INTRODUCTION

8.1 Poverty can be attributed to many factors. In addition to international, domestic, social, economic, natural and ecological causes, the irrational use of natural resources and the deterioration of the environment are important contributing factors. Eradicating poverty is one of the difficult challenges facing developing countries in their attempts to achieve sustainable development. It is a responsibility that the governments of all countries should share.

8.2 For poverty-stricken areas, eradicating poverty and achieving sustainable development are two sides of the same coin. Without eradicating poverty, it will be difficult to sustain development. Without improving the infrastructure in poor areas, without raising the competence levels of the population, without improving the environment and without sustainable use of resources, it will be impossible to root out the basis sources of poverty.

8.3 Over the past 40 years, China's efforts to eradicate poverty have been part of a global campaign against poverty. Remarkable results have been achieved through painstaking work. This chapter focuses on the Chinese Government's policies formulated for eradicating poverty, the measures taken and efforts expended, and on the objectives and associated priorities at the end of this century and during the beginning of the next. This chapter is closely linked with Chapters 4, "Economic Policies for Sustainable Development"; 11, "Sustainable Agriculture and Rural Development"; 12, "Sustainable Development of Industry, Transportation and Communications"; 13, "Sustainable Energy Production and Consumption"; 14, "Conservation and Sustainable Use of Natural Resources"; 16, "Combating Desertification" and 17, "Disaster Mitigation".

8.4 There is one program area in this chapter:

PROGRAM AREA

A. Eradication of Poverty

Basis for Action

8.5 The distribution of China's impoverished population is basically regional. It is estimated that at the end of 1992, there were still 80 million people (8.8 % of the total rural population) who did not have adequate food, clothing and shelter. Most of this population lives in 18 contiguous poverty-stricken areas located in central and western China. These areas typically are areas of remote mountains, rocky hills, bitter coldness, loess plateaus and a high frequency of endemic illnesses. Common features of the areas include remoteness, poor accessibility, ecological imbalances, poor natural conditions, backward means of production, low grain yields, limited resources for subsistence, few sources of income, poor employment opportunities, lack of information, and a low educational level amongst farming families. Of these, the most extremely impoverished areas can be divided into two major belts. One belt is known as the "three Xis" (Hexi and Dingxi in the middle of Gansu Province and Xihaigu in the south of Ningxia Hui Nationality Autonomous Region), an area of 380 thousand square kilometers of loess plateau. This area has sparse vegetation and suffers from severe desertification and soil erosion. It has a low water table and suffers from severe drought. The other belt is an area 450 thousand square kilometers of karst terrain at the juncture of Yunnan, Guangxi and Guizhou Provinces. Many years of the excessive opening up new land to cultivation has resulted in serious damage to vegetation, the exposing of rocks and stones, rapid drainage, the fast evaporation of precipitation and a poor capacity for preserving soil moisture. The ecological reasons for impoverishment in both of these areas include: an overcrowded population has exhausted the bearing capacity of the natural environment and has caused environmental conditions to go from bad to worse; and extreme shortages of water, insufficient water conservancy facilities, serious drought, low and unstable agricultural yields and a shortage of drinking water.

8.6 Eradicating poverty and famine and promoting the equal distribution of social wealth and resources are important challenges and responsibilities facing the international community and the governments of all countries. In China, the fundamental objective for encouraging economic development, reform and openness and the acceleration of social development is to engender a common prosperity. To achieve this, the Chinese Government has adopted a strategy with two components: one component is to allow and encourage some areas and some people to become rich first, so as to accelerate the pace of economic development and the accumulation of social wealth; and the other component is to implement more vigorously policies for eradicating poverty by encouraging rich areas to assist impoverished ones in eradicating poverty as quickly as possible, and eventually reaching the goal of a common prosperity.

8.7 The Chinese Government has made untiring efforts to meet the basic needs of its people, particularly their demands for food, clothing and shelter. Since the 1980s, a series of reform and poverty alleviation policies and measures have been adopted, including:

(a) Changing simple and individual poverty alleviation efforts into economic development oriented poverty alleviation;

(b) Stressing a shift in the distribution of poverty alleviation funds from a per capita basis to distribution related to programs and benefits;

(c) Utilization of science and technology in poverty alleviation work and the introduction of suitable technology into poverty stricken areas;

(d) For poverty alleviation, shifting the dependence on government as the sole source of financial support to relying primarily on financial and other economic organizations;

(e) Changing from only providing funds to providing funds, technological materials, and training as appropriate;

(f) Establish special organizations dedicated to poverty alleviation, focused on areas which are most seriously impoverished and increase investment in these areas;

(g) Mobilize the participation of the whole society in poverty alleviation, encourage contributions by matching institutions, and exchanges of personnel, and make use of science and technology in poverty alleviation.

