Statement by Vice Minister Li Yong of China
at the 27th Session of the Governing Council
of International Fund for Agriculture Development

18 February 2004, Rome

Mr. President, Mr. Chairman,
Distinguished guests, Ladies and Gentlemen,

Spring is an animate season. In this season of hope, we are gathering here from all over the world for the one common goal of poverty reduction and human development. We are here to review the past and look ahead into the future. Above all, we are here to exchange views on how best we could work together to achieve the historical missions of this International Fund for Agriculture Development. Let me, first of all, take this opportunity, on behalf of Chinese government, to express my profound appreciation to IFAD for its continuous and effective efforts and contributions to the global poverty reduction. I would also thank IFAD for its generous support and effective assistance to my country’s rural development and poverty reduction.

Poverty is a global issue. Relieving and eradicating poverty is the common responsibility of all the humanities. Fighting poverty requires not only the efforts of the developing countries, but also the assistance from international organizations and developed countries. 26 years ago, IFAD was established to meet the special challenge of global food crisis, and it has since began its course providing support to increase food production, ensure food security as well as global poverty reduction. In the past 20 years, geopolitical and social and economic systems have all witnessed tremendous changes. Nature of global poverty has also taken on a new look. I am happy to note that IFAD has been effective in making efforts in the field of policy and strategic reforms to adapt to the changing global environment. These reforms have

made it possible for IFAD to continue its positive contributions to the global efforts against poverty. However, we should realize, despite of the fast pace of the industrialization and globalization, we are still faced with mounting challenges of increasing global poverty. There are still 800 million people living in absolute poverty in our world and the gap between the wealthy and the poor has continued to widen. The task of poverty reduction is still an ever-lasing and arduous one which calls for greater efforts from the international community for, yet, still a long period of time to come. Right now, the developing countries need more assistance from the developed world in providing funds, reducing or waiving debts, transferring technology and conducting trade on equal terms, so as to revitalize their economies and improve their people’s living standards. It is widely acknowledged that the long-term interests of the developed world also lie in how fast global poverty can be reduced and peace and stabilities are achieved and maintained. Sustainable global economic growth and prosperity of all countries should be the ultimate goal to which all of mankind should dedicate themselves.

China is a member of IFAD family. Since China joined IFAD in 1981, Chinese Government have been working very closely and effectively with IFAD in the area of poverty reduction and sustainable rural development. Millions of the rural poor have benefited from the cooperation between Chinese government and IFAD. Though the number of projects supported by IFAD is not big relative to China’s needs, the significant impacts of our cooperation have gone beyond the projects themselves. Just as an old Chinese saying puts, “a single spark can light up the whole grassland”. These projects, although more for their demonstrative and catalyst roles, brought new concepts and approaches in China’s anti-poverty practice. China needs IFAD, and vice e versa. In the past two decades, Chinese government has exercised its roles and responsibilities as a member of IFAD in its pledges to various resource replenishments. China maintained a stable and successive increase in the amount of its replenishment funds to IFAD despite of its domestic pressure of investment demand and budget constraints for resource allocation. Our efforts in supporting IFAD reflects the serious commitment of Chinese government of dedicating itself to the goal of common prosperity for the world, and its full support to IFAD for fulfilling its mission.

Since 1990s, China’s economy has achieved a high growth rate. We have made fundamental adjustment to the sectoral structure, and the total number of absolute poor decreased sharply and continuously. In the past 20 years, more than two hundred million poverty-stricken people have been lifted out of poverty and stated their well-off and comfortable life in terms of food and shelter. Such achievement is undoubtedly a great contribution to the global poverty reduction. As referred in “2003 Human Development Report ” by UNDP, “without the achievement of China, the quantity of the absolute poor of the world would increase by 20 million in stead.” Looking back to the course of China’s anti-poverty undertaking, we should point out that the large scale of poverty reduction would not be possible if it is not for the rapid economic growth that China has achieved. The economic development plays a critical role in deciding the fortune of rise and fall of a country or a region.

The Chinese government is, as it has always been, firmly committed to fighting poverty and achieving common prosperity. Since China’s reform and opening to the outside world, Chinese government always keep agricultural sector as a priority topping the government’s agenda of economic development. Poverty reduction in rural areas is always the top priority of government development policy agenda. The effort has helped to realize the long-cherished wishes of the farmers in the poverty-stricken areas to have enough food and warm clothes, hence playing a pivotal role in promoting the nation’s economic development and social stability.

Having said the above, we should all clear that there is still a long way to go in our efforts of fighting poverty in the world. Faster rural development is still key to achieving our goal of reducing poverty. At the turn of the century, Chinese government has set a new national strategy for the first ten years in 2000. Realizing that the 10 years of new phase of the anti-poverty drive is a lasting, arduous and complex process, Chinese government will continue its policy of achieving poverty reduction through economic development and growth, and pursue sustainable, integrated development strategies for balanced and all-round economic growth. The Chinese government will provide essential policy and financial support to help rural poor in seeking practical development road with Chinese characteristics through adjusting economic structure, developing local resources and commodity production and improving the poor’s ability of self-accumulation and self-development.

China’s poverty reduction drive is an important part of the global anti-poverty undertaking. With the advance of the China’s poverty reduction process and the continuous deepening of international cooperation, as well as the gradual enlargement of IFAD’s influence in China’s poor areas, the cooperation between China and IFAD will enter into a new stage. Chinese government cherishes the good cooperation and friendly relationship with IFAD, its member countries and other international organizations, and China continue to commit itself to global poverty reduction and human development. Let’s work together to create a wonderful and peaceful world free of poverty.

Finally, I wish the meeting a complete success.