IPP723 V2 Utilizing World Bank Loans --- A Pilot Demonstration Project of Industrial Poverty Reduction in Poverty-stricken Concatenated Areas Public Disclosure Authorized Public Disclosure Authorized Social Assessment Report Public Disclosure Authorized Foreign Capital Project Management Center of State Council Leading Group Office of Poverty Alleviation and Development April, 2014 Public Disclosure Authorized Contents LIST OF FIGURES ....................................................................................................................... 5 ABSTRACT ................................................................................................................................... I 1 FOREWORD ......................................................................................................................... 1 1.1 PROJECT PROFILE .................................................................................................................. 1 1.2 SOCIAL ASSESSMENT TASKS .................................................................................................. 1 1.3 OBJECTS/SCOPE OF SOCIAL ASSESSMENT ............................................................................... 2 1.4 MAIN CONTENTS OF SOCIAL ASSESSMENT ............................................................................. 2 1.5 SOCIAL ASSESSMENT METHODS ............................................................................................ 3 2 SOCIO-ECONOMIC DEVELOPMENT IN PROJECT AREAS ........................................... 7 2.1. DEFINITION OF PROJECT AREAS ............................................................................................. 7 2.2. SOCIAL AND ECONOMIC PROFILE ........................................................................................... 7 2.2.1. population .................................................................................................................... 7 2.2.2. income .......................................................................................................................... 9 2.2.3. land ............................................................................................................................ 11 (1) LAND RESOURCES ....................................................................................................... 11 (2) LAND TRANSFER AND LAND CONSOLIDATION...................................................... 13 2.2.4. planting ...................................................................................................................... 14 2.2.5. breeding ...................................................................................................................... 15 2.3. CURRENT STATUS OF PROFESSIONAL FARMER COOPERATIVES .............................................. 17 (2) SICHUAN PROVINCE .......................................................................................................... 18 2.4. CURRENT DEVELOPMENT OF ADVANTAGEOUS INDUSTRIES .................................................. 21 (2) SICHUAN PROVINCE .......................................................................................................... 22 3 STAKEHOLDER ANALYSIS .............................................................................................. 25 3.1 IDENTIFICATION OF STAKEHOLDERS ..................................................................................... 25 3.2 DEMANDS OF THE STAKEHOLDERS FOR THE PROJECT .......................................... 25 3.3.1. rural households ......................................................................................................... 25 3.3.2. enterprises related to the development cooperative industry chain ............................. 29 3.3.3. rural agents, household of individual business, and owners of small processing 1 workshops ................................................................................................................................... 31 3.3.4. poverty reduction office .............................................................................................. 31 3.3.5. members of existing farmer cooperatives .................................................................... 32 3.3.6. other relevant government departments ...................................................................... 33 3.3 ANALYSIS ON THE PROJECT IMPACT ..................................................................................... 35 3.3.1. opportunities ............................................................................................................... 35 3.3.2. risks ............................................................................................................................ 41 4 FARMER COOPERATIVE ANALYSI ................................................................................ 52 4.1 FARMER COOPERATIVE ORGANIZATION ............................................................................... 52 4.2 CURRENT STATUS OF PROFESSIONAL FARMER COOPERATIVES .............................................. 55 4.2.1. classification of professional farmer cooperatives ...................................................... 55 4.2.2. organizational composition and staffing ..................................................................... 56 4.2.3. profit distribution ........................................................................................................ 57 4.2.4. participation and benefit sharing of the poor .............................................................. 59 4.3 OPERATIONAL MODES OF PROFESSIONAL FARMER COOPERATIVES AND THEIR ADVANTAGES AND DISADVANTAGES .................................................................................................................... 107 4.3.1. company + cooperative + base + rural household ................................................... 107 4.3.2. company + cooperative + rural household ............................................................... 109 4.3.3. cooperative + base + rural household ...................................................................... 111 4.3.4. cooperative (association) + rural household ............................................................ 111 4.4 RURAL HOUSEHOLDS’ UNDERSTANDING AND ATTITUDE TOWARDS COOPERATIVES ............. 116 4.5 PROBLEMS IN THE OPERATION OF PROFESSIONAL FARMER COOPERATIVES ......................... 119 4.6 SUGGESTIONS ON IMPROVING COOPERATIVES .................................................................... 124 5 POVERTY ANALYSIS ...................................................................................................... 127 5.1 POVERTY STATUS ............................................................................................................. 127 5.2.1. POVERTY STATUS IN GUIZHOU, SICHUAN AND GANSU PROVINCE ................................ 127 5.2.2. MEANS OF LIVELIHOOD OF POOR HOUSEHOLDS ......................................................... 128 5.2.3. SITUATION OF POOR HOUSEHOLDS’ PARTICIPATION IN THE COOPERATIVE ................ 130 5.2.4. POOR HOUSEHOLDS’ CAPACITIES OF ADVANTAGEOUS INDUSTRIES ............................ 131 5.2 IMPACT ANALYSIS OF THE PROJECT ON POOR HOUSEHOLDS .......................................... 133 5.3.1. POSITIVE INFLUENCE ................................................................................................ 133 5.3.2. POTENTIAL RISKS ...................................................................................................... 135 5.3 POVERTY GROUP’S AWARENESS AND DEMANDS OF THE PROJECT .................................. 136 5.3.1. POVERTY GROUP’S AWARENESS OF THE PROJECT ...................................................... 136 5.3.2. POOR HOUSEHOLDS’ DEMANDS FOR THE PROJECT ..................................................... 139 5.4 BENEFICIAL MECHANISM FOR POVERTY GROUP ............................................................ 142 6 SOCIAL GENDER ANALYSIS.......................................................................................... 145 6.1 WOMEN’S DEVELOPMENT STATUS .................................................................................. 145 6.1.1. WOMEN’S DEVELOPMENT STATUS IN GUIZHOU PROVINCE, SICHUAN PROVINCE, GANSU PROVINCE 145 6.1.2. WOMEN’S DEVELOPMENT STATUS IN PROJECT AREA .................................................. 146 6.1.3. WOMEN’S DEVELOPMENT ACTIVITIES IN PROJECT AREA ............................................ 148 6.2 ANALYSIS OF WOMEN’S COOPERATIVE ........................................................................... 149 6.2.1. GENERAL SITUATION OF WOMEN’S COOPERATIVE ..................................................... 149 6.2.2. WOMEN’S PARTICIPATION IN THE COOPERATIVE ....................................................... 151 6.2.3. WOMEN’S PERCEPTION AND ATTITUDES TOWARDS PROFESSIONAL FARMER COOPERATIVE ............................................................................................................................ 152 6.3 INFLUENCE OF THE PROJECT ON WOMEN ....................................................................... 154 6.3.1. POSITIVE INFLUENCE OF THE PROJECT ..................................................................... 154 6.3.2. POTENTIAL RISKS IN THE PROJECT ............................................................................ 156 7 ANALYSIS OF ETHNIC MINORITIES ............................................................................ 158 7.1 NATIONAL MINORITIES SITUATION IN THE PROJECT