ADB-Principles and Philosophy Underlying County Poverty Alleviation Planning-China Case Study

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)
by Asian Development Bank ( ADB, 2001)
Principles and philosophy underlying County Poverty Alleviation Planning (CPAP)

1.1 Introduction
38 No country in recorded history of recent economic development has achieved as much in reducing rural poverty than China (Wang 2001, World Bank 2001, 1992; LGOP, UNDP and World Bank 2000, and UNDP and ILO 2000). Against an official rural poverty line of $USA0.66 per person per day, the incidence of poverty in China is estimated to have declined from more than 300 million people in 1978 to 120 million in 1988, and 42 million in 1998 (LGOP, UNDP and World Bank 2000). Even against the World Banks more stringent poverty line of $USA1 per person per day, the number of rural poor is estimated to have been 287 million in 1991, falling to 106 million in 1998 (World Bank 2001b). In 2001 the State Council announced a new national poverty reduction strategy, based on village poverty reduction, which revised the 8-7 Poverty Alleviation Program introduced in 1994 (People Daily, 2001) This policy initiative reflects the determination of the State Council to continue Chinas good record in poverty reduction and reverse what is widely recognized as evidence that rural poverty reduction has stalled, if not reversed, since at least the mid 1990s (World Bank 2001b). The new national poverty reduction strategy, based on county led village poverty reduction, referred to here as County Poverty Alleviation Planning (CPAP), has set a goal for the abolition of rural poverty for all 30 million poor in Chinas key working counties (KWCs) over the next decade. (People Daily, 2001) 39 This report is a collaborative contribution to the reassessment by China of its national poverty alleviation strategy. It responds to concern in China and elsewhere that extant poverty alleviation policy, which has served China well for more than two decades, is in need of revision to stem the leakage of poverty resources and tighten national focus on reduction of hard core poverty. In May 2001, the State Council convened a national consultation on poverty in China, coordinated by the Leading Group Office of Poverty Alleviation and Development (LGOP), the State Council's premier body for formulation and implementation of national poverty intervention strategies. The result of this meeting was a decision to address hard core poverty by directly targeting poverty at its source, in village China. This paper is a contribution, at the invitation of the LGOP working in collaboration with the Asian Development Bank (ADB), to the thinking that is on-going concerning the methodological implications of this important policy decision.
1.2 Institutional Change, Governance and Important Poverty Policies

40 Poverty policies in China have encompassed four major strategies between 1950 and 1980. 13
ADB/TA3610-PRC: Preparing a Methodology for Development Planning in Poverty Alleviation under the New Poverty Strategy of PRC/Final Report/November.2001

41 The first strategy, implemented in the 1950s, involved a land reform program that enabled poor farmers to gain access to land, which was further strengthened through later initiated rural collectivization movement albeit only within the framework of state farms and rural production brigades. 42 The second strategy focused on the modernization of Chinas economy through the industrialization of manufacturing and rural production, a primary outcome of which was a significant shift in employment from the rural sector to the urban after the end of 1970s. 43 The third strategy, first adopted in the 1960s, was a national welfare program called the Five Guarantees for Households in Extreme Poverty in both rural and urban areas (Shi Youjing 1999). The five guarantees program, administered by the Ministry of Civil Affairs, has been especially important to the aged and the disabled, as well as those in rural households subject to chronic food insecurity for all or part of the year. Nonetheless, financial constraints meant that this welfare program was always limited in its outreach, with not more than one percent of the rural population and less than one percent of the urban population covered. 44 The fourth strategy utilized central government subsidies for poor region development, to support provincial programs in education, healthcare and related human resource development expenditures, plus infrastructure development. The latter typically dwarfed the former my a factor of ten. Central government support of this sort was managed by the State Development Planning Commission (SDPC), using top-down planning methods reflecting political priorities and resource availability rather than locally defined needs or opportunities. 45 Prior to 1980, these four strategies constituted national poverty policy, but there is no sense in which these four independent strategies amounted to a well integrated and systematic approach to planning, monitoring and evaluation of national poverty reduction policies. 46 Significant national poverty policy reform in China had to await, rural sector reform, which was launched in earnest towards the end of the 1970s as part of Chinas bold steps into the international networks of world trade and economic modernization through joint ventures with foreign partners (Lardy 1992, Watson 1994, Findlay 1995, and Sun and Parikh 1999). Adoption of the individual responsibility system, to replace wholesale control of rural production decisions dictated from above through production brigade hierarchies, brought about a remarkable change in the productivity of rural household production and sustained increases in average rural household income (Longworth 1989). 47 In step with the shift in favour of market driven rural production decision making under the household responsibility system, the GoC also established a central body called 14

the Leading Group for Three West Area Reconstruction, which was affiliated to the SDPC under the leadership of the State Council, and which has evolved into the Leading Group for Poverty Alleviation and Development (LGOP). In 1982, the State Council launched the Three West Area Construction Program, under which program a large-scale land reclamation, irrigation and resettlement program was adopted for the resettlement of 700,000 people into reclaimed irrigated areas. The program involved an annual commitment of 200 million, 1983 to 1993 (Li Zhou 2001, Lin Zhibin 2002). This resettlement program was based on official belief that poverty in the western areas targeted is the result of natural conditions that can not support peoples livelihood above the poverty level without resettlement. No attempt was made to confirm or test these assumptions against local peoples perceptions of the reasons for their poor livelihood and assistance needs (Lin Zhibin 2002). Planning for the Three West Area Construction Program was carried out based on top-down methods, including externally sourced technical assistance, which addressed irrigation as the single most important constraint to improved rural production, the complex of community knowledge of their environment, social and cultural issues notwithstanding. Nonetheless, official attitudes reflected the growing belief that the beneficiaries of such schemes should contribute to the cost of their resettlement. 48 In the past two decades, user pays philosophies of development have become increasingly popular in development planning in China. However, it took time for the public sector to realize that the implementation of user pays strategies also increases the level of attention that must be given to targeting and the distribution of the benefits of development investments. Hindsight has shown that rural households that are either not poor or not among the poorest households have an advantage in garnering the benefits of top-down poverty reduction development planning. The least poor rural households are better prepared to benefit from resettlement schemes, and more likely to resettle successfully than their poorer neighbors. User pays provisions based on household contributions to matching fund programs exclude the poorest from participating, with the result that the poor continued to lack access to irrigated areas, resettlement schemes notwithstanding. Meanwhile, benefits from these schemes also proved increasingly unsustainable as conflicts over natural resource use, particularly access to water, water pricing, and secondary salination in the reclaimed area were not carefully examined. Government officials tended to rely on feedback and advice from the better-off households with the result that resettlement programs were increasingly divorced from their original target of helping the poor to achieve sustainably improved livelihoods. 49 In addition to resettlement schemes, in 1983 the Government of China announced its decision, to help poor areas change their backward situation into prosperity(Shi Youjing 1999). This decision reflected the seriousness with which the central party committee of the Communist Party of China regarded the challenge of rural poverty. Assistance came in the form of a major Work for Food program, under which 2.7 billion per year of food would be distributed to poor people in exchange for work to upgrade 15

rural infrastructure. The program, which distributed in excess of 3 billion of food in 2000, is managed by the SDPC and has a reputation for effective poverty targeting in the 10 designated poor provinces and regions in which it has been implemented. (Zhu Lin 1996) Nonetheless, the program has suffered because implementation is planned according to the availability of funds rather than needs. The Work for Food program has not responded to a systematic planning process informed by local peoples participation in planning and needs assessment. But, the program did represent methodological progress, for it employed a multi-agency approach that allowed related agencies at county level to contribute under the coordination of the planning commission. The multi agency strategy not only made it possible to address poverty as a multi-issue challenge, but it also precipitated debate on matters of governance (Li Zhou, 2001, Watson 1994) 50 Chinas formal national poverty alleviation program was officially started with the establishment in 1986 of the Leading Group Office for Poverty Alleviation and Economic Development in Backward Areas (LGOP). This group, which came to be known simply as the Leading Group, brought together the heads of the main in-line ministries and agencies that were perceived by the State Council as key policy making and implementation stakeholders whose cooperation is essential for a national approach to poverty reduction. 51 At its first meeting, the LGOP defined absolute poverty in China as resting on four criteria: (i). annual per capita income of USD 53 (in 1985 prices); (ii). food deficit for at least 3 months a year; (iii). lack of access to drinking water at less than 2 km horizontal or 100m vertical distance from the home; and (iv). lack of irrigation water for at least 6 months of the year. Great gains were made in poverty reduction under this system. The incidence of poverty across China is estimated to have fallen by 210 million persons between 1980 and 2000. At its first meeting the LGOP also identified Chinas national poverty goal as meeting the basic needs of all the poor by 1990. Thereafter, poverty eradication would be a priority in Chinas western provinces, in the old revolutionary provinces of central and southern China, and provinces where minority populations represent a significant proportion of poor households (LGOP, 2000). 52 By the start of the 1990s, the LGOP had refined these broad priorities to highlight central government support for the development of local economies through the promotion of small and medium enterprises utilizing local resources. This shift heralded a decade of public sector subsidies for the formation of township and village enterprises (TVEs), which were meant to create off-farm employment opportunities for the rural poor. It also meant the provision of central government funding for local infrastructure development, particularly road construction, communications and water storage and reticulation systems. Chinas commitments to resettlement of rural people into newly developed irrigation areas and infrastructure development through Work for Food were incorporated into the LGOPs mandate. Gradually each province established its own equivalent to the LGOP, which resulted in the formation of a nationwide network of provincial and county based Poverty Alleviation Offices (PAOs) for organizing and implementing the LGOP program. Funding 16

