Poverty Alleviation in the Poor Mountainous Areas of Western China by Supporting Industry: A Case Study of Xundian Hui and Yi Autonomous County in Yunnan Province

Bosheng ZHANG, Zisheng YANG

Targeted Poverty Alleviation and Development Institute, Yunnan University of Finance and Economics, Kunming 650221, China

Abstract Poverty alleviation by supporting industry is a key measure to promote the poverty alleviation of relocated households. Taking Xundian County, the first county in Yunnan Province that has been lifted out of poverty, as an research case, this article analyzes and summarizes the industry-supporting poverty alleviation achievements and successful experience of two typical relocation areas (Shanhou Village and Eyang Village) in Xundian County. Practice has shown that the key to industry-supporting poverty alleviation lies in targetedness to strengthen the participation of poor farmers in industrial development. The interests of poverty alleviation entities should be linked by market mechanism to establish a benign interaction between all parties for win-win situation, thereby effectively guaranteeing the long-term and healthy development of poverty alleviation by supporting industry.

Key words Poverty-stricken mountainous area, Targeted poverty alleviation by supporting industry, Relocation, Model, Interest linkage, Xundian Hui and Yi Autonomous County

1 Introduction

Since the 18th National Congress of the Communist Party of China, targeted poverty alleviation has become a major strategy for poverty alleviation and development in China. In November 2015, Xi Jinping systematically expounded the important poverty alleviation thoughts of "five batches" at the Central Poverty Alleviation and Development Work Conference[1]. Afterwards, relocation has become the main way to solve the problem that "one place has no way of supporting its inhabitants". In September 2016, the National Development and Reform Commission issued theNational13thFive-YearPlanforPovertyAlleviationthroughRelocation[2]. It is clearly stated that by 2020, the country will realize the relocation and resettlement of about 10 million poverty-stricken people and 6.47 million non-registered poor people to fundamentally get rid of poverty. Relocation, as one of the "five-batch" poverty alleviation paths, has been given an important historical mission. Through relocation, the goal of poverty alleviation will be achieved. From the process point of view, "being stable" and "being able to get rich" are the most important aspects of relocation for poverty alleviation, and the key issue is to achieve a sustainable source of income. TheNational13thFive-YearPlanforPovertyAlleviationthroughRelocationclearly requires that for the registered poor population from the centralized resettlements in administrative villages and the centralized resettlements for the construction of resettlement new villages, it is necessary to ensure that every household has a poverty alleviation industry, and at least one people in each household with a labor force has a labor skill[2]. Industry-supporting poverty alleviation is the most important measure to accomplish the goal of poverty alleviation, and is also an important basis for relocation and other poverty alleviation measures to realize long-term stable employment and income increase and effectiveness of poverty alleviation[3].

Industry-supporting poverty alleviation is the most widely implemented poverty alleviation model in China[4], and it has been widely concerned by many scholars. Huang Chengweietal.[5]deeply analyzed the poverty alleviation model of supporting pasture animal husbandry industry in the rock desertification area of Guizhou Province. It is considered that the model takes into the account of the dual goals of poverty reduction and ecology. At the same time, it is believed that the internal competition of homogenous industries, the limits of ecological resources development, the integration of industry-supporting poverty alleviation and the poor, and the protection of the interests of the main participants may bring risks to the poverty alleviation model of supporting industry. Taking the development of agriculture and industries of minority areas as a concern, Zhaoetal.[6]proposed a poverty alleviation model of developing functional agriculture and put forward policy recommendations such as improving the interest linkage mechanism. Based on the research summary of Henan, Hunan, Hubei and Guangxi provinces, Lin Wanlongetal.[7]classified the industry-supporting poverty alleviation practice in various areas into three models: industrial development driving poverty alleviation, targeted industry assistance and relieving industry assistance. Among them, only the targeted industry assistance help poor farmers improve their sustainable development capabilities. Chen Zhongyan[8]analyzed the poverty alleivation performance of several typical industry-supporting poverty alleviation models in Yunnan Province. It is believed that the key to the cultivation and development of industries in extreme poverty-stricken areas is to play the role of mobilization and bridges of grassroots organizations, and to focus on shaping the awareness of professional managers of the main members of the two committees. Gu Chuanetal.[9]believe that industry-supporting poverty alleviation needs to establish a stable interest linkage mechanism to maintain a mutually beneficial economic relationship between the participating entities, in order to promote the sustainable development of industry-supporting poverty alleviation. In addition, some scholars also believe that the establishment of a benign interaction between multiple subjects can alleviate the inequality between participating subjects, and stimulate the endogenous participation motivation of participating entities of poverty alleviation[4, 10]. As can be seen from the existing research, ensuring the targetedness of industry-supporting poverty alleviation and establishing a mechanism for interest linkage between poverty alleviation entities to form a mutually beneficial and benign interactive relationship is the basis for the successful realization of poverty alleviation by supporting industry, and is also a difficulty for industry-supporting poverty alleviation. Based on this, taking Xundian County of Yunnan Province as the research case, through field research, rural cadre interview and household survey, this paper collects and collates relevant information on industry-supporting poverty alleviation practice in the typical relocation areas, and analyzes its poverty alleviation benefits and successful experience, so as to provide case support for the industrial development of other relocation areas.

