Sincetheprocessofreformandopening-upbeganattheendofthe1970s,Chinahasachievedastonishingresultsinthefightagainstpoverty.
NanheAgriculturalCarnivalProjectpromotesagriculturalresearchwhileservingasatouristattraction.WHATdoesbeing“poor”actuallymean,especiallyinacountrylikeChinawherethereisagrowinggapbetweentheincomesoftherichandpoor?AndhowmayChinaandotherdevelopingcountriessuccessfullyovercomepovertyinalong-termandsustainableway?
PovertyIsRelative
Ifyouwalkthroughthemaingateofthesmallred-brickcommunitywhereIliveinwestBeijing,youfirstpassthetinybedsitbelongingtotheneighborhoodcaretaker,amanaroundtheageof45whoalwaysgreetsmewithafriendlynod.
Theroomhelivesinisapproximatelyeightsquaremetersandisalivingroomandbedroominone.Inside,thereisjustenoughspaceforabed,asmallchestofdrawerswithatelevisionontopandsomepersonaleffects.Summerorwinter,thecaretakercooksoutsideonasmallelectrichotplate.Hetoldmeoncethattherewasnoheatinginsidehisroomandnobathroomeither.Whenheneedstowashorgotothebathroomhehastotakeashortwalktothepublictoiletsnearthecommunityrubbishdump.
IhavejustbeenoutwithfriendsneartheWorkers’Stadium.Inthepolished,meticulouslydesignedatmosphereofthebarsandclubsinthistrendyneighborhood,childrenfromwealthyfamiliessipchampagnewhilelisteningtohousemusicandtechnobeats.Outsidethereisanendlessparadeofluxurycars:Porsche,Maserati,Ferrari,younameit–allcustommade,ofcourse.Thereallywealthyones,I’veheard,partyinevenmoreexclusiveareasaroundthecapital.
MyneighborhoodcaretakernevergoestotheWorkers’Stadium,buthemightsaythatheisn’tdoingtoobadlyreally,comparedtopeoplelivinginregionsofChinawherethefruitsofprogressgrowmuchmoreslowly.
Povertyisrelative.Accordingtointernationalstandards,apersonqualifiesas“absolutelypoor”ifheorshehasonlyUS$1.90(purchasingpowerparity)orlesstoliveonperday.“Relativelypoor”isapersonwhoseincomeissignificantlylowerthanthemediumincomeofthecountryasawhole.
Variousformsofrelativepovertyarefoundalmosteverywhereonearth,whileabsolutepovertyisalmostexclusivelyafeatureofdevelopingandemergingcountries.Absolutepovertymeansthatthebasicneedsofeverydaylife,likeclothing,foodandaccommodation,areinsufficientlymetornotmetatall.
Sincetheprocessofreformandopening-upbeganattheendofthe1970s,Chinahasachievedastonishingresultsinthefightagainstpoverty.In1981,835millionChinese–thevastmajorityofChina’spopulationatthattime–livedinabsolutepoverty.By2008thisfigurehadshrunkto173million,andby2015,thefigurehadfurtherdecreased.
AccordingtoChina’snationalstandardforabsolutepoverty–whichsetstheboundaryatanincomeofUS$1.10perdayorbelow–thereare55.75millionpoorpeopleinChinaaccordingto2015statistics,whichisalmostaslargeasthepopulationofFrance.
ThesepeopleearnlessthanRMB2,855ayear(around410dollars).Middle-classpeopleinlargeChinesecitiesmighteasilyspendthissmallsumonasinglesmartphoneoradozenmealsatpopularhotpot-chainHaidilao.
LülingManorbringsorganicagriculturalproductsfromlocalfarmstothenationalmarket.Forthedurationofthe13thFive-YearPlanperiod(20162020),theChinesegovernmenthasputthefightagainstpovertyatthetopofitsagenda.
RegionalImbalances
Forthedurationofthe13thFive-YearPlanperiod(2016-2020),theChinesegovernmenthasputthefightagainstpovertyatthetopofitsagenda.IthaspromisedtoliftallChinesepeopleoutofpovertyby2020,especiallythoseinruralareas.
Toreachthisgoal,theChinesegovernmenthasdesignedaseriesofmeasurestobetteridentifythoseinneedandproperlyregisterthem,analyzingthereasonsbehindexistingpovertytoimprovethelivesofpoorerpeopleinatargetedandsustainableway.
