Poverty Alleviation and Development in Shandong Province

　　【Entire town advancement】 In 2010, in accordance with the guiding line of “village-based, entire town advancement, regional planning and industrial development” for anti-poverty work, Shandong Province gave full play to the organization and leading role of the party committees and governments of key towns and mainly supported 86 poor towns including Shaoyaoshan of Fei County, etc, covering 924 poverty-stricken villages and 540,000 poor people. 2010 is the last year for the implementation of the "Outline for Poverty Alleviation and Development of Rural Areas in Shandong Province (2001-2010)". The province further increased efforts on poverty alleviation and development and strengthened pro-poor measures.

　　I. Strengthened infrastructure construction in impoverished areas to create basic production conditions for poor farmers. In the winter and spring - slack seasons, the province organized large-scale development of barren and saline land of 32,000 mu, making per capita high-yield orchard or farmland reach 1 mu and creating the basic production conditions; built roads of 401 kilometers, 715 bridges, 497 wells, canals of 158 kilometers, 155 reservoirs, 54 dams and 8 pumping stations and set up wires of 47.2 kilometers.

　　II. Vigorously developed the pillar industries in poor rural areas to optimize the structure, laying a solid foundation for sustained income growth of the poor. Planted fruit trees of 150,000 mu and 390,000 fast-growing and high-yield plants, constructed vegetable greenhouses of 96,000 mu and raised 89,500 head of livestock and 14.875 million poultries.

　　III. Improved the industrial development system in poor areas and extended the production chain to address product sales problem of the poor. Supported the construction of 12 agricultural products market of ​​30,400 square meters and reduced the cost of sales of farm produce to protect farmers’ interests in all links of production and operation.

　　In late December 2010, Shandong Provincial Poverty Alleviation Office, the Provincial Department of Finance and the Provincial Audit Department, in three groups, conducted inspection and acceptance of the poverty alleviation and development work in Shandong that year and found the following characteristics of the entire town advancement: First: clear idea for poverty alleviation and development in local areas. The key towns vigorously adjusted the agricultural production structure, no longer engaged in decentralized production, but organized production according to the principle of “one product for one village”, and achieved the intensive operation with support from enterprises and the market. Secondly, rapid development of leading industries. The contiguous development, in large scale, had high quality and was effective. The province explored ways for enterprises, markets, rural "genius" and big households to help farmers earn more income and explored production and operation models to provide employments for labors from needy families. Thirdly, a significant increase in the income of farmers. The per capita net income of key towns reached 6055 Yuan and the growth rate was 2.33 percentage points higher than the provincial average. The inadequate anti-poverty funds and insufficient efforts on poverty relief in some towns, however, also restricted the balanced development of poverty alleviation and development. 

　　【Poverty alleviation by industrialization】 Support poverty alleviation leading enterprises to play an important role in helping farmers obtain more income. By the end of 2010, the number of poverty alleviation leading enterprises in Shandong Province reached 49, including 13 national poverty alleviation leading enterprises and 36 provincial poverty alleviation leading enterprises. In 2010, Shandong Province allocated the state’s anti-poverty loan interest subsidy of 5 million Yuan to support the development of 23 poverty alleviation leading enterprises and guided poverty relief loan program of 133 million Yuan in ten cities, namely Linyi, Dezhou, Binzhou, Liaocheng, Heze, Zibo, Weifang, Jining, Tai’an and Laiwu.

　　Reasonable arrangements were made for the use of the anti-poverty loan interest subsidy. 2.5 million Yuan was allocated for corporate projects to guide loan program of 80 million Yuan with interest subsidy rate of 3%; and the remaining 2.5 million Yuan was allocated to rural household projects, covering 26,000 rural poor households, to guide rural household loans of 50 million Yuan with interest subsidy rate of 5%. Rural household loan interest subsidy was used according to the “Opinions on Management and Use of Poverty Relief Loan Interest Subsidy of Shandong Province”. All the projects using rural household loans must be recommended first by the poor village’s committee and then submitted to township government. After the county poverty alleviation office makes records, it will entrust town-level rural cooperatives to issue loans.

　　In 2010, the province also strengthened support for the counties directly under the administration of the provincial financial department. It gave priority to 8 counties with financial difficulties in allocation of poverty relief loan interest subsidy, namely Huiyang, Yangxin, Juancheng, Shen County, Sishui, Xiajin and Qingyun, and allocated a total of 1.7 million Yuan for these regions.

