Appendix V: Explanation of specific terms for poverty alleviation

　　【Poverty】Poverty is a socioeconomic phenomenon that generates and develops with the human society; a status that people cannot maintain the living standard acceptable for individual physiology and social culture because people cannot get basic living material conditions or basic chances to participate in social activities. Poverty is not only represented by low income, but by the lack of chances for development and ability to face changes, even deprivation of human’s basic ability and rights, so that people cannot get foods, drinks, living conditions, comfort or chances to participate in some activities that are acknowledged by the society and that common social members can get. In brief, poverty refers to low happiness, benefit or life quality without right (to speak) that is caused by weakness and fear (Kang Xiaoguang, 1995; Amartya Sen, 1999; the World Bank, 2001).

　　【Income poverty】refers to the “level of poverty measured and calculated by money income or amount of consumption, (the World Bank, 2001)”, so the incidence of income poverty differs with areas (United Nations Development Program, 2001).

　　Income poverty is the original state of poverty, so it has a long history. In 1901, Rountree first figured out that about 10% of the people in Yorkshire, UK lived in poverty (below the min needed expenditure) in 1899, and defined poverty on the basis. In Oct. 1999, the World Bank figured out that the people whose cost of living per capita is below USD 1 per day are impoverished people; according to the standard, 1/4 of development countries’ total population (about 1.2 billion) lived in poverty. The scopes of the 2 income poverty calculations are extremely different, but both used Rountree’s basic concepts and methods. First, Rountree investigated almost each working-class family in Yorkshire to collect their income and expenditure data. Then, Rountree calculated that a family of 5 members (parents and 3 children) needed at least 21 shillings and 8 pence to maintain the normal body functions, and he calculated expenditure standards for families of different sizes and different structures. At last, Rountree compared the poverty lines and family incomes, and got the estimated number of impoverished people. The method based on family income and expenditure statistics has now become one of the measures for quantitative analysis of poverty and policy discussion.

　　【Human poverty】“Human poverty refers to poverty at many aspects—deprivation of healthy and macrobian life, lack of knowledge, loss of decent life and lack of participated, etc” (United Nations Development Program, 2001), i.e., human poverty refers to loss or deprivation of the chance for and right to choose the most basic welfares for human development. Here, the most welfares for human development include: macrobian, healthy and creative life, decent living standard, freedom, self-respect, being respected by others and the right to dignity, etc (United Nations Development Program, 1997). Human poverty is usually measured by human poverty indices, including people’s ability, illiteracy ratio, nutritional level, expected life, maternal and infant health level, preventable diseases, etc.

　　【Absolute poverty】, also called subsistence poverty, is usually defined by people’s basic needs, refers to that under specific social production mode and lifestyle, the labor income and other legal income of individual or family cannot satisfy the most basic existence needs and life continuity is threatened. Absolute poverty is represented by that the income disposed by individual or family cannot satisfy the welfare and consumption for basic existence of individual or family.   At the aspect of production, labors lack material conditions for reproduction, can hardly retain their own simple reproduction, and producers can only reduce reproduction. At the aspect of consumption, people cannot reach the basic minimum of living needs, such as clothes, foods and residence, etc. The method to define poverty based on people’s basic needs is still used by many scholars now. Some international organizations, such as World Bank and International Labor Organization, etc, uses basic need method in the evaluation of development countries’ social economy. Many developed and developing countries in the world once used or still use this method to set their poverty lines.

　　【Relative poverty】Relative poverty can be explained at 2 aspects: 1. The poverty generated because the poverty line is persistently raised along with the development of social economy; 2. The poverty generated due to income gaps among different areas and different members of social classes in the same period. Therefore, relative poverty mainly reflects imparity. Relative poverty is usually expressed with a certain percentage of the average income of a country’s all residents in a certain period.

　　【Poverty line】Poverty line is the important critical line or measuring standard to measure and judge which people should or should not be impoverished people. Individuals or families below the line are defined as poor people or families.

　　In China, National Bureau of Statistics defines the poverty line like the following according to the above principle and method: The minimum expenses on necessary consumer goods and services for people’s basic existence in a certain period, space and under social development conditions. According to the definition of poverty line and national rural residents investigation data, farmers’ income per capita is the standard of poverty line. China’s rural poverty line calculated according to the above principle and program is not the international standard or relative poverty standard, but China’s minimum living standard according to the factual situation.

　　Judged by the above analysis, China’s present poverty line is the most basic consumption level of impoverished people or families, or the income level to realize the consumption. According to National Bureau of Statistics, China’s poverty standard (poverty line) in 2009 was 1196 Yuan.