SinceXiJinpingtookoffice,China’spovertyeradicationfundhasseenanannualincrease,eventhoughChina’seconomicgrowthhassloweddowninrecentyears.
In2015alonetheChinesegovernmentinvestedRMB46.7billioninwelfaremeasures:thehighestamountChinahaseverspentonpovertyalleviation.
DespitetheenormouseconomicboomthatChinahasexperiencedinrecentyearsthecountrystillfacesmanychallengesineradicatingpoverty.NotallChinesecitizenshavebeenabletoprofitfromthefruitsofeconomicgrowth,andthisisexactlywhatthecountry’sleadershipwantstochange.
“In2015,therewereatotalof128,800villagesand592countiesclassedas‘poor’accordingtothenationalpovertystandard,”saidTanWeiping,vicedirectorofBeijingCenterforPovertyEradication.“Theproblemisthatweareseeinghighlyimbalanceddevelopment.Therearehugedifferences,notonlybetweentheeasternregionsandwesternandcentralChina,butalsobetweenurbanareasandthecountryside.Evenwithinbiggercities,therearevastdifferencesinthedistributionofwealth,”hesaid.
IfyoulookbeyondthefamiliarhorizonsofChina’smajorcitiesitbecomesobviousjusthowbigthesedifferencesactuallyare.ThisbecomesclearwhenItakethehigh-speedtraintothecityofXingtaiinHebeiProvince,around400kmsouthofBeijing.
TheconcourseofBeijingRailwayStationiscrowdedwithhundredsofmigrantworkerscarryingheavybags.Duringthejourney,thebarren,ashenlandunfoldsoutsidethetrainwindow.Eachstepfurtherawayfromthecapitalseemstoturnbacktime.Whatisnotcommonlyknownisthathere,justoutsidethegatesofthehugemetropolitanareawhichincludesBeijingandTianjin–oneofthemostimportantsitesfordevelopmentinChina–liesoneofthepoorestregionsintheentirecountry.
Hebei,aprovinceofaround188,000squarekm–roughlyhalfthesizeofGermany–ishometomorethan74millionpeople.Around3.1millionofthem(5.4percentoftheprovince’spopulation)areclassedasabsolutelypoor.Hebeihas45poorcounties.Someoftheworstpoverty-strickenareascanbefoundinXingtaiCity,whichiswhereIamgoing.
Xingtaihasatotalpopulationofaround7.3millionpeople,ifyoutakethecitycenterandallcountiesunderitintoaccount.Xingtai’sproximitytothemetropolitanregionofBeijing-Tianjinisbothablessingandacurse.Xingtaihadhopedtoridethewaveofdevelopmentofnearbymajorcities;however,realityispaintingadifferentpicture.
ManyworkersandtalentedyoungpeoplearecapitalizingonBeijing’seconomicdevelopmentbymigratingtothecapital,luredbyhighersalariesandbettercareerprospects.Thosewhostaybehindaremainlyoldpeople,womenandchildren.
XingtaiisexperiencingtheknockoneffectsofenvironmentalprotectionmeasuresrecentlyimplementedbytheChinesegovernment,whichlimitopportunitiesandslowdownthegrowthoftheregion’straditionalindustries.
HowwillpoorregionslikeXingtaieverbeabletocatchupwithmorede-velopedregions?ThistaskisoneofthebiggestchallengesfacingtheChinesegovernmenttoday.
Theproblemisthatfinancialaidandgovernmentsubsidiesalonearenotenoughtochangethepictureinthelongrun;atleastthisiswhattheexperiencesofothercountrieshaveshownsofar.
Subsidiesmayhelptemporarilybuttheydonotgivepoorpeoplecontrolovertheirownlives.Nordotheyencouragepoverty-strickenpeopletoactontheirowninitiative–forexamplebytryingtoenteruniversity–whichwouldnotonlyhelpliftthemoutofpovertybutalsoimprovethelivesoffuturegenerations.
ChangeStartswithMentality
WhatisneededtoturnthetideforpoorpeopleinXingtaiandelsewhereinChinaisachangeinmentality.Andthisisexactlythedirectionindicatedbyrecentgovernmentmeasures.However,inXingtaitheseeffortsarestillverymuchintheirinfancy.