8.8 The Chinese Government has achieved remarkable results in eradicating poverty. The impoverished population has been reduced from 250 million in 1978 to 80 million in 1992. However, there is still a long way to go in terms of eradicating poverty. Meeting basic needs has meant only solving problems of food, clothing and shelter in a very basic and uncertain way. The current standard of 300 yuan per person per annum can meet only minimum requirements for subsistence and basic production. Without adjustments in the conditions for production, each year about 20-30% of households would find themselves once more without adequate food and shelter.

8.9 The establishment of a socialist market economic system has provided new development opportunities, which include opportunities for optimizing the use of productive elements in poverty- stricken areas, for the development of natural resources, for industrial restructuring, for increasing employment opportunities and for improving macro-economic conditions. However, there will be some unfavorable impacts, such as:

(a) The movement of funds, materials and people from poverty-stricken areas into large and medium-sized cities and developed areas;

(b) Difficulties associated with rising costs for purchased food and for acquiring the means of production in poverty-stricken areas;

(c) A change to a market economy has resulted in trade conditions which do not favor disadvantaged areas, owing to their lack of competitiveness, and the poor quality and high cost of their goods;

(d) Difficulties for impoverished households in acquiring loans through normal channels; new poverty resulting from a failure to be competitive in the marketplace;

(e) There will be an intensified, blind exploitation of natural resources in poverty-stricken areas driven by market forces. As a result, fragile environments will suffer more damage.

8.10 Although the Chinese Government allocates over 4.5 billion yuan in annual funding for poverty alleviation, the amount is still rather low given the size of it impoverished population. Because of this, a search for more support and assistance from the international community will be an important component in poverty eradicating efforts in China.

Objectives

8.11 The National Plan, "Plan Ba Qi", which seeks to meet the basic needs of 80 million impoverished people for food, clothing and shelter, will be implemented. Detailed objectives are as follows:

(a) Create basic conditions for the steady supply of food, clothing and shelter, for the effective and rational utilization of natural resources and for the creation of new opportunities for employment for poor households;

(b) Basically popularize compulsory primary education and eliminate illiteracy amongst young and middle-aged people, vigorously develop vocational and adult education to provide the newly- increased rural labors with essential vocational training prior to employment;

(c) Control population growth below the national limitation levels, establish a sound medical care system and prevent and reduce the incidence of endemic diseases;

(d) Build highways to all poor townships and villages where markets are located; electricity will be available for most of the poor townships and villages. In order to strengthen information dissemination, widen broadcasting and television coverage to townships and villages with a power supply;

(e) Ensure an adequate supply of potable water and of firewood and attempt to reverse the continuous degradation of the environment in poor areas.

8.12 The basic objectives for the beginning of the 21st century are:

(a) Consolidate achievements in meeting the basic needs of the population, create conditions for sustainable development, improve the environment, strengthen infrastructures and encourage poor areas to embark on the road to sustainable development;

(b) Guide and help farmers to take advantage of local resources and develop high value-added products and contaminant-free, green food that will meet market requirements;

(c) Organize large-scale, specialized cooperative operations; develop regional industries; establish poverty-alleviating economic bodies which integrate trade, industry and agriculture with distribution networks; establish competitive township and village enterprises.

Activities

8.13 Implement a series of effective poverty alleviation policies and measures, including:

(a) Emphasize cultivation, animal husbandry and food processing undertakings which require low investment and produce quick and effective results, and which directly help to meet the basic needs of an impoverished population. Establish development-oriented and labor intensive township industries which will take full advantage of local resources;

(b) Encourage the labor force to find opportunities to participate in the development in other areas. Further encourage the planned and organized movement of labor to take advantage of the combination of workforce potential in poor areas and abundant employment opportunities in coastal developed areas and in large and medium-sized cities. Strengthen the coalition between the eastern and western parts of the country in order to promote the development of poverty- stricken areas. Organize the transfer of people from some hilly villages without subsistence conditions to the places with a potential for development;

(c) Increase the investment of funds and materials in poverty-stricken areas. Financial loans for poverty alleviation will not have to be repaid until the end of this century. The special construction fund for the development of the "three Xis" will not be adjusted within the defined period of time. Increase investment in poverty-stricken areas as the financial situation improves;

(d) Improve environmental, basic production and living conditions. Formulate long-term plans and policies integrating poverty eradicating activities and sustainable development activities based on their own specific environmental and natural conditions;

(e) Mobilize the participation of the whole society in poverty alleviation activities. Ministries and departments concerned should play their respective roles in helping free impoverished areas from poverty;

(f) Continue the policy of the government paying labor costs in public works projects to assist poverty-stricken areas in building their infrastructures.

