Release No. IFAD 09/01

Rome, 20 February 2001 – A USD 107.3 million programme in the People’s Republic of China, the ''West Guangxi Poverty-Alleviation Project'' will receive a USD 30.4 million loan from the International Fund for Agricultural Development (IFAD). A loan agreement was signed today at the Fund’s Headquarters by Mr. Wang Baorui, Vice Minister of Agriculture and Mr. Fawzi Al-Sultan, President of the Fund.

The project area comprises 74 townships in 10 counties of the western part of Guangxi Zhuang Autonomous Region in south-western China. Several ethnic minorities make up the population with the Zhuang people forming a majority in most counties. Most of the villages are in remote upland areas that lack adequate access roads, where there is limited, low-yielding arable land and underperforming health and education facilities. Living conditions in these counties are harsh, there is a severe lack of drinking water and many children cannot afford to attend school. About 50% of the land is on slopes, rainfall in unreliable, with regular droughts and floods; all this has led farmers to develop complex cropping systems to make the most of local conditions and minimize the inherent risks. Moreover, a large number of the population has to rely on additional income from migratory labour in urban centres and enterprises.

The goal of the West Guangxi Poverty-Alleviation Project is to achieve sustainable poverty eradication for 240 000 vulnerable rural households living in an environment with degraded natural resources. Women form the most significant group amongst the targeted population, as they contribute significantly to farm production and household tasks. However, they have less than average access to education and training and hence to income-earning opportunities. The objective is to achieve a sustainable increase in productive capacity, both on- and off-farm, and to offer increased access to economic and social resources, including financial services, education, health and social networks. The priority needs of the households, as determined by a participatory rural appraisal are: to have more food in order to bridge the hunger season; to have immediate access to safe drinking water; to earn more income and to improve education and health facilities. In general, the households consulted requested assistance for investments in production activities to raise their incomes and improve food security.

A participatory rural appraisal workshop was conducted to train township project management offices, further training sessions will be held to prepare the village development plans with the participation of the target group. A vast functional literacy and training programme, mainly for women, will provide the capacity for and thus increase participation in technical skills training and related productive activities.

The International Fund for Agricultural Development has so far extended 17 projects to the People’s Republic of China, for a total loan amount of about USD 403.2 million.

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IFAD is a specialised agency of the United Nations with the specific mandate of combating hunger and poverty in the most disadvantaged regions of the world. Since 1978 IFAD has financed 584 projects in 114 recipient countries and in the West Bank and Gaza for a total commitment of approximately USD 7.2 billion in loans and grants. Through these projects, about 250 million rural people have had a chance to move out of poverty. IFAD makes the greater part of its resources available to low-income countries on very favourable terms, with up to 40 years for repayment and including a grace period of up to ten years and a service charge of 0.75% per year.