was secured through the central budget with a formal allocation specified in the national Five-Year-Plan. This procedure legislated the poverty alleviation program national wide. 53 Chinas national poverty program received funding in both grant and loan forms, which throughout the 1990s were allocated to each province according to proposals received from each province. These proposals were meant to reflect the magnitude of the poverty reduction target set within the provincial development plan by the Provincial Planning Commission in consultation with the LGOP and the local PAO. Meanwhile all ministries were directed by the central government to take responsibilities for poverty alleviation, with the result that each ministry set up its own internal office for poverty alleviation, funded from the ministrys own resources. By the start of the 1990s, therefore, China had a poverty alleviation program that was networked through the LGOP and local PAOs, but with individual ministries free to develop and implement their own poverty alleviation activities, to be actioned through their own in-line staff at the local level. 54 Almost all ministries developed programs that were pro-economic growth, supportive of TVEs, and committed to infrastructure improvement, following the LGOP model. However, under this strategy, the linkage between different ministries and the LGOP was very weak. Linkages among the ministries were even weaker. The annual State Council-LGOP meeting on poverty was the only real chance for the exchange of experiences. The programs favoured by individual ministries were not designed for group targeting, but mainly for geographic or area targeting. Consequently, explicit monitoring of the impacts of ministry programs on the livelihoods and welfare of poor households was not easy to achieve. It did not help that projects within ministry programs were mainly designed by officials and experts, with very weak or no participation by poor households in the programming process. Impact monitoring was almost non-existent, with the result that the leakage of poverty funds to non-poor households or groups in rural China increased (IFAD and WFP 1999, LGOP, UNDP and World Bank 2000, Benyon et al. 2001 and World Bank 2001b). 55 In 1994, the government released its new anti-poverty strategy called the 8-7 Poverty Alleviation Plan. This plan sought to address some of these shortcomings, in the hope that more explicit poverty targeting, both in terms of area and population, would maintain the rate at which the incidence of poverty had been reduced through the 1980s. The 8-7 plan identified 592 poor counties as primary targets of the national poverty alleviation program, and 80 million poor as the number of people by which the incidence of poverty would be reduced by 2001. Further, the 8-7 plan introduced innovations in program integration, with shifts in policy and governance decreed to raise the priority given to education, health and cultural aspects of development. At household level, a small-scale loan program was introduced for the first time, funded via policy loans distributed and administered through the Agricultural Bank of China (ABC). The LGOP was responsible for all aspects of poverty reduction planning under the 8-7 program, while the State Statistics Bureau was made responsible for impact monitoring (LGOP, 2000). 17

56 The 8-7 Program was an important advanced in national poverty policy in China. However, it did not stem the leakage of poverty resources to the non-poor, and it did not provide a mechanism by which the benefits of economic growth could be biased in favour of the poor. The 8-7 plan lacked pro-poor targeting procedures. The participation of poor households in project design was not encouraged. Gender issues were not given any great prominence, and attention to sustainability was followed more in rhetoric than in reality. Poverty reduction planning was almost entirely top down. The result was a national poverty program that by-passed the poor and exhibited signs of stalling. Key poverty reduction trends were no longer on the improve. In the latter years of the 1990s, gross domestic product (GDP) increased at twice the pace of household income. In the rural sector, this outcome was reflected in the fact that while agricultures contribution to GDP declined from 23% in 1985 to 12% in 1998, 70% of the rural labor force still found its primary employment in agriculture. Over the same period, rural off-farm employment grew by less than 5 percent, yet the numbers employed in agriculture fell by 10 percent. Rural unemployment increased, as did the pressure/incentive for rural people to migrate to urban areas in search of work and a better livelihood. In its recent report on poverty in China, the World Bank and UNDP attribute the failure of poverty trends to keep improving to three main factors: (i) ineffective poverty targeting, reflected in a rising proportion of poverty resources that never reach the poor, in part because of poor poverty intervention decisions associated with failed investments in TVEs using LGOP sourced poverty funds; (ii) perverse fiscal policies that have lead to taxation systems in which the poorest 20% of rural households are paying 50% of taxes collected in rural areas; and (iii) increasing income inequality, which deteriorated by 23% in rural China during 1988-95 (World Bank 2001b, and LGOP, UNDP and World Bank 2000). 57 In May 2001, the State Council convened a national poverty alleviation meeting in Beijing, coordinated by the LGOP as the newly authorized public sector agency responsible for national poverty reduction strategy formulation, policy design and implementation. At this meeting the State Council endorsed a new national poverty reduction strategy to address the problem of hard core poverty and the leakage of national poverty resources to the non-poor. The new policy shifted the geographical focus of poverty policy in two important ways. (i) Future poverty policy would be directed at the geographic source of poverty in rural China, poor villages; and (ii) national policy would concentrate on village poverty in the poorest regions in China, which are heavily concentrated in Chinas western provinces, the old revolutionary bases in provinces which had harbored the industrial heart of the Maoist revolution following the long march of the 1940s, sensitive border areas that suffer poorly developed infrastructure, and areas with significant minority populations. Within these priority areas, the national list of poor counties would be replaced by a list of Kew Working Poor Counties (KWCs). County authorities would assume responsibility, previously delegated to provincial agencies, for ensuring that poor villages are integrated into and national poverty planning processes. 58 Since the May 2001 national poverty meeting, Chinas 592 nationally designated 18

poor counties, of which 38 counties were located in eastern and central provinces, have been replaced in the national poverty reduction program by 592 KWCs, now almost all of which are in western provinces. Only KWCs are eligible to access national poverty reduction funds, though the Government of China has directed that counties not included in the list of KWCs, Tibet excepted, must develop and fund their own poverty reduction programs. Tibet has been given special treatment as a strategic autonomous region, which continues to be eligible to access national poverty funding even though counties in Tibet are not included in the list of KWCs. Although CPAP has been developed with KWCs in mind, it does not follow that the community based participatory poverty reduction planning methodology developed for KWCs is inappropriate for other counties, those not included in the list of KWCs, which have significant numbers of poor households. 59 Associated with the announcement of VPR as the core of Chinas new national poverty reduction strategy are a number of important changes to governance of poverty policy formulation and implementation. The most prominent change is the institutionalization of the LGOP as Chinas premier independent agency responsible for all aspects of national poverty reduction planning, policy development and implementation. Previously the LGOP had been imbedded in the Ministry of Agriculture (MoA), with no power to manage or organize its operations without the approval of the MoA hierarchy. The State Council has now separated the LGOP from the MOA, establishing the LGOP as a formal public sector agency with its own functional structure to deal with both internal and external matters. The LGOP has been given the lead roles in poverty planning, finance, monitoring and evaluation, and coordination of the involvement of stakeholder agencies, especially the Ministry of Finance (MoF), the State Development Planning Commission (SDPC), the State Statistics Bureau, and the Agriculture Bank of China (ABC). 60 Other governance changes arise from the shift in national poverty reduction policy to embrace participation, gender, community based planning and an expanded role for NGOs in poverty policy implementation, progress monitoring and impact assessment. Village poverty reduction planning is the heart of the new program, with individual village plans based on the situation specific needs of the poor. With the assistance of the county LGPO, Village Poverty Reduction Groups (VPRGs) will need to be formed to take the lead in village poverty reduction planning. The role of county government is limited to ensuring that village poverty plans are integrated into the County Development Plan (CDP), setting of specific poverty reduction targets for each plan period, and ensuring that national poverty reduction resources are directed, through local LGOP offices, at income and employment generation initiatives identified by VPRGs. It is left to the LGOP to ensure that the methodology and guidelines to be applied in implementing village poverty reduction are appropriate and flexible enough to account for socioeconomic, cultural and geographic differences between counties. 61 Chinas village poverty reduction strategy is based on participatory approaches to the analysis and redressing of key sources of chronic poverty in China. Because the 19

county is the lowest level of local government to which national authorities have direct contact, administration of the policy will be coordinated through county based authorities, including county based offices of the LGOP. As a result, the methodology underlying the national strategy has been dubbed County Poverty Alleviation Planning (CPAP). CPAP builds from the village up, using the rich lode of local knowledge held by village communities to identify sustainable income and employment generation activities for inclusion in village poverty reduction plans, using participatory methods of problem analysis, solution identification, activity designs, budgeting and progress monitoring and impact assessment. 62 It is the commitment to participatory approaches that marks CPAP critically different from predecessor strategies of national poverty reduction policy. However, there is a desire by the State Council that this shift should be accomplished with a minimum of conflict or reform of existing LGOP managed governance of national poverty alleviation policy and practice in China. This is a laudable and understandable goal, but the increased emphasis given to participatory, bottom-up procedures does imply some important changes in governance at both national and local levels, and change of this sort rarely comes without some opposition. CPAP is a further devolution of poverty planning in China towards a needs and demand driven framework, as compared to a centrally controlled bureaucratic process. The devolution is to be welcomed, and should be seen as a further step towards democratic processes in an important aspect of Chinese public policy.
1.3 Motivation for Change in National Poverty Policy

