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ASIA AND THE PACIFIC

Making a difference

IFAD in PR ChinaIFAD in PR ChinaSouth – South CooperationSouth – South Cooperation

23 September 2009Beijing, PR China

Thomas Rath, Country Program Manager, IFAD

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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!!!

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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

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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

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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

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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

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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

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ASI AND THE PACIFIC

Poverty and Challenges

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

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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

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ASI AND THE PACIFIC

IFAD in China

Integrated rural development Integrated rural development projectsprojects

Agricultural developmentAgricultural developmentInfrastructureInfrastructure

Non-farm income generating activitiesNon-farm income generating activitiesHealth & educationHealth & educationGender Gender Rural FinanceRural FinanceProject ManagementProject Management

Integrated Rural Development Projects (1981 -2005)

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ASI AND THE PACIFIC

Rural poverty in China

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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 benefitedAbsolute Poverty fell from 48 – 11%Sharp increase in income, assets and social capital

Example 2: Qingling Mountain Areas PAP:1.292 million people benefitedAbsolute poverty reduced from 19 to 7% (Hubei) and 46 to

11% (Hubei)Sharp Increase in income ,assets and social capital

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IFAD – COSOP (since 2005)

Focus on ACCESS and INNOVATION in six strategic areas:

1. Micro-finance and micro-enterprise development2. Organic and niche product farming and marketing3. Marketing4. Gender5. Technology transfer:6. Sustainable natural resources management7. Strategy design

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Elements of project design

1. COSOP aligned with government priorities2. Based on domestic project proposal3. Large counterpart financing (IFAD – GOC:

1:1.2)4. Focus on access and innovations5. Modular approach 6. VIG & VDP7. Focus on poverty targeting increasingly

important – fine tuning of project targeting8. Gender mainstreaming - focal point

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ASI AND THE PACIFIC

Elements of project design

9. Scouting for innovations10.Support to farmer cooperative for

production and marketing11.Technical envoy12.Biogas & solar energy13.Greenhouse production14.Microfinance15.VDF16.…

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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 !