Final Report - Asian Development Bank

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TA 4721-PRC: Preparing the Shaanxi-Qinling Mountains Integrated Ecosystem Management Project
Final Report Appendix 3
mountain areas where 60% of the population is below the poverty threshold. Mountain areas account for about 74% of the
County’s land area, 60% of its poverty population, but only 10% or 60,000 of the County’s total population.
The project preparatory (PPTA) will design and invest a project for loan and grant financing to improve rural well-being
through a sustainable land conservation and use of QM resources which will include: (i) commercial ex-situ businesses
investing in the management of the Project Area and the (ii) Improved livelihoods from sustainable management and
conservation of in-situ natural resources and (iii) institutional arrangement for a sustainable IEM of QM resources
demonstration and replications; C: ecosystems through IEM approach to sustainable use of biodiversity, agriculture, and
natural resources by means of (i) effective project management, (ii) institutional strengthening through legal reform and
organizational restructuring, and (iii) replication and dissemination of biodiversity conservation
B. Poverty Analysis Targeting Classification: General intervention
What type of poverty analysis is needed?
The total registered population in the Project Area is about 20,355 including 3 townships and 30 administrative villages.
Poverty in the project area remains significant by world benchmarks. Using the poverty line of Shaanxi province of CNY865
per capita per year results in 21 villages out of 30 being poor. A survey done in 2005 by the Poverty Reduction Office shows
that a total of 7,586 people in both ex-situ and in-situ are counted as poverty population covering 1,889 households. Further
splitting the poverty populations into ex-situ and in-situ, high poverty incidence occurs in the in-situ, accounting for 73%,
about 3,208 people, while in ex-situ the poverty incidence is 27%, about 5,155 people. The poverty ratio in the project area
therefore is considered as 37%. The project poverty classification fits the “general intervention” as less than 50% of the
population are the poor among project beneficiaries.
Poverty analysis was undertaken using formal field surveys and participatory key informant discussions both in the in-situ
and ex-situ areas. Institutional consultation was undertaken regarding the ongoing efforts and experiences in poverty
reduction in the province. The design of interventions on improving rural livelihoods and poverty reduction will result in
improvements through increased incomes while conservation of the environment, a strong and growing tourism sector
through construction of a international standard Botanic Garden, an expansion of the Animal Rescue Centre, the Hot
Springs Development/ Daoist Cultural Centre, as well as associated alternative livelihood opportunities such as Chinese
medicinal herbs production etc and training components all provide instruments for more sustainable livelihoods through
higher incomes, job creation, and small enterprise opportunities, and economic diversification.
A social and poverty assessment was carried out for each of the subprojects in compliance with ADB’s Guidelines on
Incorporation of Social Dimensions in Bank Operations. The assessment included a rural livelihood assessment which
confirmed disparate growth rates between sectors resulting in large income inequities between rural and urban residents
and between different rural areas. Causes of poverty in the PA are complex, but are very much associated with land
degradation and the harsh human living environment. In summary, the following causes were identified during the
household survey and the PRA exercises: (i) pervasive small-scale agriculture on steep slopes, threatened by wild animals;
(ii) limited infrastructure; (ii) limited alternatives for other livelihood activities; (iv) unsustainable land conversion program —
no alternative job and income opportunities for surplus labor; (v) poor access to social services such as education, health
care with few links to the modern economy; (vi) traditional agricultural practices are used as the main exit from poverty,
which leads to limited solutions for high poverty levels and can further degrade the environment.
The social analysis confirmed the poverty status of people in the in-situ area where China’s current Poverty Reduction
program is still being implemented, such as the Voluntary Resettlement Plan. Specific alternative livelihood activities as well
as the improvements to infrastructure such as road, water supply etc will directly benefit these communities which will
reduce their reliance on low-productive sloped land farming and provide increased access to income generation activities.
C. Participation Process
Is there a stakeholder analysis? Yes No
Is there a participation strategy? Yes No
Consultation with stakeholders, beneficiaries and directly affected people has been undertaken and will continue during
design and implementation of the subprojects. Detailed discussion with Xi’an City government, the line agencies,
representatives of the Botanic Garden and other investors, cultural and ecotourism operations and a small group of rural
residents were held. The Executing Agency for the PPTA, the Foreign Loan Support Management Office of the Shaanxi
Provincial Development and Reform Commission (PDRC), was established. The Leading group is chaired by the governor,
and will coordinate and enlist the support of involved and concerned agencies to ensure smooth implementation. The group
will also play its role as a steering committee. A standing office is set up under the leading group headed by the director
general of the PDRC. The PMO is engaging 11 staff and links closely to the existing group of the Qinling Botanical Garden.
An expert panel with six experts in different disciplines provides technical guidance to the PMO and the consultant team. In