ASIA AND THE PACIFIC Making a difference IFAD in PR China South – South Cooperation 23 September 2009 Beijing, PR China Thomas Rath, Country Program Manager, IFAD

ASI AND THE PACIFIC Rural poverty in China China achieved an unparalleled success in poverty reduction National poverty line: Down from 65 (1981) to 10% (2004): 652 – 101 million people - national poverty line). 2007: 43 million people World: poverty declined by 500 million people!!!

China achieved an unparalleled success in poverty reduction

National poverty line: Down from 65 (1981) to 10% (2004): 652 – 101 million people - national poverty line).

2007: 43 million people

World: poverty declined by 500 million people!!!

ASI AND THE PACIFIC Government Initiatives for Poverty Reduction and Development Household Responsibility System (early 1980s) Area based National Poverty reduction and Development programs (1986-1993) 8-7 Poverty Reduction Plan (1994 -2000) New Century Poverty Reduction Strategy (2001-2010) Western Region development strategy (2000) Restructuring of poverty alleviation instruments Development of the urban & rural social security system

Household Responsibility System (early 1980s)

Area based National Poverty reduction and Development programs (1986-1993)

8-7 Poverty Reduction Plan (1994 -2000)

New Century Poverty Reduction Strategy (2001-2010)

Western Region development strategy (2000)

Restructuring of poverty alleviation instruments

Development of the urban & rural social security system

ASI AND THE PACIFIC Government Strategies for Rural Poverty Reduction Infrastructure Capacity building Environmental protection Crop / livestock development Poverty alleviation loans – microfinance Enterprise development Decentralised planning and implementation Strengthening institutions Targeting: from county targeting to poor village targeting within poor counties, participatory VDP

Infrastructure

Capacity building

Environmental protection

Crop / livestock development

Poverty alleviation loans – microfinance

Enterprise development

Decentralised planning and implementation

Strengthening institutions

Targeting: from county targeting to poor village targeting within poor counties, participatory VDP

ASI AND THE PACIFIC Social Situation Population growth kept currently at 0.7 % Life expectancy grew from 61 (in 1970) to 71 yrs (in 2002) Declining maternal mortality High , but unbalanced male/female school enrolment Impaired male/female birth rate (i.e. 116.9) 75% of population has access to safe water (71% in 1990) HIV/AIDS incidence is increasing

Population growth kept currently at 0.7 %

Life expectancy grew from 61 (in 1970) to 71 yrs (in 2002)

Declining maternal mortality

High , but unbalanced male/female school enrolment

Impaired male/female birth rate (i.e. 116.9)

75% of population has access to safe water (71% in 1990)

HIV/AIDS incidence is increasing

ASI AND THE PACIFIC Macro-Economic Situation Unparalleled and continued economic growth since 1978 GDP per capita rose from RMB 729 (in 1979) to over RMB 14,000 (in 2008) Shift from central planning to market oriented economy Shift from agriculture to manufacturing & services Inflation under control Very high foreign exchange reserves

Unparalleled and continued economic growth since 1978

GDP per capita rose from RMB 729 (in 1979) to over RMB 14,000 (in 2008)

Shift from central planning to market oriented economy

Shift from agriculture to manufacturing & services

Inflation under control

Very high foreign exchange reserves

ASI AND THE PACIFIC Rural Poverty in China 99 % China’s poor live in rural areas Most of rural poor live in remote, resources-scarce regions of Western and Central China Most poor include vulnerable groups that live in remote mountainous rural areas, with high incidence of ethnic minorities

99 % China’s poor live in rural areas

Most of rural poor live in remote, resources-scarce regions of Western and Central China

Most poor include vulnerable groups that live in remote mountainous rural areas, with high incidence of ethnic minorities

ASI AND THE PACIFIC Poverty and Challenges - Slow down in poverty reduction - Continued vulnerability - Inequalities (GINI at 0.44) - Unbalanced regional growth and disparities in - rural/urban development - Local disparities - Out migration and feminisation of agriculture - Persistent gender inequality ( despite well developed legal framework)

ASI AND THE PACIFIC IFAD in China Since 1981, IFAD has provided 23 loans for rural development projects. Total financing volume ca. USD 587 million. Current financing: USD 190 million 9 projects (= 7 loans) 12 Grants

Since 1981, IFAD has provided 23 loans for rural development projects.

Total financing volume ca. USD 587 million.

Current financing: USD 190 million

9 projects (= 7 loans)

12 Grants

ASI AND THE PACIFIC IFAD in China

Integrated rural development projects Agricultural development Infrastructure Non-farm income generating activities Health & education Gender Rural Finance Project Management Integrated Rural Development Projects (1981 -2005)

Agricultural development

Infrastructure

Non-farm income generating activities

Health & education

Gender

Rural Finance

Project Management

ASI AND THE PACIFIC Rural poverty in China

ASI AND THE PACIFIC Results & Impact of GOC-IFAD funded projects by 2006 : ca. 15 million people were lifted out of poverty Example 1 : West Guangxi PAP: 896 000 people benefited Absolute Poverty fell from 48 – 11% Sharp increase in income, assets and social capital Example 2 : Qingling Mountain Areas PAP: 1.292 million people benefited Absolute poverty reduced from 19 to 7% (Hubei) and 46 to 11% (Hubei) Sharp Increase in income ,assets and social capital

ASI AND THE PACIFIC IFAD – COSOP (since 2005) Focus on ACCESS and INNOVATION in six strategic areas: Micro-finance and micro-enterprise development Organic and niche product farming and marketing Marketing Gender Technology transfer : Sustainable natural resources management Strategy design

Focus on ACCESS and INNOVATION in six strategic areas:

Micro-finance and micro-enterprise development

Organic and niche product farming and marketing

Marketing

Gender

Technology transfer :

Sustainable natural resources management

Strategy design

ASI AND THE PACIFIC Elements of project design COSOP aligned with government priorities Based on domestic project proposal Large counterpart financing (IFAD – GOC: 1:1.2) Focus on access and innovations Modular approach VIG & VDP Focus on poverty targeting increasingly important – fine tuning of project targeting Gender mainstreaming - focal point

COSOP aligned with government priorities

Based on domestic project proposal

Large counterpart financing (IFAD – GOC: 1:1.2)

Focus on access and innovations

Modular approach

VIG & VDP

Focus on poverty targeting increasingly important – fine tuning of project targeting

Gender mainstreaming - focal point

ASI AND THE PACIFIC Elements of project design Scouting for innovations Support to farmer cooperative for production and marketing Technical envoy Biogas & solar energy Greenhouse production Microfinance VDF …

Scouting for innovations

Support to farmer cooperative for production and marketing

Technical envoy

Biogas & solar energy

Greenhouse production

Microfinance

VDF

…

ASI AND THE PACIFIC Project Implementation China based in-country team: - Training on logframe, AWPB, Proc plan, M&E and RIMS - Direct supervision occurs 2 times annually - Knowledge management

China based in-country team:

- Training on logframe, AWPB, Proc plan, M&E and RIMS

- Direct supervision occurs 2 times annually

- Knowledge management

THANK YOU Thank you !