8.14 Improve infrastructures and management. China has already established a relatively complete management system to smooth the way for the work of poverty alleviation. In 1986, a Steering Group on Economic Development in Poverty-stricken Areas was established under the State Council. The terms of reference for the Steering Group are to formulate policies, regulations and plans for sustainable development in poverty-stricken areas, for poverty alleviation and for coordinating the solving of major problems. Under this steering group, an executive office was set up to deal with related routine work. There are similar agencies of its kind in the provinces, autonomous regions, prefectures, cities and counties where poverty is most widespread.

8.15 Strengthen the capabilities of people in poverty-stricken areas. In the future, the focus of poverty alleviation activities will be based upon the utilization of scientific and technological advances and upon improving the quality of the labour force. Main activities will include:

(a) Adopt more effective policies and measures to raise people's levels of competence in poverty- stricken areas; gradually popularize primary and junior middle schools in a planned way; by the end of this century, 5-6 year primary school education should be launched in comparatively poverty-stricken areas, and 4-year primary school education should be popularized in extremely poverty-stricken areas; special attention will be paid to the reform of the model of junior middle schools and to timely inclusion of vocational education to promote the combination of agriculture, science, and education;

(b) Adopt preferential policies aimed at improving knowledge and the use of science and technology in poor areas; implement poverty alleviation plans and to utilize scientific and technological advances in poverty alleviation and sustainable development;

(c) Help women and children free themselves from poverty by protecting their legitimate rights to receive education and to participate in decision-making.

8.16 Effectively implement Priority Programs established for poverty alleviation and to encourage sustainable development. Much work has to be done in these fields. Based on current domestic economic strengths and possibilities for international cooperation, priorities should be in the following four areas:

(a) Poverty eradication programs for extremely impoverished areas such as arid loess plateaus and west Karst terrain areas. There are three approaches in addressing the basic needs of the people in these two areas. The first approach is that rural people should be encouraged through the use of pilot projects and technical demonstrations, to alter their reliance upon agriculture and their predatory production practices, to alter their production base, to take advantage of special resources and to increase their sources of income. The second approach is that ecologically- sound economic development zones and industries should be established and developed in nearby areas where there are similar customs and where water and land resources and the environmental conditions are relatively good. Employment opportunities should be created there to encourage immigration on a voluntary basis so as to alleviate the pressure of overcrowding on the environment. The third approach is to construct water conservancy facilities and increase the supply of potable water for humans and animals and water for irrigation;

(b) Demonstration projects for poverty alleviation and sustainable development. In poverty- stricken areas, develop planning and pilot projects for sustainable development; according to specific conditions in different poverty-stricken areas, three representative places should be chosen to demonstrate the combination of poverty alleviation and sustainable development; encourage the comprehensive and integrated management of water and soil conservancy, the prevention of landslides in hilly areas, afforestation, the fight against desertification, the building of fields, the comprehensive management of small river basins, improvements in transportation conditions, family planning, the prevention of endemic diseases and improvements in the scientific, technological and educational levels of rural families;

(c) Development of a poverty alleviation information network. At present, China is behind in its collection and analysis of poverty alleviation statistics and cannot satisfy the requirements needed for poverty alleviation and sustainable development. Therefore, the establishment of a poverty alleviation information network should be a priority;

(d) Improve the educational levels and improve medical care for women and children. This will include a project aimed at ensuring six years of primary education for 15 million children in poverty-stricken areas and a project which will help reduce infant mortality and the incidence of diseases amongst children and women.

8.17 Areas for international cooperation will include:

(a) Formulating Priority Programs for poverty eradication and sustainable development, defining action plans for sustainable development and seeking necessary funding, material and technological assistance from the international community;

(b) Becoming involved in international technological cooperation and exchanges, including training in poverty alleviation;

(c) In cooperation with the World Bank, promoting the implementation of poverty alleviation programs in the southwest part of China and seeking more international assistance and support.