63 One might ask, what is it that has caused the State Council to determine that a shift in strategy is needed in national poverty policy and practice at this time? The answer is likely to be complex, but when all is said and done it is probable there are just two issues that constitute the fulcrum on which this policy evolution moves. First, China is concerned that the challenge of poverty that remains is fundamentally different from that which has already been addressed. The poverty that remains in China is dominated by what can be characterized as 'hard core poverty'. In order for poverty reduction planners to understand what causes hard core poverty to persist, it is no longer possible to assume that past policies merely need minor refinement. Second, the GoC is very aware that the lack of progress in poverty reduction in recent years is linked to the serious leakage of national poverty reduction funds to the benefit of those who are not poor. If this leakage is to be stopped, the changes needed in key areas of national poverty policy governance cannot be minor. Shifting responsibility for accountability for the delivery of national poverty funds to the poor from the province to the county is not a minor change. Nor is recourse to participatory approaches in poverty reduction planning and implementation a minor change. 64 Those active in national poverty policy implementation are aware that, in the face of entrenched desperate poverty at village level, provincial and township officials have a 20

strong incentive to attempt to get the best outcome for the limited poverty alleviation resources at their disposal. A result of this process has been the channeling of support for TVEs, only some of which have in fact led to benefits for poor people in the poorest villages in China. In the main, the hard core poor have been by-passed and poverty reduction resources have 'leaked' to the benefit of the non-poor. In recognition of these outcomes of current strategy, the State Council has determined that a new approach is needed; one that will target the hard core poor in ways that significantly increase the probabilities that sustainable poverty reduction will be achieved. Participatory village poverty reduction planning is this new approach, with administration shifted from provincial and township levels to counties. This paper reports positively on several action research field tests of CPAP which, together with supporting feedback from CPAP training exercises conducted in Fujian, Hebei, Gansu, Guangxi and Qinghai provinces, give the authors cause for confidence that local level support for CPAP is constructive and readily forthcoming, governance changes notwithstanding. 65 Neither the State Council nor the LGOP are so nave, however, as to believe that a policy shift such as CPAP represents will not meet bureaucratic inertia or resistance. The opposite is the case. As a result, those responsible for national poverty policy in China are keen to see that the governance of CPAP will involve a minimal set of bureaucratic reforms, and gradual re-education within existing administrations to the realities of participatory poverty reduction planning. Nonetheless, change is heralded by this shift in policy, if only because the shift has signaled a significant clarification of goals for national poverty policy. These goals are: (i) more effective targeting of poverty reduction resources at the abolition of hard core poverty; (ii) increased poverty reduction through the capture of poverty reduction fund 'leakages'; (iii) greater village level self-reliance for sustainable poverty reduction through the use of participatory approaches to location specific poverty reduction interventions; and (iv) the repositioning of national poverty reduction programs to move away from relief and welfare payments to the poor, towards investments in productivity based growth in capacity for self help in poor villages. 66 Participatory poverty reduction planning is new to China. It is a step along the path to rural democratization that parallels national trends towards smaller government, and user-pays strategies of service delivery by local government. Institutional changes will be needed at village level to accommodate the different roles that will be played by existing planning and poverty reduction agencies and local government authorities. CPAP proposes the formation of a new administrative group at village level to provide grass-roots leadership and facilitation services for participatory village poverty reduction planning. This group is called the Village Poverty Reduction Group (VPRG), so named to make explicit its key role in CPAP. 67 The VPRG is inclusive. The existing Village Committee, consisting of the Village 21

Leader, The Party Secretary, the Village Accountant, and the leader of the Village Women's Group, are members. To their number is added the village teacher and health worker, a representative from each 'natural village' for which the Village Committee is responsible, plus at least one representative from each 'functional' poverty group into which households in the village can be divided. If the average Village Committee is responsible for a community of 50 or so households and 4 natural villages, the typical VPRG will consist of 15-20 people. This is a large group, but for the purposes of the participatory exercises needed to achieve effective village poverty reduction planning it is not inappropriately so. 68 It is expected that the Village Committee will act as an 'executive' for the VPRG, to take charge of the administrative details that must be considered to ensure that the logistics for participatory village consultation, data gathering and mobilization of village people into CPAP procedures can be done well. A national program of 'training of trainers' for CPAP is implied, and has already been initiated in the provinces of Fujian, Hebei, Gansu, Guangxi, Sichuan and Xingjiang. (See Chapter 8, below, for further details on CPAP capacity building). 69 The leakage of poverty reduction resources to the non-poor has been a concern at State Council and LGOP level for some time. CPAP will not solve this problem, but it can help to significantly reduce the leakage. By going directly to the county, CPAP addresses county poverty priorities rather than township or provincial development planning goals. Hence, CPAP by-passes two levels of government, which, if nothing else, should produce a dividend in terms of lower administration and transactions costs. Less of the budget for poverty reduction activities will be needed just to trace and document the paper trail of bureaucracy. However, the most important method by which poverty reduction resource leakages is expected to be cut is through more effective and deliberate targeting of poor people and poor areas. A serious studies on the issue in Chinas poverty alleviation program have shown that lack of attention to targeting has meant that resources intended to go to the benefit of the poor have leaked to the benefit of others. (Zhu Lin 1996, Li Ou, 1996, Li Xiaoyun 1997, Park 1999, World Bank 2001) 70 Under CPAP, it is the responsibility of the VPRG to bring forward proposals to the County Poverty Alleviation Office (CPAO) that are tailored to address the causes of hard core village poverty. A poverty reduction 'bonus' will be added to poverty reduction activities done under CPAP by the extent to which VPRG proposals have a leveraging influence on the priorities adopted in county development plans that target the poor in poor villages. 71 One area of national poverty policy in China that has not been changed by the State Council is the commitment to the need for close collaboration between many stakeholder institutions, ministries and agencies. Multi-institutional participation in national poverty policy has been one of the strengths of Chinas approach to poverty reduction since at least the early 1980s. This has meant that in addition to the flow of national 22

poverty reduction funds from Beijing, all key ministries finance, agriculture, health, education, infrastructure, development planning and statistics- have allocated their own resources to the national poverty alleviation effort. Li Zhou (2001) estimates that in 2000 the financial contribution made by cooperating ministries accounted for 30% of all official funding for poverty alleviation in China, which in that year exceeded 9 billion. It is envisaged that national implementation of CPAP over the next three to five years may involve 300bilian Yuan according to a informal source from the LGOP to support village poverty reduction. Hence, a good and effective working relationship between the LGOP, the MoF, the ABC and the SDPC will be essential. 72 In summary, the motivation for CPAP arises because key policy makers in China have recognized that there is a need to: (i) redress deteriorating inequality in China; (ii) stem the leakage of poverty funds to inappropriate beneficiaries; and (iii) make in-roads on the incidence of absolute poverty in rural China. 73 CPAP seeks to achieve these objectives by focusing national poverty policy directly at village poverty, with proposed poverty reduction assistance informed by a willingness to listen to the poor and address the constraints that have prevented them from escaping poverty, their best efforts notwithstanding.
1.4 Monitoring Poverty Reduction

74 Current practices in poverty reduction monitoring in China are based on tangible output level and not directed at impact assessment (Li Xiaoyun 2001). The management system that the LGOP has in place is focused on the flow of money in a manner consistent with a system that has treated hard core poverty as a welfare problem. Consider the contrast between Diagrams 1 and 2. Diagram 1.1: Trickle-down poverty planning Trickle-down poverty planning
LGOP Poverty Reduction
Provincial Government Office for Economic
County Township and
County & Township Infrastructure and In-line Agency
Poor Villages
23

75 In Diagram 1.1, the village is a minor player. What little trickles down from above is some employment opportunities and welfare transfers for the destitute and those hit by natural disasters, but little else. There may also be some spin-off benefits from infrastructure development, but these are serendipitous and rarely deliberate. The work program of in-line agencies is not poverty focused, even though there are regular contacts between village committee members and staff of the ministries of agriculture, health, education, finance, etc. The focus of top-down planning has been provincial economic growth through picking what seemed to be income and employment generation opportunities, especially through TVEs. In this process, the monitoring systems of the LGOP are concentrated on the paper trail documenting the distribution of relief payments to the poor. Little or no attention was given to following the impact of investments at village level that lift the productivity of village households. If data is collected, it is related to the grouping of village households according to monthly income levels, households without an adequate supply of grain, households without access to adequate labour for household survival, or households burdened with disabled members. Statistics collected for monitoring purposes concentrate on documentation rather than impact assessment or discrimination between who benefits, who does not and which initiatives contributed most effectively to change in the incidence of poverty. The CPAP framework is built around a participatory development planning paradigm that requires participatory M&E. This will be a challenge to the LGOP, which has only limited experience and capacity to facilitate and coordinate participatory M&E at village level. This fact presents donors and NGOs with an opportunity to make a significant contribution to the success of CPAP by assisting the LGOP to improve its capacity to implement and manage a national participatory M&E system. Diagram 1.2: Bottom-up participatory poverty planning Trickle-up poverty planning
LGOP Poverty Reduction
County Poverty Alleviation Office
County Township and
Outside Technical Assistance
County Planning Commission County and Township Infrastructure and Village Poverty Reduction
24

