24599 Volume I Public Disclosure Authorized

Gansu Social Assessment Report Public Disclosure Authorized for Integrated China Pastoral Development Project

ILOI COfP Public Disclosure Authorized Public Disclosure Authorized

Chapter I. Overview of the Project and Social Assessment

1.1 Project Overview

The Integrated Pastoral Development Project (the ISDP) aims to improve the living standard of herdsmen in Gansu Province and the Autonomous Region of Xinjiang by building up the competitiveness of the Chinese Pastoral on wool and mutton products and improving the Pastoral production and management system while maintaining the sustainable utilization of natural resources. The Project shall employ an integrated method, where the improvement in productive capacity of sheep for wool and mutton will be related to the sustainable management on grasslands, the establishment of a reliable supply system of forage grasses, the improvement of sheep production by hybridization and breeding, the establishment and enhancement of local associations of herdsmen, the improvement of livestock marketing network and the setup of effective legal and organizational systems. This proposed project will be so designed to address the problems prevalent in some areas of West China, including rural poverty, serious grassland deterioration, unsustainability in the mode of Pastoral production. Consequently, the proposed project will be a trilogy: i) grassland management and improvement; ii) Pastoral production, iii) marketing of animal products. In addition, the Project management, supervision and evaluation shall be a separate part thereunder. Overview of Social Assessment thereunder: Entrusted by the Foreign Economic Cooperation Center under the Ministry of Agriculture, The China Cross-cultural Center at Zhongshan University conducted a social assessment in Xinjiang and Gansu for the ISDP and retained Bao Xiaoxia (f.-associate research fellow at the Gansu Academy of Social Sciences-to take charge of the social assessment work in the Project Region of Gansu in conformity with World Bank's requirements on social assessment and with a consent from World Bank and the Foreign Economic Cooperation Center under the Ministry of Agriculture.

1.2 Significance and Objective of Social Assessment

1.2.1 Significance of SocialAssessment Social assessment is a form of feasibility study, an essential condition for Project design and implementation, also a supplement to the economic, financial, environmental and technical analysis that is non-replaceable. 1.2.2 Objective of SocialAssessment To ensure social benefits on the investment, including social and cultural influences and potential problems in the region of investment, and to eliminate or at least reduce negative social influences; which is helpful to make clear the Project objectives, give consideration to the affected poor population and support the disadvantaged groups, especially to fully guarantee the benefits, interests of minorities and women; helpful to establish an institution, organizational framework and system that offer opportunities of participation, enhance the communication, understanding between the Project investors and interest groups, enhance the infornation sharing and participation; helpful to the establishment of a foundation for social supervision and evaluation. The general target of social assessment is to help borrowers plan and complete the intended Project under the support and involvement of the individuals and groups the most directly affected by the Project. Social assessment should be regarded as an integral method during the Project implementation, including participation and social analysis on the Project planning and preparation to ensure the anticipated Project target can be fulfilled smoothly with a proper method. The social assessment under the Project should help borrowers select suitable places to execute the Project, determine major beneficiaries thereunder and their demands. Another fundamental objective of social assessment is to ensure the Project planning can eliminate or minimize whatever negative effect and consumption on local societies arising therefrom. The social assessment shall also propose rationalized suggestions or an appropriate scheme to the Project replanning for the same purpose as aforesaid. At the same time, demands of ordinary peasants (herdsmen) shall be addressed, including how they manage to satisfy their demands, the priority of demands during the Project implementation. Concerns shall also be given to the difference in benefit arising from the division of labor among men and women. In addition, a certain understanding shall be obtained as to the advantages and problems in the social and economic development at the affected areas.

1.3 Methodology of Social Assessment

As required on social assessment under a World Bank financed project, from July 14-16, 2001, a 4-member group led by Prof. Daming Zhou from the CCCC at ZSU conducted training on methodology of social assessment for a local expert panel of Gansu. Participative rural social assessment (PRA) and anthropologic fieldwork are employed this time. The PRA is a method in which residents at rural communities at the affected areas participate and the information concerning and serving them is collected, and also a community development method that relies completely on local knowledge, leadership, organizations and resources to promote the rural development. Members of the expert panel may suggest or request local residents to provide community maps, social maps, resource transition maps, seasonal charts, as well as data related to the local historical evolution or current social and economical situations, etc. The fieldwork method of observational participation is a fundamental research technique in anthropology, in which researchers visit the studied community, live along with natives for a period and directly participate in and observe the local life, production and ceremonies. etc. with a view to apply research findings in solving various social problems and intercultural conflicts. It is a method combining emic/etic study organically that is of high practical value and advantage to making in-depth study and explanation into this community culture based on the perception of practical living conditions and real ideas. The method of questionnaire survey is also used in this social assessment based on the "Semi-structured Investigation Questionnaire for Social Assessment under the World Bank Financed China ISDP" and the "Outline of Tasks and System of Indices for Social Assessment under the ISDP" designed by Bao Xiaoxia in advance. The analysis on questionnaire, as a basic tool for this social assessment, will help complement the data collected from PRA and fieldwork.

1.4 How Was Social Assessment Operated?

According to World Bank's requirements, practical situations of the affected areas, the CCCC at ZSU has designed the "Inception Report for Social Assessment under the ISDP" and the "Flowchart of Investigation for Social Assessment" based on a full mastery of literatures with relation to the locations of investigation selected before practice. The principles of siting is: (I) cover counties at different levels of economic development; (2) cover all types of subprojects launched; (3) a geographic distribution as even as possible; and (4) considering the distribution of minorities and poor areas. According to the above principle, we've selected, in the Project Region of Gansu, the 4 counties of Sunan, Yongchang, Tianzhu and Kangle as the locations of investigation for this social assessment. The details of these 4 counties investigated are as follows: Kangfeng Village and summer range at Saiding Village under Hongshiwo Township, Sunan County; Beidi and Xigou Villages under Shuiyuan Town, Yongchang County, Chaxi Beachhead at Tanyaogou Village under Zhuaxilongxiu Township, Tianzhu County, Waxia Village under Huguan Township, Humagou Village under Mingfanglu Township, Kangle County, where altogether 147 peasants were interviewed. During Sep. 20th-26 h. G. Guldin, Daming Zhou and Bao Xiaoxia conducted another PRA at Oiabu Commune under Oiabu Village. Zangbawa Township. Zhuoni County. In this round of social assessment. 9 villaaes (communes) under 6 townships were investigated. *The investigation was conducted by the Social Assessment Group in strict conformity with the sequence of discussion with township/town cadres-village spot-survey and discussion with village cadres-map drawing (community map, social map, seasonal activity chart, daily living and production chart in busy and slack seasons and resource distribution map, etc.)- focus groups-sequencing-filling in Qr.-in-depth interview-discussion with delegates of the competent county department and authorities concerned, collection of literatures.

In investigation, all levels of county, township and village government and residents at the investigated locations offered great support and assistance that contributed to the successful completion of this social investigation on schedule. In total, 147 peasants were interviewed. 147 valid questionnaires, 8 community maps (social stratification and classification of peasant family), 8 seasonal activity charts, 32 daily activity charts, 8 resource distributions maps and 30 cases of in-depth interview collected, with 28 small discussion meetings of all types held.

1.5 Key Findings and Suggestions

1) The breed improvement and selection should be tailored to the local natural resources, stock market and demands of peasants and herdsmen. As suggested by locals, improved alpine fine-wool-sheep breeds shall be selected at Sunan County with breed replacement of breeding sheep at a frequency of once every 3-5 years. At Tianzhu County, except for fine-wool-sheep, white yak and fluffy goat favored by locals shall also be supported. At Yongchang and Kangle Counties, the animal production shall focus on the fattening of beef cattle and mutton sheep. At the same time, peasants at the affected areas dealing with other animal operations shall also be supported, such as forage processing, planting of forge grasses, processing and transport of animal products, so as to develop a benign Pastoral system in the affected areas. 2) Provide 2-3 heads of breeding sheep to be managed by specially assigned persons under a contract, who shall provide compensated services for the whole village. Loans oriented to peasants and herdsmen shall be granted in cash for them to invest at will. 3) Under the 3 subprojects, the technical training for peasants and herdsmen shall serve as a precondition, which shall cover the local Project planning and be conducted before each subproject is implemented. 4) The association of herdsmen (AH) shall, on the basis of the villagers' committee, set up technical teams for grassland management, marketing and animal production respectively to integrate the three aspects under the Project. For easy communication and coordination with government departments concerned, also for effective organization of peasants and herdsmen engaged in decentralized operations and increased capability of administrative communication of the AH, a quasi-administrative configuration shall be introduced in the AH, i.e., to enhance its capability of technical administration by additionally adding 1-2 specialized technicians from herdsmen and peasants on the basis of the existing villagers' committee. 5) An legal counsel center for peasants and herdsmen shall be established at every affected county to address legal affairs of the AH and provide legal advice to peasants, herdsmen with relation to Pastoral. 6) Before the Project is implemented, an expert panel (including Project officers at county-level) shall be organized to conduct a feasibility assessment on Project planning at every county with the aim of ensuring its embodiment of the masses' demands and fulfillment of the general target of the Project, also of increasing the managerial skill of county-level Project officers on the Project. 7) An effective supervision mechanism for Project operation shall be devised to ensure the consistency in implementation of the Project planning in the case of constantly replacing local officials. During the earlier stage of the Project, frequent monitoring and evaluation will be helpful to the necessary modification thereof to make it better serve the intended target. 8) Problems in the "Proposal for the World Bank Financed Development Project of Quality Fine-wool-sheep in Gansu Province" and the "Outline of Tasks in Feasibility Study under the ISDP (Gansu Region)" are as follows: A. The provincial and county Project planning has not fully considered the demands of beneficiaries; B. The provincial and county Project planning has not clearly defined borrowers, nor has it included any credit program oriented to peasants and herdsmen, who thereby become indirect beneficiaries thereunder. Such a design can hardly fulfill the Project target proposed in the "Outline of Tasks".

Chapter II. Overview of the Affected Areas

2.1 Introduction to the Affected Areas

So far, there are 14 counties (cities) in Gansu Province preliminarily determined for the ISDP, which are Jiuguan City in Jiuquan District; Zhangye City, Sunan Yugur Autonomous County, Yongchang County under Jinchang City in Zhangye District; Weiwu City, Tianzhu Tibetan Autonomous Countv, Linaix and Kangle Counties under Linxia Hui Autonomous Prefecture, Lintan and Zhuoni Counties under Ganlan Tibetan Autonomous Prefecture, Jingvuan Countv under Baiyin City in Weiwu District; Lintao and Dingxi Counties, Yuzhong County under Lanzhou City in Dingxi District, the Huangcheng sheep farm of Gansu, the fine poultry and livestock breed farm of Gansu and the Haoweier Dairy Products Group Company, etc. Gansu Province, upstream of the Yellow River, is situated between east longitude 92013' to 108046', north latitude 32031 ' to 42°57', neighboring on Shanxi Province to the east, Ningxia Hui Autonomous Region to the northeast, Sichuan Province to the south, Qinghai Province to the southwest and west, bordering on Inner Mongolian Autonomous Region and the People's Republic of Mongolia. Gansu Province has a total land area of 454,000km 2 and an altitude mostly within 1,000-3,000m. The Province now has jurisdiction over 5 cities directly under the Provincial Government, 7 districts, 2 national autonomous prefectures, 60 counties, 7 national autonomous counties, 8 cities, II counties directly under municipalities, amounting to 86 county-level administrative divisions, of which 20 counties lie in pastoral areas. By the end of 1999, the total population of Gansu Province was 25,425,800, of which the urban population was 6,120,000, accounting for 24.07% of the total; the rural population was 19,305,800 out of totally 4,442,100 families, 75.93% of the total; the rural laboring population was 9,194,200 (6,897,900 of which were engaged in farming, forestry, Pastoral, side-line production and fishery, accounting for 75.02% of the rural laboring population).

2.2 Historical Evolution and Cultural Features of the Affected Areas

Gansu, a time-honored province, is a habitation of the immemorial Chinese and one of the major cradles of ancient agriculture. Gansu has been a province for more than 700 years. the establishment of which as a county is dated back to the beginning of the Spring and Autumn Period, over 2,200 years till now. During the North Song dynasty, Gansu Military Department was set up when the Hexi region was under the reign of the Western Xia regime, this is where the name of Gansu came from. However, Gansu, as a name for a local administrative division, did not appear until the Yuan dynasty. The nomination of Gansu is a combination of the first characters in the names of Gan Prefecture (Zhangye City today) and Su Prefecture (Jiuquan City today) once set up in the Western Wei and Tang dynasties. Since most of its territory lies west to the Long Mountains, Gansu is also called Longxi, Longyou or simply Long. After the foundation of the PRC, the name of Gansu has been kept along for the province. In 1999, the administrative divisions of Gansu were the 5 cities of Lanzhou, Tianshui, Baiyin, Jiayuguan and Jinchang directly under the Provincial Govemment, the 7 districts of Pingliang, Zhangye, etc., the 2 national autonomous prefectures of Linxia and Gannan, the 51 counties of Lintao, Kangle, etc., the 5 national autonomous counties of Tianzhu, Sunan, etc., the 8 county-level cities of Jiuquan, Wuwei, etc., the 12 counties of Yongchang, Jingyuan, etc., directly under municipalities, and 10 districts of Qincheng, Jinchuan, etc. directly under municipalities. Gansu has been a place cross-inhabited by many nationalities long since, where the minority population accounts for 9.38% of its total population. At presently, there lives 44 minorities in Gansu, of which the 10 long-inhabiting minorities with a population of greater than 1,000 are as follows in turn: the Hui, Tibetan, Dongxiang, Tu, Manchu, Yugur, Baoan, Mongolian, Salar and Kazakh. There are 6 minority counties within the directly affected areas, including 2 Hui counties, 3 Tibetan counties and a Yugur county. In addition, these counties are also the areas where the other major minorities in Gansu inhabit. For example, Tianzhu County is also a key inhabitation of the Tu nationality, there is a Dongxiang township under Kangle County, there are a Mongolian township, 4 Han counties/cities under Sunan County. The Hui people in Gansu mainly inhabit Zhangjiachuan Hui Autonomous County and Linxia Hui Autonomous Prefecture, accounting for 66.18% of the total Hui population in Gansu. The remaining live scattered at Lanzhou, Pingliang and Dingxi, etc. The Tibetans largely inhabit Gannan Tibetan Autonomous Prefecture and Tianzhu Tibetan Autonomous County. The Salar, Baoan and Dongxiang people mainly inhabit Linxia Hui Autonomous Prefecture. The Yugur people, Mongolians and Kazakhs inhabit the middle west section of the Gansu Corridor and the Qilian Mountains mainly. Among all the minorities in the Province, except for the Hui people and Manchus who speak Chinese, all the others have their national languages but also speak Chinese. Particularly, the Mongolians, Tibetans and Kazakhs have formed their own written languages in history, while the other minorities almost use Chinese. The Tibetans, Mongolians Yugur and Tu nationalities in Gansu believe in Buddhism, who believed in religions nationwide in history. Presently, except for the Tibetans, the other above nationalities basically no longer have any strict religious ritual or activity as traditionally. The Tibetans in Gannan Tibetan Autonomous Prefecture completely follow their traditional rituals and activities. All the above 4 nationalities have their peculiar garments, the use of which is limited to festivals and important activities only. At ordinary times, they're mostly dressed in comfortable and convenient Chinese garments. The Yugur nationality make much account of education, on which the nine-year compulsory education was popularized the earliest.

