Opening Ceremony Speaker 2: Mr. Duan Yingbi,President of China Poverty Foundation Title : China s Agriculture, Food Security and Rural Development: Key Policies to Promote Growth and Poverty Reduction Language: English
Key Policies to Promote Growth and Poverty Reduction Duan Yingbi President, China Foundation for Poverty Alleviation April 13, 2010
Foreword: Why China has made such remarkable achievements As is known to all, China witnessed rapid development and reform in the 1980s China ranks third in the world in terms of its economic aggregate Rank Top 10 GDP Powers (2008) Country GDP Proportio n to the world s total (%) World 601155 100 1 U.S. 142043 23.6 2 Japan 49093 8.2 3 China 38600 6.4 4 Germany 36528 6.1 5 France 28531 4.7 6 U.K. 26456 4.4 7 Italy 22930 3.8 8 Brazil 16125 2.7 9 Russia 16078 2.7 10 Spain 16042 2.7
Foreword: Why China has made such remarkable achievements (continued) Benefit from the agricultural development No such achievement would be accomplished, had there not been agricultural development. People often ignore this factor when summarizing the Chinese experience. The basic conditions for agricultural production have been constantly improved.
I. Overview of China s Agricultural and Rural Development Total population: 1.32 billion Percentage of the rural population: 55% Total land area: 9.6 million sq. km. Arable land: 120 million ha. (by late 2007) HDI: 99 Administrative levels Central Province, Autonomous Region and Municipality Directly under the Central Government 34 Municipality 333 County 2,859 Village and Township 40,813
1. Agricultural Production & Major Farm Produce Rice production has increased from 113 million tons in 1949 to 529 million tons in 2008.
Production of major farm produce including rice, cotton, oil, mean, milk and eggs. Production of Major Farm Produce Unit:10,000 tons 60000 50000 45706 50160 40000 30000 20000 2002 2007 10000 0 Rice 2897 Oil 2569 762 492 Cotton Meat 6866 6234 3633 2529 1400 2266 Milk Eggs
2. Living Standard of Farmers Farmers income has been constantly rising. Disposable Personal Income (DPI) of Urban Residents Unit: Yuan Net Income of Rural Residents
Farmers income in the national key counties of poverty alleviation and development 1989-2008, the per capita net income of farmers in the national key counties of poverty alleviation and development has increased from 303 yuan to 2,611 yuan. Particularly from 2003 to 2007, the per capita net income of farmers in the key counties has increased from 1,305 yuan to 2,278 yuan, at an annual growth rate of 9.04%, higher than the national average rate of 7.47% for five consecutive years.
Ownership of Durable Goods Rural Area Urban Area
3. Development of Social Services Implement the 9-year compulsory education system in rural areas on a full scale; The population participating in the new rural cooperative medical service accounts for 91.5% of the total rural population; Fully establish the system of subsistence allowances in rural areas.
Education Students Enrollment in Schools of Various Types and at Various Levels (1949-2008) Students Enrollment in General Institutions of Higher Learning (1949-2008)
Rural Schools
Health Number of Health Technicians (1949-2008) Bed in Hospitals and Health Clinics (1949-2008)
Village Health Clinics
4. Sharp Decline in the Poor Population The absolutely poverty-stricken population in rural areas has been down from 250 million in 1978 to 14.79 million in 2007, and the percentage of the absolutely poverty-stricken population to the total rural population has dropped from 30.7% to 1.6%. The low-income population has declined from 62.13 million in 2000 to 28.41 million, and the percentage of the low-income population to the total rural population has dropped from 6.7% to 3%.
