SFG2246 World Bank Financed -Guangxi Rural Poverty Alleviation Pilot Project Public Disclosure Authorized Public Disclosure Authorized Social Assessment Report Public Disclosure Authorized Guangxi Foreign Funded Poverty Alleviation Project Management Center Public Disclosure Authorized May 2016 Table of Contents Executive Summary ................................................................................................................................... 1 1 Foreword .................................................................................................................................... 13 1.1 China’s National Poverty Alleviation Strategy ............................................................................ 13 1.2 Guangxi’s Poverty Alleviation Strategy ....................................................................................... 14 1.3 Summary Project Description ..................................................................................................... 15 1.4 Policy Framework ....................................................................................................................... 17 1.4.1 Farmer Professional Cooperatives ....................................................................................... 17 1.4.2 Poverty Alleviation through Agricultural Industrialization ..................................................... 18 1.4.3 Land Transactions ................................................................................................................ 18 1.4.4 Rural Tourism ....................................................................................................................... 20 1.5 Social Assessment Process and Methods ................................................................................. 20 1.5.1 Purpose ................................................................................................................................ 20 1.5.2 Scope of Work ...................................................................................................................... 21 1.5.3 Geographical Scope ............................................................................................................. 21 1.5.4 Key Contents ........................................................................................................................ 21 1.5.5 Methods ................................................................................................................................ 22 1.5.6 Survey Samples ................................................................................................................... 24 2 Socioeconomic Profile of the Project Area ............................................................................ 29 2.1 Administrative Units and Population ........................................................................................... 29 2.2 Social and Economic Status ....................................................................................................... 29 2.2.1 Population ............................................................................................................................ 29 2.2.2 Income .................................................................................................................................. 30 2.2.3 Land ..................................................................................................................................... 31 2.2.4 Crop Production ................................................................................................................... 32 2.2.5 Livestock .............................................................................................................................. 33 2.2.6 Competitive Agricultural Industries ....................................................................................... 34 2.2.7 Ecological Resettlement Programs ...................................................................................... 36 2.3 Cooperatives..................................................................................................................................... 39 3 Socioeconomic Profile of Project Villages ............................................................................. 41 3.1 Overview of Survey Respondents .............................................................................................. 41 3.1.1 Age Distribution .................................................................................................................... 41 3.1.2 Education ............................................................................................................................. 41 3.1.3 Main Occupation .................................................................................................................. 42 3.1.4 Ethnic Minority Population .................................................................................................... 43 3.1.5 Income .................................................................................................................................. 43 3.1.6 Land ..................................................................................................................................... 44 3.1.7 Access to Public Services .................................................................................................... 45 3.1.8 Poverty and Ethnic Minority ................................................................................................. 48 4 Stakeholder Analysis ............................................................................................................... 51 4.1 Stakeholder Identification ........................................................................................................... 51 4.2 Community Stakeholders’ Participation ...................................................................................... 53 4.2.1 Participation Process ........................................................................................................... 53 4.2.2 Participation Outcome .......................................................................................................... 53 4.3 Stakeholder Demand Analysis .................................................................................................... 54 4.3.1 Project Villages’ Demand for Cooperatives ......................................................................... 54 4.3.2 Poor Households’ Demand for Cooperatives ....................................................................... 57 4.3.3 Minorities’ Demand for Cooperatives ................................................................................... 58 4.4 Other Primary Stakeholders ....................................................................................................... 59 4.4.1 Poverty Alleviation Offices/ PMOs ....................................................................................... 59 4.4.2 Potential Partner Enterprises ............................................................................................... 62 4.4.3 Business Incubation Centers ............................................................................................... 71 i 5 Farmer Cooperatives ................................................................................................................ 76 5.1 Cooperative Categories .............................................................................................................. 76 5.2 Current Status ............................................................................................................................. 79 5.2.1 Main Features ...................................................................................................................... 79 5.2.2 Organizational Structure and Staff ....................................................................................... 79 5.2.3 Cooperatives’ Membership and Management ..................................................................... 82 5.2.4 Profit Distribution Mechanism .............................................................................................. 82 5.2.5 Household Participation and Benefits .................................................................................. 83 5.3 External Factors Influencing Cooperative Development ............................................................ 84 5.3.1 Consistency with Guangxi’s Poverty Alleviation Policy ........................................................ 84 5.3.2 Consistency with Project Counties Priority Industries .......................................................... 84 5.3.3 Access to Technical Support ................................................................................................ 85 5.3.4 Related Leading Enterprises ................................................................................................ 85 5.3.5 Storage Facilities .................................................................................................................. 85 5.3.6 Cooperative Establishment and Incubation ......................................................................... 85 5.3.7 Market and Sales Channels ................................................................................................. 86 5.4 Internal Factors Influencing Cooperative Development.............................................................. 87 5.4.1 Infrastructure