China: Poverty Reduction Strategy for Block Area Dr.HuangChengwei (Director General, National Training Center for Officials in Poor Areas, China) 2011.10.13,Brussels

Background Why do we need Poverty Reduction Strategy for Block Area? What are Poverty Reduction Strategy for Block Area? What can we Learn from Wuling Mountain Area---One of Block Area? How to Meet the Challenges?

1. Background ----China’s remarkable rise since the ‘80s,but regional disparity becomes a major concern. ----Meanwhile, China’s poverty reduction gets great achivements,but tasks are still extremely arduous.

Increasing inequality: China’s focus on coastal areas in the East as the drivers of growth caused an increase of the disparities between East and West as well as urban and rural areas. GDP share of main regions in % 28.03.2017 Source: National Bureau of Statistics China

Per capita income 1980-2010: 28.03.2017 Source: National Bureau of Statistics China

Sources of regional disparities: 28.03.2017 Source: National Bureau of Statistics China

Striking a balance between the regions Striking a balance between the regions China’s regional division (11th FYP): Promoting the rise of the Central Region: Improvement of the level of production, relying on the current industrial basis. Advancement of industrialisation and urbanisation. Exerting the advantage of linking East and West. Increasing the investment into agricultural infrastructure. Improvement of agricultural products processing. Creation of a high-quality raw material production base. Support of the development of machinery and vehicle production. Establishment of a comprehensive transport and logistics system. Encouraging the Eastern Region to take lead in development Increasing innovative capacity. Pioneer economic transformation/upgrading. Piloting the refining of a social market economy. Mobilisation of the Central and Western regions. Creation of intellectual property, core technologies and top brands. Development of modern manufacturing, high-tech and service industries. Enhancement of international competitiveness. Promotion of resource and land use efficiency as well as environmental protection. Support the development of old revolutionary areas, ethnic minority regions and border areas: Increasing the financial transfers and fiscal investments. Protection of the environment. Improvement of infrastructure. Enhancement of compulsory schooling, nationalities’ higher education, pilot bilingual education. Creation of communities of traditional culture. Improvement if the HR capacities of ethnic minorities. Development of special industries, e.g. ethnic medical industry. Resolving poverty problem. Continuing policy support for Tibet and Xinjiang. Advancing the development of the Western Region: Intensification of regional cooperation. Reliance on pole cities and main transport lines as stimulators. Improvement of infrastructure (roads, railways, pipelines). Environmental protection (reforestation, watershed protection, anti-desertification). Converting resources into products. Support for modern manufacturing and high-tech industry. Improvement of public services (education, vocational training, health care) Fostering of cross-border cooperation and trade. Revitalizing the Northeast Region’s old industrial bases: Building-up on the industrial history of the area. Advancement of structural transformation of production and SOEs. Development of modern agriculture and grain base. Establishment of modern, fine manufacturing industry. Creation of pilots for economic transformation and compensation mechanisms. Improvement of railway networks and interprovincial roads. Fostering cross-border economic cooperation. Desertification prevention. Western Development Region North-Eastern Development Region Eastern Development Region Central Development Region 28.03.2017

China has made remarkable progress in poverty reduction measured by different poverty lines

According to the new national poverty standard, there are 26 According to the new national poverty standard, there are 26.88 million poverty alleviation targets in 2010, accounting for 2.8% of the overall rural population. There will be more, if international standard is referred to. New changes of poverty distribution and difficulties facing extremely poverty-stricken regions. Natural disasters are severe, and the capacity to prevent and fight disaster is insufficient.

Income gap expands, and relative poverty is prominent 10 10 10

Bloc Areas with special difficulties 2.Why do we Need Poverty Reduction Strategy for Block Area? What is ‘Block Area Development’? 特殊 = special 困难 = difficulty 地区 = area Bloc Areas with special difficulties 集中 = concen-trated 连片 = closely grouped

Bloc Areas Poor counties ---Block Area In 1985: 125 million poor rural residents didn’t have adequate food and clothing. Most of them lived in the 18 Block Areas in East, Central and West China, especially in old revolutionary bases, ethnic-minority, and underdeveloped areas. But no Special policy for such a big Population. Regions Bloc Areas Poor counties East 2 32 Middle 7 206 West 9 172

---Block Area In 2000: West and Center Regions cover 91% poor population and most located in 25 Block Areas. But It is Difficult to Find the Leading and coordinating Mechanism. So Targeted 150,000 Poorest Villages. 1988 1993 2000 Disparities between urban and rural areas keep increasing. 28.03.2017 Source: National Bureau of Statistics China

---Block Area In 2011: (1)Poor Population still Concentrated on the Block Areas with some Characteristics. (2)Two-Wheels Driven Poverty Reduction: Development-oriented Poverty Alleviation and rural minimum life guarantee system. (3)’Grand Poverty Reduction’: the specific poverty reduction efforts, sector based poverty reduction and social participation. (4) Endeavor to Reverse the Trend of Widening Income Gap and Strive to Help Poverty Stricken Areas Enter Into the Well-off Society Together with the Rest of the Country. (5)Enough Financial Support from the Central and Local Government.