　　【Poverty alleviation training】  To increase sources of income for the poor, improve the capability of the poor for agricultural production and management and strengthen the management of cadres, the province mainly organized trainings in three fields.

　　I. Rural poor labor transfer training. In 2010, it planned to organize labor transfer trainings (Rain Plan) for 10,000 rural poor people in the province, including 1,752 to be trained by Liaocheng Technical School of Mechanical and Electrical Engineering, 890 by Dongming County Technical School, 1,000 by Dongping County Vocational School, 1,143 by Huimin County Vocational Education Center, 570 by Dong’e County Vocational Education Center, 570 by Yuncheng Mechanical and Electrical Vocational School, 715 by Chengwu County Zhangping Technical School, 570 by Fei County Vocational-Technical School, 1,650 by Cangshan County Employment Training Center, 570 by Yiyuan County Vocational Education School and 570 by Zhanhua County Vocational Education Center. In 2010, the province allocated 3.5 million Yuan of financial anti-poverty funds for labor transfer training of rural poor according to the standard of 350 Yuan per trainee averagely, giving priority to job skills training of “two kinds of backward students” (junior and senior middle school graduates). In accordance with the requirements of the Provincial Poverty Alleviation Office, the above 11 provincial rural poor labor transfer training bases organized short/middle-term job skills trainings for the objects of transfer training. Focusing on mechanical maintenance and clothing production training, they trained 2,650 fitters and welders and organized mechanical maintenance training for 1,240 people, appliance repair training for 1,904 people, electronic technical training for 1,080 people, garment production training for 2,560 people, housekeeping training for 246 people and public security training for 1,240 people. Before training, these bases all signed training labor contracts with some large and medium-sized domestic enterprises to ensure that all those receive training will find jobs. In 2010, 9,800 people achieved transfer of employment with average annual income of 15,000 Yuan or so. The province achieved the goal of “training one person to lift one family out of poverty”.

　　II. Rural practical skills training. In order to strengthen the capacity of the poor for shaking off poverty and getting rich, the province organized the women from poor villages and rural retired soldiers to participate in agricultural, animal husbandry, forestry and fruit industry’s practical skills trainings. The city and county poverty alleviation offices and key towns held a total of 124 skills trainings for 86,800 person-times. Shandong Luyi Product Factory also organized cross-regional weaving technical training for 3000 farmers.

　　III. Cadre training. In 2010, Shandong Province organized and attended the national trainings for party and government cadres, entire village advancement, poverty alleviation by industrialization, labor transfer training for rural poor in impoverished areas, pilot projects of mutual funds, anti-poverty financial cooperation, convergence of two systems, enterprises’ poverty relief, directors of key counties for poverty alleviation and development, program for the poverty alleviation and development in the “12th Five-Year Plan” period, etc. A total of 165 cadres attended the trainings. In addition, the province also held 8 trainings for the directors of city and county poverty alleviation offices and 220 people attended the trainings.

　　【Pilot projects of mutual funds】 Since the implementation of pilot mutual funds in poor villages of Shandong Province, the pilot area expanded rapidly. The number of pilot counties, pilot villages and member households as well as the amount of pilot project funds respectively rose from 10, 51, 11,300 and 13.1742 million Yuan in 2007 to 26, 657, 111,700 and 155 million Yuan at the end of 2010. In 2010, it increased 286 pilot villages, 79,000 member households and 61 million Yuan of pilot project funds. Since the establishment of mutual fund experimental organizations, they issued a total of 166 million Yuan of loans to 45,000 poor households, including 73.0182 million Yuan for planting, 61.64 million Yuan for breeding, 16.5189 million Yuan for processing, 12.835 million Yuan for commerce and transportation and 2.759 million Yuan for other industries. 100% of the loans were repaid and there was no nonperforming Loan (NPL). Meanwhile, mutual funds societies charged membership fee of 3.5272 million Yuan, issued work delay subsidy of 1.8072 million Yuan for the staffs, issued profit of 960,000 Yuan for members and transferred 760,000 Yuan of capital fund of mutual aid organizations.

　　In order to promote the pilot work of mutual funds for the development of farmers from impoverished villages and enhance the management level, in 2010, the province issued the “Workbook for Pilot Work of Mutual Funds for the Development of Farmers from Impoverished Villages of Shandong Province” (for trial), “Methods for Performance Evaluation of Pilot Work of Mutual Funds for the Development of Farmers from Impoverished Villages of Shandong Province”, etc.. In early August, the Provincial Poverty Alleviation Office organized the chairmen and accountants of 300 new pilot villages of mutual funds to participate in two training courses held by Shandong Agricultural University.