The Hui. Dongxiang, Baoan, Salar nationalities and the Kazakhs nationwide believe in Islam, in the present earthly life and production of which religious belief still plays a very important role. Their marriage, funeral, slaughter of livestock and many other activities have to involve religionists or imams (praying) in strict conformity to the canon. Consequently, the Muslims today still follow the strict manner of religious belief, most of their families follow the ritual of 5 Masses a day. The Erde and Gurbang Festivals are their major festivals, all related to the creed and acting on the canon. Islam encourages doing business and profiting, requiring 10% of annual income to be turned over to the mosque as the "tuition". The nationalities in belief of Islam all wear the same garments as the Han nationality except for the Kazakhs save that at ordinary times, men wear white hats, women wear kerchiefs and pork is prohibited in diet. The Han people believe in miscellaneous religions, including Taoism, Buddhism, Christianity, Catholicism, worship of ancestor, mount's god, land's god, etc., sometimes several believes are compatible each other in a mixed pattern. The Hui, Dongxiang, Salar and Baoan nationalities in Gansu are mainly engaged agriculture, supplemented by commerce, Pastoral, slaughter, tanning, oil manufacture, transport and other sidelines. The Tibetans, Mongolians, Kazakhs and Yugur people in Gansu deal mainly with Pastoral, collaterally with forestry and other sidelines. The Hui people, advocating commerce from of old, boasting the commercial and trade passage of the northwest-southwest "Silk Road" in history, are currently still playing an important role in the trade and circulation at pastoral and agricultural areas of West China as the key monger, processor and consumer of animal products there and also the main force in the stock market in Northwest. The affected areas are time honored and rich in human cultural resources, including the relics of the Westem Zhou dynasty-the Dadi Bay, the world-class cultural relics-the Dunhuang Mogao Grotto, the ancient Great Wall at Jiayuguan, the Maiji Mountain at Tianshui, the Fuxi Temple and the province-spanning "Silk Road". In the Province, there are 23 grotto clusters and 15 famous ancient buildings. With rich and colorful minority folk-customs and cultures, Gansu gathers many scenic spots and historical sites well-known globally, including the long-stretching Qilian Snow Mountains, the Force-Joining Building at Huining-a revolutionary site.

2.3 Current Situations of Animal Production and Stock Market at

Affected Areas

Gansu is among the 5 major pastoral zones of China, where Pastoral is the future trend of agricultural restructuring. In 1998, Gansu realized a Pastoral output value of RMB5.2 billion, equivalent to a per capital Pastoral net income of RMB380; an output amount of 95 1,000 heads of beef cattle and 4,753,000 heads of mutton sheep; a total amount of beef and mutton of 193,000 tons. There were then 400,000 culturist families of all types, of which were 103,000 specialized large ones; 2,800 large-scale cultivation farms, 150 major industrialized operators and intermediary organs, a total amount of industrial forage of 980,000 tons. As for technical improvement, in the whole year, 160,000 heads of yellow cattle were improved for cold tolerant breeding; 36 demonstrative quarters for industrialization of meat-type hog were built at 10 counties/cities, 1,260,000 heads of meat-type piglet were bred; 1,380,000 heads of fine-wool-sheep were improved through hybridization at 32 counties/cities under 8 districts, 100,000 heads of mutton sheep were bred; the amount of livestock fed in warmhouses broke through 10 million heads. By the end of 1998, under the ongoing Pastoral Area Demonstrative Project initiated in 1996, totally 1,983 heads of breeding stock had been introduced, 972,000 mu grassland fencing, 22,000 mu artificial forage grass base and 550,000 mu grass seed base, sown and improved grassland constructed.

2.4 Identification of Project Beneficiaries

Since the Project aims to benefit peasants, particularly the poor and women, most of the loan shall be granted directly to peasants. According to the lending principle of World Bank, under the precondition that the security and effectiveness of the loan funds are guaranteed, the direct beneficiaries of the Project shall be 2.4.1 Women, the Elderly Most of the Project loan under planning shall be directly granted to peasants, partially jointly, to co-develop productions and operations. A part of the loan shall be granted to economically able persons in the village, who shall bring along poor villagers unskillful or incapable of management to develop. Since male labors at the affected rural areas are mostly working out of home or engaged in nonagricultural industries, leaving the animal production at home to women and the elderly, they are thereby major direct beneficiaries of the Project. The introduction of advanced sheering equipment and techniques will free women at pastoral areas from the laboring burden, because women are a main labor force in animal production. 2.4.2 Minorities Among the 14 affected counties, there are 6 minority ones, accounting for 42.86% of the total number. At the 4 locations investigated in this social assessment, minority counties account for three forth, including a Hui, Tibetan and Yugur county each, corresponding to the minorities with the largest population (Hui and Tibetan) or uniqueness (Yugur and Dongxiang, etc.) in Gansu. The implementation of the ISDP shall actively promote the rationalization of industrial structure, improvement of livestock breeds, prevention of grassland degradation, construction of marketing system at these minority areas, and also effectively change the aspect of poverty there and increase the income of minorities. The Yugur nationality and Tibetans engaged in animal production, the Hui nationality dealing with primary processing, transport and sales of animal products, the Dongxiang. Baoan, Salar, Tu nationalities and Mongolians whose key subsidiary foodstuff is animal products, shall all practically benefit from the improvement of stock breeds and animal products in Gansu through the implementation of the Project. 2.4.3 Productive Enterprises Village-run, township and county-run enterprises with relation to Pastoral, such as animal product and forage processing enterprises, specialized group companies for such processing, shall be responsible for borrowing, arranging for the employment of surplus labors at the affected areas or bringing along peasants (herdsmen) in production. 2.4.4 Township/Town Farms/Stations Such public institutions as breeding stations, fattening farms, collective sheep farms and veterinary stations run as enterprises are responsible for borrowing and helping peasants develop productions and operations, promoting their own development at the same time. 2.4.5 Commercial Corporations Commercial corporations, mainly animal product selling and transportation companies, shall organize peasants in productions and operations under a purchase agreement.

2.5 Indirect/Potential Project Beneficiaries

2.5.1 The Elderly and Children The Project shall be implemented to improve the living standard and income of peasants, the elderly will be better supported, children educated under better conditions with their necessary nutritional standard during their growth period increased correspondingly. 2.5.2 Specialized transporters and commercial corporations With the market development and enlargement, the demand for transportation and sales will increase correspondingly, creating new channels to make money for specialized transporters and small retailers on bazaars. 2.5.3 All the Residents Affected The ecological environment at the affected areas may be improved through improving the grassland management and production techniques.

Chapter III. Survey and Analysis of Investigated Locations

3.1 Economic Analysis of Investigated Locations

Among the investigated location in social assessment-Sunan, Yongchang, Tianzhu, Kangle and Zhuoni Counties, from the perspective of economy, Sunan is a well-off county at pastoral areas, Yongchang is a mediocre one in the Gansu Corridor Irrigated Farming Zone, Tianzhu is a poor one in the Gansu Corridor Pastoral Zone, Kangle and Zhuoni are double-aid poor ones in the Southern Mountainous Zone. See the table below for details:

Economic Indicators of Investigated Counties in 1999 County GDP Agricultural output Pastoral output value Per capita peasant (RMB 10,000) value (RMB 10,000) (RMB 10,000) net income (RMB) Sunan 22500 2012 7114 3503.37 Yongchang 177300 25788.67 9269.22 2506.00 Tianzhu 5902.16 11756.24 5760.57 1091.37 Kangle 18524 8723 2345 957 Zhuoni 13073 + 6492.03 3621.18 1045.44 Data source: "Statistical Yearbook for Rural Economy of Gansu" (2000), of which GDP data is from the "Yearbook of Gansu" (1999).

3.2 Basic Information on Locations of Investigation

This social assessment covers 8 villages, including 4 purely-pastoral ones and 4 semi-pastoral ones with focus on agriculture in the view of industrial type; or in the view of composition of residents, 2 pure-Yugur ones, 2 pure-Tibetan ones, a pure-Hui village, a village mix-inhabited by the Hui, Han and Dongxiang nationalities, and 2 pure-Han ones. From the perspective of economy. Waxia, Saiding and Xigou to high-income ones in Gansu, Kangfeng, Honggeda and Beidi belong to middle-income ones, Tanyaogou, Humagou and Oiabu belong to low-income poor ones. In addition, these 8 villages vary greatly in natural conditions, resources and other aspects detailed as foliows:

Basic Information on Villages Investigated-I

Village Population Cultivated area (mu) Grassland (mu) Per capita tilled land (mu) Kangfeng 217 124,000 (fenced) Saiding 318 121,500 (fenced) Beidi 2,615 4,880 _ 1.87 Xigou 2,500 10,000 50,000 4 Tanyaogou 1,489 1,581 137,000 1.06 Honggeda 766 571 128,000 0.75 |Waxia 2,040 | 2,030 l l I |Humagou 1 1,431 | 2,885 2.02 Data source: Villagers' committees of 8 villages.

Basic Information on Villages Investigated-2 Village Nationality Religion Per capita net Type of industry income (RMB) Kangfeng Yugur, Han, Tibetan Buddhism 3,794 Pure Pastoral Saiding Yugur, Tibetan, Han Buddhism 3,912 Pure Pastoral Beidi Han None 1,700 Agriculture, cultivation Xigou Han None 2,800, Agriculture, cultivation Tanyaogou Tibetan, Han, Tu Buddhism 800 Pastoral, agriculture Honggeda Tibetan Buddhism 1,050 Pure Pastoral Humagou Hui, Dongxiang, Han Islam, others 285 Agriculture, cultivation Waxia Hui Islam 600 Cultivation, transport for sale, agriculture, working out of home Data source: village-level forums.

3.3 Industrial Structure at Locations of Investigation

3.3.1 Purelypastoral communitiesfocusing on sheep-herding In Sunan County, a fine-wool-sheep base of China, Kangfeng and Saiding Villages-two purely pastoral villages-under Hongshiwo Township are investigated this time. Taking Saiding Village as an example: There are totally 87 families in Saiding Village, of which are 73 Yugur, 5 Tibetan, 8 Han and one Tu family (ies), amounting to a population of 318, of which are 17 Tibetans, 6 Tu, I Hui, 25 Han and 269 Yugur people. The Village has 125,000 mu winter and spring ranges, which have been contracted to specific families, as well as 1,000 mu forage grasslands owned collectively but no cultivated land. The Village runs 3 livestock farms in possession of over 750 heads of sheep and over 200 goats, which have all been contracted to individuals with the profits tumed over at the rate of 50% to the higher authorities. In 1999, the revenue of the Village was RMB 16,000, largely used for wages of village cadres, office businesses and collective activities. The winter and spring ranges are also the settlements of herdsmen, who live scattered in the contracted grasslands by their families. These settlements are all accessible to electricity and TV. now attempting to access to the fixed telephone line. Peasants there drink water mainly by means of water cellars with a volume of lOm3, where water is hauled from a great river over 70km away and further led to kitchens through pumping equipment and pipelines. Drinking water for livestock is collected through rain pipes, which is mainly rain in summer. Herdsmen eat grain and vegetables bought from the market, produce meat and dairy product by themselves. They are mostly accommodated by tents in the summer and autumn ranges, inaccessible to electricity or any information source. A small part of rich men are using small solar generators for lighting, who also listen to the radio. The settlement has greatly changed herdsmen's lifestyle, especially their diet structure, in which wheat noodle and vegetables are daily foods, supplemented by dairy products and meat in place of their traditional diet focusing on meat, highland barley, dairy products. Therefore, their daily supplies features very low degree of self-sufficiency and a very heavy weight in consumption expenditures. The community life and production features: (I) scattered inhabitation, which causes much difficulty to the education of their children, traffic, communication and association among residents, loneliness drives herdsmen to drink heavily and be hospitable; (2) the traditional manner of pasturing determines that herdsmen have to transfer their settlements with changing natural conditions on natural grasslands in different seasons of a year, which makes their life much inconvenient and also decides the strong reliance of their income on natural conditions; (3) low degree of self-sufficiency and high degree of merchandizing for herdsmen's daily supplies; and (4) large expenditures on life and production. Since more than a half of their yearly income is dedicated to the construction of fencing, some for education, living and entertaining others, they have fairly limited deposits and a feeble economic foundation, giving rise to frequent borrowing or even poverty in the case of a large sum of spending.

Case: Su Jinji's family at Kangfeng Village under Hongshiwo Township, Sunan County Su Jinji (male, 34 years) is housed on the Qilian Mountains with an altitude of over 3,500m at relatively poor household economic conditions. He and his 28-year-aged wife both belong to the Yugur nationality and are atheists and illiterates not good at speaking. Su Jinji is a little literate about Chinese while his wife none at all. Both of them speak Yugur language (spoken only). Su Jinji had never heard of the fine-wool-sheep development with World Bank's loan. When informed of the proposed Program, he expressed the willingness thereabout. As indicated in his grassland contracting agreement, his household per capita net income was RMB3,333 in 1999, which was later justified in our investigation, save that it should be income other than net income. Except for his house (one-room, 25m2, earth and wood structure, built in 2000) in the summer range and that (one-room, 25 m2 , earth and wood structure, built in 2000) in the autumn range. he also owns a house (three-room, over 70m2, half-timber construction, built in 1988) in the winter range. With no TV set in the family, he possesses a radio recorder, a motorcycle worth RMB 15,000. three sets of cooking utensils worth some RMB600 and a tractor worth RMB7.400. The account of payments of his family is as follows:

Chart of Expenditures of Su Jinji's Family Unit: RMB Food Daily Profit deduction and Medical Entertainment Education Productive Total goods reserving under expenses investment unified planning 2.500 2.150 564.6 550 350 1,400 2,000 8,950 When speaking of his household expenditure, he said it was RMB800 at the beginning. Later, he took out the book of charges issued by the township govermnent, in which the items of profit deduction and reserving under unified planning were as follows:

Charges on Su Jinji's Family in 2000 Unit: RMB

Survey Profit deduction and reserving under Taxes unified planning Population: 3 Accumulation fund 65 Pastoral tax 234 Labors: 2 Management fee 30 Per capita net income last Educational extra charge 60 Specialty tax 9 year: RMB3,333 Family planning 15 Subsidy for soldier in service 20 Slaughter tax 70 Militia training 2 Constructing countryroad 6 TV funds 3.6 Civilian worker allowance 50 Total 313 Total 251.6

As we can see from the above chart, Su Jinji leads quite a hard life. He said that he would borrow money every year, for example, he borrowed RMB6,000 at a credit cooperative at the annual interest of RMB700, which was to be paid off within I year. In his opinion, the main cause for his hard life was the small amount of livestock and small area of grassland, which could accommodate 120 heads of sheep at most. He presently raises 15 heads of cattle, 80 heads of sheep and 2 horses. He also showed us the "2nd Round of Contracting Agreement for Grassland", where the contract-issuing party was the village cooperative, the contractor was individual. Notarized by the Township Government, the Contract, with a valid period of 20 years, was entered into by the above two parties as follows:

Details of Su Jinji's 2d Round Grassland Contract Unit: area-mu, sum-RMB, amount of livestock-head Utilizable Levies Grade-I Charging Grade-l1 Charging Stock-ca Allowable grassland area coefficient area coefficient rrying overload area =0.04 =0.03 capacity Winter/spring 774 27.09 387 15.48 387 11.61 116 17 range Summer/ 697 20.91 697 20.91 137 21 autumn range Total 1,471 48 387 115.48 1,084 30.52

According to his introduction, the I"sround of contracting began in 1983. when his family was a big one with two brothers who were now both married. Having undergone a break-up, his family now owned very little grassland compared to that of the whole village, which was also quite limited. He was unaware of such thing as sown pasture. As shown in the table, the levies were charged by the area of grassland. Su Jinji himself seldom went out, Qinghai being the farthest for doing the business of horses since 1983 until 1999 when horses became valueless. In detail, he purchased 5-6 horses at the unit price of RMBI,300-1,400 here and then sold them to Qinghai at a distance of 5 days to earn a unit profit of over RMB100, sometimes RMB300-400. Since the weather was very chilly in winter, such sales was made once a year in summer.