2 Industrial development practices of typical relocation areas

Xundian Hui and Yi Autonomous County (hereinafter referred to as Xundian County) is one of the 88 national poverty-stricken counties in Yunnan Province, located in the northeastern part of Kunming City, Yunnan Province. The county has passed the national poverty alleviation assessment in August 2018, and it became one of the first batch of counties that have been lifted out of poverty in Yunnan Province. In recent years, the county has implemented a total of 23 relocation and resettlement projects, which has become a key measure for the county to win the fight against poverty. In May 2019, the research team conducted on-the-spot investigations on the typical relocation projects and the development of supporting industries in Xundian County (including interviews with leaders in the field of poverty alleviation, field surveys in the project areas and random household surveys). Relevant data on industry-supporting poverty alleviation and the data of typical relocated farmers in the resettlement areas in Shanhou Village and Eyang Village were obtained. The basic situation of poverty alleviation by supporting industry in the two projects is shown in Table 1.

Table1SituationofindustrialdevelopmentintypicalrelocationandresettleprojectareasofXundianCounty

2.1Implementationoftypicalprojects

2.1.1Relocation project of Shanhou Village. A total of 23 households (83 persons) were relocated and resettled in the project. In order to ensure that the poor households in Shanhou Village maintain a stable income increase and achieve long-term poverty alleviation, the local government has actively explored the direction of industrial development in accordance with local conditions. In the way of "joint construction of party organizations", third-party capital is introduced from the Central New District to help Shanhou Village (former residence) to develop characteristic industries. Relying on Yunnan Hujigua Agricultural Technology Co., Ltd., it has transferred 5.33 ha of cultivated land in Xiaohaixin Village. In accordance with the principle of uniform planting standards, unified technical services, unified acquisition and sales, the registered poor households have been encouraged to cultivate cantaloupe. At the same time, the model of "party branch +" has been explored. Under the leadership of the party general branch of Zhongling Community (the community where Xiaohaixin Village is located), the resources such as labor of poor households, forest land and grassland have been integrated. The poor households in Xiaohaixin Village have been led to invest the assistance fund (7 000 yuan per household) in the cooperative, and the cooperative will supply 70 chickens or the boilers (vaccinated by the cooperative according to the program) to each poor household at 90% of the market price to let them operate independently. The cooperative is responsible for providing information and technical training to guide poor households in scientific breeding and disease prevention, thereby improving the quality of breeding. The chickens (eggs) of the poor households can be sold independently, or acquired by the cooperative at protection prices. The Party Branch of the Lanya Chick Breeding Professional Cooperative has been established. The agreements signed between the cooperative and poor households are supervised. Regular inspections are carried out to help poor households solve problems in a timely manner and ensure stable industrial returns. In addition, the two committees of the villages took the lead to construct a breeding base of 1 300 m2, according to the scale of 20 pigs per household, in the collective forest land behind the resettlement area. A total of 3.07 ha of land have been transferred from the nearby Da’ao Village. It has been evenly allocated to the 23 households to develop traditional farming.

2.1.2Relocation project of Eyang Village. A total of 25 registered poor households (101 people) were relocated in this project. In the resettlement area, a demonstration project for agricultural photovoltaic poverty alleviation has been built, an assistance project by Chaoyang District in Beijing. The project has a total investment of 22.80 million yuan, donated by Fanhai Group, and is contracted by Hanergy Group. In accordance with the three-dimensional development concept of "power generation on the shed and planting under the shed", the "1+5" poverty alleviation model of "Fanhai poverty alleviation+industry-supporting poverty alleviation" (power generation income distribution, land rent, labor income, planting driving, tourism and sightseeing) has been developed successfully. The Xundian Photovoltaic Agricultural Cooperative has been established in Eyang Village. Under the photovoltaic greenhouse, vegetables, morel and succulent plants are cultivated, of which planting scale and sales channels are expanded. A total of 68 vegetable greenhouses and 11 edible fungus sheds have been built to ensure that each registered poor household in Eyang Village will increase their income by more than 10 000 yuan. At the same time, the project is planned as an agricultural sightseeing ecological park to cultivate into an agricultural ecological demonstration park, a returned migrant workers’ pioneer park, a green food production park and a science education and agricultural science and technology demonstration park. The eco-agricultural products of Xundian County are sold to institutions and enterprises. The industry-supporting poverty alleviation interest linkage mechanism of "grassroots party organization+cooperative+registered poverty-stricken household+leading enterprise" has been established to fully stimulate the endogenous motivation of the masses and realize the targetedness of industry-supporting poverty alleviation and the goal of masses’ getting rid of poverty.