“WhenDengXiaopingimplementedthereformandopening-uppolicyin1978,thestrategywasclearandwidelyacceptedthroughoutthewholenation,”Tanexplained.Atfirst,theplannedeffortsforpromotingChina’sdevelopmentconcentratedonlyontheeasternandsoutheasterncoastalregions,astheyofferedthebeststructuralpreconditionsforrapidgrowthandprosperity.
Thenextstepinthebigpictureonthegovernment’sdrawingboardisforregionsincentralandwesternpartsofthecountrytograduallycatchupwiththeeasternregions.Thiscanbeachievedwiththesupportoftheeconomicstrength,resourcesandknowhowgainedbypeople,businesses,andgovernmentinstitutionsduringthefirstperiodofdevelopment.
“Today,thisstrategyisalreadybeingimplementedthroughinitiativeslike‘1,000companiessupport1,000villages.’Thisprojectinvolvessuccessfulcompaniesfromeasternregionsassistingpoorvillagesinotherregionswithinvestments,”saidDongGuoping,directoroftheDepartmentforInternationalAffairsattheStateCouncilInformationOfficeofChina,andoneoftheorganizersofmytriptoXingtai.
HereinsouthHebei,theplanistoconnecttheseessentialfactors.FinancialaidplusgovernmentassistanceandhelpfrombusinessesandNGOsshouldgohandinhandwithachangeinmentality,drivenbyinnovativeconceptswhichactivelyinvolvepoorpeopleintheprocessofeconomicdevelopment.
Anexcellentexampleofhowthistwo-prongedstrategyhasbeenimplementedistheAgriculturalCarnivalProjectinthecountyofNanhe.Here,ahugegreenhousecomplexwasbuiltonanareaof47,000squaremeters.Itcomprisessixthemedhallsgrowinglocalfruitsandvegetables,traditionalmedicinalherbsandotherplants.ThisisajointprojectbetweenthelocalNanheCountyJinyangConstructionInvestmentCo.,Ltd.andChinaAgriculturalUniversityinBeijing,whichalsodesignedthebuildings.ThegreenhousecomplexinNanheisthefourthofitskindnationwide.
Theprojectnotonlypromotesagriculturalresearch,butalsoservesasalocaltouristattractionofferinganeducationalrecreationspace.Revenuecomesnotonlyfromentrancefeesbutalsofromrentalfeesforusingthehallsasthebackdropforweddingphotos.
Butwhatexactlyhasthistodowithpovertyeradication?Besidescreatingnewjobopportunitiesforlocals,theNanheAgriculturalCarnivalProjectalsoinspirestheentrepreneurialspiritoflocalfarmers.In2016,eachfarmerwasgivenRMB4,000fromthelocalfundtowardspovertyeradication.
“WeofferfarmerstheopportunitytoinvestthissumofmoneyintheAgriculturalCarnivalProjectbyallowingthemtopurchasesharesintheproject,”aCarnivalemployeeexplained.“Wesignafive-yearcontractwiththemandeveryyeartheyreceiveadividendofRMB400,whichis10percentoftheirinvestment.”AfterfiveyearsthefarmersthencandecidewhethertheywanttocontinuetheirinvestmentorgettheirRMB4,000back.“Thisway,weencouragelocalpeopletothinklong-termandtoinvesttheirincomeinaprofitableway,insteadofspendingitallinonego.”
Theprojecttargetsnotonlymaterialpoverty,butthewhole“cultureofpoverty,”atermcoinedbytheAmericananthropologistOscarLewisinthe20thcentury.Histheorystatesthatintheprocessofpovertyeradicationonemustchangeandovercometraditionalpatternsofthoughtandbehaviorwithinthepoorcommunities.Otherwisethe“cultureofpoverty”willsimplybepassedontothenextgeneration.
TwootherkeyprojectsintheprogramforpovertyeradicationinXingtaiareworkingtowardsthesamegoal.BothofthemarelocatedinLinchengCounty.
OneistherecentlyestablishedHebeiRuntaoHusbandrySci&TechCo.,Ltd.–asheepbreedingcompanywhichhasbeenrunningsince2012.ThisprojectallowslocalfarmerstobecomeshareholderswiththeinvestmentofaRMB6000subsidiarypaidbythelocalgovernment.Everyyear,shareholdersreceiveanannualdividendofRMB480.Thecompanybuyssheepfodderfromlocalfarmersformorethanthecommonmarketprice.Inaddition,thecompanyhascreatednewjobsforlocalpeople.