Su Jinji's main recreations was listening to the radio, drinking with friends or watching TV at neighbors' families, he read everything but newspaper.

Su Jinji prefers the manner of loan granting by villagers' application on a voluntary basis. He has never borrowed from any organization or individual other than a credit cooperative, nor has he participated in any sheep improvement project. In his opinion, major factors that may impede the development of a fine-wool-sheep project are shortage of fund or technical problems; however, outlet should be out of question. Lanzhou Woolen Mill (and many other plants) often drives here to collect wool, when herdsmen bargain with them to settle on a price, the case is similar at some neighboring villages. As to how will technical training be conducted, Su Jinji prefers site guidance at their families.

Breeding service is provided by the village breeding station at the charge of RMBO.5/head, which is quite reasonable and acceptable to all. Fine-wool-sheep may be developed as much as possible according to the stock carrying capacity of grasslands. However, no veterinary comes to treat livestock at ordinary times, nor does any grassland administrator comes to direct the grassland maintenance.

The unit wool price is RMB10.5/kg last year and RMB9.5/kg this year, to which Su Jinji is not satisfied, because he supposes that the price would be higher if no toll-gate is set up (by business administrations and revenue offices mainly against purchasers who have not settled legal formalities) in the County against wool collectors. To be more beneficial, he is willing to participate in an association of herdsmen for centralized management of grassland and wool sales.

The election of the villagers' committee is made once every 3 years in the manner of secret ballot by every villager. Su himself has joined in the election but his wife hasn't. In election, the ability of a candidatc makes the greatest sense, regardless of his relationship with the voter or his wealth. There is no woman cadre in the village, the village head and the committee (3 members) take sole charge of village affairs. Su is unaware the exact population of the village, 40 families perhaps, he guesses.

In April, it is usually the time to buy totally 3 tons of highland barley and corn to feed livestock from April through June (feeding with natural grasses during the remaining part of a year).

Su Jlinji's wife Gao Jinhua, bom at Bayin Village, has married Su for II years through free love. Villagers there marry mostly with those from surrounding areas and seldom with other nationalities. Few girls are married to Han people or Mongolians in a similar manner of wedding and preparation to the Han nationality.

3.3.2 Agricultural-pastoralareas with a leading industry of characteristiccash crops Yongchang is an agricultural county mainly composed of Han residents, situated in the Gansu Corridor Irrigated Farming Zone, provided with superior conditions for planting agriculture, Both Beidi and Xigou Villages under Shuiyuan Town are typical mixed agricultural-pastoral communities with a leading industry of characteristic agriculture. At Beidi-a pure-Han village, there are 610 families, 2,615 villagers, 4,880 mu cultivated land (all irrigated}-equivalent to 1.87 mu per capita, 750 mu farms, 48 pumped wells-enough for drinking by all villagers and livestock in the village. There is also a paper mill, flourmnill and cultivation farm each, all being joint-stock enterprises. The village is now accessible to electricity, telephone (over 300 fixed telephone users, over 20 mobile phone users), highway, postal communication and TV. There are 2 primary schools staffed with 17 teachers in total, but no temple or establishment of religion. Wang and Lv are major sumames of the village. The reported per capita net income in last year was RMB1,700, but the actual figure is higher. Main crops in the village include wheat, maize, oil plants, beer barley, sunflower, soybean, potato, Chinese traditional medicinal crops (milk vetch, liquorice) and vegetables. The village's agriculture features: (1) rational dietary structure of peasants, diversified and high in self-sufficiency rate; (2) high level of mechanization and water conservancy, basically achieving mechanized farming, harvest and threshing; (3) mixed farming. The interplanting of traditional and cash crops increases the economic benefic per unit tilled land, raising the utilization ratio of crop stalks and animal manure while adding to the revenue by combining agriculture with animal production; (4) high technical content in farming expenses; (5) good infrastructure for Pastoral, e.g., every family has sheepfold, sheep warmhouses were built for 30 families in a centralized way this year, there is a mutton breeding station in the village; (6) Peasants are wealthy and experienced in sheep breeding, which is a favorable guarantee for implementing the Project; and (7) The continuous price fall of farm products generates higher expectations and enthusiasm for livestock breeding among peasants.

Case 1: Huang Tingxue-peasant at Commune 1, Beidi Village

Family background: Householder Huang Tingxue, male, 36 years old, Han nationality, with a primary school diploma, farms at home; Huang's wife, 34 years, Han nationality, with the same educational attainment. farms at home too. The family also includes 68-year-aged Huang's mother and 3 children-his elder son. 15 years. is studying at grade-I of junior high school, his daughter, 14 years, at grade-5 of primary school, his second son I0 years, at grade-4 of primary school.

Household operations: The family earned RMB7,500 totally last year, of which, RMB1,500 was from animiial production and the remaining is sales of crop cultivation. The family now raises 8 heads of sheep. a head of cattle and a pig, owns 40 mu tilled land (either contracted or rent, all irrigated with mechanized and irrigated)

Household consumer durables: a TV set, radio-recorder, washing machine, motorcycle, bicycle. agricultural quadricycle each, totally worth RMB 16,640.

Sequencing of personal consumption: (l) medical service for his wife and mother; (2) educational expenses for his children; (3) agricultural investment; (4) daily goods; and at last (5) foodstuff. At present. the key issue in his household production is shortage of money. The family borrowed RM17.000 as agricultural investment for purchase of fertilizers and pesticides. In his opinion, loans from a credit cooperative is very uscful. timely and able to solve ordinary difficulties in agricultural production.

Case 2: Zhao Qingfeng-folk elitist at Xigou Village under Shuiyunan Town, Yongehang County

Family background: Zhao Qingfeng, male, 52 years hold, lives in a house with 17 rooms (built in 1996, earth and wood structure). His has 2 sons and a daughter. His elder son is married and now a labor contractor out of home, vith a yearly income of over RMB70,000 by contracting a canal project. His daughter is married to an accountant at a marketing cooperative. His little son is not married yet, fanning at home. Bom in Luoyang, Henan Province, he migrated here on his 21". He has 2 brothers, his elder brother (70 years) once served as a colonel in the No. I Agricultural Division at Akesu, Xinjiang Autonomous Region, his younger brother also farms locally and somedmes deals with short-distance transport, whose household deposit amounts to tens of thousand dollars. His sister farms in Xinjiang, growing over 100 mu cotton field at home.

Zhao plans to deal with plantation of breed grass (large leaf alfalfa) next spring by borrowing RMB50,000 at an interest rate of 6%°The cost of seed is RMB36/kg, the output will be 1.5 tons/mu in the second year to be sold at a state protective price of RMB600/ton. The alfalfa may grow with little fertilizer and irrigation, without the need to replant. He raises 20 heads of sheep this year, 4 of which were bred with new variety New Zealand mutton sheep. He thinks that sheep is fast growing and rich in mutton.

Cause of enrichment:

Rich experience. He formerly dealt with large scale Pastoral and crop cultivation, including pig, cattle, chicken and barley (on contracted land of 240 mu). He once earned tens of thousand dollars by selling barley to a brewery. He sometimes does small business and once visited Sichuan, Guizhou, Henan, Xinjiang for study. In his opinion, large scale produces the scale effect, because: firstly, people may concentrate and labor force may be centralized; secondly, cost saving. A problem in the present rural development is decentralized operation, giving no rise to scale effect

Flexible mind. He is now considering growing maize (large scale), which should be fairly well in the future, because maize may be brewed into alcohol as a future environment-friendly fuel of automobile. There is such a grain distillery at Zhangye.

Courage and insight, which is necessary in his opinion to make money. If in funds, he may raise 1,000 heads of sheep to become rich both by himself and along with others. For example, the plantation of alfalfa last year was led by him. In addition, the idea of raising rabbit is also very good.

Key challennes presently:

Fund shortage. Although he once earned much, his investment at RMB40,000 in exploiting a coal mine last year failed. In addition, he has spent a lot on his daughter to live and work at the town.

3.3.3 Semi-agricultural/semi-pastoralareas with a leading industry of cattle anld sheep herding Tianzhu Tibetan Autonomous County is one of the fine-wool-sheep basis of China and a semi-agricultural area with focus on Pastoral. At Zhuaxilongxiu Township therein -an investigated purely pastoral area mainly inhabited by Tibetans, there is a population of 4,537 out of 1,043 families, 4,000 mu tilled land 346,300 mu grassland (117,000 mu fenced) and 1000 mu disaster prevention and livestock protection base. The main stock breeds there include: Tianzhu white yak, Gansu highland fine-wool-sheep, fluffy sheep, sidestep horse, etc., the main crops there include highland barley, rape, etc. In 2000, the gross township agricultural output value was RMB3,924,000, equivalent to a per capita net income of RMB848, in which Pastoral contributed 93.3%.

Tanyaogou Village lies in a semi-agricultural and semi-pastoral area with less grasslands. As a poor village under a team-contract system, the Village has now a population of 1,455, mostly Tibetans (60%), followed by the Han people (17.53%) and the Tu people (4.12%). In its cultivated area of 1,581 mu, 121 mu is used to plant green forage. As found in the spot survey, this village is eminently characterized by poverty: firstly, house conditions are very poor, most houses are made of adobe blocks; secondly, insufficient machinery for'agricultural and animal production. It was found that most families of herdsmen had no high-grade household electric appliance. Since the teamn-contract system applies to grassland, lots of problems exist in grass farms, many even without fencing. The household stall feeding conditions are also not so optimistic, because stalls are mostly made of cob walls and very small, which would easily collapse in rainy days. In the Village, Pastoral is developed by way of pasturing combined with stall feeding, which occupy 6-7 months and 5-6 months of a year each. This determnines the small scale of household Pastoral in the Village at an average amount of 75 heads of sheep per family, ranging from 110 to 18 heads.

Case 1: Fan Debin-a middle-income villager at Chaxi Beachhead in Tanyaogou Village

Fan perceives himself as a middle-income one in the village. He lives in a 5-member family: Fan Debin, 37 years old, Tibetan; his wife, 33 years, Tibetan; his mother, 73 years and two sons aged II and 9 years each. His family raises 80 heads of sheep, 2 heads of cattle, I horse and 2 pigs. The sales income from animal products in the last year was RMB7,380, of which. RMBI.200 from horses, RMB4,800 from sheep. RMB800 from cattle, RMBIOO from fur and RBMI.200 from wool. The family contracts 10 mu cultivated land, 3 mu for forage grass and the remaining 7 mu for highland barley (also used to fee sheep), oil plants, potato, etc. In the last year. his family eamed RMBI,500 from crop cultivation out of the gross household income of RMB8.800, averagely RMB1,776 per capita. Grain for their own use is mainly bought from the market. The family now possesses durable consumer goods at a total value of RMB740.

When some members of the Assessment Group visited his family, he was fixing sheepfolds. He explained that, his sheepfold had collapsed in a rain just two days before. so he had to lix it. and he would do this several times a year. He said, the winter and spring ranges had been contracted along with 16 other families in 1981 at an area of around 3,000 mu and no change followed ever since. His family was not allocated with any summer range because the team had no strict management system, a family might breed livestock as they will, the amount of which is substantially determined by the economic conditions of every family. As stipulated in the Village. it was impermissible to herd any big livestock in a winter or spring range, but someone who did not raise sheep put their horses inside the range to eat (grasses), someone from other teams stealthily raised yaks on the range in the nighttime. No one answered for this. When turning to the villager's committee, I was told that everyone should take care of his own range. Their team had also got a leader, but was elected through lotting,

Case 2: Wei Yongzhong-a rich man and elitist at Tanyaogou Village

Wei Yongzhong, male, Tibetan, 34 years old, holding a diploma of junior high school; Wei's wife, 35 years, with an educational attainment of primary school, dealing with Pastoral at home mainly, two children both at school. Wei himself is a cadre of the Village at a yearly pay of RMB500. His household income mainly comes. from doing business by himself and Pastoral. Wei purchases wool, sheepskin and sheep locally for sale on the bazaar, who earned a net income of RMB30,000 therefrom on an investment of RMB20,000. The family raises 95 heads of sheep, 2 heads of cattle and I horse. Since Wei is engaged in business, the family, short of labor force, has to contract most of its sheep to other herders in the Village to be herded at the summer range at a pay of RMB3/head *month.

In his point of view, serious problems exist in grasslands of the Village: (I) Serious damage by insects and wild rats. The Township Grassland Management Station once organized such activities of weeding with drugs, disinsection and catching rats but ceased in recent years, though sometimes, there are also some people from other places coming to purchase rats at a unit price of RMB0.5 and students are organized to catch rats during vacations. He thinks the township government should take the lead in this regard by organizing and advocating, then villagers are surely to respond actively. (2) Overgrazing as a result of the population growth from formerly 200 families at the time of ungrouping to presently 500 and the increase in amount of sheep raised; and (3) Management system. In the winter range, the situation that tens of families use a same piece of grassland is not suitable for the current development of Pastoral. The relaxed management on grassland has given rise to overgrazing; however, no civil dispute has arisen from the contradiction between forage and livestock, nor would serious overgrazing appear. This is because grasses on hills are far from enough, which must be complemented by large amounts of forage grasses, also because the amount of sheep at each family is not too large, which is related to their respective capacities. However, the case of overgrazing does exist, which shall be addressed by contracting winter ranges to every family. In recent years, the villagers' committee has always attempted to realize this but are faced with some difficulties, such as the.disparity in quality, evenness and distance among grasslands. More importantly, grasslands in the Village are spread in several ditches, there is a knotty contradiction between the protection of lower grasslands and the livestock passage in upper grasslands, which has applied a great pressure on the work of contracting family by family and made it suspended all along.

Very willing to participate in this Project, Wei is faced with some key technical problems and in need of technical training to be provided by the government. It is preferred to set up some courses in the Village to benefit villagers more greatly. In order to construct standard stalls and grassland fencing. improve the quality of forage grasses, he thinks it very necessary to establish an association of herdsmen, which shall consist of elitists among cadres and masses. However. in his perception, the principle to organize voluntarily may cause some problems, because no one hopes anyone poor, experienceless and incapable to join the association, which is to be settled by offering various governmental aids to the poor. He expects that such associations may offer help in sheep-herding techniques, market information, marketing and grassland construction.

Wei holds that the loan should be applied for by villagers voluntarily with a view to let the Project cover everyone but with a major focus on sheepherders in terms of amount, because neither the poor nor the rich would use the loan sheep-herding, only specialized sheepherders would utilize this loan truly effectively. At the same time, he thinks that the market is not yet open enough for businesses, heavy taxes are levied on sheep sellers and buyers, including the management fee. slaughter tax, quarantine tax and specialty tax, which have brought down prices dramatically.

3.3.4 Multi-industry communities based on plantingagriculture As locations of investigation, Waxia Village under Huguan Township, Humagou Village under Luming Township are two typical rural communities in Kangle County, of which the former is the richest village there, while the latter is one of the poorest. Waxia Village, presently with a population of 2,004 out of 354 families and a cultivated area of 2,030 mu, is a village purely composed of the Hui people eminently featuring multi-industry. More than 90% men villagers are doing business or working out of home, leaving women and the elderly to plant wheat, maize, rape seed, potato or deal with cattle and sheep fattening at home. There is a processing plant of potato powder and three processing enterprises of edible oil in the Village, which manufacture powder and oil cakes as top-grade forages for cattle and sheep fattening. There is a small reservoir built by personal funding there, used to lift water from pumped well for irrigation. Another characteristic of the Village is the high level of household income, fixed assets in possession and standard of household living, appearing as large dwelling space, high house workmanship, diversified and fully-functional household electric appliances, complicated structure of income from various sources. Now is the case of Ma Chengfo interviewed:

Ma Chengfo, male, 54 years aged, Hui in nationality, holding a primary school diploma. is currently doing business mainly and also raising cattle and sheep at home. His wife, 48 years. Hui in nationality, illiterate, mainly deals with agriculture and Pastoral at home. Ma has two sons, the elder one, 27 years, has been doing business together with his father after graduating from a junior high school, the younger one, 14 years, is studying at grade-I of a junior high school.