76 Diagram 1.2 represents an idealized schematic representation of what a shift to a participatory village poverty reduction planning process implies. In Diagram 2, welfare payments do not appear, as they are not an investment in sustainable poverty reduction. The links that appear are those that represent cash flows into poor villages for employment creation, plus expenditures on activities identified by the VPRG that are intended to increase the absolute level of productivity of village household livelihood activities. Gone is the concern to ensure that poverty relief transfers and welfare payments are made. These payments remain, but their administration is outside the CPAP process and continues to be the responsibility of the Village Committee. The CPAO shares the center stage with the VPRG. There are weak links at the beginning of the process to the CPC, but these should improve as CPAP experiences spread their influence on thinking and conventional practices in development and poverty planning. A link to outside technical assistance and research agencies represents the important place that problem resolution through technology transfer, technology adaptation, and technology development will play in assistance given to villagers to increase output in livelihood activities, and diversify the sources of village livelihood activities. 77 Procedures for monitoring the impact of CPAP must be designed to be consistent with the flows represented in Diagram 2. At its core this means that there will be far more attention given to the factors that will ensure that village poverty reduction is sustained. Six key performance indicators (KPIs) will be given special attention: (i) Value of village output, in total and on a household basis; (ii) the per person productivity of household livelihood activities; (iii) changes in the absolute number of households and individuals in each functional poverty group in the village; (iv) the cash flow that is passing through village households from all sources; (v) changes in the village weighted participatory poverty index (PPI) and its component parts; and (vi) the level of participation by the poor. 78 Data on each of these six KPIs are to be collected by the VPRG on an on-going basis through regular consultation with village residents. The results are to be reported to the CPAO for recording, independent analysis and discussion with the VPRG to allow for any changes that experience shows is warranted to scheduled poverty reduction activities. 79 At the time of writing there are only limited signs that the system is gearing itself up for the bureaucratic changes that the adoption of CPAP on a national basis will bring. However, there is reason to be positive. The LGOP has embraced CPAP and has enthusiastically assisted in the field testing of component parts. The LGOP has also cooperated unreservedly in the initiation of a training of trainers program for CPAO staff and village leaders in the essential elements of the participatory methods used in CPAP.
1.5 Principles of County Poverty Alleviation Planning (CPAP)

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80 The State Council has determined that future poverty alleviation programming in China will be based on village poverty reduction planning, but that implementation of the national policy will be facilitated at county level. This change will require the development of complementary village and county poverty alleviation planning procedures; a methodology for which constitutes the primary focus of this report. 81 There are eight propositions that constitute foundation stones for CPAP. These eight are: (i) Poverty reduction at village level needs investments supported by local policy and administrative changes that enable households to increase the productivity of their economic activities and their access to regular cash flow. (ii) Hard core poverty reduction must be planned so that the necessary resources are appropriately targeted at the poorest villages in each county. Critical to this process is the choice of indicators to guide the selection of poor villages and planned interventions. Resource flows to poor villages must be closely targeted so as to minimize 'leakages' to the non-poor. (iii) Our understanding of the constraints that keep poor villages poor must be informed by participatory dialogue, participatory problem analysis, and participatory solution design with poor villagers, the target beneficiaries. The needs of poor people, their understanding of the constraints that prevent them from escaping poverty, and their appreciation of capacity to mobilize resources and manage projects are key inputs into the planning process. Knowledge of this sort cannot be had without a strong commitment to participatory approaches to all steps in the project cycle and program processes. (iv) CPAP must be systemically compatible with China's bureaucratic commitments to centralized accountability, rigorous documentation, and simple-to-use key performance indicators. As such, the methodology proposed must be user-friendly and easy to replicate across counties and provinces. Participatory approaches to poverty reduction interventions, whether based on public sector-funded infrastructure upgrades or private sector-led production activities, must be integrated into these systems as part of policy implementation and governance reform. (v) Village poverty reduction plans will be based on recommendations arrived at through participatory approaches to project identification and design, but their success is dependent upon effective integration of these projects into County Development Plans as a matter of due process. This will involve innovations in procedure and institutional development at village and county levels that increase the avenues for involvement in village and county-level decision making by poor people. In particular, it will commission a Village Poverty Reduction Group (VPRG), to be responsible for village-level participatory planning, project level design, and PM&E. Only if the recommendations of VPRGs are integrated into County development planning procedures will clear targets be set, and essential support services programmed from mainline agencies, (e.g.: agriculture, extension, education and health), and public sector enterprises, (e.g.: seed and fertilizer suppliers) to ensure that they will be forthcoming in a timely manner and in sufficient quantity. 26

(vi) Progress in poverty reduction must be measured against improvements in the incidence of poverty at all functional levels of the poverty pyramid. This means that success in poverty reduction will not only lead to increased numbers of successful micro-entrepreneurs, but also to a reduction in the absolute number of dependent vulnerable poor, subsistence poor, wage-earning poor, self-employed poor and entrepreneurial poor. (vii) Village poverty reduction should result in increased levels of self-reliance among households in poor villages. The level of self reliance can be measured in many ways, but CPAP gives priority to the eight indicators that form the basis of the PPI, especially increased per capita cash flow into poor households, a fall in the number of households at village level that live with food insecurity, a decline in the number of children dropping out of school, improved levels of village-based economic activities, and a downward trend in dependence on public sector resource flows, as measured by the number of persons reliant on welfare for their survival. (viii) Poverty reduction involves the achievement of greater equity at village level, especially for poor women and ethnic minorities, in access to basic services, sources of financial intermediation, human resource development opportunities, paid employment, income earning choices, access to productive resources, and participation in decision making positions.
1.6 The Poverty Pyramid: A Structural and Philosophical Framework for CPAP
1.6.1 Understanding Poverty: A Functional Poverty Pyramid 82 Poverty is both systemic and functional. At the systemic level, deliberate attention is given to the problems that plague the livelihoods of the poor, the sources of these problems, and the institutional constraints that keep poor people poor, no matter how hard they work to escape their poverty. Participatory approaches to development attempt to redress the lack of respect that systemic poverty structures deny the poor as a group. Participatory poverty reduction planning also rejects the welfare handout approach to poverty alleviation, that dismiss the poor as without the skills and the capacity to contribute in a major way to the abolition of village poverty. At the functional level, attention is directed to how the poor earn their livelihoods, the absolute return to their work effort, and the constraints that keep these returns low. By combining these two ways of looking at poverty, we construct a view of poverty and the opportunities to reduce poverty that is pro-poor, pro-self-help, and inclusive of the poor in poverty reduction planning. 83 A poverty pyramid illustrates how systemic and functional poverty is revealed at village level,. On the vertical axis the pyramid shows average earnings per person in each strata of functional poverty. It is possible to view the vertical axis as showing the relative productivity of poor people by their primary source of livelihood, even where this is only a part-time source of employment. On the horizontal axis the poverty pyramid shows the 27

number of poor villagers, separated by gender, whose main livelihood engagement and source of income is the primary livelihood function that applies to each stratum. A comparison of the average income earned per person in each stratum reveals the loss of productivity associated with being lower in the poverty pyramid. In the course of a year, a villager can occupy a place in different levels of the poverty pyramid, depending upon his or her primary source of livelihood at that time. 84 Diagram 1.1 presents a gender sensitive functional view of the poverty pyramid. The numbers refer to the distribution of the poor across each stratum in the poverty pyramid, and their average earnings per person. The numbers are taken from 9 villages in Fengning County, Hebei Province, PRC, where the methodology outlined in this paper for CPAP has been field tested.
3 person
45000 yuan 3500 yuan 2500 yuan 1500 yuan 800 yuan
58 person 1000 person 1200 person 20 person 600 person 1400 person 1900 person
Entrepreneurial Villagers Self-employed Villagers Wage-earning Villagers
Subsistence Farmer Vulnerable Villager
1750 person
Males labor
Females labor
Diagram 1.3 A functional Rural Poverty Pyramid for China

Source: PRA data on Employment structure and average income of rural labour in Qibailong Township Dahua County Guangxi Zhuang autonomous Regions.
85 The poverty pyramid shown in Diagram 1.3 hypothesizes that the rural poor can be viewed as resting on a base made up of vulnerable poor whose poverty is characterized by their dependence on others for their survival. The poor earn very little per person, typically because young children, the old aged, the disabled, the unemployed, those whose movement is restricted, such as the disable and those recovering from injury, predominate among the poor villagers classed in this group. In China the vulnerable poor usually make up a small proportion of the village. In China there is a program known as the five guarantees, which targets the disabled, old aged without work opportunities, and those with serious heath problems. Finance for the 5 guarantees is raised by a village committee under a collective levy on each house, supplemented by both local and central government funds where natural disasters or poverty mean that individual villages cannot afford to provide for the 5 guarantees from local household levies. Because of the existence of the 5 guarantees program, this group of poor villagers is not regarded as among the direct target beneficiaries of poverty reduction initiatives instigated by the LGOP network. However, new poverty reduction policy adopted by the State Council 28