　　Compared to other provinces, regions and cities, the pilot work of mutual funds in Shandong Province has the following five features: First, rapid expansion of pilot area. By the end of 2010, pilot villages of Shandong Province accounted for 1/10 of the total in China. Second, a larger proportion of financial anti-poverty funds in pilot project funds. The state’s pilot project funds accounted for 2.3% of the financial anti-poverty funds, but this proportion in Shandong was 50%. Thirdly, a larger proportion of investment from farmers. Farmers’ investment accounted for 21.0% of the total in pilot villages nationwide, but this proportion was 46.0% in Shandong; Fourthly, a large number of rural household members. Members of Shandong Province accounted for 12.3% of the total in China. Fifthly, a substantial increase in the income of farmers. The involved rural households nationwide achieved average annual income growth of 685 Yuan, while involved rural households in Shandong achieved average annual income growth of 1,685 Yuan.

　　【Convergence of two systems】  Since the implementation of pilot projects for the convergence of “two systems” in Shandong Province in March 2010, under the principle of small rather than big pilot area, after conducting field research in poverty-stricken towns and villages for many times and holding talks with civil affairs departments, we selected Zhanhua as the pilot county for the convergence of “two systems”. In August, 2010, the Provincial Poverty Alleviation Office approved the "Pilot Program for the Convergence of Poverty Alleviation and Development Policy and the Rural Minimum Living Security System in Zhanhua County" and agreed to carry out pilot work in Binhai, Huangsheng and Botou. Objects of the convergence of “two systems” were determined based on rural per capita net income in 2009. According to the poverty line of 1,500 Yuan for rural poor and 1,300 Yuan for those receiving the subsistence allowances in rural areas, a total of 3,754 households and 7,542 people were identified, of which 845 households and 1399 people received the subsistence allowances. In order to do a good job of pilot work, in December, the government issued 2 million Yuan of special funds for the pilot work of the convergence of “two systems” and required that all the funds must be used for construction of relevant projects to increase the income of the objects of pilot convergence of “two systems”. In 2010, the per capita net income of the objects reached 5,950 Yuan, 1,560 Yuan more than that in 2009. 

　　【Financial cooperation in poverty alleviation】 Since LGOP’s financial cooperation with the Export-Import Bank of China, China Development Bank and Agricultural Bank of China for poverty alleviation in 2008, from 2008 to 2009, Shandong Province successively recommended 19 anti-poverty financial cooperative projects to the Export-Import Bank of China Qingdao Branch and China Development Bank Shandong Branch. The Provincial Poverty Alleviation, together with relevant financial departments, visited a number of enterprises for survey on the fixed assets, working capital, debt ratio, credit rating, repayment ability, etc, and organized experts many times for review and demonstration. By the end of 2010, the Export-Import Bank of China Qingdao Branch and China Development Bank Shandong Branch approved four anti-poverty financial cooperative projects in Shandong Province and issued a total of 180 million Yuan of loans. The Export-Import Bank of China Qingdao Branch issued 80 million Yuan of loans to Shandong Feicheng Longxiang Textile Co., Ltd and 50 million Yuan to Laiwu Shengdetai Foodstuff Co., Ltd; China Development Bank Shandong Branch issued 50 million Yuan of loans to Shandong Zhong’ao Group and 30 million Yuan to Pingyi County Yuquan Food Co., Ltd.

　　【Donation of care package】 In accordance with the requirements of the "Notice on ‘Donation of Care Package’ in 2010" issued by China Foundation for Poverty Alleviation, on May 26, 2010, Shandong Province Leading Group Office of Poverty Alleviation and Development and Shandong Province Post Company held in Jinan the "Press Conference on ‘Donation of Care Package’ in Shandong Province" to mobilize social forces to donate school supplies for the children in disaster-hit areas and impoverished regions before the International Children’s Day. In 2010, Shandong Province donated a total of 11,213 student stationery packs and 193 school sports packages and home food and clothing packages worth 1.3143 million Yuan. In 2010, Guan County and Cangshan County – two recipient counties designated by Shandong Provincial Government received a total of 10,471 student stationery packages and 131 school sports packages worth 1.1781 million Yuan in total.