Ma Chengfo operates 2 plants-the Fur Processing Plant of Kangle and a processing plant of potato powder located inside the yard of the former, Shichang Lane of the county town. As carly as the 1980s, Ma Chengfo began to purchase wool and sheepskin for selling to other places. Later on, he did some simple processing at home before reselling to the town, which was quite profitable. When Tang Zhenhua-Secretary of the County Party Cotnmittee-was visiting the Village, he encouraged Ma to enlarge his plant and helped Ma rent a plot at the county town after contacting the Land Board and the Bureau of Township Enterprises of the County. The plant. jointly held by Ma Chengfo, Ma Chengde and 5 other persons, was set up with a capital (hundreds of thousand yuan) mainly contributed by Ma Chengde and operated with a working capital jointly contributed by all of them. When the first sum of profit was earned, it was firstly used to pay off to Ma Chengde and then shared out among the other 6 ones in proportion to their respective shares. 2 shareholders withdrew in 1994 and later a new partner became affiliated in 1998, who went to Kunming to sell wool carpet. At that time, the plant has agreed on a bottom price of RMBI20/sheet, but this new partner claimed that he had sold out at a price of RMB801 00/sheet when he was back and then withdrew taking away a fund exceeding RMB200,000. The others suspected that this man had quoted a lower selling price and embezzled some funds, so they instituted a proceeding, which is not yet finished yet. The plant is now jointly owned by 4 persons.

When the plant was just founded, it mainly purchased sheepskin and wool locally for selling to state-run factories in Guizhou, Sichuan and Chongqing, from which a total sum of RMB2 million has not be collected so far due to their poor economic benefit. At present, the amount due is mainly recovered by conveying wool to these state-run factories for processing into wool carpet and then carrying back for sale. Wool carpets are well sold at the Sanjia bazaar, Guanghe and Linxia at high prices due to superior wool quality and workmanship. In 1998, Ma Chengfo founded a potato powder processing plant by himself at an investment of nearly RMB2 million and hired 30 employees at a monthly pay of RMB450 per person (excluding accommodation). Ma's family presently raises 30 heads of sheep and 5 heads of cattle (all for breeding). In the last year, he sold sheep at RMB52,000, cattle at RMB60,000, fur at RMB1,5000 and wool at RMB 1,200. In detail, fur was sold to his own plant, cattle and sheep was sold on the market. Ma is widely interested in Pastoral and ever raised such species as blackcock. guinea. goose, duck and wolf. When speaking of sheep breeding, Ma seemed very confident ol his experiences. In the past, he hybridized cold-tolerant sheep with indigenous sheep and generated a new variety featuring rapid growth, tasty meat and good wool quality. More importantly, the hybridized sheep had a high reproduction rate averaging twice a year and at least 2 lambs at a time, sometimes even 6 lambs beneficially. He is eager to participate this sheep improvement project and intends to introduce fine-wool-sheep for hybridization with small-tailed cold-tolerant sheep in the second year, so that there will be a high and quality output and favorable anticipated benefit. As to the line of credit, he prefers an amount of RMB80,000-90,000 at least to cover 100 heads of ewe and 2 employees. Apart from the expenditures on wages and forages, it is estimated to net-earn RMB60,000 at least. When asked whether it was necessary to set up an association of herdsmen, Ma thought it unnecessary based on his own experiences and would rather go it alone. because a collective undertaking would not be taken seriously by anyone.

Humagou Village is a typical poor village, very distinct from Waxia Village that is but 2(1km away. The Village has a population of 1,431 out of 287 families, of which there are 585 Hui people. 116 Dongxiang people and 730 Han people, and a cultivated area of 2,885 mu, averaging 2.02 mu per capita. The per capita net income (year-end per capita deposit) was RMB285 and per capita grain in possession was 265kg in 2000, 40% men labors of the Village were working out of homc. Case 2: Zhang Fujun-a villager at Humagou Village

Zhang Fujun didn't know how to spell his name, the interviewer has to write in this way according to his pronunciation. Zhang's family has 6 members: he and his wife, parents, two children, all of whom belong to the Hui nationality. His mother is a disabled and dwarfish (less than Im) stepmother. This is a wholly illiterate family, including his 9-year-aged elder daughter, who is unable to read even one word. His dilapidated house was reportedly to have been built in 1970s, covered with thatch grasses on the top, adobe structured and very simply furnished-few worn-out suitcases and an old black-and-white TV set are all the belongings of the family.

Zhang's famnily now possesses 12 heads of sheep and 2 mules and 20 mu cultivated land, on which 2 mu alfalfa, 8 mu wheat, 5 mu rape, I mu angelica, 2 mu corn, 2 mu potato is planted. In the household income last year, RMBI,500 was from sheep, RMBI,000 from a mule and RMB300 from wool. The family disbursed most in agriculture, followed by Pastoral, food, medical service and daily goods in turn. Agriculturally, it spent RMB2,000 to buy fertilizer, pesticide and pay related taxes.

He borrows every year, RMB3,000 in the last year for instance, which was warranted by a Han neighbor surnamed He always in a frequent mutual-aid relationship with Zhang's family. Zhang hopes to borrow in on a voluntary basis, saying "It should not be determined by the villagers' committee, because the cadres there are appointed by the township government in a way other than democratic election. The committee is always acting unfairly for the benefit of those relative to village cadres." He is willing to participate in the sheep improvement project and desires the help in technical training and market information. However, he said, "It's unnecessary to establish an association of herdsmen, that would be too complicated. Sheepherders like us are always talking to communicate experiences, everyone has his own way."

3.4 Grassroots Organs with Political Power and Their Functions at

Locations of Investigation

1) Administrative agencies: With the extensive enforcement of villager autonomy, the town, township Party committee and government have become the grassroots organs of political power at rural areas exercising integrated administrative functions on the rural economy, public security, politics and development of social undertakings. It their daily work, they exert the management function on peasants and herdsmen through villagers' committees. Accordingly, as seen by residents at the locations investigated, the township, town cadres and government do nothing but tax collection. This deviation in perception is based on the work-style of these cadres.

2) Villagers' autonomous organs: A villagers' committee is a villagers' autonomous organ as stipulated in the State Constitution, members of which are elected. However, its leadership kernel is the secretary of the village Party branch, who is appointed by the township, town government. Consequently, a villagers' committee is a villagers' autonomous organ led by the Party, which manages affairs of rural communities by participating in the management of peasants by all levels of government on behalf of villagers, passing rural policies and development plans from the government on to villagers, organizing herdsmen, peasants to develop their production. Peasants may also communicate their wills to the government by means of cadres of the committee. As perceived by residents at the locations investigated, cadres of their committees are all literate, capable and sensible persons at the village, who are expected to bring along herdsmen and peasants to well operate their production. These cadres, elected by and from the masses, have got a natural affinity for the local community and the ability to organize peasants, herdsmen to implement the Project. 3) Rural credit cooperatives constitute a peasant-oriented credit support system with the aim to develop agricultural (animal) production. All peasants at the locations investigated have the experience the borrow from local rural credit cooperatives on the ground that the short term small-sum agricultural lending therefrom can often solve temporary difficulties in the production of villagers as a primary channel of financing for production. Township/town credit cooperatives are experienced through age-long credit relations with local peasants and herdsmen and familiar with the local productive situations and customs, thereby able to assume the credit program oriented to peasants and herdsmen under the Project. 4) Technical institutions: township agrotechnical, agricultural machinery, sanitary, veterinary, Pastoral, family planning service stations, grassland administrative stations (only for pastoral areas). These institutions serve as a technical support system for the development of agriculture and Pastoral by peasants and herdsmen. Although such problems as outdated techniques, equipment and poor sense of service exist therewith, they are familiar with the local production system, natural environment and climatic conditions. Provided with suitable training, they will be completely qualified to provide the technical support as necessary for peasants and herdsmen during the Project implementation. 5) Folk autonomous institutions and elitists: Social management council is an economically intermediary organ of, by and for peasants at the village-level. Under the operation pattern of "company + peasant family", it answers for coordinating the cooperative relationship. Women's federations are village-level organizations on behalf of women under the Women's Federation of China and in connection with all levels of federations in work coaching with a view to mobilize and organize rural women groups to develop. Women's federations at the locations of investigation are very experienced in organizing women to participate in many rural support-the-poor projects for many times, especially women-oriented small grant projects, so they are competent for such activities under this Project. Youth League branch is a polity of the youth. In addition, there are some other dedicated mass organizations, including family planning associations, autonornous teams. village militia, village grassland management teams in pastoral areas, civil mediation committees and public security commissions, which all serve as capable assistants for the villagers' committee. These mass organizations commonly feature a greater part of staff shared with other organizations, who are elitists in the village with honorable prestige and promise of success. At Sunan Yugur villages, Tianzhu Tibetan villages and Yongchang Han villages, there exists no establishment of religion, where religious belief is;an. individual or family behavior mainly centering on religious places. At Kangle Hui villages, a'mosque other than any establishment of religion serves as the center of religious activities similarly, but the role of religious places and imnams in the community: is much* stronger conipared to others, where imams play a non-replaceable'role !in the life of believers based on,the canons,-of Islam but do not interfere much in.their economic life by.education and guidance mainly.

3.5 Marketing Channels of Animal Products;

The animal products at the investigated locations include livestock, wool, sheepskin and dairy products, which are mainly for self-use and seldom for sale. Still cashmere at Tianzhu is also sold out through door-to-door purchase. Animal products at Sunan, Yongchang and Tianzhu Counties are usually purchased by Hui sheep dealers in September.(lunar calendar) every year. At Waxia Village under Huguan Township, Kangle County, fattening is dealt with on calf and lamb born in the same year in large. outputs purchased from pastoral areas in September, such as Tianzhu, Sunan and Hexi. During the next March through April in lunar calendar, which is the lamb-delivery period at pastoral areas, when no livestock is for sale and beef, mutton falls short of supply, sheep dealers of the village will then sell livestock in large amounts on local bazaars to be transported nationwide. At' Humagou Village under Minglu Township, Kangle County, the Pastoral fo6 uses on traditional small-scale breeding and raising, e.g., at the family of Bai Yuqin, 7-8 heads of sheep were bought at the beginning, 34 heads thereof died later at a time, the family had to sell out the remaining except a head of ewe then entrusted to a relative. A year later, her family built a sheepfold and took back the ewe for raising by stall feeding mainly. This ewe has already born 9 lambs, some of which are to be sold this year, the mistress said, otherwise there will be insufficient grass to raise them. This the typical manner animal products are sold at Humagou Village, i.e., selling a small amount of surplus livestock every year only while,breeding at.the same time.

3.6 Source of Market Information

The source of market information is-a key issue in this' s'ocial assessment. Answers from those investigated mostly fall into 3 classes: (i') TV, radio and nevwspapers. These are the sources of information for-community eli'tists-a'small group,"including 'iost village cadres, villagers doing business, retired cadres and,teachlersivetc, who feature a higher level of literacy and the ability to make use of market information sdldctively; (2) market research and communicating mutually. These are limited, to the vi'llagers,at Waxia:Village un'der Huguan Township. Kangle County only. they all have the sense and'experieniceof narketing,' however, are relatively low in literacy. Most importantly, by-reason of the in'fluence'of'traditional val'ues and experiences, they increase their ability to participate in the market by gradually developing market insight and judgment through the pattern of master training an apprentice. Accordingly, to see. listen and ask in the market is a traditional source of market information they love; and (3) inquiring each other among neighbors and friends, all kinds of meetings at the village and door-to-door cattle/sheep dealers. These belong to most of the investigated.

3.7 Coexistence of Marketing System and "Guerilla" Market

Bazaars are all built at prosperous towns away from pastoral areas. The unfamiliarity with the market transaction, high cost, time and effort consuming makes most peasants and herdsmen prefer waiting for visiting dealers to purchase, which is both effort-saving and convenient. In every autumn, there would be great numbers of cattle/sheep dealers for door-to-door purchase, even at the agricultural area of Yongchang County that is close to market and convenient in traffic. Such a marketing system has given rise to a team of middlemen in control of market conditions, who profits partially from the rollback on livestock and primary products, or from the markup against consumers by regulating the season to launch livestock. On all accounts, the market is mobile and strongly seasonal. The bargain among individuals is the extension of the productive and consumptive complementation at traditional agricultural and pastoral areas. As seen by herdsmen, there is no such thing of suffering losses, because price is prevalent but not determined by dealers, who have also to obey the market rule.

3.8 System of Land at Investigated Locations

The grasslands at Kangfeng and Saiding Villages are divided into 3 parts-the winter-spring range, early summer-autumn range and summer range. The first one is used for overwintering, breeding and lamb-delivery of herds, the second one for sheering (early summer) or fattening (autumn), the last one for summer herding. The first two ones have been contracted to specific families in 1983, while the last one is plot-by-plot contracted by several families (generally in kinship or friendship) jointly. Such a system has been kept along ever since. From the point of view of village, township and county cadres, since all herdsmen has invested a lot in building grassland fencing, a redivision thereof would give rise to more disputes, so they have not yet made up their mind to make any readjustment due to the difficulty in management though all feeling it unfair. In herdsmen's opinion, however, there has a great change in the population of every family ever since, therefore the existing grassland system has become a key factor that prevents them from further developing and a main cause for poverty, especially where wealth is measured by the amount of cattle and sheep in possession. Presently, the county is pursuing the "rated grazing load" as a key measure to protect grassland resources and settle the conflict between livestock and grassland, which, however, has also led to further poverty of those with less grassland. In addition, such a system has caused factual inequality to children and women in land occupation by depriving them of the due land ownership. Beidi and Xigou Villages practice a more flexible land system. Since the contracting to every family in 1983, an adjustment has been made every 3 years by recovering the land owned by the elderly who have already died, girls who have got married and those working out of home (registered permanent residence already transferred) and allocating it to newborn babies and newly married-in daughters-in-law. At the same time, in support of education, the land owned by those studying at a university or technical school shall not be recovered until they have gone to work after graduation. Since 1998, the frequency of adjustment has become 5 years but on the same term. Such a flexible system guarantees the fairness in the allocation of land resources within the population and makes it no longer a key cause for poverty to own how much land. At Tanyaogou and Honggeda Village, lands and grasslands remain as they were in 1983. The spring-winter range is jointly contracted (17 families), while the summer one is not contracted so far, which has led to a weak control on grassland, some even unfenced. In a team, whoever rich may raise more livestock, but the basic case is the little investment versus high utilization on grasslands, grazing load is limited to winter pens and forage grasses only and any dispute shall be settled in the team by negotiation. At present, to protect grasslands, the villagers' committee has formulated the regulation to prohibit large livestock from entering the winter-spring range. However, someone stealthily herd their large livestock thereon at night without being stopped effectively. In addition, some others always enter the summer range earlier and returned to the winter-spring range later to prolong their herding period on the summer range, this has dissatisfied some other villagers. Grasslands are now swarmed with wild rats, which is however insufficiently responded. In sum, there exist lots of incipient faults in the grassland management at Tianzhu, allowing for resource waste and unfair allocation to a great extent. Since the new leading group of Waxia Village took office last year, an readjustment has been made to land, so that now almost villager has his/her own land. The land at Humagou Village is still subject to the contract system in 1983, newbom kids and married-in daughters-in-law ever since do not own any land. Apart from Waxia Village, all the several other villages possess grassland and land belonging to village collectives and contracted to individuals, who shall turn over rents or profits to the village at different rates. Accordingly, following the system in force, utilizing village breeding sheep farms and breeding for the affected families are all economical and feasible schemes. It is worth mentioning that, all the investigated holds a clearly negative attitude to transferring their contracted land, because it is utterly unnecessary and unpromising based on their past experience to conduct any collective operations.