formally declares the inclusion of this group in LGOP led poverty alleviation planning (PAP). . In CPAP, therefore, this group of poor are eligible direct beneficiaries, because their productivity can be increased through CPAP procedures. CPAP directs that the VPRG to listen to the vulnerable poor and learn of the things that will make them less dependent through improved productivity and capacity to contribute to household sustainable livelihoods. 86 The vulnerable poor are not entirely helpless. As a group they make a contribution to household livelihood, if only in a minor way. This contribution can be improved, which it must be if the dependency-ratio in poor households, (ie, the proportion of household members unable to do regular work), is to improve. It is the task of the Village Poverty Reduction Group (VPRG), to identify and translate the opportunities for increasing the productivity of the vulnerable poor into project proposals that can be included in village poverty reduction plans. 87 The next poorest group in the poverty pyramid, the subsistence poor, describes those poor villagers who obtain their primary livelihood from subsistence activities, such as farming. This group makes up a large proportion in almost all poor villages in China. The subsistence poor belong to households that in China are also know as Pingkun Households, or households that need to be targeted if rural poverty is to be reduced. 88 Self-employed subsistence farmers realize a 'wage' that they pay themselves in the form of the products they produce and consume. Economists call this an 'own-wage'. Typically the own-wage of poor subsistence farmers is below the wage earned as an unskilled employee doing itinerant day laboring, which they willingly take on whenever the opportunity arises. 89 It is often a surprise to find that the livelihood difficulties of Subsistence Poor households are exacerbated by a shortage of economically active labor. As a result, subsistence families often have above average dependency ratios, which increases their vulnerability and capacity to be self-reliant. 90 It is the task of the VPRG, to consult with the subsistence poor to identify why their productivity is so low and what might be done to improve it. Because subsistence farming is such an important source of livelihood in poor villages, one should expect that a village poverty reduction plan will devote considerable attention to how subsistence farming can be made more remunerative, and how subsistence farmers can be aided to diversify their livelihood sources beyond subsistence farming, especially into cash-cropping and other livelihood activities, including off-farm income earning opportunities, that realize a higher return to effort. In so doing, the VPRG will build on the assets, skills and market opportunities that are available to village members. 91 Above the subsistence poor in the poverty pyramid are those households who 29

survive by selling their labour for wages. Wage-earning poor households share with the subsistence poor the fact that their livelihoods are earned predominantly by selling their labor, the one for an own-wage and the other for a market wage. This latter group typically makes up the second largest group in the poor villages of China. The wage-earning poor sell their labor to an employer instead of themselves, mostly on casual terms that occupy less than half the working days in any given year. 92 Even though the market determined unskilled wage rate is normally above the own-wage of subsistence livelihoods, the absolute amount the wage earning poor receive in the course of a year is not enough to enable the household to rise out of poverty and sustain a livelihood above that level. Even where wages appear to be relatively high, the absence of on-going employment makes it difficult for the rural wage earning poor to achieve average income levels above the rural poverty line. Here again, the VPRG will explore with members of the wage-earning poor what might be done to increase the number of days of paid work available, how the wage earned can be increased, or how the available days of underemployment might be gainfully exploited to achieve an improved standard of living. 93 The stratum above the wage earning poor is occupied by the self-employed poor. The self-employed poor sell the fruits of their labor, rather than the labor itself. The productivity of the self-employed poor is a function of all the factors that determine the value they can add to the raw materials they transform into products for sale to consumers. The realized wage of the self-employed poor is normally higher than that of the subsistence or wage-earning unskilled poor, though there are exceptions, especially among women who have limited opportunities for income generation and are prepared to work at handicrafts and other home-based employment at very low returns to effort. It is the responsibility of the VPRG to examine, in a participatory way with the self-employed, the problems they face that prevent them from gaining a greater return from their self-employment. Ideas on interventions designed to remove or at least relieve these constraints will arise from this investigation, and it is these ideas that the VPRG must then incorporate into the village poverty reduction plan. 94 The top stratum of the poverty pyramid comprises village poor people who are not only self-employed but also employ others. In the main these persons remain poor because their involvement as entrepreneurs and employers is only a part-time activity, possibly seasonal. Nonetheless, their productivity, (ie., the wage they earn from the profits they make), is enhanced by the fact that they benefit from the profits to be made when wages paid to employees are below the value-added that employees, typically members of the wage-earning poor, contribute to the production process. Microenterprise development, (MED) programs and microfinance providers often target members of this stratum to encourage business expansion and employment generation. Alternatively, they target members of lower strata to enable individuals to migrate up the poverty pyramid, into this stratum and, eventually, to levels of income per person that are above 30

the poverty line. 95 Not all villagers in poor villages are poor. CPAP does not exclude these village members from the participatory village poverty reduction planning process. The near poor or the not-poor in a village are an important asset to village capacity for poverty reduction planning, and growth in realized potential for self-help. Nonetheless, the target of CPAP activity implementation is to maximize the involvement, as beneficiaries, and the productivity improvement experienced by poor villagers. 96 The poverty pyramid is both a heuristic device for analyzing poverty and for reorienting poverty targeting along functional and systemic lines. (See Remenyi, 1991, 1992, 1994, and 2000 for further details on the poverty pyramid and its use in poverty analysis, targeting, and planning). Reorientation of national poverty policies towards a focus on functional poverty and improved livelihoods is needed in China. It is needed because the top-down paternalistic traditions of past poverty policies in China have been locked into a process of poverty targeting that served best the transfer of funds instead of investment in poverty reduction. 97 Current public sector poverty intervention in China gives great weight to ensuring that funds intended for poverty alleviation are properly transferred from the State Council through to poor Provinces, on to poor Counties, and only then to poor Villages and poor households. However, recent research supported by DFID and the World Bank, (see Beynon, et al., 2001), has shown that extant practices give little effective attention to poverty targeting procedures that would remove constraints to greater self-reliance, or target village level activities designed to raise productivity of village livelihoods, or the capacity of villagers to earn cash income. CPAP seeks to redress these failings by employing a more functional approach to poverty targeting and public sector involvement in village poverty reduction. 98 The methodologies that make up CPAP leave to village people what can be left to them, the incidence of poverty notwithstanding. CPAPl also nurtures sustained village poverty reduction by encouraging villagers to identify the constraints that prevent them from being more self-reliant and more productive in what they do to support themselves. CPAPs use of participatory approaches to poverty reduction planning is intended to promote migration up through the poverty pyramid and beyond, to levels of livelihood well above the poverty line. The CPAP approach defines for the public sector a role in village poverty reduction that is tied to specified poverty reduction targets. These links are strongest when there exists clear procedures for integrating these targets and associated activities into county level development planning. 1.6.2 Some Key Performance Indicators 99 CPAP addresses the poverty pyramid by setting poverty reduction targets that 31

reduce the absolute numbers of village people in any of these functional poverty strata. Productivity improvements are reflected in increasing earning capacity, which will push more and more of the poverty pyramid upwards towards the poverty line and, hopefully, above it. 100 Participatory methods are an especially appropriate method to use to characterize poor villages according to the number of poor people or households in each functional poverty category or stratum. Poor villagers know their village intimately and are readily able to classify their fellow village residents according to their main occupations and survival strategies. Similarly, participatory methods are the quickest and least expensive method of amassing details of the problems that poor households face and the constraints that prevent them from overcoming these problems. These data about village poverty can be used by VPRGs to construct 'problem trees' that are basic inputs into a simple poverty reduction planning logical framework. These problem trees can be superimposed onto the functional poverty pyramid to increase the heuristic value of the data collected for participatory solution analysis. 101 At root, the poverty pyramid that underlies the CPAP framework highlights low functional productivity and inadequate cash flow as the two key characteristics of hard-core-poverty. These two characteristics of chronic poverty are the outcomes of systemic poverty processes. The CPAP framework emphasizes the removal of major constraints that have thus far prevented poor households from escaping poverty. 102 There is a gender component to each stratum of the poverty pyramid. Key performance indicators of progress in poverty reduction will include the number of females in each stratum, plus the average contribution that women make to household earnings. Success in poverty reduction will see the number of women in each stratum shift in ways that are indicative of movement up from lower to higher strata. Productivity trends will be shown by increases in the average contribution by women to household income. 103 Further, while short-term interventions may be identified to increase productivity and cash flow in poor households, experience has also shown that poor villagers are concerned to ensure that their children will have better opportunities for work and lifestyle. These longer-term commitments may, therefore, cause villagers to opt for resource allocations that have only limited immediate personal benefits. Participatory approaches to poverty problem analysis are fundamental to ensuring that village poverty planning does more than nod in these directions. 104 The CPAP framework proposed accepts the widely held view that the persistence of hard-core-poverty is connected to resource access and wealth distribution issues. However, the philosophical framework for CPAP does not allow particular subjective attitudes to wealth redistribution or the need to redress gross inequities in income or economic opportunities, to cloud the important role that wealth creation and 32

household capital accumulation must play in sustained poverty reduction and increased capacity for self-help. Where access to resources is indicated as a key strategy, this factor should be addressed by the VPRG in whatever manner is appropriate. In the main, however, wealth creation will take the form of productive asset accumulation, including more productive use of household savings. 1.6.3 Overview of the Procedural Framework 105 The procedures by which the foregoing poverty planning framework is to be implemented are summarized in Diagram 2.2. (next page) 106 There are three essential steps to CPAP: Phase 1: identification of poor villages; Phase 2: village poverty reduction planning; and Phase 3: county integration, when village poverty reduction proposals are vetted and integrated into the county's overall poverty alleviation development plan. All three phases call for the employment of participatory methods of data collection, problem-solution design, implementation planning, and monitoring and evaluation. Phase 1 Identification of Poor Villages 107 Unique to the CPAP system is the calculation and use in phase 1 of a weighted Participatory Poverty Index, PPI, which integrates three key dimensions of poverty using eight selected poverty indicators. The weights applied to each indicator are determined by the target beneficiary poor householders in the course of the participatory problem analysis exercises conducted under the facilitation of the VPRG. Target villages are selected using the PPI, with those villages with the highest PPI given priority, unless political criteria intervene to indicate otherwise. Phase 2 Village Poverty Reduction Planning 108 For each selected target village, the VPRG takes responsibility, in phase 2, for the assembly of baseline data on village poverty status and household poverty characteristics. The methods used will be village group meetings, village resource mapping and consultation with key members of the Village Reference Group (VRG), a collection of village leaders, important service providers, (eg. teachers, health workers, and shop keepers), and representatives drawn from a cross-section of the functional poor. The results of these consultative exercises is a household typology, a numeric gender sensitive summary of the functional poor in the poverty pyramid, and an analysis of the poverty problems that exist in the village. These data comprise the raw materials for the initial design of Poverty Reduction Proposals by the Village Poverty Reduction Group (VPRG), which is composed of members drawn from among the existing Village Committee, representatives from the major categories of functional poor and important village service providers, such as teachers, health workers and enterprise operators. If 33