　　【Investment of anti-poverty funds】 In 2010, a total of 388.462 million Yuan of anti-poverty funds was issued for the key counties (districts) for poverty alleviation and development in Shandong Province, including 25 million Yuan from the central government, 38.75 million Yuan provincial matching funds, 12.55 million Yuan city matching funds, 6.1355 million from county government, 3.419 million Yuan from various sectors, 14.927 million Yuan of other agriculture-supportive funds, 37.1529 million Yuan raised by towns and villages, 218.5678 million Yuan raised by villagers themselves, 999,000 Yuan funds for “one meeting for one issue” and 30.945 million Yuan of other funds. Use of the funds: 345.4962 million Yuan for entire town advancement, 5 million Yuan as interest subsidy for poverty alleviation leading enterprises, 3.5 million Yuan for labor transfer trainings for rural poor, 30 million Yuan for pilot projects of mutual funds in poor villages and 2 million Yuan for the convergence of pro-poor policies and the rural minimum living security system.

　　【Performance evaluation】 On October 12, 2010, the State Council Leading Group for Poverty Alleviation and Development issued the “Circular on Performance Evaluation of Financial Anti-poverty Funds in 2009” (Guo Kai Fa [2010] No. 5). The performance evaluation for financial anti-poverty funds of Shandong in 2009 was B and the state awarded 6 million Yuan of financial poverty relief funds to the province. In accordance with relevant provisions of the management methods of financial anti-poverty funds, Shandong awarded the funds to five cities with outstanding performance in poverty alleviation and development in 2010, including 2.6 million Yuan for Binzhou City, 1.2 million Yuan for Linyi City, 800,000 Yuan for Zibo City, 800,000 Yuan for Weifang City and 600,000 Yuan for Jining City. Before the end of 2010, the five cities respectively used the funds in the construction of poverty alleviation and development projects in key counties.

　　At the end of 2010, Shandong Provincial Poverty Alleviation Office awarded the poverty alleviation offices of six cities including Linyi and 15 counties including Mengyin the title of “Advanced Collectives for Poverty Alleviation and Development in Shandong Province”, and awarded six towns including Shaoyaoshan of Fei County the title of “Advanced Towns for Poverty Alleviation and Development in Shandong Province”. In 2010, the province adjusted the demonstration bases of labor transfer trainings for rural poor, canceled Yishui Normal School Demonstration Base and identified Cangshan County Labor Training and Employment Center as the “Demonstration Base for Labor Transfer Training of Rural Poor in Shandong Province”.

　　【Construction of poverty alleviation Institutions】 Since the “Shandong Provincial Leading Group Office of Development in Poor Areas” was renamed as “Shandong Provincial Leading Group Office of Poverty Alleviation and Development” in 1998, as the Office had a small number of cadres and workers but a heavy work task, after the leaders repeatedly asked for more staffs, in July 2010, to meet the needs of ant-poverty work, the Party Leadership Group of Agriculture Department of Shandong Province added one Deputy Director-General, one Deputy Director and One Senior Staff Member for Shandong Provincial Leading Group Office of Poverty Alleviation and Development – an internal sector of the Agriculture Department. As a result, the total number of cadres and staffs of Shandong Provincial Poverty Alleviation Office reached 13.

　　【Review of decade of poverty alleviation and development】 Since 2001, Shandong Province conscientiously organized the implementation of the "Outline for Poverty Alleviation and Development of  Rural Areas in Shandong Province (2001-2010)" and made remarkable achievements: First, a significant reduction in absolute poverty in rural areas. After a decade of poverty alleviation and development, the number of poor people living in absolute poverty with per capita net income below 1000 Yuan in the province dropped from 4.2 million in 2000 to 1.2 million in 2010, and the proportion of the poor living in absolute poverty declined from 5.97% to 2.16%. Secondly, a significant increase in the income of poor farmers. The rural per capita net income of 34 key counties in Shandong increased from 2407 Yuan in 2000 to 5,738 Yuan in 2010, the rural per capita net income of 232 poor towns rose from 2031 Yuan to 6055 Yuan, and the average annual growth rate was 2.33 percentage points above the provincial average; Thirdly, a significant improvement in the production and living conditions of the poor. Over the past decade, Shandong Province developed barren mountains and saline area of 1.2 million mu in impoverished regions, planted fruit trees of 650,000 mu, built vegetable greenhouses of 360,000 mu, addressed the drinking water problem of the masses in 3,805 poor villages, relocated 19,000 people of 47 poor villages in mountainous areas, supported the development of 63 poverty alleviation leading enterprises and organized labor transfer trainings for 80,000 rural poor. Great changes took place to the spiritual outlook and living standards of the masses in impoverished areas