592 national poor counties 28.03.2017 Source: LGOP

Selection Criterias for Block Area: Poor! Per capita GDP Per capita net income Per capita financial expenditure Counties in which those three figures are below certain standards will be chosen 11+3 Block Areas. 28.03.2017 Source: Wang Guoliang in Enshi meeting

11 Plus 3 Block Areas: 28.03.2017 Greater Hinggan Mountain Area Tibetan Area Outside TAR Qinba Mountain Area Wuling Mountain Area Greater Hinggan Mountain Area Yan- Taihang Mountain Area South of Xinjiang Lvliang Mountain Area Liupan Mountain Area Tibetan Autonomous Region Dabie Mountain Area Wumeng Mountain Area Stone Desertification Area Luoxiao Mountain Area West of Yunnan Mountain Area 28.03.2017

High residual poverty 28.03.2017 Poverty counties (1994)* Richest counties (1994)* * Most recent county map not available 28.03.2017

Ecological fragility (Ecological Function Areas) 28.03.2017

Ecological fragility (Vulnerability) 28.03.2017

Large minority population 28.03.2017

Cross provincial boundaries 28.03.2017

3.What are Poverty Reduction Strategy for Block Area? A. Targeting: “Outline for Poverty Alleviation and Development in China's Rural Areas” (2011-2020) By 2020, the target groups of Poverty Alleviation will be guaranteed: Adequate food and clothing Compulsory education Basic medical care Housing Raising the growth rate of net per capita income of farmers in poor areas above the national average level Equalisation of major indicators of basic public services on rural and national average level Reversing the trend of the widening development gap 28.03.2017 Source: LGOP exhibition

B. Guidelines: Targets and Scope of work Guidelines of Work Population below poverty line Bloc Areas with special difficulties Key counties Poor villages Guidelines of Work Poverty alleviation through development Social security, provision of basic clothing and food Basic Principles Government led & multi-level governance Defining priorities & specific guidance Coordination & cooperation between ministries & departments Self-reliance & hard work Social support & common prosperity Holistic approach & scientific development Reform, innovation & increasing openness Major Intervention Areas Basic farmland and irrigation Industries with specialised local products Drinking water safety Electricity Traffic Renovation of houses in poor conditions Education Healthcare Public culture Social security Population and family planning Forestry and ecology 28.03.2017 Source: LGOP exhibition

Map of Concentrated Zones of Poverty with Special Characteristics (14)

C. Combine Regional Development and Poverty Reduction in Block Areas: Reducing regional disparity, supporting structurally weak areas Narrowing the rural-urban income gap Rational division of economic and ecological functions Ensuring strategic land use and gradual urbanisation Achieving economic transition and sustainable growth Poverty Alleviation Eradicating absolute poverty by 2020 Reducing relative poverty, improving the livelihoods of the rural population Per capita income of poor areas growing faster than national average Raising standards of public services in poor areas to the national average Reverse trend of widening income gaps Block Area Development

State Development Strategy: More Fund, Special Policy, etc. D. Plan, Implementation and Management: State Development Strategy: More Fund, Special Policy, etc. Plan for Block Area: Approved by State Council, Developed by NDRC and LGOP. Coordinating by LGOP. Province Takes all Responsibilities for its Block Area Poverty Reduction. County Response for Implementation. Target Group Participatory.

4. What can we Learn from Wuling Mountain Area---One of Block Area 4.What can we Learn from Wuling Mountain Area---One of Block Area? (Based on the Poverty Reduction Strategy Study on WuLing Mountain Area,Co-organized by LGOP and GIZ) ----Location and borders. ----71 counties. ----17.18 Square Kilometers. ----36.45M, Population,(37.92M in Rural)

Topographic situation Average altitude: ~500-1200m 28.03.2017 Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

Ethnic background ~84.3% ethnic minorities 28.03.2017 Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

Level of education 28.03.2017 Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

Per capita GDP (2009) 28.03.2017 Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

Poverty incidence rate (2009) 28.03.2017 Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

Fragile ecological environment Lack of land resources Challenges Fragile ecological environment Lack of land resources Remoteness, weak infrastructure Weak economic basis Lack of public facilities and services Lack of human resources Lack of investment and financial transfers 28.03.2017

5.How to Meet the Challenges? Coordination on Central Government level. Multi-level and cross-border governance. Special Fund, Policy, Mechanism. Knowledge, Human Resources and Capacity Development. Participatory. Monitoring, Evaluation and Reporting. International Cooperation.

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