SCIO briefing on poverty alleviation and development

JoongAng Ilbo:

Is the Chinese government preparing new legislation or rules to push forward the poverty alleviation work? If you do have new laws coming, please tell us the details. And one more question, how much in total will the Chinese government invest into the 13th Five-Year Plan over the next five years.

Su Guoxia:

Thank you for your questions. We are building and perfecting the legislation for poverty alleviation and development. Actually local laws and regulations are already in place in 11 provinces, if I remember correctly. On this basis, the central government is accelerating national legislation. Actually we have already submitted the plan for the State Council to put on next year's legislation agenda. We will exercise management of poverty alleviation by addressing the targets, range, policies and measures.

Liu Yongfu:

There are three kinds of funds. One is money from the fiscal departments. The central work conference on poverty alleviation and development has clearly demanded that the government's financial investment should match its strength to eliminate poverty. Now, I can tell you clearly that financial departments at every level in China will largely increase the special fiscal investment into this cause. However, the central investment is a relatively small number which is just 40 billion yuan (US$6.19 billion). Over the next year, we will see a big surge. We also have hundreds of billions of yuan available specially for the comprehensive poverty alleviation programs.

Additionally, we have financial capital to give small loans for poverty alleviation. A registered poverty-stricken household, if having an idea or project which, upon evaluation, could go to operation and generate profits, can apply for a three-year loan of 50,000 yuan (US$7,740), requiring no mortgage or guarantee as a risk guaranty fund policy will be implemented at the county level. Suppose 40 or 50 percent of poor households – amounting to 15 million households – apply for the loan, the loan demands will total 750 billion yuan (US$116 billion). The next step will be to set up a re-lending for poverty alleviation, a significant policy.

We also have policies to encourage public participation in poverty alleviation efforts. Now, there are more and more rich people and they are willing to provide philanthropic aid. For example, we recently launched a campaign on the poverty alleviation awareness day in several poor provinces, calling for voluntary donations. The donations received in some provinces ranged between hundred millions and billions.

What's more, guided by the central government, every province, city and county shall largely increase its input. Of course, the budget plans will first need to pass through legal proceedings, and be approved by each province’s People's Congress. Some provinces have already decided the budgets during their surveys and some will even double their budgets.

Hu Kaihong:

Today's press conference is over, thank you Mr. Liu and Ms. Su, thank you reporters.