Pro-Poor Urban Development: China and Africa Workshop - "Affordable Housing Finance in Africa", Jiang Wu - Transport Infrustructure & Poverty Reduction, 07/30/2012 http://urban-africa-china.angonet.org/

1. , Prof. Jianhong Wu
Transport Infrastructure Development and Its
Role for Poverty Alleviation in China
Pro-Poor Urban Development:
China and Africa Workshop
Nairobi, 30th July – 1
st
August 2012

2. Main Content
1. Outline of Transport Infrastructure Development
(TID) in China since 1980
2. The Mechanism between TID, Economic Growth
and Poverty Alleviation in General in China
3. International Study Summarized by ADB
4. China Experience and Case Study
5. Identify Opportunity and Future Cooperation
African Students in BJTU

3. 1.
Outline of Transport
Infrastructure Development (TID) in
China since 1980

4. TID, GDP Growth and Poverty Reduction in China
Unit
Item
1980
1990
2000
2010
Annul
increase
rate
Km
Road
888,300
1,028,30
0
1,402,70
0
4,008,20
0
4.98%
Km
Include ： Expressway
0
5,220
16,300
74,100
13.47%
Km
Railway
49,900
53,400
68,700
91,200
1.96%
Km
Include ： High Speed Line
4,200
Airport
110
175
Billion CNY
Total investment of transport infra.
5.776
19.555
293.149
2603.79
21.79%
Billion CNY
GDP
454.56
1866.78
9921.46
40120.2
15.55%
GDP per capita
463
1644
7858
29992
14.40%
No. of poverty population(*)
250,000
85,000
92,400
27,000
-6.93%
CNY/person per
year
Thousand
Source:1.Statitic Year Book in China 2.Statistic Year Book of Jiaotong and in China
*: The criterion of poverty line in China has being subjected to change
Statistically
Significant?

5. 2. The Relationship between TID,
Economic Growth and Poverty
Alleviation in China

6. The Interaction between TID & Poverty Alleviation
Transport Infrastructure Investment/Development
Bring along the Related Industries
Job Creation
Drive the Growth of GDP
Accelarate the Urbanization
Income Increase
Education & Social Progress
Poverty Alleviation

7. Average Quota Consumed per 100 milliom CNY Railway Investment Input
Item
Unit
Coefficient
Labour Force
Working Day (000)
228.6
Steel
Ton (000)
3.33
Cement
Ton (000)
20
Fuel
Ton (000)
0.55
Sand
Cube Meter(000)
31.1
Stone
Cube Meter(000)
51.6
Equipment
CNY(000)
8500

8. The Spurring Effect Comparison among Rail, Road and Port
(per 100 million CNY Investment)
Item
Rail
Road
Port
Total Output Induced （ 100 mi. ）
3.1937
3.0313
3.0610
Domestic Consumed Value （ 100 mi. ）
2.9620
2.8313
2.8363
Import Induced （ 100 mi. ）
0.2317
0.2000
0.2247
The Value Added Directly Induced （ 100 mi. ）
0.9463
0.9353
0.9297
Personnel Consumption Induced （ 100 mi. ）
0.4350
0.4403
0.4337
Drive the Growth of GDP （ 100 mi. ）
1.3813
1.3757
1.3633
Job Creation （ 10,000 ）
0.2260
0.2457
0.2310

9. 3. International Studies
Summarized by ADB

10. Infrastructure as an Engine of Growth and Poverty Reduction?
•
•
•
The impacts of one type of infrastructure (e.g., roads) on economic
development and poverty reduction can be significantly enhanced by
coordinated investments in complementary infrastructure (e.g., power).
And unless the initial infrastructure investments is properly operated,
the poverty and development benefits will soon vanish.
R. Ahmed and M. Hossain (1990) found that infrastructure
development increased agricultural production by 32%, and increased
household incomes by 33% in Bangladesh. In addition, they found
such investments to be pro-poor since the landless and smallholder
farmers garnered a larger share of incomes from better infrastructure.
S. Fan (1999) found in India the government expenditures on roads
had the largest impact on poverty reduction, as well as having a
significant impact on productivity growth.

11. Impact of Public Investment in Poverty Reduction in China

12. Infrastructure as an Engine of Growth and Poverty Reduction?
•
•
•
At the same time, countries with underdeveloped infrastructure see no
statistically significant impact of infrastructure investment on growth. In
other words, not only can a lack of infrastructure be an impediment to
more investment, but it can also be one of the dimensions of the socalled "poverty trap,"
There are critical and interlinked infrastructure threshold levels that
have to be reached before one can trace the growth and poverty
reduction impacts of infrastructure investments. For example, most
African countries have yet to reach such infrastructure threshold levels.
Institutional capacity constraints and infrastructure market distortions
raise those threshold levels even further.
Esfahani and Ramirez estimated that had Africa had East Asia’s growth
rate in telephones per capita (5% in Africa versus 10% in East Asia)
and in electricity generation (2% in Africa versus 6% in East Asia),
Africa’s per capita growth rate would have been almost 1% higher.