3.9 About Credit at Locations Investigated

All villagers at the 8 villages have got the experience to borrow from rural credit cooperatives under the unified loan regulations formulated by the National Credit Cooperative Association: to lend with focus on agriculture generally the spring plowing of a year, to repay during July-December; failing to repay in a year, the borrower has no right to reloan in the next year. As indicated from the door-to-door interview, a majority (>95%) of villagers deem this system responsive to practical problems in production but universally think that the loan term is too short for profiting and the interest rate (6%) is on the high side. To manage with a loan certificate is the common lending system to these investigated villages. The credit cooperative at Hongshiwo Township was founded in 1950s and at that time, its members have already bought its shares (RMBI per share as recollected by the elderly) and were immediately able to lend. In recent year, the system of loan certificate has been pursued, a certificate is issued on such terms as a certificate for a family, RMBIO per share, at least RMB80-200 a family and at least RMB500 a village (cooperative). The terms of credit are: A) holding a certificate and B) the line of credit determined by evaluation of household property. The lending system of the Zhuaxilongxiu Township credit cooperative is: a villager files an application to the villagers' committee, which shall issue a certification on his identification, intended use of loan and the committee's warrant. The villager may borrow at the cooperative upon this certification and the loan certificate. The lending system of the Huguan Township credit cooperative is: based on its mastery on the background of peasant families, a villager may borrow a loan upon his ID card and loan certificate within the limitation of RMB5,000. A villager unaware to the credit cooperative may also borrow upon a village cadre's warrant. The credit limit at Minglu Township is much lower, RMBI,000 generally, exceeding which a bankbook will be mortgaged. An interest of RMB40 shall be at first deducted for every RMB 1,000 borrowed. When deductions amount to RMBI,000, no mortgage or advance deduction of interest is needed. Folk borrowing exists everywhere, but mostly among relatives and friends and interest-free, warranted upon personal fellowship and generally repaid as soon as possible. In the specific case of delayed repayment, the interest loss shall be compensated with a present, which is a acquiescent pattem between the two parties. This shows that fund shortage is ubiquitous in rural areas, a villager has to tum to borrowing when faced with a large sum of expenditure. However, lending from a rural credit cooperative is only limited to productive investment and consumption, which has led to the private borrowing prevalent in rural areas. In addition, women at the two investigated locations of Tianzhu and Kangle have ever got the experience of small-grant in aid of poverty. For example at Tainzhu County, a fund project of the United Nations was once implemented mainly oriented to poor women. In management, village-level big and small women's teams have been set up for guarantee on joint loan. The results of implementation showed that, such unconsolidated mass organizations are unable to properly manage a project, the villagers' committee has to be relied upon in loan granting and recovery. The implementation of this project also proved that a borrowing and managerial style of joint guarantee by several families or teams will inevitably exclude the poor in true need of a loan from a project, because no one is willing to involve any abjectly poor person into his team. If the form of govemment guarantee is employed for loan management, the credit thereof would be transferred or changed with the adjustment of govemment staffing, leading to a higher risk in investment. It is therefore a problem deserving serious consideration how to both involve the poor and ensure the repayment Either any purely commercial credit program or any joint guarantee by several families would necessarily exclude the benefits of the poor. Only the form of govemment guarantee is the effective measure therewith

3.10 Breeding Pattern at Investigated Locations

At Kangfeng and Saiding Village under Sunan County, herding on natural grasslands is dealt with mainly under a pattem based on the natural growth rhythm of grassland. In a year in the Gregorian calendar, March-May is the lamb delivery period at the winter-spring range, June is sheering period at the early-summer range, early July to late August is for summer herding at the summer range, and from early September to middle October is for fattening at the autumn range before output. The early-summer and autumn ranges are a same piece of grassland, the winter-spring range is a settlement. The Pastoral at Tianzhu County focuses on herding, supplemented by stall feeding. As stipulated at Tanyaogou and Honggeda Villages, livestock shall enter the summer range on May 10 h in the lunar calendar, return to the autumn range on July I" for a herding period of 40 days, then back to the summer range again in middle Aug. and no later than Sep., to the winter range in late Nov. or early Dec. The above is the breeding pattern for cattle, sheep would be transferred to the winter range directly from the autumn one. Cultivated lands there may grow green grasses as supplementary forage for wintering, hay is bought when these grasses are insufficient. Yongchang County deals with crop cultivation and stall feeding with stalk, maize, artificial grasses and bran mainly, livestock there is herded to eat stubble, green grasses beside terace and beachhead in summer only. In recent years, since interplanting is employed on tilled lands, the chance for summer herding becomes smaller and smaller. Kangle County focuses on agriculture, but two villages thereunder are situated in a plain region and a mountainous region respectively, varying a lot in pattern of feeding. Waxia Village buys in lambs born in the same year every September in the lunar calendar for stable breeding and fattening, which are output during March-May the next year, leaving over some robust ewes only to bear lambs. The sources of forage there include crop stalk, maize, oil cake, bran, potato cake, artificial green grasses, which are crushed up into mixed feeds. In a year in the lunar calendar at Humagou Village, Pastoral focuses on "herding" from April to Sep. and on stable feeding from Nov. through March. Since the scale of Pastoral (7-12 heads generally) is very small for most families, a person is hired by every 3-4 families for herding, when the main foods for sheep are grasses on beachheads or stubble in com fields. A head of sheep consumes 20 catty wheat every year (6 months actually). Oianbu Village focuses on herding other than stable breeding. At the same time, since every family raises a very small amount of livestock, the pattern of rotation grazing is used amnone several families mainly, namely. 3-5 families combine into a team on a voluntary basis. everv family herds for a month. In this way, such problems of small scale, waste of labor are solved. 3.11 About Improvement of Livestock Breeds

All the residents at the investigated locations have the experience of stock breed improvement, because, as early as 1950s, the "Project of Million Fine-wool-sheep in the Hedong Region" and the "Improvement of Highland Fine-wool-sheep of Gansu" were implemented in Gansu, which have been the highlight of sheep breed improvement in the Period of Large Collectives. Since the household contract system, new breeds have been introduced continually, especially with relation to sheep improvement, such as small-tailed cold-tolerant sheep, Australian blood sheep, New Zealand merino, Bohr mutton goat, etc. However, due to the lack of a systematic managerial and popularizing system, and the failing to update timely, peasants and herdsmen have to improve by themselves as the market conditions may be when the former breeds have deteriorated. For example at Kangle, peasants are fond of the hybrid between small-tailed cold-tolerant sheep and indigenous sheep (mixed-blood of Gansu highland fine-wool-sheep), which features both the adaptability of indigenous sheep and fast-breeding and growth, high fertility of cold-tolerant sheep, and is thereby very economically beneficial and competitive in the market. At Tianzhu, a hybrid is improved between fine-wool-sheep and indigenous sheep, because in recent years, the mutton market is quite stable with an increasing demand, but the wool price is falling for reason of quality and other aspects, leading to a reducing profitability and overstocking. Then some herdsmen formerly raising fine-wool-sheep began to divert to mutton sheep and fluffy goat with higher profits. Herdsmen at Sunan welcome fine-wool-sheep and also mutton sheep. The investigated at Yongchang County also prefer mutton sheep with better economic benefits and are uninterested to fine-wool-sheep. In sum, peasant families at the affected areas all have the experience of breed improvement. However, after the household contract system was implemented, improvement became made as the market and local conditions may be or by natural mating. In pastoral areas, there is a stud ram station at every village for breed improvement by means of artificial insemination. In addition, there are breeding stations, frozen spermatozoon libraries, artificial insemination stations at every county, but generally less responsive to the demands of herdsmen and market conditions, so they can hardly assume the popularizing and introducing task for improvement of stock breeds at pastoral areas systematically. Competent authorities deem the reason to be fund and technical shortage, technical sections deem it to be less attention paid, but herdsmen deem it to be increasingly serious variety degradation. They are in urgent need of fine-breed rams but provided with no information or techniques, unaffordable for a single family. Breed improvement is less regarded because in the view of many peasants and rural administrators, sheep raising is but a useful way for peasants to increase income, especially when prices of farm products fall and it becomes harder for peasants to work out of home in recent years. To temporize by dealing with household cultivation has already become a quick acting, low-risk and relatively economically beneficial rural operating pattern.

3.12 About Cultural Preference for Herd Size At pastoral areas investigated, the scale of herd is a key measure of household wealth, thereby herdsmen universally hope to possess large herds. However in recent years, in order to avoid further grassland deterioration that may arise from overgrazing, the local government has laid down and strictly enforced a system to define the unit grazing load, which has restricted the number of herds to be raised by every family and presented herdsmen with the experience that quality is more important than quantity. With the increasing sense of environmental protection among herdsmen, the concept of grassland protection by restricting the number of herds has been accepted by most of them. At agricultural areas where dealing with animal production is merely a channel to increase income, peasants care only about the economic benefit of animal production. Accordingly, the negative impact from the cultural preference to the herd scale on this Project is negligible.

3.13 About Women at Locations Investigated

In families at the investigated locations, men and women are basically equal. With the greater popularity of free marriage, initiatives sponsored by all levels of women's federations have been able to launch widely, the popularization of TV gives publicity and education from on another hand. The educational attainment of rural women is always being elevated along with their social and economic status. Women not only play an active part in household production and labor, but have also become an important force in the agricultural and animal production. Some have even established a business out of home alone. In most families, women hold the purse strings and men keep house, which is even very prevalent among Moslem families. But at the same time, women are confronted with many new problems. For example, Wan Xiumei, the women's director at Beidi Village, thinks that the labor burden for women in the village is very heavy, mainly because men labors of most families their are working out of home. The frequent exposure to pesticides, fertilizers and heavy of farm work, though not complained about by women in consideration of the development of their own families, have caused a lot of health problems to them, including abortion, adnexitis, dermatosis, etc. At Kangle County inhabited by the Hui people, women are not allowed to talk or contact with others, especially men according to the canon of Islam, which has many negative influences on the development of women, such as education, market transaction, etc. They, however, are also the main force in the household agricultural, animal production and also beneficiaries of family development like those of other nationalities. Whatever family-oriented investment or credit program shall benefit women the same way as men.

3.14 About Association of Herdsmen (AH)

The establishment of an AH is a highlight of in-depth interview conducted by the Assessment Group, which regards it as a topic in discussion with county, township, village administrators, also a topic in in-depth interview with herdsmen and peasants. The general result is that, most rural administrators hold a negative attitude, a slight majority of herdsmen and peasants hold a positive attitude. Among the herdsmen and peasants investigated, 53.74% think it necessary to set up an AH, 17.00% think it unnecessary, the remaining are indifferent to this; 50.63% of those holding a positive attitude think that it should be generated via election, 10. 13% think it through a voluntary-elective combined method, 5.6% think it through recommendation of the villagers' committee, and 1.27% through the organization of borrowers. About the eligibility for members of an AH, being a member of the villagers' committee (24.05%), being capable (17.72%), faimess (7.59%), skillfulness in sheep breeding (3.8%), literacy (3.8%), experience (3.8%). As indicated in further discussions, rural administrators hold a negative attitude due to the worry about the operating funds and coordination with government agencies following the establishment of an AH and the definition of its commercial, legal status, which is a very complicated procedure anyhow. In the view of herdsmen and peasants holding a positive idea, an AH will be useful for mutual help, helping them enter the market and providing them with information, technical guidance, services, supervision, management and settling disputes, etc. Those posturing negatively think that, according to their experience, a collective undertaking would always become unattended by all, they would rather every family manages affairs of its own. In some others' opinion, an AH would make everyone less free to play his own plans or strong suits. There are 3 viewpoints on the scale of AH, one is 10-15 members every village (villagers at Kangfeng Village, Sunan), another is 7-8 members (villagers at Saiding Village, Sunan), the other is that an AH shall consist of a member every 10 families and be headed by the village head (those at Honggeda Village, Tianzhu).

3.15 About Beneficiaries' Participation

As found in this social assessment, almost all the affected counties know very little about the provincial planning of this Project, especially in relation to the interest rate, line of credit and duration as their concerns, which are not understood by county-level competent authorities. In addition, townships, villages and villagers under a county are even completely unaware of the county-level Project planning. For example, when the Assessment Group went to Shuiyuan Town under Yongchang County, the secretary of Party committee and town head said they were unaware of such a thing at all. Later on, through our repeated explanation, the secretary recalled a similar item he once seen in the plan of the county government. Deputy Director-general Zhang of the County Bureau of Agriculture-a competent authority of the Project-explained that the county Project plan had been drafted by 2-3 persons together after a Project planning conference held by the Provincial Government 2 years ago, which was unknown to others. On our forum involving county departments, delegates therefrom further validated this view by saying that they had been completely unaware before attending this forum, and only been told that a project demonstration meeting is to be held. This shows that the county-level Project planning are formulated based on the provincial planning other than consultation with cadres and masses affected. Such a behavior of participation of certain benefited groups has not only separated the Project planning from the demands, expectations of the affected public, reduced its feasibility, but also caused much difficulty to our assessment. Before assessment, the temporary provincial Project office offered no cooperation, rendering us unable to obtain any background about the Project. When we informed it to take part in the technical training for participative assessment, it said that it too busy to attend. When we suggested it cooperate in our work by finding a vehicle for the Group for travelling to the destination, it expressed its inability. We asked it to notify county Project offices of cooperation in the Group's work, but it provided some easily misleading information by telephone, rendering county Project offices much suspicious of our assessment and our work almost unable to be conducted, although the Group explained to them repeatedly later on. A few rural administrators were less initiative in participation or failed to fully provide the township and village data necessary for assessment, or simply glossed things over, such as leaders in charge at Shuiyuan Town under Yongchang County and Luming Township under Kangle County. Their such behaviors of participation will have an unnecessary negative impact on the implementation of the Project.

3.16 Expectations of Potential beneficiaries on the Project

I) Herdsmen expect to solve the degradation problem of grassland and stock breeds through the Project, which is their most pressing will. All the investigated at pastoral areas highly count on the Project in the hope of increasing their household income and investment in animal production through the credit program. 2) Peasants are mainly concerned about the funding necessary to develop the crop cultivation and enlarge the scale of Pastoral for increased income within short term. 80% of the investigated expressed the idea to enlarge the planted area of forage grasses and decrease that of grain crops provided with a loan under the Project. As a common desire among all peasants and herdsmen, as long as they could breed more cattle and sheep, especially beef cattle and mutton sheep, they're not worried at all about the market. 3) Administrators: Competent county departments hold a positive but cautious attitude to the Project by expecting to increase the investment in and improve the production facilities of the Pastoral there, and also increase villagers' income through the Project. Leaders of such departments regard the successful establishment and implementation of the Project as a quite influential achievement in their official career. Chapter IV. Sequencing of Issues Related to the Project

4.1 Significance and Method of Issue Sequencing

Have been laboring and living on this habitation over years, peasants have got a deep and comprehensive understanding with regard to local communities. It is of great reference value for formulating an effective project implementation plan to fully understand and utilize local peasants' knowledge. Issue sequencing is a method of social assessment that effectively avails the regional knowledge of local peasants. In detail, it is a course to integrate the opinions of all direct and indirect beneficiaries via sequencing and scoring, so as to arrange reviewed objects according to their proprieties. Objects of sequencing include causes to poverty and enrichment, favorable and unfavorable factors of the Project on the location, factors restricting local economic development and labor productivity, etc. Before sequencing, it is assumed that the choices people make are not based on single index or target but are results from integrated and cross comparison instead. People involved: during sequencing, we encouraged as more peasants as possible (8-10 at least) to participate, including the rich, the middle class, the poor, cadres, women, specialized peasants, etc. of different stratums and fields.

