Release number IFAD/05/07

Rome, 13 February 2006 – New approaches to reducing poverty and increasing poor people’s incomes will be introduced in rural villages of North and South Xinjiang provinces in China through a new US$55 million development programme.

The Modular Rural Development Programme in the Xinjiang Uygur Autonomous Region will be backed by a US$25.1 million loan from IFAD. The loan agreement was signed today at IFAD headquarters by Ju Kuilin, Deputy Director General with the Ministry of Finance for the People’s Republic of China, and IFAD President, Lennart Båge.

The rest of the programme’s financing will be provided by the government of the Xinjiang Uygur Autonomous Region.

Although China has recently experienced strong economic growth, rural poverty still persists in several western provinces despite the work of previous development programmes. The high levels of rural poverty suggest that new ideas are needed.

The programme will test a series of modules during a pilot phase in 10 counties of North and South Xinjiang. Through these modules, approximately 176,000 rural households will be introduced to innovative development tools in such areas as natural resources management, renewable energy, microfinance, credit and skills training for women, and organic farming and marketing. Villagers will then decide their own development priorities and activities and, as priorities may change from year to year, make necessary adjustments to their plans.

If successful, these modules and participatory methods will be extended to other parts of the region.

Since starting operations in 1978, IFAD has provided financing for 20 projects and programmes in China, with loans and grants totalling US$498.22 million.

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IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, it develops and finances projects that enable poor rural people to overcome poverty themselves. There are 185 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.1 billion. IFAD has invested US$2.9 billion in these initiatives. Cofinancing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help nearly 77 million poor rural women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.5 billion in 732 programmes and projects that have helped more than 300 million poor rural men and women achieve better lives for themselves and their families. Governments and other financing sources in the recipient countries, including project participants, have contributed US$9.1 billion, and multilateral, bilateral and other donors have provided another US$7.1 billion in cofinancing.