　　【Incidence of poverty】Incidence of poverty refers to the percentage of the population below the poverty line in the total population of a country or area (Liu Wenpu, 2001). Incidence of poverty is mainly used to measure the poverty level of a country or area, and to compare the poverty levels of different countries (if the poverty lines are the same) or different areas in one country.

　　【Millennium  Development Goals】: Millennium Development Goals are the measureable goals and indices with time limit decided by the world’s country leaders to get rid of poverty, hunger, diseases, illiteracy, environmental deterioration and discrimination against women, etc, at United Nations Millennium Summit in Sep. 2000. The country leaders at the summit, based on analysis of unfair phenomena in the world, confirmed “their responsibilities to protect global human’s respect based on equality and fairness”, and set 8 goals and 18 sub-goals to realize by 2015. The goals are regarded as the core of global peace and development, including:

Terminate extreme poverty and hunger

Reduce the population whose living cost is less than USD 1 per day by a half Realize sufficient and effective employment, make all people, including women and young people, get decent jobs Reduce the starved population by a half

Popularize primary education

Assure all boys and girls to finish all primary education courses

Improve gender equality and give rights to women

·         Terminate gender difference in education at all levels by 2015

Reduce the death rate of children

Reduce the death rate of children below 5 years old by 2/3

Improve maternal health

Reduce the death rate of puerperal by 3/4 Popularize reproductive health

Efforts against HIV/AIDS, ague and other diseases

Prevent and begin stopping the spreading of HIV/AIDS Popularize the therapy of AIDS Prevent and begin stopping the growth of incidence of ague and other major diseases

Ensure environmental sustainability

Put sustained development principle into the state’s policy and plan; stop the loss of environment resources Reduce the loss of species diversity, reduce the speed of loss obviously by 2010 Reduce the population without access to safe drinking water by a half Improve the life of at least 100 million residents in slums obviously by 2020

Global cooperation boosts the development

Further develop open, rule-following, predictable, non-discriminatory trading and financial system. Including local and international efforts on good governance, development and poverty reduction Satisfy the most underdeveloped countries’ special needs, including no duty on export, no quota; reinforce the debt reduction plan for poor countries with heavy debts, terminate official bilateral debts; provide more generous official development aid for countries that work on poverty reduction Satisfy the special needs of inland countries and developing countries on small islands Dispose debt problems with developing countries through national and international measures, so that the developing countries can bear debts for a long time Cooperate with developing countries to create productive employment chances for young people Cooperate with pharmaceutical companies to provide affordable basic drugs for developing countries Cooperate with private departments, provide the benefit generated by new technologies, especially by information and communication technologies

　　(Source: Website of United Nations Development Program)

　　【Official development aid】refers to the donation or concessional loans, at least 25% of which are given for free, from official organizations of developed countries or developing countries of high income to boost the economic and social development of developing countries. There are 3 standards to judge whether aids are official development aids: 1. Executed by aiding countries’ government organizations; 2. Aim to boost the economic development and improve the welfare of developing countries (aided countries), no military aid in any mode shall be included; 3. Aid terms must be flexible, i.e., at least 25% of each loan should be given for free.

　　【Key counties for national poverty alleviation and development】According to “Outline for Poverty Alleviation and Development of China's Rural Areas (2001-2010)”, the state designated 592 counties (banners, autonomous counties and districts) of heavy poverty alleviation tasks and relatively concentrated impoverished people in the center and west as key counties for poverty alleviation and development (brief as key counties hereinafter). Key counties are selected in minority nationality areas, old revolutionary base areas, frontier areas and destitute areas in the center and west, mainly according to quantity of impoverished people, farmers’ income level, basic production and living conditions, as well as poverty alleviation situation; in addition, GDP per capital, financial income per capital and other comprehensive indices should be considered.

　　【Fixed-point poverty alleviation】Fixed-point poverty alleviation is the important strategic decision made by the central party committee and the State Council to accelerate poverty alleviation and development, construct the well-off society and socialist harmonious society, and is an important part of the poverty alleviation and development of Chinese features. The state’s fixed-point poverty alleviation improves the basic production and living conditions, develops local economy, increases farmers’ income, and reduces impoverished people; designated units provide cadre exercise and training for poor areas to improve the quality of cadres, reinforce the connection between the party, government and people; local party organizations and governments at all levels, as well as social forces, are spurred to participate in poverty alleviation. Fixed-point poverty alleviation is of great economic, political and social significance.