Poverty-stricken Population and Poverty Incidence Changes of Chinese Poverty-stricken Population Poverty-stricken Population 10 000
II. Key Measures/Policies The policy targets of the Chinese Government has always centered on three major issues: Promote the development of agricultural production to ensure the supply of agricultural produce; Increase farmers income and improve their living standards; Maintain the stability in rural areas to create a favorable social environment. Principle: Give more, take less, and loosen control
1. Overall Policy Gradually adjust the national development strategy to make agriculture a real basis of the national economy The developing countries can only achieve the primitive accumulation through agricultural development instead of aggression. Promote agricultural development through industrial development, drive rural development by the urban prosperity, and urban-rural integration Promote industrial development through rural development Promote agricultural development through rural development Urban-rural integration
2. Specific Policies Re-establish the dominant position of farmer households as a major player in the market Restructuring Establish the supportive & protective system for agriculture and farmers Development-oriented poverty alleviation
(1) Re-establish the dominant position of farmer households as a major player in the market Household contract system Commune, collective economy members of farmer households are laborers A foundation was laid for the development of market economy Establish the dominant position of farmer households as a major player in the market through institutional reforms: implement the reform and opening up policy, abolish people s commune, the establishment of the household contract system laid the institutional foundation for the rural development. ( All-round contract pioneers)
(2) Restructuring General principle: farmers can arrange their production in line with the market needs and their own advantages Optimize the rural economic structure, with the comprehensive development of agriculture, forestry, husbandry and fisheries The foundation of agriculture has been strengthened, with a sharp increase in the farm products. China has fed a population accounting for 22% of the world s total on the amount of land and water accounting for 9% and 6% of the world s total, respectively. The basic needs for food are met. Develop the second and tertiary industries Provide a great deal of job opportunities (including vigorously develop the township and village enterprises (TVEs)), and over 200 million agricultural laborers have turned into non-agriculture ones. Create conditions for the restructuring (including converting farmland into forestry, ecoconstruction) Farmers work in the cities The children of migrant workers attend school in the cities
(3) Establish the supportive & protective system for agriculture and farmers According to the Agriculture Law, the growth of public finance for agricultural expenditure shall outpace that of the public finance expenditure itself. 8000 7000 6000 5000 4000 3000 2000 1000 0 1905 2145 2626 2975 3517 4318 5955 7161 2002 2003 2004 2005 2006 2007 2008 2009 Agricultural Fund Financed by the Central Budget (100million yuan)
A. Agricultural expenditure rural infrastructure construction 120% Rural infrastructure construction being constantly increased 2002 2008 100% 84.40% 92.8% 96.80% 87.50% 83.7% 92.90% 80% 72.2% 60% 52.4% 40% 20% 0% Road Access Power Access Telephone Broadcasting and TV
B. Reduction of agricultural tax and price protection of farm produce Tax reduction and agricultural subsidies System of trade fair minimal price C. Protective system for migrant workers Old-age pension Rural subsistence allowance system Cooperative medical service, and comprehensive management of serious diseases Compulsory education
(4) Development-oriented Poverty Alleviation Poverty alleviation institutions Poverty alleviation policies Poverty alleviation fund Due to natural and historical reasons as well as poverty: Improve the living conditions Special policies for/policies favoring the poverty-stricken areas Enhance the capacity
Poverty Alleviation Institutions State Council Leading Group of Poverty Alleviation and Development Provincial Leading Group of Poverty Alleviation and Development State Council Leading Group Office of Poverty Alleviation and Development (LGOP) Provincial LGOP Prefectural and municipal Leading Group of Poverty Alleviation and Development Prefectural and municipal LGOP County Leading Group of Poverty Alleviation and Development County LGOP Graphic Symbol: Leadership Relations Coordination Relations Special Township-level Poverty Alleviation Cadres
Poverty Alleviation Policies 1986---1993 Pioneering Period : Establish the leader institution Identify the working scope Formulate the poverty alleviation standard Arrange the special fund Accumulate experience The poverty-stricken population was down from 125 million to 75 million An average annual decrease of 6.25 million
Poverty Alleviation Policies (continued) 1994---2000 Critical Period: Implement the 8-7 National Plan for Priority Poverty Reduction Solve the subsistence problems of 80 million poverty-stricken rural population in seven years The poverty-stricken population decreased to 32.09 million An annual decrease of 6.13 million
Poverty Alleviation Policies (continued) 2001---2007 Consolidation Period: 1. Implement the Outline for Rural Poverty Alleviation and Development in China (2001---2010) Propose the low-income poverty line. 2. The 16th CPC National Congress was successfully convened. Thoroughly implement the Outlook on Scientific Development. Coordinate the urban and rural development, promote industrial development through agricultural development, and promote rural development through urban development in the principle of give more, take less, and loosen control. Fully implement the industry-nurturing-agriculture policy. The absolutely poverty-stricken population was down from 32.09 million to 14.79 million. The low-income population was down from 62.13 million to 28.41 million. The low-income poverty-stricken population was down by 3.88 million annually in the first two years. The low-income poverty-stricken population was down by 8.6 million annually in the later five years.
Poverty Alleviation Fund 1980 2008 Special poverty alleviation fund financed by the central budget added up to 172.019 billion yuan; 1980 2008 Central poverty alleviation discount loans added up to 214.342 billion yuan. 200 180 160 140 120 100 80 60 40 20 0 1986 年 1988 年 1990 年 1992 年 1994 年 1996 年 1998 年 2000 年 2002 年 2004 年 2006 年 2008 年 Growth of poverty alleviation fund financed by the central budget (1986-2009)
Development-oriented Poverty Alleviation & Self-reliance Two Implications Economic growth can facilitate the development of the poor areas, but will not automatically favor the vulnerable group; Social relief can help the aid recipients survive, but will not automatically enhance the capacity for development of the vulnerable group. Adhere to the Developmentoriented poverty alleviation guidelines Unshakable Irreplaceable
III. Prospect Issues A large urban-rural gap Difficulty: a large population with insufficient land, problems of farmers working in the cities Modernization: how to embark on modern agriculture How do we transfer most of the people to the cities How do we turn agriculture into modern agriculture
Thanks!