Conforming to the principle that peasants should describe indices they accept and identify orally, we applied the straightest and simplest method to make sequencing with handy tools such as clods, small branches, stones, soybeans, etc. At first we prompted participants to raise relevant issues, who shall then make sequencing with the above tools based on their own understanding and opinions with the number of units (clod, etc.) placed under the related item pro rata with the importance of that issue. During placing, we urged all participants and standers-by to take part in discussion and ask every participant to explain his reasons for such sequencing. At Oiabu Village under Zhuoni. we either provided symbolic material obiects for the part of illiterate participants or mobilized those capable locals to draw symbolic pictures, enabling them to make a choice in a visualized and intelligible way. In this way, we acquired integrated and complicated information irreplaceable by any other technical means, though not quite precise. However, it shall be emphasized that, this method aims not to reflect the precise and exact results but to represent the knowledge and values of local peasants that are the closest to the objective facts.

4.2 Sequencing about Wealth

4.2.1 Sequencing of Causesfor Becoming Rich The sequencing of causes for becoming rich may vary from village to village, but there is a common factor-flexible mind-at all the villages investigated. At two villages under Yongchang County, the richest peasants are master builders, followed by multi-operators and those with professional skills. In villagers' perception, these ones are highly literate and flexible in mind, so they place literacy and flexible mind at the first 2 places. The disparity of wealth is very small and few people are doing business all at the county town or outside, of whom villagers are not fully aware. In addition, owning to a great disparity in grassland area, they judge wealth by the amount of cattle and sheep in possession, so that grassland area is an important cause for enrichment in their eyes. At the two rural areas under Yongchang County, the degree of farm mechanization is high, but with the price fall in farm products recently, land-the most valuable wealth at agricultural areas-is no longer an important cause for enrichment for villagers, even there is no one who considers it as a cause for enrichment. Of course, another reason for this is the rough equality in land area among peasants at these 2 villages, not enough to constitute any disparity in wealth.

Sequencing of Causes for Becoming Rich by Villagers Investigated Village 1" place 2 place 3rd place 4"t place 5 place Kangfeng Large grassland Literacy Flexible mind Family member area as worker Saiding Literacy Large grassland Flexible mind Family member area as worker Beidi Literacy Flexible mind Multiple I ______operation Xigou Literacy Flexible mind Multiple Strong labor operation Tanyaogou Flexible mind Literacy Family member Boldness Doing business as worker Honggeda Flexible mind Literacy Doing business Family member as worker Waxia Flexible mind Diligence Humagou Flexible mind Diligence Rain

At the rural areas under Kangle County, the land area and per capita tilled land are small, the possibility to become rich by land resources is also very small. Doing business is a traditional industry of the Hui people and also a key approach to success. Flexible mind and diligence are both what the creed of Islam advocates to believers, but also the most valuable character for doing business. They thereby regard flexible mind and diligence as the primary causes for enrichment. 4.2.2 Sequencing of Causes to Poverty Compared to the causes for enrichment, residents at the locations investigated are more consistent about causes for poverty. Although there is some difference between pastoral and agricultural areas, the high consistency is embodied between rich and poor villages. Just like all the villages regard flexible mind as a cause for enrichment, all of them also regard inflexible mind as a cause for poverty. Another feature is that, although land and grassland resources are no long a cause for enrichment, this makes a great difference as regards poverty as one of the primary causes therefor; Thirdly, the sequencing of causes for poverty is also correlated to the values of villagers. For example, the recognition of literacy at Kangfeng and Saiding reflects the respect to education of the Yugur people, the recognition of personal qualities at Waxia and Humagou reflects the importance of doing business to personal credit.

Sequencing of Causes to Poverty by Villagers Investigated

Village I" place 2 nd place 3 rd place 46h place 5 th place Kangfeng Small Low literacy Inflexible mind grassland area Saiding Small Low literacy Inflexible mind grassland area Beidi Price fall of Weak Disability farm products intelligence Xigou Price fall of Weak Disability farm products intelligence Tanyaogou Grassland Dryness Low literacy Inflexible mind Disease deterioration Honggeda Grassland Dryness Low literacy Inflexible mind deterioration Waxia Inflexible mind Laziness l Humagou Inflexible mind Laziness Dryness Qiabu (women) Shortage of Heavy burden Illiteracy Inconvenient Small amount fund _ _ I traffic of livestock Qiabu (men) Inconvenient Illiteracy Poverty Unskillfulness Small amount .______traffic I of livestock Notes: Sequencing in the table comes from: A. Discussion with villagers' committees: B. Discussion with villager representatives: C. In-denth DTD interview. D. Or. Survey.

4.3 Sequencing of Development Priorities

In the sequencing of development priorities, owning to the expectations of the investigated on the Project, residents at almost all the locations investigated rank developing Pastoral at an important place. For example, herdsmen at the 2 villages under Sunan think, stock breed improvement and grassland control should be given priority to; the order of priority arranged by peasants at the 2 villages under Yongchang County is: Pastoral, growing cash crops. doing business; that of herdsmen at the 2 villages under Tianzhu County is: grassland contract system reform, grassland fencing construction; that of peasants at the 2 villages under Kangle County is: doing business, Pastoral, setting up a factory (processing plants for farm and animal products). In addition, all the investigated deem fund and dryness as the two biggest barriers to development of production. 8 women at Qiabu Village under Zhuoni took part in a discussion, each given 10 soybeans for sequencing of the most promising or profitable productive activities they think in their daily production, the result is as follows(every figure hereunder denotes the number of soybeans they place): Sequencing by Women at Qiabu Village Cutting Breeding Excavating Growing Growing bamboo cattle/sheep potato angelica crops Prospect 0 33 3 24 20

4.4 Sequencing of Labor and Production

The comparison on labor intensity, time consumption, production costs and economic benefit with relation to labor and production is a major basis for peasants and herdsmen to organize family production and operations and also an operating experience familiar to them. Everyone of them has his unique understanding and judgement on labor and production due to different interest, technique, physical strength and instrument of labor. Consequently, the sequencing method in the unit of peasant was used in this social assessment.

Sequencing by He Lianyun-A Villager at Tanyaogou Village Highland barley Oat Rape Green grass Sheep-herding

Labor intensity -

Cost , i - Economic benefit

Sequencing by Duo Weiguo-A Villager at Honggeda Village Forage grass Grassland Labor Cost Economic benefit Cattle II I...... Sheep ,.... is I

At Qiabu Village, we organized a small forum of 20 male villagers for discussing local labor and production aspects. Everyone of them held 20 soybeans in hand for sequencing, the result of which is as follows (every figure herein denotes the number of soybeans they placed):

Sequencing by Male Villagers at Qiabu Village Farming Pastoral Growing medicinal Working out Sideline materials of home Labor time 42 20 18 0 0 A Economic benefit 0 55 21 0 0 Labor intensity 26 33 19 0 0 Most willing to do 0 55 19 0 0

On the focus group of 8 women at Qiabu Village, everyone held 10 soybeans for sequencing of their laboring and productive activities in recent years with the following results: Sequencing by Women at Qiabu Village Labor intensity Economic benefit Prospect Cutting bamboo 15 0 0 Breeding cattle/sheep 13 38 33 Excavating yam 12 2 3 Growing angelica 22 38 24 Growing crops 17 2 20

4.5 Sequencing of Difficulties in Development

About difficulties in development, the sequencing by residents at the locations investigated is rather dispersed, except for the common ground that fund shortage is the key restricting factor in development. For example, villagers at Honggeda Village under Zhuaxilongxiu Township, Tianzhu County think there exist many difficulties and make the following sequencing: (I) fund shortage, because in their opinion, ordinary herdsmen are unable to borrow any fund for development, and loans granted by a township credit cooperative is limited only to animal production at a limited line and term of credit, thereby hard to solve any enormous problem in development; (2) water shortage at summer ranges, because gold excavators have dug up the riverbed and wash gold mine in the river, rendering river water polluted and undrinkable for human and livestock; (3) forage grass, because grasses on grasslands are not enough for too much livestock, and it is costly to purchase from agricultural areas; (4) overstocking of wool; and (5) too low price and too high cost of cattle. These difficulties are restricting factors for their development of production. As seen by herdsmen at Kangfeng and Saiding Villages under Hongshiwo Township, Sunan County, the key problem restricting local development is dryness, which has caused grassland degradation and rendered livestock unable to eat quality grasses, to flesh, or to sell at a good price. The household income of herdsmen is decreasing, which is barely enough for make a living and hardly to be used for development. For example, Lan Jianshe-an accountant at Saiding Village thinks, if the problem of dryness is unsolvable, any project will be impractical. any fine breed or technique will not work. Also in his opinion, nothing can be done if it does not rain. His such opinion reflects the common psychology of other villagers; secondly. breed degradation is serious, the managerial and technical aspects of village breeding stations are disordered and stud rams are not well cared about, resulting in a low breeding rate; thirdly, ill-informed because of a great distance to the market. Animal products are mainly sold through door-to-door purchase by dealers, some of whom sell out adulterated wool, causing a price fall due to their poor credit; and fourthly, forests at the Qilian Mountains aren't well protected, so villagers worry that their offspring would have nowhere to graze in the near future. Dissimilarly, in the view of villagers at Waxia Village under Kangle County, their key issue in development is nothing but fund shortage. Only provided with enough funds, they can solve whatever other problems. As seen by villagers at Beidi and Xigou Villages under Shuiyaun Town, Yongchang County, the price fall of farm products is the primal problem in their development, so they are eager to develop their Pastoral under the Project and keep their income stable. Besides, at 4 investigated villages in pastoral areas, villagers, on their own initiative, made a sequencing on causes for grassland degradation with the following result:

Sequencing of Causes for Grassland degradation Village Dryness Overload Insect pest Weed Excavating Gold Wild rat ______medicinal materials mining Saiding ,,,, ,,,, , Kangfeng ,,,,, ITanyaogou ,,, ,,,,, ,, , IHonggeda , ,, , ,,, , , ,, ,,,, ,

They also think that the above causes are reciprocally causal, of which dryness is the primary one and the root cause that accounts for overgrazing and spreading of insect pest, poisonous weeds. But at the same time, dryness is natural and beyond control; comparatively, medicinal material excavating and gold mining are man-made and solvable by improved management.

4.6 Sequencing of Stock Breed Selection

Breed selection is beneficiaries' principal behavior of participation to the Project. Discussing with them in detail about the investment under the Project is not only a requirement in the Proiect design, but also greatest concern and pleasure. Accordingly. discussing with them in the manner of forum and inviting them to express their expectations to the Project design by sequencing is the principal PRA method, which has been employed to different extents in our previous investigation on 8 villages and additional investigation on Oiabu Village. The result of the preliminary assessment has been discussed in section of "About Improvement of Stock Breeds" in Chapter 111, here listed is only the result from the additional investigation.

Sequencing by Male Villagers at Waxia Village Fine-wool and purebred Ximendaer cattle Qinchuan Purebred Purebred cold-tolerant hybrid sheep cattle fine-wool-shee cold-tolerant p sheep 90 59 31 16 11 Notes: II participants, each 20 maize groats.

Sequencing by Male Villagers at Qiabu Village Indigenous Fluffy goat Fine-wool-s Indigenous Farm Yak Chicken Pig goat heep sheep cattle 0 17 7 51 1 81 3 0

Sequencing by Women at Qiabu Village Pig Yak Sheep Chicken Sheep I I 53 12 1 11

The above sequencing shows that peasants and herdsmen are very concerned about their daily labor, production and living environments, and also have a clear mind thereon. Although there is something predestination therein, they still face the reality with a positive attitude and hope to improve such a reality through their own efforts. Such a rational and positive attitude about development, is a very valuable character to ensure the success of the Project.

Chapter V. Questionnaire Analysis

5.1 Qr. Design

5.1.1 Basisfor Qr. Design The semi-structured survey questionnaire used in this investigation was design based on the 2000' social assessment questionnaire and guided by the "Outline of Tasks for Social Assessment under the ISDP" generated in March 2001. It mainly aims to make up for the limitation of door-to-door interview and fieldwork as regards sample size, enhance the representativeness of samples as a method complementary to PRA. At the same time, in consideration of the need to compose the "Multinational Participation Proposal" and the "Beneficiaries Participation Proposal", the investigated's perception of the Project was addressed in questionnaire design, including their feelings, opinions and suggestions with relation to the community environment, trading environment of animal products, system of resource utilization, etc. under the Project. Under the direction of Prof. Daming Zhou from the CCCC at ZSU, the questionnaire was designed by Associate Research Fellow Bao Xioaxia from the Gansu Academy of Social Sciences and finished at the end of June, 2001. 5.1.2 Key information in Qr. I) Beneficiaries' background: family relation, age, gender, nationality, education attainment, religious belief, marital status, occupation, etc. 2) Participants' background: including income level, scale of breeding, income sequencing, commercialization degree of animal products, sequencing of personal consumption and initial values of fixed assets. 3) Beneficiaries' lifestyle in the community, such as their involvement degree in grassroots management, their attitude to grassroots management and operating environment. etc. 4) Beneficiaries' demands, suppositions, evaluation and attitude to the Project. 5.1.3 Method of investigation I ) At the 8 villages under this social assessment, no strict screening and sampling was made, but a net-casting type questionnaire survey was conducted, every questionnaire has been filled in based on in-depth interview on peasants and herdsmen by an assessment expert. 2) Scope of respondents and unit of analysis: this questionnaire survey was conducted in the basic unit of family, amounting 147 samples collected. 3) For the results of questionnaire survey were analyzed and studied in the analysis unit of family using a method combining statistical and theoretical analysis. 5.1.4 Analysis framework The ultimate target of this social assessment is to help borrowers formulate the Project executive plan. For this purpose, the results of social assessment must generate 3 integral, operable reports, i.e., the social assessment report, benbficiaries participation report and multi-national participation report. To this end, the fundamental assumption in analysis of questionnaire is, the background of the investigated is an identifier to such aspects as nationality, gender, social and economic stratification of beneficiaries; the family life of the investigated is the essential condition for their participation in the Project; their community living environment is the social environment of the Project; the execution of the Project will above all a social project; different beneficiaries react differently to the Project; the 3 subprojects under the Project, from the perspective of possible social and economic effects arising therefrom, are mutually conditional and indivisible.

5.2 Questionnaire Analysis

Totally 147 questionnaires were released to 8 villages, all recovered. When coded questionnaires were data-input into computers for analysis with Excel in OFFICE97, the following findings were obtained: 5.2.1 Basic Information of the Investigated (Personal Characteristics) There were totally 147 families investigated involving about 682 people, including 363 males and 319 females ranging from 1-86 years old at the average age of 31.66. See Table- I for their status of marriage, education, nationality and occupation.

