Ifad In China Seminar South South 2009

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!!!

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

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

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

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

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

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

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)

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

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

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
…

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

THANK YOU Thank you !

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Ifad In China Seminar South South 2009

by IFAD International Fund for Agricultural Development on Sep 24, 2009

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