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In the mid-1980s, the economy of the overwhelming majority of the rural areas in China, stimulated by the policy of reform and opening-up and relying on their own advantages, grew by leaps and bounds, but a small number of areas still lagged behind somewhat because of economic, social, historical, natural and geographical conditions. The disparity-economic, social and cultural-between the poverty-stricken areas and other areas, especially that between the poverty-stricken areas and the coastal advanced areas in the east, gradually widened. The uneven development in the Chinese countryside became marked. Quite a number of low-income people could not meet their basic needs for subsistence.
To further strengthen poverty relief, the Chinese Government has adopted a series of important measures since 1986, such as setting up special help-the-poor work units, allocating special funds, formulating special favorable policies, thoroughly reforming the traditional relief-type approach, and putting forward the development-oriented poverty reduction policy. Since then, the Chinese Government has set in motion a nationwide development-oriented poverty reduction drive in a big and planned way, and China's help-the-poor work has entered a new historical period. Thanks to the efforts made over the past eight years, the net income per peasant in the poverty-stricken counties to which the Chinese Government had attached special importance increased from 206 yuan in 1986 to 483.7 yuan in 1993; the number of the rural poor dropped from 125 million to 80 million, with an annual decrease of 6.4 million on average, and an average annual decrease rate of 6.2 percent; and the proportion of poverty-stricken people in the total rural population went down from 14.8 percent to 8.7 percent.
The Third Stage: Tackling Key Problems of Poverty Relief (1994-2000)
Along with the deepening of the rural reform and the constant strengthening of development-oriented poverty relief, the number of the poverty-stricken people has shrunk year by year; great changes have taken place in the features of poverty; and the distribution of the poverty-stricken population shows obvious geographical characteristics, i.e. most poverty-stricken people live in central and western China, in the barren rocky mountain area of southwest China, the arid Loess Plateau in northwest China and the impoverished Qinling and Daba mountain areas (which suffer from rugged terrain, a shortage of arable land, poor transportation conditions and serious soil erosion), and the frigid Qinghai-Tibet Plateau. The main factors behind poverty are adverse natural conditions, weak infrastructure and backward social development.
Marked by the promulgation and implementation of the Seven-Year Priority Poverty Alleviation Program (a program designed to lift 80 million people out of absolute poverty in the period of seven years from 1994 to 2000) in March 1994, China's development-oriented poverty-relief work entered the stage of tackling the key problems. The Seven-Year Priority Poverty Alleviation Program clearly stipulated that China should concentrate human, material and financial resources, mobilize the forces of all walks of life in society and work hard to basically solve the problem of food and clothing of the rural needy by the end of 2000. It was the first action program for development-oriented poverty reduction with clear and definite objectives, targets, measures and a time limit.
For three years running (1997-1999), China solved the problem of food and clothing for eight million people a year-a record high in the 1990s. By the end of 2000, the basic objectives of the Seven-Year Priority Poverty Alleviation Program had been realized by and large.
Thanks to the arduous and unremitting efforts in the past more than two decades, China has made tremendous achievements in its drive to assist with the development of the poor areas.
-The problem of food and clothing for more than 200 million rural poor has been solved. The number of poverty-stricken people in rural areas with problems obtaining sufficient food and clothing decreased from 250 million in 1978 to 30 million in 2000; and the impoverishment rate there decreased from 30.7 percent to about three percent. Of this, the number of poverty-stricken people in the impoverished counties to which the Chinese Government gave priority in its poverty alleviation efforts decreased from 58.58 million in 1994 to 17.1 million in 2000, involving mainly the destitute people living in areas with adverse natural conditions, a small number of people receiving social security assistance and some handicapped people.
-Production and living conditions have remarkably improved. During the 15 years from 1986 to 2000, 99.15 million mu (one mu = 1/15 ha) of basic farmland was constructed in poverty-stricken rural areas, and the problem of drinking water for more than 77.25 million people and more than 83.98 million draught animals were solved. By the end of 2000, 95.5 percent of the administrative villages in the poverty-stricken areas had electricity, 89 percent were accessible by road, 69 percent had postal service, and 67.7 percent could be reached by telephone.
-Economic development has been speeded up remarkably. During the implementation of the Seven-Year Priority Poverty Alleviation Program, the agricultural added value of the poverty-stricken counties to which the Chinese Government gave priority in poverty alleviation went up by 54 percent, with an average annual growth rate of 7.5 percent; their industrial added value grew by 99.3 percent, with an average annual growth rate of 12.2 percent; their local financial revenue almost doubled, with an average annual growth rate of 12.9 percent; grain output rose by 12.3 percent, with an average annual growth rate of 1.9 percent; and the net income per peasant increased from 648 yuan to 1,337 yuan, with an average annual growth rate of 12.8 percent.
-Social undertakings have developed quickly. The hitherto-rapid population growth in the poverty-stricken areas has been on the whole put under control, and the population's natural growth rate has decreased. The conditions for running schools have improved, and remarkable progress has been made in the work for basically popularizing nine-year compulsory education and that for basically eliminating illiteracy among the young and middle-aged. Of the 592 poverty-stricken counties to which the state gives priority in poverty relief, 318 have attained the aforementioned two objectives. Both vocational and adult education has progressed at seven-league strides, thus effectively improving the quality of workers. The town and township hospitals in most of the poor areas have been revamped or rebuilt. As a result, the shortage of doctors and medicines has been alleviated. A large number of practical agrotechniques have been popularized, and the level of scientific farming has improved remarkably. Ninety-five percent of administrative villages in poor areas can receive radio and TV programs; the cultural life of the people in these areas has improved; and their mental outlook has changed tremendously.
-Some poverty-stricken areas which lie in vast, contiguous stretches have solved the problem of food and clothing as have the Yimeng, Jinggang and Dabie mountain areas, southwest Fujian and other old revolutionary base areas. Great changes have taken place in some remote mountain areas and areas inhabited by ethnic minority people. Dingxi Prefecture in Gansu Province and Xihaigu Prefecture in the Ningxia Hui Autonomous Region, once known as the "poorest places on earth," have vastly improved their infrastructure facilities and basic production conditions after many years of effort, and their poverty-stricken state has been greatly alleviated.
II.Policy Guarantee for the Aid-the-Poor Program
The poverty of China's rural areas is a
problem that arose over long years in the past. Impoverished regions in
China are characterized mainly by a large area and population sunk in
poverty. Based on its understanding of the basic national conditions,
especially the reality of the poverty-stricken areas and people, the
Chinese Government has formulated a policy for development-oriented
poverty alleviation that conforms to the reality in China. It sets mainly
solving the problem of food and clothing of the rural poor as its basic
objective and central task in this regard, starting from the most urgent
problems, acting according to its capability, giving priority to key
areas, and advancing step by step.
Defining the Standard of Poverty in Conformity with the National Conditions
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