Ifad In China Seminar South South 2009
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Transcript of Ifad In China Seminar South South 2009
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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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ASI AND THE PACIFIC
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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ASI AND THE PACIFIC
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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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 !