Dr.HuangChengwei(Director General, National Training Center

for Officials in Poor Areas, China)

2011.10.13,Brussels

China: Poverty Reduction Strategy

for Block Area

1. Background2. Why do we need Poverty

Reduction Strategy for Block Area?

3. What are Poverty Reduction Strategy for Block Area?

4. What can we Learn from Wuling Mountain Area---One of Block Area?

5. 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.

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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.

Increasing inequality:

GD

P s

hare

of

main

reg

ion

s in

%

Source: National Bureau of Statistics China

Per capita income 1980-2010:

10.04.23Source: National Bureau of Statistics China

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Sources of regional disparities:

Source: National Bureau of Statistics China

Striking a balance between the regionsChina’s regional division (11th FYP):

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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.

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.

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.

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.

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.

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

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.

101010

Income gap expands, and relative poverty is prominent

2.Why do we Need Poverty Reduction Strategy for Block Area?

集中 = concen-trated

连片 = closely

grouped

What is ‘Block Area Development’?

---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 AreasPoor

counties

East 2 32

Middle 7 206

West 9 172

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---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

Source: National Bureau of Statistics China

2000

Disparities between urban and rural areas keep increasing.

---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 Alleviationand 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.

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592 national poor counties

Source: LGOP

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• 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.

Poor!

Source: Wang Guoliang in Enshi meeting

Selection Criterias for Block Area:

Tibetan Area Outside TAR

Qinba Mountain Area

Wuling Mountain Area

11 Plus 3 Block Areas:

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South of Xinjiang

Tibetan Autonomous Region

West of YunnanMountain Area

Wumeng Mountain Area

Luoxiao Mountain Area

Dabie Mountain Area

Lvliang Mountain Area

Yan- Taihang Mountain Area

Greater Hinggan Mountain Area

Liupan Mountain Area

Stone Desertification Area

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High residual poverty

Poverty counties (1994)*

Richest counties (1994)*

* Most recent county map not available

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Ecological fragility (Ecological Function Areas)

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Ecological fragility (Vulnerability)

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Large minority population

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Cross provincial boundaries

3.What are Poverty Reduction Strategy for Block Area?

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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

A. Targeting: “Outline for Poverty Alleviation and Development in China's Rural Areas” (2011-2020)

Source: LGOP exhibition

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B. Guidelines:

Source: LGOP exhibition

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

Block Area Development

C. Combine Regional Development and Poverty Reduction in Block Areas:

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.

D. Plan, Implementation and Management:

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)

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Topographic situation

Average altitude: ~500-1200m

Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

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Ethnic background

Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

~84.3% ethnic minorities

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Level of education

Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

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Per capita GDP (2009)

Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

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Poverty incidence rate (2009)

Source: Baseline Study on Poverty Alleviation in Wuling Mountain Area

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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

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.

THANK YOU!THANK YOU!