Indicator Development Village Data Collection Indicator Weights WPI Calculation Scoring Scheme
Poverty Village Selection
Village Data Collection Household Classification Map & Chart
Baseline Data
Poverty Analysis Need Identification
SWOT & Feasibility Study
Supporting Need
Project Need
Monitory Plan
Need Integration County Socio-Economy National Goal & Policy
Goal & Task
Project Package Selection
Supporting System
County Project
Village Project
Implementation Plan
Monitory System County Poverty Alleviation
Diagram 1.4: Summary of CPAP
34

available, county officials and technical experts as appropriate could also be invited to be members of the VPRG. It is then the responsibility of the VPRG to subject their proposals to a Strengths, Weaknesses, Opportunities and Threats, (SWOT) analysis, possibly with the assistance of external consultants, to assess the resource needs of proposed poverty reduction interventions, finalize village proposals into a simple logical framework format, and to detail the PM&E procedures to be used. Phase 3 Formulation of County Poverty Reduction Plans 109 It is in phase 3 that the village poverty reduction proposals are vetted by county officials from the County Poverty Alleviation Office. Those proposals that are appraised as practical and achievable in the coming planning period have then to be integrated in the County Poverty Alleviation Development Plan (CPADP). In order to do this, all PAO approved village proposals are grouped into type, so that the full extent of the claims on the county infrastructure budget, health budget, education budget, etc., can be determined. Selection of which projects can and should be funded is then left to a process that matches politically determined poverty reduction goals at county level, and locally expressed village poverty reduction targets or 'aspirations', against resources available for CPAP in the County Development Plan (CDP). Only at this stage can project priorities be formulated, the role of the county in the facilitation of village poverty reduction be finalized, and village poverty reduction activities be scheduled. These latter three components make up the final 'project outcome' of the CPAP process. What remains is agreement on CPAP implementation timetable and arrangements for participatory CPAP monitoring and evaluation procedures. Financing CPAP 110 Sources of financial resources for poverty alleviation in China are of three main kinds: (i). National and local government; (ii). Relief funding from the Ministry of Civil Affaires; (iii). International donors, including both multilateral and bilateral sources; and (iv). Private non-government organizations. 111 According to official classification of financial inputs to poverty alleviation, public sector funding for poverty reduction in China can be divided into three major categories (in order of magnitude of funds disbursed): (i). Loan for Poverty Alleviation, funded through the MoF but disbursed through the ABC, which includes following items, special loan for poverty counties, supporting loan for underdeveloped area development, supporting loan for revolutionary bases, minority area, remote area and poor area, loan for TVE development and special loan for grassland poor county development. (ii). Economic Development Fund for Underdeveloped Area, which is disbursed through 35

the SDPC but funded via the MoF; and (iv). The Food for Work Program has been developed to support the improvement of infrastructure in the poor areas. The fund is funded and administered through the SDPC. 112 It is the role of the LGOP to ensure that there is coordination across these expenditure areas and the responsible agencies. 113 Total annual expenditure under these three headings have been expanded yearly. In 2000, total expenditure has reached to 264.5 billion Yuan (LGOP 2000), which is 30 times than the figure of 1980. It has been planed to allocate total 300 billion Yuan after 2002 yearly (informal source of the LGOP 2002). It is generally believed that the subsidised loan program has made a valuable contribution to improved farmer employment and income generation opportunities, with an estimated 15% of all households in the poor areas receiving a loan under the program. However, this gain has come at a very high cost because the bulk of the benefits may not have gone to assist genuinely poor households. (Vide Fang 2000). In keeping with the top-down nature of policy making practiced throughout most of Chinas recent development history, the subsidized loan program was not designed or implemented on the basis of consultation with intended beneficiaries. The program has no effective mechanism for targeting the poor, and is likely to have excluded the poor by limiting access to loan funds to farmers able to offer the ABC acceptable financial instruments or assets as loan collateral. The record also shows that the program has accumulated a bad debt rate that reached 40% by the end of the 1980s and has deteriorated further since then (ibid). LGOP data indicates that between 1991 and 2000 almost 74 billion yuan was disbursed through the subsidized loan program. 114 Chinas Food for Work Program was started in 1985. It has worked in close collaboration with the UN World Food Program since the beginning, with WFP contributions accounting for approximately 30% of the value of food disbursed. Where the subsidized loan program was supposed to be available to all poor farmers, irrespective whether the farmer was located in an officially designated poor area or not, the Food for Work Program has been restricted to villages in officially designated poor counties. Studies by Lin and Zhongyi 1995, and others indicate that the food for work program has contributed significantly to the improvement of local infrastructure and short-term income earned by the poor. The WFP has also undertaken a significant number of impact assessments of food for work in China, and generally found that the economic internal rate of return is significantly above the opportunity cost of capital in China, that projects completed are typically bankable and replicable, and that additional data provided from other projects confirms the positive findings (WFP 1997). LGOP data shows that during the period 1991-2000, the GoC expended almost 41 billion on food for work projects. 115 The economic development fund for poor areas was started soon after the economic reforms of 1978 opened the economy of China to freer trade with the rest of the world. The MoF manages the fund, and allocates budget to designated poor counties 36

directly for improving physical and social infrastructure, such as communication, education and health. However, over time the fund has largely become a source of subsiding funding for local government budgets. The close tie that should exist to projects targeting poor households has been eroded with time. LGOP data show that 1991-2000, a total of 22 billion has been disbursed through the economic development fund for poor areas. 116 An important source of poverty reduction funding is public sector resources not coming from central government budgets. In the main these sources come from budget allocations by provincial ministries and in-line agencies. The LGOP estimates that since 1994, at least 15 billion has come from here, but the impact of these funds on the livelihoods of the poor is unclear. There is anecdotal evidence that suggests that local government offices have very weak mechanisms for ensuring that funds allocated to poverty reduction do more than offer welfare relief. The notion that poverty reduction requires governments to invest in poor people and poor communities is still widely resisted. 117 From the foregoing it is not clear where resources can best be diverted from predecessor programs into CPAP. There is a need for the current financing mechanisms to be reformed. Nonetheless, the directions of the reforms needed are much clearer. First, as a participatory process that engages different stakeholders to define what should be supported in a strategic manner, CPAP requires a complex of multi-agency cooperation and multiple sources of funding that could easily embrace all four of the sources identified above. A prerequisite, therefore, is that CPAP needs to be understood and accepted by all potential stakeholder agencies. It will fall to the LGOP and the State Council to facilitate the education process that this will entail, though it is the responsibility of the LGOP to detail what it will need to ensure that CPAP can be successfully implemented at local level. Second, CPAP targets the functional poor, with a view to transforming the poverty pyramid into communities that are successfully overcoming the constraints that keep them poor. The government economic development fund can support the capacity building that this will involve, including infrastructure development such as schools, health centers, potable water systems and road construction. This will be facilitated if proposals arising from the work of VPRGs are integrated into CDPs. There appears to be no major barrier to this happening. Increasing the transparency of how the fund is used and administered will be useful, but involving the poor in the process is essential. Strengthening of the national auditing function will assist in ensuring that the goal of transparency is served, and problems of moral hazard are kept to a minimum. 118 The Food for Work Program has a high relevance to CPAP. It can be tailored to fit the resource needs of projects initiated by the villagers through the poor village planning process. Similarly, the poverty loan program could benefit household activities proposed under CPAP, though it ought to be possible to ensure that repayment rates associated with CPAP based loan proposals are commercially sustainable. The preconditions for accessing a loan by a poor households should be flexible and eschew collateral requirements that exclude the poor, but in the pursuit of sustainable poverty reduction, loan 37

