Revitalizing rural China: What lessons can be learned from international experiences?
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Shenggen Fan, China Development Forum March 24, 2018
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Revitalizing rural China: What lessons can be learned from international experiences?
- 1. Shenggen Fan, March 2018 Shenggen Fan | Director General International Food Policy Research Institute China Development Forum 2018 Beijing, China | March 24, 2018 REVITALIZATION RURAL CHINA: WHAT LESSONS CAN BE LEARNED FROM INTERNATIONAL EXPERIENCES?
- 2. Despite impressive progress, challenges remain in China, especially in rural areas 0 20 40 60 80 100 1981 1987 1993 1999 2005 2010 2012 Population under poverty (%, PPP$1.90/day) National Rural Urban 12.1 3.4 0 10 20 30 40 1990 1995 2000 2005 2010 Rural Urban Stunting in children <5 years, 1990-2010 (%)
- 3. Shenggen Fan, March 2018 Learning from others: East Asia Improving living conditions of rural areas Korea’s New Village Movement ‒ Improves infrastructure in rural area, bringing modernized facilities such as irrigation systems, bridges and roads in rural communities (Korean Ministry of Agriculture and Forestry 2012) ‒ Empowers villages, highlighting importance of self-governance and cooperation Revitalizing rural areas in Japan ‒ Rural-urban linkages are key in addition to rural infrastructure projects and direct payments ‒ Mandatory Social Long-Term Care Insurance provides services to seniors based on physical and mental status (Muramatsu and Akiyama 2011) Photo sources: CEFIA, Korea; MAFF, Japan How to promote rural areas without heavy government subsidies?
- 4. Shenggen Fan, March 2018 Learning from others: European Union Converting subsidies to rural development support • Shifted product/price support to income support and direct payments (1st Pillar) – Further reforms linked payments to food safety, environmental protection, and sustainable agriculture • Set up special fund to support rural areas (2nd Pillar) • New policies introduce better targeted, more equitable safety net and strengthened rural development – E.g. Green direct payments rewarding farmers for eco-friendly practices, support for investments beneficial to the environment and climate Source: European Commission
- 5. Shenggen Fan, March 2018 • Rural economic sectors increasingly capital-intensive, leading to fewer jobs and skills mismatch – Lack of investment in infrastructure, limited access to finance, training, and education, rural youth/brain drain • Identifying issues with Rural Prosperity Task Force and proposing new investments – US $1.5 trillion investment package, including broadband connectivity for rural areas • New technologies and work modalities can revitalize rural areas – E-commerce, telework offer business and development opportunities Learning from others: United States Keeping rural towns connected Source: Duncan 2012
- 6. Shenggen Fan, March 2018 Learning from others: Thailand Developing niche products and empowering rural areas • Promoting accessible, rural-based initiatives to reduce poverty, e.g. – Organic rice farming, handicraft production, and rural tourism • One Tambon One Product (OTOP) – Government initiative to spark local product and provide alternative incomes for poor farmers • Community Work Accreditation Scheme (CWAS) – Decentralizes decision making and supports sustainable agriculture by building local capacity to develop development projects • AND continued support to vulnerable communities through, e.g. village health volunteers Source: Moore and Donaldson, 2016; Kelly et al. 2012
- 7. Shenggen Fan, March 2018 Lessons for China • Address environmental issues in wealthier rural areas – Behavior change, collective action, and education on environment-health linkages are needed • Fix the fundamentals in poorer rural areas – Improve access to quality education, upgrade infrastructure, and facilitate migration • Empower and motivate rural villagers and communities – Promote local, niche products for nutritious, healthy foods from rural areas • Reform subsidy policies – Convert production subsidies to income support or to improve livelihoods and the environment • Strengthen rural-urban linkages (Global Food Policy Report 2017) – Improve physical connections (e.g. rail), value chains, and broadband access • Integrate agriculture and rural development strategy, policy, and investment – Good to change Ministry of Agriculture to Ministry of Agriculture and Rural Affairs—should do the same at provincial and county levels
Editor's Notes
- Photo: https://www.flickr.com/photos/worldbank/8249939579/
- French countryside
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- OTOP is a micro-development initiative implemented by the Thai national government, based on the Japanese One Village One Product scheme. Under this policy, local producers can register their products with a government agency. Each OTOP producer is rated anywhere between 1–5 stars depending on product marketability, production capacity, and potential for creating spillovers within the local economy. Importantly, to achieve a high rating, producers must demonstrate their distinct provincial identity, use of indigenous knowledge and local wisdom, use of local raw materials and labor, contribution to knowledge transformation and diffusion in the community, and commitment to preserving local culture and traditions. Each of these can potentially reduce poverty.