Table-I Demographics (Base: 682) Category Item Frequency Ratio (%) Sex 1. Male 363 53.23 2. Female 319 46.77 1. Han 251 36.80 2. Yugur 98 14.37 Nationaliy.3. Tibetan 173 25.37 Nationality 4. Hui 118 17.30 5.Tu 4 0.59 6. Dongxiang 38 5.57 1. Unavailable 2 1.88 2. Married 406 58.58 Marriage 3. Unmarried 248 35.79 4. Divorced 2 0.29 5. Bereft of spouse 24 3.46 Education 1. Preschooler 87 12.76 2. Illiterate, semiliterate 147 21.55 3. Primary school 248 36.36 4. Junior high 143 20.96 5. Senior high or 53 7.78 secondary school 6. College and above 4 0.59 1. Pastoral engaged at 226 33.14 home 2. Agriculture engaged 155 22.73 at home 3. Non-agriculture 18 2.64 Occupation engaged at home 4. Worker out of home 23 3.37 5. State cadre 6 0.88 6. None 153 22.43 7. Others 101 14.81

5.2.2 Analysis of Investigated Peasants and Herdsmen Background of peasants and herdsmen: This questionnaire survey covers 147 families in total, of which 64 ones deal with Pastoral mainly, 83 ones with focus on agriculture; 23 Yugur families, 35 Tibetan ones, a Tu family, 26 Hui ones, 7 Dongxiang ones, 51 Han ones and 4 multinational ones. As a whole, the family size of residents at the locations investigated is on the high side, averaging 4.64 persons per family, ranging from 2 to 10.

List of Family Size at The locations investigated Item N. Mix. Max. Mean Std. Deviation Household population 682 2 10 4.64 1.30

As required for this social assessment, the Assessment Group predetermined the number of samples per village should not less than 20, however, since the herdsmen at Saiding and Kangfeng Villages had moved to the summer range for herding upon our arrival at Hongshiwo Township and their ranges were very scattered, the Group could only find or access 15 families Kangfeng Village and 8 ones at Saiding Village at in that case. It was the object condition that restricted the Group's original plan. Saiding Village was one of the locations investigated under the social assessment made in 2000. Although the size of samples is small there in this investigation, the problem of insufficient samples may be partially compensated by the data collected in 2000. The background of each village is as follows:

Information on Families Investigated (Split by Village) Village Families Population Aver. household Aver. labors Aver. amount of investigated investigated population per household sheep per household Saiding 8 41 5.12 2.86 156.3 Kangfeng 15 58 3.86 3 151.5 Beidi 20 91 5.05 2.35 20 Xigou 21 86 4.1 2.57 10.5 Tanyaogou 20 97 4.85 3.2 78.6 Honggeda 21 97 4.62 3.05 44.7 Waxia 22 111 5.05 3.41 50.3 Humagou 20 101 5.05 2.9 6.5

Total 147 682 - - -

The economic status of peasants and herdsmen at the investigated villages, though much different from the statistics, does not exceed the magnitude reflected from investigation and literatures on an overall scale. Generally, the household income at pastoral areas is higher than agricultural areas, reflecting the effect of price difference between farm and animal products, which is also why most residents at agricultural areas prefer developing Pastoral. However, on the other hand, the self-sufficiency rate of consumer goods at agricultural areas is as high as 70%, while that at pastoral areas is low, the amount of cash out is huge and the major form of income is cash. In the income at agricultural areas, the form of material objects weighs heavily. This is an important cause for the disparity in income between these two types of areas. In addition, as indicated from the following table, the per family income of Waxia Village is by far higher than the other villages, but this does not represent the actual income level those doing business or setting up a plant. The result of questionnaire survey further substantiates the particularity of Waxia Village with relation to economic development. It deserves the concern of the Project that, the per family gross sales of animal products at fattening-focusing Waxia Village in the last year exceeds the per family gross income of animal products at purely-pastoral villages, which is a concrete revelation to the present domestic stock market and pattern of animal production.

Economic Status of Peasant/herdsman families at Villages Investigated Unit: RMB/average household Village Gross sales of animal Original value of durable Gross household products consumer goods in possession income in the last year Saiding 9457.5 8303.75 15987.5 Kangfeng 12684.27 6669.33 14769.36 Beidi 2319.5 18121.7 9357.11 Xigou 802.67 17813.81 10230.35 Tanyaogou 5939.75 9876.75 10630.53 Honggeda 7025.71 5811.43 14416.8 Waxia 16909.09 27042.14 41088.57 Humagou 1906.5 1429.12 8205.36 5.2.3 The investigated's attitude to the Project The questionnaire survey made an in-depth study into the pattern of credit, land system, information sources and types, marketing, grassroots management, beneficiaries' attitude to the Project and other aspects with relation to the Project implementation of residents at the locations investigated.

Chapter VI. Discussions and Suggestions

6.1 Potential Benefits for Project Beneficiaries

6.1.1 Potential benefitsfor Peasants The Project, through the peasants-oriented credit program, may directly offer peasants funds for developing Pastoral and increase their investment in Pastoral, which is also the most urgent of the all the investigated. By offering fine stud rams, it may create advantaged breeding conditions for peasants and herdsmen, solving the problem of breed improvement insoluble by a single family, which is the secondly important problem in development faced by all herdsmen; through grassland improvement and constructing the marketing system of animal products, the peasants' income will surely be increased with the improvement in the quality of farm products; by means of technical training, the Project may also increase the ability of peasants and herdsmen to deal with animal production and management. 6.1.2 Potential beneftsfor Women, Children, the Elderly The Project plan mainly oriented to peasants and herdsmen, via women's active participation in animal production, guarantees women' participation and inevitability of being benefited; the increased peasants' income may further improve women's living conditions by creating better conditions of technical training, medical service and healthcare in production and living for women. Relative to crop cultivation, Pastoral is less consumptive physically, which may help mitigate the burden of physical labor of women at agricultural areas. For children at poor areas, their greatest demand is sufficient nutrition and good school education, the Project may create economic conditions for such demand by increasing the family income of peasants and herdsmen. The elderly will also be better supported as a benefit from the improvement of family economic conditions. 6.1.3 Potential benefitsfor Enterprises At the affected areas, there are many processing plants of animal products (wool, leather and meat, etc.), which may rise in number and reduce their costs with the quality improvement of raw materials supplied from the surrounding animal production. 6.1.4 Potential benefitsfor State/Collective Farms/Stations, Scientific Institutions State-owned sheep farms, breeding farms, fattening farms and breeding stations are objects of direct investment under the Project, which will welcome an improvement in plant conditions therefrom, such as improved equipment, technical instruments, trained managerial personnel. Collective farms, stations and related scientific research institutions, may receive professional training and master new research techniques by taking part in the technical training and the Project evaluation. 6.1.5 Potential benefitsfor Minorities, the Poor Areas where minorities inhabit are the major affected areas in Gansu. Furthermore, villages inhabited or cross-inhabited by major minorities of Gansu, including Hui, Tibetan, Yugur, Tu and Dongxiang, all have the opportunity to tale part in the assessment under the Project as key objects of concern and are fully entitled to the Project planning, which will necessarily reflect the desires and demands of minorities to a greater extent. In detail, the Project means "a step further" for villagers of the Hui nationality at Waxia Village under Kangle County, "a timely help" for villagers at Kangfeng and Saiding Villages under Sunan County, and "an incidental boost" for those at Honggeda and Tanyaogou Villages under Tianzhu County. At the affected areas, the benefits on peasants and herdsmen, women, children, the elderly, enterprises, farms and stations, the 3 levels of govemment of county, township and village will all be embodied in those on minorities. At the village level, the poor are participants that enjoy prior considerations by granted with the loan in advance to effectively address problems in development.

6.2 Potential Negative Impacts on Project Beneficiaries

The current marketing system, if not perfected in near term, may impose potential risks on the operations of participants, especially wool sales, which is the greatest worry among residents at the affected areas. The current technical service system is incompatible with the technical level required by the Project, technical service institutions and their staff have a poor sense of service, which is insatiable for the demands of peasants and herdsmen for breed improvement and will surely aggravate their risk in investment. The proposed Project will last 20 years, but how will the Project planning forecast all the fluctuations in stock market within such a long term? This is another concern of the public at the affected areas. An objective of the Project is to improve women's living conditions, social status and degree of involvement in community affairs through their participation. However, such a design on women's image and lifestyle is in breach of the traditional values of Moslem women and will inevitably impose new stresses on their community life. The breeding of large amounts of fine-wool-sheep, the processing of animal products up to international standards and the construction of technical and marketing system, will alter the technical and operational aspects of the current animal production at the affected areas, pressing group concerned to change established behaviors. For instance, the market role of cattle and sheep dealers of the Hui nationality may change, they would have to abandon the traditional mode of operation in face of a modern market and technical system. For women at the Yongchang agricultural zone, their labor burden may be aggravated. At the same time, if the economic benefit of fine-wool-sheep products increase relatively, there may be an impact on the grain planting at the Hexi agriculture zone, where the grain planted area will be reduced while that of forage grasses increased, decreasing the gross grain output of Gansu and threatening the security of grain production. The Project, when implemented. will threat the animal production at non-affected areas, depriving traditional breeds and products there of market competitiveness. Who shall guarantee the loan to the poor? This is a concern of both administrators and masses at the affected areas. The worry about repayment on time is a stress for the poor. Since the public is not quite clear about the Project planning, they mostly worry that an over-high interest rate will be a new burden. Who shail grant the loan is another prevalent concern at the affected areas, where residents worry about failing to borrow on one hand, about that the interest burden on borrowers would be aggravated under the traditional manner that the local government grants a loan from top to bottom on the other hand. Some managerial departments at affected counties worry that loan granting in the form of material objects, such as sheep, equipment, would be inoperable. They also worry that the district-level counterpart funding would be imposed on the county level without such funding, which might affect the final amount of loan they will be entitled to.

6.3 Measures of Mitigation

Measures to reduce risk are to synchronize the breed improvement, grassland improvement and construction of marketing system for animal products to reduce the risk in investment for peasants and herdsmen; to grant the loan oriented to rural peasants and herdsmen in the form of cash; to tailor measures to breed improvement in the unit of county, specifically, to select mutton sheep, wool sheep and cattle breeds on a voluntary basis, so as to abate the worry of peasants, herdsmen, local governments and competent authorities; to practice joint guarantee by the township and govemments other than credit mortgage on lending to the poor; also to formulate a system of responsibility for township and village cadres to guide the poor in use of the loan; at the provincial level, to rationally structure crop cultivation and Pastoral for affected counties at major agricultural areas under a contract for implementation to ensure a proper level of gross grain output value in Gansu; to take advantage of township rural credit cooperatives other than any level of government in granting the loan oriented to peasants and herdsmen, so as to lessen intermediate links dispel their misgiving; to practice management by contract on all levels of competent authorities (including the Provincial Project Office) at the affected areas, so as to enhance the sense of responsibility of managerial personnel and to guarantee the successful implementation of the Project; to set up an panel consisting of social assessment experts mainly for regular follow-up evaluation on the Project progress, especially management behaviors of all levels of competent administrations; to conduct the PRA as an effective guarantee the intended targets of the Project, especially those related to integrity and sociality, which may effectively avoid the problems of managerial responsibility, unfairmess and ignorance-the prevalent concerns among peasants and herdsmen during the execution of the Project and also the most universal negative influences in previous projects.

6.4 Technical Training on Breeding

I ) Township, village farms and stations shall contribute their technical force, manpower and equipment to train 2-5 breeders per village. Residents at the locations investigated have expressed their willingness to assume the tuition partially (accommodation of technicians, costs of teaching materials). The profit anticipation in the market of breeding technical after the Project implementation is a motivation that they participate in this compensated training. In the future, such training shall be extended to individual operators at the non- affected areas. 2) Training on operating skills of shearing machines and wool grading shall be oriented to technicians at township, village farms and stations, as well as individual operators. With the Project goes on, they will regard it a profitable industry to transfer shearing skills to peasants and herdsmen. 3) Technical training for breeding quality fine-wool-sheep and mutton sheep may be listed in rural technical training program of the county council for science by means of bazaar broadcast, release of publicizing materials and short-term training courses oriented to all peasants and herdsmen at the affected areas, gradually to those at the non-affected areas. 4) Technical training on grassland management will mainly be oriented to all peasants and herdsmen at the affected areas by means of the technical and organizational force of the county council for science, in the form of publicity for bazaar day, release of materials, etc. without appropriating any special fund.

6.5 Suggestions on Amendment to Project Executive Plan

1) It is suggested to make the best use of existing township-, village-level managerial and technical organizations, manpower, resources and places. As indicated from door-to-door interview, although 53.74% respondents deem it necessary to found an AH, 2/3 of which hold the opinion that it should be based on the villagers' committee, and few others think it appropriate for the township government to take the lead or for borrowers to organize. Objectors think it unnecessary, because it would both add to peasants' burden and that a collective undertaking is always unattended. 2) The credit program oriented to the poor shall be placed under the joint guarantee of the villagers' committee and township government other than credit mortgage or joint-family guarantee. 3) The loan shall be granted by local credit cooperatives other than all levels of government or competent authorities. 4) During the Project implementation, PRA shall be conducted on the Project on a regular basis to ensure the equal participation among different groups and smooth channels of participation.

6.6 Suggestions to Consider Demands of Disadvantaged Groups

I) Women at the locations investigated are a main force in household operations, especially in agricultural and animal production. They are not only active in household operations, some even deal with individual operations independently. In.addition, women at Sunan, Yongchang and Tianzhu are not discriminated against and widely higher in educational attainment, where young women mostly hold a junior high school diploma and therefore enjoy a high status at home. Women at Kangle are significantly lower than men related to educational attainment, many women are illiterate, accounting for 75% of the illiterate population of that county. Since Islam prohibits women from appear in public and talking face-to-face with any stranger, women become disadvantaged in education and social life. However, all women at the locations investigated hold a common opinion that, what the family needs is also what they need and it is unnecessary to distinguish, so they have no special need. 2) Minorities: The affected areas cover major minority inhabitation areas in Gansu. Among the 8 villages investigated, 4 are inhabited dominantly by the Yugur, Hui people and the Tibetans, 2 villages are cross-inhabited by either the Tibetans, Han, Tu and Hui people or the Dongxiang and Han people, as well as 2 pure-Han villages. The minority population accounts for 62.19% if the investigated. In this way, the particularity of minorities has enjoyed full respect and reflection. 3) Believers: Among residents at the locations investigated, there exists no discrimination against religious belief, where all the minorities belief in a specific religion nationwide and believers of different religions at cross-inhabited areas are also understanding and respectful each other. For the Han nationality, there is almost none fixed religious belief apart from ancestor worship. Although Islam extensively involves and guides the social life of its residential believers, it does not interfere in their economic life. In the affected areas, there is none religious belief in conflict with the Project target, believers of various religions have no special requirements on the Project. 4) The poor is the group in need of the greatest special care under the Project, who are the real disadvantaged group, 2-3 families in a village, or as many as 4-5 families. They have neither valuable fixed assets as mortgage nor the operation capability to ensure repaying on schedule, what's more, they could not be lifted out of poverty repeated as the object that was cared but had to be abandoned under previous projects. Such families may have a main labor ill abed over years, or a member as dement, or have become poor for other reasons, such as improper operation. In villagers' opinion, lending to them will fall into an abyss, because the loan will be used on personal consumption, such as eating, medical service, without any productive investment. For them, the principle of fairness and that of commercial investment conflict. Since all designs under the Project are unable to lift them out of poverty, the only way is to get them benefited from the enhanced capability of the community in relief by universally increasing villagers' income. For the relatively poor. the loan may be granted under the joint guarantee of the township government and the villagers' committee to guarantee their equal benefits, which has been discussed in Chapter III and so is not repeated here.

