-up, in particular, China has made outstanding achievements in poverty reduction by making joint efforts in different stages including system reforming, special plan programming, and development-oriented and bailout-oriented policies combining. The number of impoverished people dropped significantly and farmer’s income increased steadily. Great improvement in infrastructure facilities was made; profound changes in social undertakings took place and regional economy progress was accelerated. Back

2. To cope with the impact on poor areas and the needy by the financial crisis Work chances diminished for migrant workers and the growth of salary income of the poor fell markedly. The net income per peasant rose 8% in 2008, whilst that in poverty-stricken counties to which the Chinese government had attached special importance grew 7.6%, below the national average for the first time in six years, as a result of drops in outside income, which reflects the vulnerability of the needy.

2. To cope with the impact on poor areas and the needy by the financial crisis Agricultural products prices slipped and the growth of peasant household’s income tumbled. The weakening demand from the domestic and international primary farm products market and processing market led to plunges in agricultural products prices and income of farmers in impoverished areas.

2. To cope with the impact on poor areas and the needy by the financial crisis Leading poverty-alleviated firms met setbacks in production and operation, and the economic structural adjustment slowed down in poor areas. Weakening market demand incurred dull sales and brought difficulties to some leading companies in impoverished areas, which cut the needs for labor and raw materials and eased the pace of adjustment in industrial and employment structures. to be continued

2. To cope with the impact on poor areas and the needy by the financial crisis To tackle the negative impact of the international financial crisis, the Chinese government set forth such measures as “maintaining progress, expanding domestic demand, adjusting structure and benefiting all people”, and adopted proactive fiscal policy and moderately loose monetary policy while making industrial, trading, employment and social policies, which has exerted extensive and positive influence on poor areas and needy population.

2. To cope with the impact on poor areas and the needy by the financial crisis The government has increased the employment of the poor by more investment. A substantial amount of its 4-trillion-yuan bailout money went to infrastructure construction in poverty-stricken areas, which not only laid a solid foundation for the development of the areas but elevated the employment of some unskilled labors and increased their income.

2. To cope with the impact on poor areas and the needy by the financial crisis The government pulled leading poverty-alleviated firms through the crisis by adopting moderately loose monetary policy. Such as providing aids for SMEs and farmers through inviting credit capitals and discount loans in line with the state’s industrial policy. This practice is helpful for the long-term development of poor areas and the alleviation of employment pressure.

2. To cope with the impact on poor areas and the needy by the financial crisis It raised the employment of poverty-stricken people and improved their quality by industrial planning and special poverty reduction plans. The central government put forth reviving plans for ten industries, and restated to restore labor-intensive industry and light industry. And a large number of labor forces will go into related industries. To promote the long-term development of the poor areas, relevant industry will be transferred to central and western China from eastern China.

2. To cope with the impact on poor areas and the needy by the financial crisis The practice proves that the measures taken by the Chinese government to cope with the international financial crisis has made positive effects in curbing income decline of farmers in poor areas. Back

3.Challenges China faces in poverty reduction and development and outlook for poverty reduction China will still face chllenges in poverty reduction in the future. China has such a large poverty scale. Poverty severity remains high. The poverty-return problem remains a headache. The gap between urban and rural areas is enlarging. The impacts of the international financial crisis and economic recession linger.

3.Challenges China faces in poverty reduction and development and outlook for poverty reduction China has entered a new period of development-oriented and relief-oriented poverty reduction as a whole, and made fresh progress in integrating earmark poverty reduction, agriculture-and-farmer-benefit poverty reduction and other social anti-poverty forces and campaigns. Back

We will continue to promote the following exercises： To maturate the state’s poverty reduction and development strategies and policies, and formulate National Program for Rural Poverty reduction (2011-2020), to further define the poverty reduction targets, tasks, emphases and regulations. To implement policies on poverty reduction of low-income population, achieve an effective connection of the basic subsistence guarantee system and poverty relief polices.

We will continue to promote the following exercises： To advance the integration of special poverty reduction in rural areas, industrial poverty reduction, regional development and new village construction, to narrow the gaps between urban and rural areas, regional and group development and thus pave the way for a harmonious socialist society.

We will continue to promote the following exercises： To stick to the development-oriented poverty reduction policy, reinforce whole-village and industrial poverty reduction, training on labor transfer, poverty reduction of migrants, and the comprehensive treatment of special impoverished areas, to stimulate the development of poor areas in terms of economic and human resources development, social undertaking progress and ecologic environment protection.

We will continue to promote the following exercises： To continue international exchange and cooperation in poverty reduction, introduce anti-poverty experience from other countries, advance the innovation of domestic poverty reduction system, centralize the South-South Cooperation program, make utmost of the platform International Poverty Reduction Center in China, and further the exchange and sharing in poverty reduction and development.

We pledge to make joint efforts with other nations and peoples to achieve the Millennium Development Goals of the United Nations and build a harmonious world.   I wish this forum a great success. Thank you all.