　　This job, launched in 1986, has last 22 years. 272 central and state organizations, central committees of democratic parties, National Association of Industry and Commerce, enterprises and public institutions have aided 481 key counties for national poverty alleviation and development.  According to primary statistics, from 2002 to 2009, 272 central and state organizations, central committees of democratic parties, National Association of Industry and Commerce, enterprises and public institutions sent 3,077 temporary poverty alleviation cadres, including 303 bureau-level ones, 1954 department-level ones, 820 ones at section level or below, to key counties for national poverty alleviation and development; the key counties have been observed by 37662 persons or 37,662 times, including 1641 ministerial leaders, 7,232 bureau leaders, 15405 department leaders, 13,384 section leaders or below; aid funds and materials worth 8.487 billion Yuan have been provided for key counties directly, including funds of 7.693 billion Yuan and materials worth 794 million Yuan, various funds of 29.25 billion Yuan, 9,432 projects, 3,904 talents and 1,712 technologies have been introduced to poor areas; 287946 impoverished students have been subsidized, 12,367 various training courses have been held and 1.526 million people received trainings.

　　【East-West pairing-off cooperation for poverty reduction】In July 1995, General Office of the State Council forwarded “Report on Organizing the Poverty Alleviation Coordination between Developed Areas and Underdeveloped Areas” (No. Guo Ban Fa [1996] 26) to clarify the significance, mode, task and requirements of poverty alleviation, and allocated the corresponding support and aid jobs. The arrangements are: Beijing should help Inner Mongolia, Tianjin should help Gansu, Shanghai should help Yunnan, Guangdong should help Guangxi, Jiangsu should help Shaanxi, Zhejiang should help Sichuan, Shandong should help Xinjiang, Liaoning should help Qinghai, Fujian should help Ningxia, Shenzhen, Qingdao, Dalian and Ningbo should help Guizhou. In Oct. 1996, “Decision to Solve the Subsistence Problems of Rural Impoverished People as Soon as Possible of the Central Party Committee and the State Council” made at the Central Poverty Alleviation & Development Work Conference further reinforced and allocated the job. It was pointed out clearly: “Organize coastal developed provinces and municipalities to support impoverished provinces and autonomous regions in the west. East-West pairing-off cooperation accelerates the east and west to share advantages and narrow gaps, and is an important way to realize common prosperity gradually”. In 2002, the State Council made the decision that Zhuhai and Xiamen should help Chongqing. By then, 15 developed provinces and cities in the east helped 11 provinces (cities, autonomous regions) in the west (Tibet is an impoverished area and enjoys stressed support policies), East-West pairing-off cooperation for poverty reduction already covered 26 provinces (cities, autonomous regions).

　　According to primary statistics, in 2003-2009, in the East-West pairing-off cooperation for poverty reduction, provinces and cities in the east and center provided government financial aid of 3.751 billion Yuan for provinces (autonomous regions, cities) in the west, social donations of 1.158 billion Yuan were raised, 3779 volunteers came from the east to the west, 53249 leaders of the east and the west visited each other, 5805 cadres were exchanged, 8185 professional technicians were exchanged, and 4.41 million labors were exported.

　　【Rain Plan】”Rain Plan”, organized and executed by the State Council Leading Group Office of Poverty Alleviation and Development, concentrates on training of professional skills with the support from the financial poverty alleviation fund, and is a special poverty alleviation plan aiming at transfer and employment of labors in impoverished areas. Now, the training networks with labor transfer and training demonstration bases as centers have been built in impoverished areas across China, skill and employment training have been provided for labors in impoverished areas, to improve the labor quality of impoverished areas and increase trained farmers’ income.

　　【Entire village advancement in poverty alleviation and development】is the important measure, platform and mode of constructing the new socialist countryside in impoverished areas. The basic concepts are regional difference, classified instructions, resource integration and the public’s participation, impoverished village is the basic unit, and comprehensive treatment is fulfilled. The main objectives are to change production and living conditions, improve the sustainability of impoverished families and impoverished villages, solve the existence problems of impoverished people steadily, boost the overall economic and social development of impoverished villages, and lay a solid foundation for the construction of harmonious society and well-off society in impoverished areas. The main contents are “6 constructions” -Construct infrastructure to change production and living conditions, construct social works to improve population quality, construct industries to increase farmers’ income, construct the new civilization to change the appearance of villages, construct the active, ordered, democratic and political environment, and construct village-level organizations with leader groups as the cores.