interest rate charges should be no less than the opportunity cost of funds. This requirement will need an institutional change and a policy change, but neither should be insurmountable. The principles of financially viable microfinance are wholly consistent with the framework and the procedures associated with CPAP. The LGOP has the capacity and the authority to ensure that NGOs can participate as donors or on a partnership basis to ensure that private sector resources can be applied to poverty reduction through CPAP. CPAP Stakeholders 119 CPAP is both a concept and an operational tool. As such it will lead to new interactions between poverty sector stakeholders. The primary stakeholders, poor households in poor villages in poor counties, will have much more voice in decision making, design of poverty interventions, and monitoring of progress in trends in the incidence of poverty. Policy stakeholders, in contrast, will find their role shifted to consider how they can best support local initiatives. 120 CPAP Stakeholders are of four basic sorts:
121 First there is the group termed Policy Stakeholders, who must initiate CPAP and enable the process that will defer decision making authority to the target group, poor households in poor villages. The Policy Stakeholder group is led by the State Council of the People's Republic of China. The will of the State Council is translated into national policy guidelines and priorities by the Leading Group Office of Poverty Alleviation and Development . The LGOP stands at the head of a nation wide network of county-level branches, known as the CPAO, which implements policy directives received through the LGOP. Above the LGOP but in partnership with it, there is the State Development Planning Commission and its national network of County Development Planning Commissions. CPAP must achieve closer collaboration between development planers, the LGOPs county counterparts, and poor villagers. Over time one should see priorities in county development plans give greater weight to poverty reduction in the preparation of county development plans. As this happens, the range of policy level stakeholders will expand to include all ministries and finance agencies, including development assistance agencies, contributing to development planning in China. 122 The second group of stakeholders in CPAP are those who can be identified as the Implementation Stakeholders. While the LGOP has carriage for guidelines and policy definition, it is the county-level Poverty Alleviation Office and the Village Poverty Reduction Group that are the key members of this group. The CPAO and the VPRG are responsible for mobilizing villagers, facilitating and scheduling CPAP activities. The in-line agencies and ministries are also members of the implementation group, but they take their lead as service providers indirectly from the CPAO and the VPRG. NGOs, consultants and training providers are in a similar position as another class of service provider, but NGOs can be expected to take a keen and, possibly, a more altruistic interest. It would be surprising if 38

there were no opportunities for NGOs with a commitment to participatory approaches to development to become involves as support agencies to the VPRG. 123 The third group of stakeholders in CPAP are the Target Beneficiary Stakeholders, primarily poor villagers. There are other beneficiaries too, such as service providers and extant economic entities in the local economy, but it is direct beneficiaries that a stakeholder analysis needs to concentrate upon. This stakeholder group should be segmented to ensure that gender issue, the interests of children, the needs of the landless and the constraints facing more entrepreneurial members of the village community are not overlooked. In many respects the target beneficiary stakeholder group can usefully be viewed according to the functional poverty level that individual members belong to. 124 The fourth stakeholder group are those grouped under the Resource and Facilitator Stakeholder banner. This group is dominated by ministries such as the MoF and the MoA, in-line agencies such as the LGOP and the ABC, development planning authorities such as the SDPC, CDPC, and SSB, and donors, including NGOs. The critical role for these stakeholders is resource mobilization to enable as many of the poverty reduction initiatives proposed by VPRGs to be resourced as possible. Beyond that, the Resource and Facilitator Stakeholders will want to work with Policy Stakeholders and Target Beneficiary Stakeholders in ensuring that suitable PM&E systems are implemented. ADB and Other Donors Role in CPAP 125 Village poverty reduction has been adopted as the focus for Chinas national poverty reduction policy, and CPAP is the participatory methodology on which implementaion in KWCs is based. CPAP provides opportunities for international communities to collaborate with Chinas poverty alleviation program in ways that best suit the comparative advantages of development donor agencies as stakeholders in poverty reduction in China. ADB, DFID, FF, UNDP and WB have already had a hand in the development of the participatory approaches on which CPAP is founded. Nonetheless, the following areas need further external support if CPAP is to be successfully adopted in all poor KWCs. Ongoing stakeholder policy dialogue 126 Dialogue among different stakeholders is needed to ensure that the coordination and collaboration required to ensure that procedures can be enacted in a timely manner and brought to a fruitful conclusion is available. The LGOP must take the lead in this process, but it must nurture closer working links between the LGOP, the SDPC, the MoF and the ABC. In order to facilitate dialogue, a schedule of national CPAP implementation workshops should be agreed upon, each of which will focus on a key aspect of implementation that is giving rise to problems of a general nature. The first of these 39

workshops could address outstanding issues relating to capacity building for participatory poverty reduction, for example, while the second might highlight the constraints to integration of VPRG recommendations into CDPs. The ADB and other donor stakeholders can support these workshops and assist in dealing with proposed follow-up activities. It would not be inappropriate for donors to collaborate with the LGOP in the establishment of a CPAP Consultative Group, to promote joint actions to document and disseminate lessons learned from experiences with CPAP. PPR Capacity Building 127 There is an urgent need for National level capacity building on participatory planning and PM&E, especially within the SDPC, MoF and the ABC. The ADB and other donors should consider supporting a program to assess the capacity gap, develop a capacity building training module, and develop appropriate pilot activities. A key partner in capacity building should be the State College of Administration and Management (SCAM), which has the mandate for training of high level officials and which would take the impact of training beyond the confines of the LGOP. Local Level Capacity Building 128 Participatory approaches to local government, community development and poverty reduction planning at village or county levels are not the norm in China. There is, therefore, considerable scope for capacity building, especially at county and township levels. Currently there is no proposal to initiate a national capacity building program at this level. DFID is undertaking a study of local government capacity building for participatory development, but there is a need for a donor funded pilot program to develop a framework for local capacity building based on lessons learned in the course of CPAP field trials in poor villages. Gaps in PM&E 129 The M&E system associated with CPAP is not well developed. ADB should consult with LGOP and WB with a view to cooperating in the design and testing of a suitable PM&E system for CPAP. Special attention should be given to the role that NGOs could play in ensuring that PM&E procedures are properly implemented and the results acted upon. Since the CPAP has been adopted by the LGOP, all poverty counties now impelementing the CPAP, there is a need of assessement on primary impact study to undersatnd how the CPAP is being undertaken to define what should be done for further intervention. CPAP: A Methodology for Bottom up Planning 40

130 For too long the persistence of hard-core-poverty in China has been attributed by local officials to the 'poor quality of the people'. The methodology presented here, CPAP, does the exact opposite. CPAP begins from the premise that poor people are the true experts on poverty, that the poor are keen to escape from poverty, and that the poor have the skills to escape poverty if given the opportunity. 131 The thinking that underlies CPAP builds on the wealth of knowledge that poor villagers have on why they find it so difficult to escape their poverty. The process that flows from listening to the poor capitalizes on the potential for poverty reduction that has remained unexplored because self-help strategies have been passed over in favor of welfare handouts and paternalistic judgments about what the poor need. Participatory approaches to poverty reduction planning offer means by which the desire of the poor to escape their poverty can be harnessed and the dream of escaping poverty brought to reality. 132 CPAP has been field-tested using participatory action research methods in Fengning County, Hebei Province. Subsequently CPAP was revised and the outcomes validated in Jingning County, Gansu,, and Guangxi Zhuang Autonomous Region. These field tests demonstrated that CPAP is consistent with current poverty alleviation planning systems in China, and is not beyond the capacity of farmers and local officials to adopt. Nonetheless, special attention will need to be given to capacity building in skills needed for participatory approaches to poor village community development, especially in ways that will facilitate easy incorporation of CPAP outcomes into county, regional and national development plans. 133 CPAP is only now being implemented in a limited number of counties. Progress in spreading CPAP to other poor counties will be facilitated if well documented case studies were available for dissemination of key learning experiences. There is a role here for donors such as the ADB, especially if they are able to fund local technical agencies or NGOs to prepare and publish the case studies. 134 The PPI is a key part of CPAP. The LGOP will use the PPI to rank villages in KWCs according to the incidence of poverty. However, there will remain a need to apply the PPI to poor counties not included in the KWC list. It would not be inappropriate for donors and private NGOs to work with local governments to see that this is done. Lessons from International Experience 135 Poverty planning does not have an auspicious history in the modern period of economic development. From the earliest years, immediately after Bretton Woods and the close of World War II, poverty reduction was not a central theme of development; it was a by-product of successful economic development. (Agarwala and Singh 1958, Baldwin 1966, Meier and Seers 1984, Farmar 1988, Rist 1997). The history of ideas in 41