Thenextstepistoprovidetrainingtolocalfarmersinthefieldofsheepbreeding,givingthemtheopportunitytostartupasentrepreneursinthesheepbreedingindustry.
HebeiLülingManorCo.,Ltd.followsasimilarapproach.Sinceitstartedin1999,thefirmhasbecomeoneoftheleadingproducersoforganicwalnutsinChina.LülingManorisalsoacompanythatensureslocalfarmersbecomepartofitssuccessstory.
TodaythefirmgrowswalnutsineightvillagesaroundLinchengCounty.Thecompanycoversthewholeproductionchainfromresearchanddevelopment,throughbreedingandcultivation,toprocessing,onlinemarketingandnationwidedistribution.Itcurrentlyemploysover8000people,mostofthemlocals.
“SomeoftheyoungpeoplewhomigratedtothebigcitieshavefoundtheirwaybacktoXingtaiandarenowworkingforus,”saidGaoShengfu,founderanddirectorofLülingManor.“Theseyoungprofessionalsbringbackup-todateknowledgeandvaluablework-ingexperienceandweofferthemgoodopportunitiesfortheirpersonaldevelopment.”
However,itisnotjustentrepreneurialsuccessstoriesandshare-holdingmodelsforlocalfarmersthatgivepoorpeopleinXingtaihopeforthefuture.Thegovernmentisalsointroducinggroundbreakingmethodsofallocatingfunds.
Thesenewmeansofsupportreachfarbeyondtraditionalformsoffinancialsafeguarding,likehealthinsuranceorpensions.ThemunicipalgovernmentofXingtai,forexample,hasinstalledsolarenergyplantsinallpoorvillages.Theseplantsnotonlyprovideenoughelectricitytomeetthevillagers’needs,butalsomakeaprofitthatissharedwiththevillagers,givingthemlong-termincomesupport.
Throughinnovativemeasureslikethese,thelocalgovernmentmanagedtoliftfivemillionpeopleoutofpovertyduringthe12thFive-YearPlanperiod(2011-2015).By2020(theendofthe13thFive-YearPlanperiod)thegovernmentaimstomakesignificantprogressinthisareaandliftallpeopleoutofpoverty.
AmericanpsychologistMartinSeligmanonceputforwardthehypothesisthatmanypeoplewholiveinpoverty,whethertheyarefromtheWesternworldordevelopingcountries,sufferfromso-called“learnedhelplessness.”Theircircumstancesandlifeexperienceconfusetheirwayofthinking,perhapsmakingthemfeelthattheirpersonaldecisionsareirrelevant.
Tobreakthisviciouscircle,capacitybuildingactivitiesshouldbeorganizedtoenhancetheoverallknowledgeofpoorpeopleandthusenablethemtohelpthemselvesinthelongterm.ThisisexactlywhatChinesegovernmentisnowaimingfor.RecentsuccessesinChinaconcerningtheseeffortshaveshownthatachangeinmentalityisabletomovemountains.
ThismentalshiftmightbecrucialtoovercomingtheexistingimbalanceindevelopmentinChina.However,thisprocessofchangingmentalitydoesnotconcernthepooralone.Arealchange–andthisistrueforChinaaswellasfortherestoftheworld–canonlybemade,ifthesameconditionsfordevelopmentareprovidedforallmembersofsociety.
ForChina,thismeansthatresultsdependonthefulfillmentofapromisemadeatthestartoftheperiodofreformandopening-up;apromisegivenbypeopleinthemoredevelopedeasternandcoastalregionstothepeopleinthelessdevelopedcentralandwesternareas;andapromisetogiveahelpinghandtotheseleft-behindregions.
Toachievethisgoal,achangeinmentalityisnecessaryforeveryone.PeoplemightthenrealizethatcomingfromBeijinginsteadofXingtai,orbeingbornintoafamilyofacademicsinsteadofcomingfromaworking-classbackgroundisnotsomethingoneshouldtakeforgranted.Itisnecessarytorealizethatcertainconditionsgohandinhandwithparticularsocialresponsibilities,nomatterwhereyouareintheworld.
Itisnecessarytorealizethatcertainconditionsgohandinhandwithparticularsocialresponsibilities,nomatterwhereyouareintheworld.
HebeiRuntaoHusbandryCompanyhelpslocalfarmerssupplementtheirincomesthroughsheepbreeding.