1. Construct infrastructure to change production and living conditions.

2. Construct social works to improve population quality.

3. Construct industries to increase farmers’ income.

4. Construct the new civilization to change the appearance of villages.

5. Construct the regulative and ordered democratic and legal system.

6. Construct village-level organizations with leader groups as the cores.

　　【Grand pattern of poverty alleviation】Grand pattern of poverty alleviation is the contrary to special poverty alleviation plan. In mid 1980s, the Chinese government began organized, planned and large-scale poverty alleviation and development, and special poverty alleviation plans were the major driving forces to relieve and terminate rural poverty in a very long time. After the 16th National People’s Congress, the central party committee raised to execute and carry out scientific development outlook, execute the development strategy covering cities, countryside and areas, and the strategy to boost agriculture with industry and improve the countryside with cities; while reinforcing poverty alleviation and development, the state invested into rural infrastructure and social services, adopted serial agriculture subsidy policies, built the rural minimum living guarantee system, designed development strategies of underdeveloped areas, and gradually formed the grand pattern of poverty alleviation integrating industrial policies, regional policies and social policies.

　　【Industrial poverty alleviation】 Industrial poverty alleviation is an agriculture industrialization mode to set up agricultural product base in impoverished areas or to adjust the structure of impoverished farmers and increase their income by order agriculture and other means. Now, the main measures of industrial poverty alleviation include: Help impoverished areas and impoverished farmers to choose dominant industries according to local situation, provide financial and technical services, construct production bases; support leading poverty alleviation enterprises, develop processing industry; organize marketing and develop market through farmers’ cooperation organization, etc. Now, the State Council Leading Group Office of Poverty Alleviation and Development has certified 625 leading national poverty alleviation enterprises across China in 2 batches.

　　【Social poverty alleviation】

　　Social poverty alleviation refers to organize social forces to participate in the development and construction of impoverished areas, and is an important part of China’s poverty alleviation and development of socialist features, as well as the presence of the socialism’s excellence. Social poverty alleviation is favorable for planning the development of cities, countryside and areas, assures impoverished areas and impoverished people to share the fruits of reform and development, and is the inevitable requirement on the socialist harmonious society and carrying out of scientific development outlook.

　　After two decades’ exploration and practice, China’s social poverty alleviation has primarily formed the social poverty alleviation framework with Chinese characteristics. This framework covers 6 aspects: 1. Fixed-point poverty alleviation of party organizations, government departments, enterprises and public institutions; 2. East-West pairing-off cooperation for poverty reduction; 3. Private economy’s participation in poverty alleviation; 4. Social organizations’ participation in poverty alleviation; 5. The public (including volunteers) participate in poverty alleviation; 6. Army’s participation in poverty alleviation

　　In 2009, poverty alleviation entered into the new stage driven by development and aid, and the grand pattern of poverty alleviation integrating diversified forces and measures, including special planned poverty alleviation, favorable policies for farmers and social forces, etc, has been formed. Social poverty alleviation must play a more and more important role in poverty alleviation and development.

　　【Three guarantees】Before 2010, based on promotion in line with planning, assure to finish the following 3 types of entire impoverished village advancement tasks: 1. 209 impoverished villages of minority nationality with small populations in 37 counties; 2. 432 impoverished villages that have not completed entire village advancement less than 25 KM from frontier in 48 stressed counties; 3. 24008 impoverished villages that have not finished entire village advancement in 307 counties in old revolutionary base areas among the key counties for national poverty alleviation and development.

　　【Work relief】Work relief is a special policy that support impoverished people (the government invests to construct infrastructure projects, subsidized people participate in project construction and earn income to replace direct subsidy). The state arranges work relief to construct small rural infrastructure projects and impoverished farmers participate in the construction of work relief projects and earn income so that their income is increased directly.

　　【Small drainage treatment】: The comprehensive treatment of water and soil resources in small drainage areas with supporting biological measures and engineering measures according to natural conditions and production development direction, i.e., comprehensive planning with drainage area whose catchment area is less than 100 sq.km., comprehensive treatment of hills, water, land, forest and roads. Adopt different water and soil retention measures according to features of drainage areas, build level terraces on slopes, afforest, plant grass, build big and small warp land dams, so that engineering measures, biological measures and farming measures can play their roles, improve and complement each other. According to the regulations of Ministry of Water Resources, the treatment standards of small drainage: ①The treatment level should exceed 70%, the area of forest and grass should account for over 80% of the area suitable for forest and grass; ②Construct basic agricultural fields, turn extensive cultivation into large outputs, harvest  more than self-sufficient grains; ③Farmers’ pure income per capita should be increased by 30%-50% in comparison with the income before treatment; ④The benefit of flood alleviation and sediment detention should exceed 70%; ⑤Engineering facilities’ rain reserves should be specified locally and flood safety should be assured. Now, more than 7,000 small drainage areas are treated with stressed in China, the total areas exceeds 200,000 square meters and the treated small drainage areas have achieved very obvious biological benefits, economic benefits and social benefits.