2.2PovertyalleviationbenefitsoftypicalprojectsThe main role of industrial development is to increase farmers’ income so as to ensure the long-term and stable poverty alleviation of relocated farmers. The project in Shanhou Village and the project in Eyang Village are two typical projects with relatively complete industrial development support. The income of 43 households was investigated through household surveys. The results show that the average household income of 19 households in Shanhou Village was 27 393 yuan, among which, the income from industrial development reached 19 196 yuan (14 026 yuan from pig breeding, 4 171 yuan from chick farming and 1 000 yuan from cantaloupe planting), accounting for 70.08% of total household income (Table 2). Among the 24 households surveyed in Eyang Village, the total household income reached an average of 29 657 yuan, among which, the income from industrial development was 12 075 yuan (2 250 yuan from pig breeding, 7 000 yuan from photovoltaic power generation, and 4 000 yuan from greenhouse cultivation), accounting for 40.72% (Table 3). It can be seen from the survey results of the typical households in the above two projects, industrial development has greatly promoted the income of the relocated farmers. Among the 43 households surveyed, the income from poverty alleviation by sup-porting industry accounted for 53.73% of total household income, with obvious benefits of poverty alleviation. At the same time, industry-supporting poverty alleviation has basically achieved full coverage. Among the 43 households, only two households in Eyang Village only enjoyed the benefits of photovoltaic industry-supporting poverty alleviation due to lack of labor, and the remaining 41 households have participated in industry-supporting poverty alleviation through labor benefits, accounting for 95.35%, which fully reflects the targetedness of industry-supporting poverty alleviation.

Table2IncomecompositionofrelocatedhouseholdsinShanhouVillage

Code ofhouseholdTotalhouseholdincomeyuanIncome from industrialdevelopment∥yuanPigbreedingChickrearingCantaloupeplantingProportion ofincome fromindustrialdevelopment∥%0131 36415 0003 2001 00061.220221 04811 5004 0001 00078.390328 00314 6004 5001 00071.780451 29923 5005 0001 00057.510531 25520 0003 0001 00076.790630 31613 8004 0501 00062.180730 40312 0305 0001 00059.300814 5646 3004 0001 00077.590929 38117 8004 8001 00080.321016 4726 8004 0001 00071.641118 8929 0003 2001 00069.871217 49110 0003 2001 00081.181351 49528 0005 6001 00067.191437 29720 5005 0001 00071.051512 1965 3003 2001 00077.891632 00516 0705 5001 00070.521742 17424 0904 8001 00070.87188 9254 2003 2001 00094.121915 8868 0004 0001 00081.83Mean27 39314 0264 1711 00070.08

Table3IncomecompositionofrelocatedhouseholdsinEyangVillage

Code ofhouseholdTotalhouseholdincomeyuanIncome from industrialdevelopment∥yuanPigbreedingPhotovoltaicGreenhousecultivationProportion ofincome fromindustrialdevelopment∥%0128 2001 7007 0004 00045.040233 3733 0007 0003 50040.450328 3701 8007 0004 00045.120410 81607 000064.720531 7311 7007 0003 60038.760615 5938007 0004 20076.960719 6222 3007 0003 20063.700839 8544 0007 0004 00037.640919 3871 7007 0003 60063.451031 3594 0007 0004 20048.471120 9782 4007 0003 00059.111218 4183 0007 0003 20071.671360 73807 000011.521411 3888007 000068.491521 0464 0007 0004 00071.271626 2313 2007 0003 50052.231744 3364 0007 0003 60032.931857 3643 2007 0004 20025.101922 2031 8007 0003 00053.152017 0961 8007 0002 00063.172133 2004 0007 0004 00045.182212 6482 4007 000074.322375 15007 00009.312418 7412 4007 0003 00066.16Mean29 6572 2507 0004 00040.72

3 Successful experiences in industrial development of the relocation areas

The practice of two typical projects in Xundian County shows that industrial development is an effective way to relocate farmers to achieve income growth. According to local actual conditions, local governments should scientifically choose the direction of industrial development according to local conditions and actively mobilize all sectors of society to help the development of the industry. More significant poverty alleviation results have been achieved, and the successful experience deserves further study and exploration.