Chapter VII. Suggestions

7.1 Suggestions from Peasants and Herdsmen

7.1.1 Suggestions on Loan Granting It is suggested to organize lending directly by lending institutions instead of governments at all levels and the most importantly, to provide funds for development at longer terms. Hui peasants at Waxia and Humagou Villages under Kangle County who deal mainly with fattening think that the period of 3-5 years is enough for profiting and paying off. Herdsmen at Tianzhu Counties suggest that the term be longer, namely, because, the loan to them will be used for improvement of grassland and livestock breeds, construction of pens, so it will take a longer time to profit practically. Women at Oiabu Village suggest to set up women's teams. which shall grant and manage the loan. 7.1.2 Suggestions on Equality among Nationalities Herdsmen at Hongshiwo Township suggest that, the problem of their information source be solved as soon as possible, because 2 affected villages thereunder are still inaccessible to postal communication. Newspapers and mails are sent to the township then brought to the village by township cadres by the way. At the spring and winter settlements, there are pastoral roads only, the poor traffic conditions increase the transaction costs at pastoral areas, reducing the prices of animal products there. Herdsmen also suggest that parties concerned reduce the number of toll-gates at pastoral areas and make convenience for the outward selling of animal products, also for the entry of farm products from agricultural areas and residents' life at pastoral areas. Herdsmen at Sunan County suggest technical training on breeding be given, preferably in the village to save their costs of travel, they also suggest the Project provide village breeding stations with fine stud ram. 7.1.3 Suggestions on ProjectImplementation and Supervision It is necessary to found an AH through election but on the basis of villagers' committee or village cadres. The Assessment Group shall conduct irregular inspections to guarantee the loan is fairly granted to those deserve it. 7.1.4 Suggestions on Women's Participation' Women at Honggeda Village under Tianzhu County hold that, they will also benefit from the loan granted to their families, because they will save efforts by purchasing clothes for the family other than tailoring manually, on the other hand, they will be dressed up like townsmen without being looked down upon as countrywomen, which may help them find a good job. Women at Kangfeng and Saiding Villages under Sunan County think that they may offer children better education conditions when their household income rise with the development of financed sheep breeding. They told that two children of a herdsman's family at a nearby village have passed the entrance examination for collage but failed to get enrolled due to the limited financial status of the family. Women's director at Xigou and Beidi Villages under Yongchang County think that their labor burden is very heavy, because men labors of most families their are working out of home due to a low income from agriculture in the village. Some women aborted due to tiredness and lack of pregnancy care, some are suffering from adnexitis or dermatosis as a result of prolonged exposure to fertilizers and pesticides. In case the loan under the Project could increase their family income, men may stay at home, women may unload their labor burden and get better healthcare. 7.1.5 Suggestions on ProjectDefinition Tibetan herdsmen at Zhuaxilongxiu Township suggest they be provided with a loan to breed fluffy goats, because purchase price of wool thereon is very high recently. They also expect the Project to support some traditional breeds they like, such as white yak. Beneficiaries at Kangle County hold that what they need only is fund other than breeding service, technical training or marketing subproject, because every family there possesses good infrastructures for breeding cattle and sheep. Provided only with sufficient funds at present, they will be pay off within 3 years. Of course, if the term is longer, they will use these funds for a rolling development. The loan should not be limited to fine-wool-sheep only, which is slow-growing and slow-acting. In stead, quick-acting, low-risk and short-cycle fattening is preferred (beneficiaries at 2 counties under Kangle).

7.2 Suggestions from Administrators of Affected Areas

7.2.1 Suggestions on Loan Granting Deputy County Head Chen at Sunan expects to invest the state counterpart funding on a larger scale because there is no such funding locally. He suggested that no equipment or machine is needed, which is inoperable for them, and the term of loan be extended to 20-25 years or so at a lower lending rate. Deputy Head Liu at Zhuaxilongxiu Township of Tianzhu County expects a credit program oriented to township government for it to solve some problems in relation to Pastoral development insoluble for a single family, e.g., to construct a trading center of animal products at Zhuaxilongxiu Township. As seen by the livestock bureau of Tianzhu County, in the original Project design, the repayment period is too short and interest rate too high, so it suggest to repay the interest since the 10th year of execution, and the principal within 20 years. In the view of the leadership at Tianzhu County, as for the line of credit, it is preferred that World Bank invest RMB 10 million, counterpart-funded by the state and local govemment, then the Project will truly drive the local development.Ma Chengjun-Party Branch Secretary at Waxia Village of Kangle County-expects to raise the line of credit for peasants by at least RMB40,000-50,000. The suggestion of competent authorities at Kangle County is to increase the line of credit there. 7.2.2 Suggestions on Equality among Nationalities In the opinion of county, township and village administrators, they shall give priority to the demands of minorities within their respective authorities and tailor the Project plan thereupon with the view of equal participation. At the same time, they deem it a pledge to the equal participation by leading to their jurisdictions as minority counties, townships and villages. 7.2.3 Suggestions on ProjectImplementation and Supervision Competent authorities at Tianzhu County hope the Project to be set up and executed as soon as possible, because they have been pressed by county leaders, some township and village cadres and villagers. The counterparts at several other counties also express the same feeling and suggestion. 7.2.4 Suggestions on Women's Participation The women's federation of Tianzhu County think that, enabling women's federations at all levels to participate in the Project management, such as planning at Project offices, is an effective step for women's equal participation. The women director at Zhuaxixiulong Township under Tianzhu County consider that the loan should also be granted to women, because they don't drink, have a clear mind, are good at housekeeping and willing to discuss with other members of the family. Once provided with technical training, they will have better performance over men. In the view of the women's federation of Sunan County, since Yugur women enjoy a very high family status, women will be major participants and beneficiaries from any loan directly granted to such families. Of course, it is also necessary to have women assume some managerial posts. 7.2.5 Suggestions on ProjectDefinition In the opinion of Party Branch Secretary Gao Yuqing at Kangfeng Village, Sunan County, it is necessary to improve the local traffic and communication conditions by building a telecom receiving station. He expresses the willingness of the county to participate in the Project but with some difficulties: (I) lack of fine rams, which is unaffordable for most herdsmen at the price of RMB7,000-8,000 a head; (2) absence of technical training since 1983; and (3) ill-informed of market, which has rendered most herdsmen indifferent to the market for lack of such chances. Delegates from the Tianzhu livestock bureau deem it appropriate to tailor investments under the Project to local conditions, for example, white yak is a breed specially favored by local herdsmen that has been listed under the national protection, but the fund shortage has now limited its development. Ma Chengjun-Party Branch Secretary at Waxia Village under Kangle County suggest that the development there under the Project shall focus on cattle and sheep fattening, because fine-wool-sheep is too slow-breeding.

7.3 Suggestions from the Assessment Group 7.3.1 Suggestions on Loan Granting Peasants and herdsmen should be truly regarded as direct beneficiaries under the Project, otherwise funds invested in enterprises and all levels of farms and stations would become rootless. Rural credit cooperatives should be utilized as the executing bodies of lending to peasants and herdsmen, because they have rich experiences in rural credit through the long-established credit relations with peasants and herdsmen, on the other hand, they live in a same community as peasants and herdsmen and therefore has a comprehensive and deep insight into the local community and are able to establish favorable credit relations with beneficiaries more suitably than other existing organization. At the same time, funds for collective purchase shall be minimized and the ratio of granting in cash maximized to reduce the chance of fund losing during the ongoing Project. 7.3.2 Suggestions on Equality among Nationalities During the course of Project management and supervision, the PRA method shall be employed regularly to attend the participation of all the minorities at the affected areas and reasonably adjust their behavior of participation for a fair full-course participation in the Project implementation. Make sure minorities are affiliated to the local Project office or team at a proper ratio and serving as defined roles or duties, so that special demands of minorities may be reflected timely in the Project planning and execution. 7.3.3 Suggestions on ProjectImplementation and Supervision The training and selection of all levels of Project managerial personnel shall be enhanced with focus on managerial skill, because, as indicated from investigation, a considerable pert of them are ineligible for the management requirement of the Project. The PRA shall serve as World Bank's key ladder of management on the Project to be consecutively used during the whole course of implementation. Participative-ness shall effectively guarantee the fair participation of grassroots peasants and herdsmen, especially the disadvantaged groups, such as the poor, women, minorities, in the Project planning and fully informed selection. 7.3.4 Suggestions on Women's Participation Women's participation and benefits may be guaranteed by both the loan dedicated to peasants and herdsmen and their joining Project managerial organizations of all levels in a proper proportion, so that considerations may be given to their special needs. For example, it is feasible to assign a representative from all levels of women's federations to join the working team under the Project office at the same level and hold a concurrent post therein. 7.3.5 Suggestions on ProjectDefinition The option of development under the Project shall be up to peasants and herdsmen under the leadership by village-level organizations on the basis of suitability to local conditions. In addition, according to the present market quotations, mutton or wool-mutton sheep are more marketable and quick effective than fine-wool-sheep alone, which, however, have a promising prospect, longer effect and wider coverage of economic benefit. Therefore, the Project shall secure the development of a certain number of fine-wool-sheep bases while giving consideration to special demands of beneficiaries at different locations.

Annex-I: List of Social Assessment Activities

Schedule of Social Assessment Date Location Participants Activity Jul.19 County town of Whole Group Arrival Sunan Jul. 20 Kangfeng Village Station Master Lan, Secretary DTD interview Guo, whole Group Jul. 21 .m.-Kangfeng Secretary Guo, Villager Head Discussion with Party Committee illage Gao, accountant, whole Group of Kangfeng Village .m.-Saiding Whole Group DTD interview Vllage Jul. 22 a.m.-Saiding Whole Group DTD interview Village p.m.-County town Whole Group Group meeting in preparation for discussion with county authorities Jul. 23 .m.-meeting room County Head Chen, Station Discussion with county authorities of the Sunan Hotel Master Lan, leaders of county - authorities, whole Group p.m.-Yongchang Whole Group Group meeting County Jul. 24 a.m.-Shuiyuan Township head, whole Group Discussion with township Township authorities p.m.-Beidi Village Village Head Su, whole Group Village visit, DTD interview, Group meeting Jul. 25 a.m.-Xigou Village Village head, secretary, director Village visit, DTD interview of women's federation, whole Group, accountant p.m.-Xigou Village Whole Group DTD interview Jul. 26 .m.-Beihai Hotel, An investigator from county Discussion with county authorities Yongchang County Party committee, leaders of county authorities, whole Group .m.-station at Whole Group Consulting literatures, editing Yongchang County cases Jul. 27 Tianzhu County Director-general Mao, whole Siting for investigation Group Jul. 28 a.m.-Huazang Investigator Xu, leaders of Discussion with county authorities Hotel, Tianzhu county authorities, County Director-general Mao, whole p.m.-Tanyaogou Group Discussion with authorities at Village Township Head Liu, village township and village levels head, secretary of Party branch, whole Group Jul. 29 _anyaogou Village Whole Group DTD interview Jul.30/31 Honggeda Village Whole Group Discussion with village authorities Aug. I Lanzhou Whole Group Resting, collation of data Aug. 2 a.m.-Kangle Director-general Ma, whole Siting for investigation County Group

_ .m.-Waxia Village Secretary of village Party Discussion with village authorities, branch, accountant, whole Group Group meeting in preparation for the following work Aug. 3 Waxia Village Secretary of village Party DTD interview, Group meeting branch, whole Group Aug. 4 Humagou Village Secretary of village Party Discussion with village authorities, branch, village head, instructor, DTD interview, Group meeting in whole Group preparation for discussion with county authorities 8.5 Meeting room of Secretary Fan, leaders of county Discussion with county authorities Party Committee of authorities, whole Group Kangle County I

The Assessment Group, consisting of Group Leader Bao Xiaoxia, Consultant Cheng Yu, Ding Gang, Zhang Zhiguo, Wang Qiang and Wei Changjiang set off from Lanzhou in the momning of July 19, 2001 for the social assessment. Around 5:30p.m., July 19, the Group arrived at the first station-Sunan Yugur Autonomous County, a purely pastoral area with separate summer-autumn and winter-spring ranges. At the summer-autumn (Jun.-Oct.) range, herdsmen live in tents due to a shorter stay, post and pan houses for fixed residence are found in the winter-spring range (Nov.-next May) due to a long stay. July 20, the Group, accompanied by Station Master Lan from the Animal Husbandry bureau and Secretary Guo from the Party committee of Hongshiwo Township, conducted a door-to-door interview at the summer range of Kangfeng Village. In the moming of July 21, the Group discussed with the Kangfeng villagers' committee and Secretary Guo about the background of the village and township. The attendants of the forum included Secretary Guo, Village Head Gao, Accountant Su Wen and all the Group members. In the afternoon of July 21, the Group investigated Saiding Village and discussed with village leaders. In the afternoon of July 22, the Group returned to the county and held a meeting to prepare for the discussion with county leaders concerned in the next day. From 9:00 a.m., July 23, the Group held a forum at the meeting room of the Sunan Hotel with leaders of Sunan County, attended by County Head Chen in charge of stock breeding, Station Master Lan and leaders of other departments concerned. In the afternoon of July 23, the Group hold a meeting at Yongchang County in preparation for the investigation there. At 8:00 a.m., July 24, the Group arrived at Beidi Village under Shuiyuan Township for a DTD interview. In the morning, the Group discussed with township leaders about the background there; from 3: 45 p.m., the Group started discussing with village leaders at the meeting room of the Beidi villagers' committee, attended by Deputy Director Su Zixiong of the villagers' committee, Prof. Bao, Wei Changjiang, Zhang Zhiguo. In the evening, a group meeting was hold to summarize the work of that day. At 9:15 a.m., July 25, the Group discussed with the Xigou villagers' committee at the meeting room of the committee, attended by Village Director Li, Secretary Li, Women's Director Li, the village clerk and all members of the Group. After that, the Group started DTD interview. At 9:00 am., July 26, the Group discussed with leaders of Yongchang County, attended by an investigator from the county Party committee, leaders of county authorities, Director-general Zhang Jiming of the livestock bureau and the whole Group. The investigation there was in a hurry because the county govemment was less cooperative and it was just a busy season. In the aftemoon of July 26, the Group read some data at Yongchang County, summarized the work in the previous period and collated questionnaires and cases collected. In the aftemoon of July 27, the Group arrived at Tianzhu Tibetan Autonomous County, fixing on the two locations of investigation-Tanyaogou and Honggeda Villages-at Zhuaxilongxiu Township by discussion with the master of the Pastoral station. At night, a meeting was held in preparation for discussion with county leaders. At 8:10 a.m., July 28, the Group discussed with county leaders at the fl.2 meeting room of the Huazang Hotel, including Investigator Xu of county Party committee, Director-general Wu of the Animal Husbandry bureau, the council of nationality and religion, county planning committee, county women's federations. In the aftemoon of July 28, the Group discussed with village and township leaders at Deputy Head (Tanyaogou Village) Wu Jinzhong's family, attended by Township Head Liu, the master of Pastoral station, Deputy Head Wu, the village clerk, etc. From July 29 on, DTD interview started formally at Tanyaogou Village. From July 30-31, investigation was made at Honggeda Village. From July 31 to Aug. 1, the Group returned to Lanzhou for a rest and collation of data. In the morning of Aug. 2, the Group arrived at Kangle County, decided on the investigation locations-Waxia Village at Huguan Township and Humagou Village at Luming Township-with leaders of the county Animal Husbandry bureau. In the aftemoon, the Group discussed with leaders of Huguan Township to collect the background there, later with the Waxia villagers' committee, attended by the village head, village secretary, village clerk, Master Ma of the Pastoral station and the whole Group. In the evening, a meeting was held to discuss the task of interview in the next day. On Aug. 3, DTD interview was held at Waxia Village, accompanied by the village secretary. In the evening, a Group meeting summarized the work that day. At 9:00a.m., Aug. 4, the Group discussed with leaders of Humagou Village, followed by DTD interview. In the night, the Group made a summary and statistics of questionnaire, arranging for the discussion tomorrow with leaders of Kangle Cotnty. At 8:30 a.m., Aug. 5, the Group held a forum at the meeting room of Kangle County, attended by County Head Su, the director-general of the Animal Husbandry bureau, leaders of other county authorities and the Group.

Annex-II: Map of Project Locations

Annex-III: Detailed Description of Assessment Methodology

Annex-IV: Summary of Social Assessments in 2000

Annex-V: Datasheet for Townships/Villages Investigated