development is not, therefore, paved with ever improving theories of poverty or poverty reduction. (Contrast Dreze and Sen 1990, Sen 1981, 1999, Streeton 1995 and World Bank 2001a). Rather, progress in thinking on development planning, whether taken from the perspective of economics, geography, politics, sociology, history, anthropology, engineering, administration or any other aspect of technical assistance, has been about the management of resources in circumstances of change, not a study of people mired in poverty (Ezekiel 1965, Rostow 1980, Lal and Myint 1989, World Bank 1990, FAO 1996). 136 Development studies has always acknowledged that there are winners and losers as a result of the socioeconomic, legal, institutional, or environmental changes that development involves, with the universally accepted dictum that successful development leads to economic growth that will be good for the poor as well as the rich. The idea that economic growth is a proxy for successful challenges to the incidence of poverty in poor economies still retains currency today! (Ravallion 1994, Bruno, Ravallion and Squire 1998, Tanzi, Vito and Ke-young Chu 1998, Temple 1999, Aghion, Caroli and Garcia-Penalosa 1999, Bourguignon 2000, Alderman 2001, IFC 2000, World Bank 2001a, 1990). 137 Through most of the 1950s and the 1960s, poverty planning in developing countries took a back seat to sectoral modernization, and development investments associated with technology transfers (Agarwala and Singh 1958, Hirschman 1958, Meier and Seers 1984). Poverty reduction planning was married to the establishment of complex manufacturing industries, described by the head of Indias Planning Commission, the legendary PC Mahalanobis, as involving public sector support for producer goods industries to ensure that local economies develop the capacity to make the machines that make the machines (Mahalanobis, 1963). A modified form of Soviet style forced pace development represented the model that India and other technologically backward economies believed would propel them into modernity (Kumar 1957, Bhagwati and Chakravanty 1969, Gupta 1971). It went without saying that the achievement of modernity was also supposed to herald gains in poverty reduction that mirrored the full-employment conditions that appeared to characterize modern donor economies in north America, Europe and Australasia from the mid 1950s through to the late 1970s or early 1980s. (Rostow 1960, Baldwin 1966, 1980, Kuznets 1971, Bairoch 1975, Chenery and Syrquin, 1975, Streeton 1979, Fields 1980, Lal and Myint 1989, Isbister 1991, and Singer 1993, 1975). 138 The development community was not long into the 1970s before concerns began to be expressed about the apparent absence of progress in developing countries. Throughout the 1960s famines persisted and widespread incidence of deaths from starvation highlighted the fact that for many developing country citizens development planning was not delivering an improved quality of life or freedom from food insecurity. However, the belief that economic growth is good for the poor remained as unassailable a proposition as ever (Streeton 1979, Singer 1975, 1993, World Bank, 1984, 1990 139 The failure of development planning to deliver reductions in the incidence of 42

poverty and deaths from starvation was not attributed to deficient thinking about the role of economic growth in poverty reduction planning. Instead, development professionals found deficiencies in the technology transfer process, best understood as the catapult from which the green revolution was launched (Hopper 1965). In fact, there was a great deal of truth to the realization that technology transfer was not a simple matter of choosing from a shelf of existing knowledge. The core of the success of the green revolution technologies has been the applied and fundamental research that has adapted biological materials and rural production methods to the unique geographic and environmental situation of farmers in developing countries (Anderson, Herdt and Scobie 1988, Tribe 1994, Mellor 1995). 140 There is considerable debate over the long term benefits of the greed revolution and its impact on poverty. This is not the place to assess that debate or review the relevant literature (Hazel and Ramasamy 1991, Mellor 1995). Suffice it to say that lower food prices and increased availability of basic staples meant that rice bowls once empty were no longer so by the time the 1970s drew to a close (Bairoch 1975, Remenyi 1999). Nonetheless, the number of poor in the developing world was not falling, while the gap between the rich and poor was increasing. Development planners were again drawn to rethink why more progress was not being realized, three decades of economic growth notwithstanding. The time was not yet ripe, however, for entrenched thinking to seriously question the link between economic growth and poverty reduction. Economists were aware that new thinking on distribution issues had to be a part of the solution, but the time was not yet right for development planners to make the intellectual leap needed to realize the importance of disaggregating the concept of economic growth beyond the traditional approach of economics to the problem of distribution (Chenery and Syrquin 1975, Chenery et al 1974 FAO 1996, Streeton 1995, Van Den Berg 2001) 141 Throughout the 1980s, therefore, development planners were at a loss to know what more to do to ensure that concern for the poor is more than good sounding rhetoric. A lifeline was discovered in the view that development had to be humanized, with the policy recommendation that more attention had to be given to policies that would ensure that the poor are given access to the basic needs that are essential for a person to be an active economic actor (Streeten 1979). The basic needs thesis, which in one sense represented a backward step in development planning to the extent that it spread the notion that the poor need welfare to ensure that they have access to the essentials of life, also forced development thinkers to re-examine why poor people do not have access to basic needs. This re-examination, which was long overdue but essential to the development of the concept of pro-poor growth, was to highlight the systemic basis of chronic poverty (De Janvry and Sadoulet 2000, Demery and Squire, 1996, Dollar and Kraay, 2001, Easterly 2001, Fishlow 1995, Londonio and Szekely 2000, Lustig, 2000). It was then a much shorter intellectual step to ask how economic growth could be made more pro-poor. Nonetheless, it was not until the mid to late 1990s that the concept of pro-poor growth was to attain widespread legitimacy (Sudhir and Ravallion, 1993, ADB 1999, Narayan, Chambers, Shah, and Petesch, 1999, 2000, Narayan Patel, Schafft, Rademacher, and 43

Koch-Schulte, 2000, Soubbotina, 2000, Eastwood and Lipton 2001). 142 An important step toward the elevation of pro-poor strategies into the center stage of development planning and poverty reduction planning in particular, was the coming to a head of the debt crisis in developing countries. The IMF led Washington consensus had imposed structural adjustment programs on some of the worlds poorest and most heavily indebted countries in ways that reflected a very naive view of the link between economic growth and poverty (Bourguignon, de Melo and Suwa 1991, Castro-Leal, Dayton, Demery and Mehra 1999, Morley 1995, Sahn, Dorosh, and Younger 1997). A global lobby of NGOs and developing country governments brought pressure onto the IMF and the WB to re-examine the impact of structural adjustment programs on poverty in highly indebted poor countries. The results showed that without deliberate attention to the needs of the poor, the costs of policy reform would be shifted onto those groups in the community with the least political power, typically the poor (Ravallion and Squire 1998, Tanzi, Vito and Ke-young Chu 1998, Temple 1999, Aghion, Caroli and Garcia-Penalosa 1999, Agenor 2000, Bourguignon 2000) 143 The foregoing paragraphs present a highly truncated overview of how thinking in the the development community has arrived at a current consensus on development planning and strategies for poverty reduction. Economic growth remains at the center of contemporary thinking, but the link between economic growth and poverty reduction has been seriously reassessed. Pro-poor economic growth reflects a belief that poverty reduction will not follow economic growth unaided. The pro-poor consensus recognizes that powerful structural, institutional, social and cultural constraints form systemic barriers that favour the non-poor in competition for resources, employment opportunities, government assistance and access to markets. It also acknowledges that economic growth will benefit the poor minimally, if at all, unless deliberate steps are take to ensure that economic growth and the economic development that follows is pro-poor. Poverty targeting has, therefore, taken center stage in poverty reduction planning. 144 The goal of poverty reduction planning is to ensure that economic growth is pro-poor. International experience with pro-poor poverty reduction planning, which includes the welter of evidence now available in the many country specific poverty reduction strategy papers produced in association with the IMF, IDA and the WB (eg: IMF 2001a, b), has resulted in a new agreement that constitutes a framework for achieving pro-poor economic growth. This framework consists of twelve guidelines for the planning, design and implementation of pro-poor sources of economic growth. In priority order, these twelve pro-poor poverty reduction planning guidelines are: 1. Poverty planning should be informed by participatory poverty analysis and incorporate, where practicable, in the solutions proposed participatory methods in the design, implementation, monitoring and final impact assessment procedures recommended. 44

2. Poverty planning must be explicit and deliberate in its targeting of the poor. 3. Poverty planning must address the systemic and resource constraints that prevent poor people from escaping poverty through their own efforts. 4. The outcomes of poverty planning must enhance the capacity of the poor to become more self-reliant if they are to climb above the poverty line and stay above it. 5. Poverty planning must pay especially attention to increasing the flow of cash receipts into poor households. 6. Poverty planning must address the need to raise the productivity of the functional poor at all levels of the poverty pyramid if sustainable poverty reduction is to be achieved. 7. Poverty planning must address each of the major types of poverty that poor people identify as critical to their experience of poverty. 8. Poverty planning must nurture an environment in which poor households are able to participate in wealth creation activities through improved resource management, access to additional resources, and/or increased opportunities for investment in self-improvement. 9. Poverty planning must be gender sensitive and make explicit provision for the active involvement of women, the mobile aged and children. 10. Poverty planning must be inclusive and not ignore the needs of the vulnerable and powerless. 11. Poverty planning must embrace pricing strategies that are consistent with opportunity costs faced by the relevant target population. 12. Poverty planning must give explicit attention to the role of health issues as a cause of on-going poverty. 145 The ADB has been in the vanguard of the search for strategies that would ensure that development planning will result in economic growth that is pro-poor. CPAP is another example of a strategy designed to achieve this outcome. ADBs involvement in this process is to be commended as an appropriate and timely response to the requests and needs of China in poverty reduction planning at this crucial time of major policy reform in national poverty policy.
45

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Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and philosophy underlying County Poverty Alleviation Planning (CPAP)

1.2 Institutional Change, Governance and Important Poverty Policies

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

1.3 Motivation for Change in National Poverty Policy

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

1.4 Monitoring Poverty Reduction

LGOP Poverty Reduction

Provincial Government Office for Economic

County Township and

County & Township Infrastructure and In-line Agency

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

LGOP Poverty Reduction

County Poverty Alleviation Office

County Township and

Outside Technical Assistance

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

1.5 Principles of County Poverty Alleviation Planning (CPAP)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Entrepreneurial Villagers Self-employed Villagers Wage-earning Villagers

Subsistence Farmer Vulnerable Villager

Diagram 1.3 A functional Rural Poverty Pyramid for China

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Principles and Philosophy Underlying County Poverty Alleviation Planning (CPAP)

by Asian Development Bank ( ADB, 2001)

Poverty Village Selection

Village Data Collection Household Classification Map & Chart

Poverty Analysis Need Identification