3.1Combiningindustriesofdifferentdevelopmentcycles,andgraduallytransformingthedirectionofindustrialdevelopmentObjectively speaking, industrial development usually requires a relatively long period of time to develop an industrial system with sustainable management capabilities, effectively driving poor households to get rid of poverty and get rich. Relocated farmers will face livelihood tissues from the date of relocation, it is difficult for industries with long development cycle to meet the actual needs of relocated farmers in a timely manner. Therefore, the combination of industries with long and short development cycles is particularly important. Two typical projects in Xundian County both start with traditional farming and breeding, taking pig breeding and greenhouse cultivation as a short-term industrial development method to make full use of the original labor production skills of the relocated households. This has effectively alleviated the basic livelihood needs of the relocated farmers. On this basis, the two typical projects focus on rural tourism as the focus of post-industrial development, focusing on building national cultural tourism and regarding tertiary industry (service industry) as the advanced stage of economic and social development in the resettlement areas. The photovoltaic industry has also been introduced as a secondary industry in the relocation and resettlement. Generally speaking, the industrial development mode of the resettlement areas takes into account the traditional farming and animal husbandry industry, modern light industry and modern service industry. The direction of industrial development has begun to undergo a major change, the industrial structure has been significantly optimized, and the status of the single industrial structure of the resettlement area in Eyang Village has been effectively alleviated. It has been gradually moving forward in the direction of "prosperous industry" proposed by the rural revitalization strategy, laying a solid foundation for the subsequent rural revitalization.

3.2Multi-agentcollaborationtohelpindustrydevelopment

The industrial development of the typical project areas in Xundian County is the result of multi-agent collaboration. Under the impetus of the government, based on the industrial development plan, the organization and coordination role of the villages’ two committees have been fully displayed, and the integration of production factors such as labor force of poor households, contracted land and forest land, and industrial support funds has been maximized to let them involve in the process of industrial development. Social forces (enterprises) have been actively introduced to expand the level of capital investment. The technical strength and product sales channels required for industrial development have been improved. Industrial development professional cooperatives have been set up to supervise and manage the industrial development process, forming a strong risk prevention and control mechanism. On the whole, through multi-agent work, a benign interaction system has been formed, and the key links of capital, technology, labor, land, product markets and risk prevention that need to be faced in the development of industries have been effectively solved, thereby smoothing the implementation of industrial development.

3.3BuildinginterestlinkagestoachievestableincomegrowthThe formation of a stable interest linkage mechanism between poor households and new business entities (enterprises, cooperatives,etc.) is a prerequisite for ensuring stable income growth for poor households. The industrial development of the typical project areas of Xundian County focuses on the interest linkage mechanism and focuses on improving the participation and benefit-sharing power of poor households in the process of industrial development. (i) The 7 000 yuan of industry support funds or land assets are invested into the cooperative (enterprise) to achieve a fixed dividend. (ii) The cooperative provides chickens or broilers to poor households at a price of 90% of the market price to build a relationship between supply and demand between cooperatives and poor households. (iii) A product order-based management model has been established, in which the cooperative is responsible for acquiring farmers’ products such as chicks to effectively solve the problem of sales difficulties. (iv) Labor skills training has been carried out regularly for relocated households, which are preferred to be employed to work in the greenhouse cultivation base. The interest linkages promote positive interactions between poverty alleviation entities, and guarantee the sustainable development of industry-supporting poverty alleviation to realize a win-win situation and achieve the stable income increase of poor households.

3.4Taking"hematopoietic"povertyalleviationastheguidetorealizethateachhouseholdisdevotedtoanindustryTargetedness is the main difference between industry-supporting targeted poverty alleviation and traditional industry-supporting poverty alleviation, and is also a fundamental measure to reverse the marginal decline of traditional industry-supporting poverty alleviation. It has solved the problem of the marginalization of poor households. The industry-supporting poverty alleviation in Xundian County is based on the principle of targetedness. "Hematopoietic" poverty alleviation is the forerunner, and the industrial coverage of labor benefit is 95.35%, fully embodying the targetedness of industry-supporting poverty alleviation.

4 Policy implications

The industrial development of relocation project areas is a key measure to achieve long-term and stable poverty alleviation of the relocation target. Compare with the traditional industry-supporting poverty alleviation, industry-supporting poverty alleviation in the context of targeted poverty alleviation should be based on targetedness. Enhancing the participation and benefit sharing of industrial development of poor people is the basis for improving the effectiveness of industry-supporting poverty alleviation. In accordance with the principle of "distribution according to work", the potential of poor households should be tapped fully, and they should be urged to participate in the industrial development process. The ideas of "waiting, relying and wanting" will be terminated. Profit is the fundamental appeal of the participants of industry-supporting poverty alleviation, and is also the foundation for ensuring the long-term stability of industrial development. Only abandoning the government-led "blood transfusion" poverty alleviation model and following the market-oriented interest linkage mechanism can the benign interaction between participating entities be achieved, and the healthy development of industry-supporting poverty alleviation be effectively promoted.