Industrial development helps Hunan out of poverty

Fighting poverty by building competitive industries is the key to development-based poverty alleviation. Hunan is blazing a new trail in its war against poverty with a project themed “Four Follows”. The principle behind the project is that “capital follows the poor, the poor follow the capable, the capable follow projects, and projects follow the market”. This strategy has been designated as a role model by the State Council Leading Group Office of Poverty Alleviation and Development.

In 2016, Hunan Province promoted the strategy of “Four Follows” by investing 500 million yuan (U.S. $73 million) of public finance in 86 key projects, thereby providing direct assistance to 200,000 poor people engaged in production activities. At the same time, 9.35 billion yuan (U.S. $1.4 billion) of microcredit was issued to help 230,000 poor households develop industries. Meanwhile, 30 counties in Hunan have attracted an investment of 400 million yuan (U.S. $58 million) through rural tourism, benefiting more than 60,000 poor people.

More than 60 percent of poverty alleviation funds are applied to industrial development

Shi Zhengmao is a farmer from Shuanglong Village, Shuanglong Town, Huayuan County. He succeeded in leading his family out of poverty last year with an average per capita net income of 3,400 yuan (U.S. $494). In the past, Mr. Shi often struggled to sell his watermelons and vegetables at a fair price. Now, Huatian Group approaches villagers with direct orders, and Mr. Shi’s products can reach the tables of high-end hotels at a much higher price. He said that he planned to grow more this year.

In order to root out stubborn pockets of poverty, Hunan Province has changed the past practice of giving cash and material assistance to the poor. Instead, it now dedicates more than 60 percent of poverty alleviation funds to industrial development, more than 70 percent of which is used to help rural labor improve its means of production. Each year, the government allocates 2,000 yuan (U.S. $290) to every documented poor, to encourage precisely directed poverty alleviation.

A lot of poor farmers like Shi Zhengmao have started increasing investment, improving skills and exploring more sales channels with the support of poverty alleviation policies; special farming activities and animal husbandry like organic vegetables, rice-field fish, hard-bone pigs and kiwi fruits are flourishing all over Hunan.

Meanwhile, Hunan Provincial Poverty Alleviation and Development Office has come up with measures to encourage organizations involved in poverty alleviation. The organizations are closely linked with poor households to help them achieve stable and long-term income growth. Poverty alleviation departments and organizations have signed trilateral contracts with poor households to protect the lawful rights of the poor, by specifying rights and obligations, and setting up rights protection mechanisms.

In Huayuan County alone, 142 poor villages have attracted 22 enterprises, set up 359 cooperatives and developed 648 projects, creating 36,000 jobs for impoverished villagers that show every sign of being successful.

According to the plan, Hunan Province will invest 500 million yuan (U.S. $73 million) from poverty alleviation funds and consolidate another 10 billion yuan (U.S. $1.45 billion) to launch more than 300 key projects at provincial, municipal and county level which can directly increase the incomes of more than one million poor people.