13. 4. China
Experience and
Case Study

14. Case Study 1:
Beijing Hong Kong Rail Project
Total Length 2283.2 km with construction
cost of 40 billion RMB
Construction Started in 1992 and completed
in 1996
There were 12 nationally designated key
poverty counties along the project area

16. Location and network connectivity of the project

17. 1000
500
0
廊
坊
沧
州
衡
水
邢
台
聊
城
济
宁
菏
泽
濮
阳
商
丘
信
阳
阜
阳
亳
州
黄
冈
九
江
南
昌
吉
安
宜
春
赣
州
河
源
惠
州
Regi onal GDP（100m
)
( CNY）
1500
Regi ons al ong t he Cor r i dor
1995
2005
The Before and After GDP Comparison
for the Regions along the Project Area

18. ith and Without Comparison for the Regional GDP
10000
GDP
8000
6000
4000
2000
0
1988
1990 1992
1994 1996
有铁路时G P（亿元）
D
1998 2000
2002 2004
2006 2008
无铁路时G P（亿元）
D
2010
时间

19. The Economic Development Level of Different Regions Vary

20. Rural Per Capita Income in Different Regions in Project Area
Province
Regions
Rural Per Capita Income in Different Counties
(CNY/person)
3482
108.63
1510
3533
133.97
1469
3280
123.28
Provincial Av.
1715
3931
129.21
Liao Cheng
1200
3448
187.33
Provincial Av
1232
2871
133.04
Pu Yang
1114
2472
121.90
Shang Qiu
980
2346
139.39
Xin Yang
1056
2707
156.34
Provincial Av
Jiangxi
1669
Xing Tai
Henan
Growth Rate （ % ）
Heng Shui
1537
3265
112.43
Jiu Jiang
1493
3269
118.96
Ji An
1445
3267
126.09
Gan Zhou
Shandon
g
After (2005)
Provincial Av.
Hebei
Before (1995)
1478
2760
86.74
1578
3255
106.27
National Av.

21. No. of Farmer Labor Working outside and Wages Earned
in the Project Area
Of which no of
Regions Labor
force （ 10, working outside
000 ）
（ 10000 ）
Mobility
rate （ %
）
Total wage
earned （ 10000
CNY ）
He Ze
398
130
32.66
-
Pu Yang
178
39
21.91
256300
Fu Yang
490
198
40.41
830000
Jiu Jiang
165
61
36.97
450000
Ji An
180
65
36.11
-
Gan Zhou
358
119
33.24
-
National
Av.
4.0

22. Case Study 2: Shenmu-Yanan Rail Project
Total length 386 km with construction cost
of $731.78 million
Construction was started in 1998 and
completed in 2003
The Project is located in northern Shaanxi
Province, a poor and landlocked inland
with five nationally designated key
poverty counties, Hengshan,
Mizhi,Suide Zizhou and Qingjian

23. The Location of Shenmu-Yanan Line

24. SOCIAL IMPACT AND POVERTY REDUCTION IN THE PROJECT AREA
•
•
•
•
The project provides safe, low-cost, more comfortable transport
facilities to larger markets and improved access to better employment
opportunities and social services
During 1997 and 2003, per capita incomes in the project area
increased by nearly 300%
Before the project, the percentage of the population living below the
poverty line in the project area was 22%. In 2005, it was 5%,through
the creation of more than 370,000 new jobs by the end of 2005.
GDP in Shenmu in 2000 was CNY2.3 billion and ranked 67th among
all the counties in Western China. In 2005, Shenmu’s GDP reached
CNY8 billion, placing its economy fifteenth among all counties in
Western China, and first among the counties in Shaanxi Province.

25. Case Study 3: Yichang-Wanzhou Rail Project
Total length 377 km with a construction
cost of $4,125 million
Construction started in 2004 and completed
in 2010
The project traverses eight counties and
districts in Hubei Province and
Chongqing Municipality that are
situated in a mountainous area that is
less developed and poor.

27. SOCIAL IMPACT AND POVERTY REDUCTION IN THE PROJECT AREA
• Sustainable Socioeconomic Growth (
Case Study1 YWR.xls)
• Increased Rural Income and Poverty
Reduction( Case Study1 YWR.xls)
• Improved Welfare of Local Communities (
Case Study1 YWR.xls)
• Job Creation (Case Study1 YWR.xls)
• Safe and Affordable Mobility (Case Study1 YWR.xls)
• Increased Rural Development and Reduced
Living Costs

28. The Immigration House of YWR

29. The Immigration House of YWR

30. Enshi Railway Station

31. YWR and Passengers

32. 5. Identify Opportunity and Future
Cooperation
Is China’s experience transferrable
to Africa?

33. The Cooperation in
Transport Infrastructure Development
• The Cooperation in Transport Infrastructure
Planning
• The Support on Transport Infrastructure
Investment and Operation from China

34. Is China’s experience transferrable?
• A comparable study is necessary to
understand the differences, esp. the
Africa contexts and conditions
• Lessons that should be learnt from
China’s practice, including the over
investment on high quality transport
infrastructure, such as expressway and
HSR

35. Education is Ranking No.1
for Poverty Reduction

36. Education is Ranking No.1
for Poverty Reduction
• BJTU has long history to welcome the students
and researchers from African for transport and
communication education and study in the fields of
engineering ,sciences , management and
economics
• The first 2 students from Cameron who studied in
BJTU can be traced as early as 1954
• 200 students from Tanzania and Zambia entered
BJTU in 1972 according to the Agreement made
by the Triple Government for building and
operation the Tanzania and Zambia Railways

37. Education is Ranking No.1 for Poverty Reduction
• There have been
students from more
than 20 Africa
countries studied in
BJTU since 1978
• Now there are 75
African students in
BJTU

38. Education is Ranking No.1 for Poverty Reduction
We are very proud of
having more than 1000
Africa alumni who are
all over the World!

39. Education is Ranking No.1 for Poverty Reduction

40. Education is Ranking No.1 for Poverty Reduction