Post-Tribune

Jobs, houses and cows for the poor

Drive to alleviate impoverish­ment is costly to China

- By Keith Bradsher

JIEYUAN VILLAGE, China — When the Chinese government offered free cows to farmers in Jieyuan, villagers in the remote mountain community were skeptical. They worried officials would ask them to return the cattle later, along with any calves they managed to raise.

But the farmers kept the cows, and the money they brought. Others received small flocks of sheep. Government workers also paved a road into the town, built new houses for the village’s poorest residents and repurposed an old school as a community center.

Jia Huanwen, a 58-yearold farmer in the village in Gansu province, was given a large cow three years ago that produced two healthy calves. He sold the cow in April for $2,900, as much as he earns in two years growing potatoes, wheat and corn on the terraced, yellow clay hillsides nearby. Now he buys vegetables regularly for his family’s table and medicine for an arthritic knee.

“It was the best cow I’ve ever had,” Jia said.

The village of Jieyuan was one of many successes of President Xi Jinping ’s ambitious pledge to eradicate abject rural poverty by the end of 2020. In just five years, China says it has lifted from extreme poverty over 50 million farmers left behind by breakneck economic growth in cities.

But the village, one of six in Gansu visited by The New York Times without government oversight, is also a testament to the considerab­le cost of the ruling Communist Party’s approach to poverty alleviatio­n. That approach has relied on massive, possibly

unsustaina­ble subsidies to create jobs and build better housing.

Local cadres fanned out to identify impoverish­ed households — defined as living on less than $1.70 a day. They handed out loans, grants and even farm animals to poor villagers. Officials visited residents weekly to check on their progress.

“We’re pretty sure China’s eradicatio­n of absolute poverty in rural areas has been successful — given the resources mobilized, we are less sure it is sustainabl­e or cost-effective,” said Martin Raiser, the World Bank country director for China.

Beijing poured almost $700 billion in loans and grants into poverty alleviatio­n over the past five years — about 1% of each year’s economic output. That excludes large dona

tions by state-owned enterprise­s like State Grid, a power transmissi­on giant, which put $120 billion into rural electricit­y upgrades and assigned more than 7,000 employees to work on poverty alleviatio­n projects.

The campaign took on new urgency last year as the country faced devastatio­n from the coronaviru­s pandemic and severe flooding. One by one, provinces announced they had met their goals. In early December, Xi declared that China had “achieved a significan­t victory that impresses the world.”

But Xi acknowledg­ed further efforts were needed to share wealth more widely. A migrant worker in a coastal factory city can earn as much in a month as a Gansu farmer earns in a year.

Xi also called for officials to make sure that newly

created jobs and aid for the poor did not fade away in the coming years.

Gansu, China’s poorest province, declared in late November that it had lifted its last counties out of poverty. Just a decade ago, poverty in the province was widespread.

Hu Jintao, China’s leader before Xi, visited people living in simple homes with few furnishing­s. Villagers ate so many potatoes that local officials were embarrasse­d when a young girl initially refused to eat yet another one with Hu in front of television cameras because she was tired of them, according to a cable disclosed by WikiLeaks.

Though many villages are still reachable only by singlelane roads, they are lined with streetligh­ts powered by solar panels. New industrial-scale pig farms, plant

nurseries and small factories have sprung up, creating jobs. Workers are building new houses for farmers.

Three years ago, Zhang Jinlu woke in terror when the rain-weakened mud brick walls of his home gave way. Half the roof timbers came crashing down with slabs of dirt, narrowly missing him and his mother.

Officials in You fang village built a spacious new concrete house for them, complete with new furniture. Zhang, 69, now receives a monthly stipend of $82 through the poverty program.

“This house used to be dilapidate­d, and it leaked when it rained,” Zhang said.

The government helps private factories buy equipment and pay salaries if they hire workers deemed impoverish­ed.

At Tanyue Tongwei Clothing & Accessorie­s Co. in southeaste­rn Gansu, about 170 workers, mostly women, sewed school uniforms, T-shirts, down jackets and face masks. Workers said that several dozen employees received extra payments from the poverty alleviatio­n program in addition to their salaries.

Lu Ya ming, the company’ s legal represent ative, said Tanyue receives at least $26,000 a year in subsidies from poverty alleviatio­n programs — out of which $500 a year was paid to each of the 17 villagers deemed impoverish­ed. But the viability of these factories without ongoing aid is unclear. Until the subsidies arrived, the factory had trouble paying wages on time, Lu said.

Inevitable questions swirl over whether some families have used personal ties to local officials to qualify for grants. Corruption investigat­ors punished 99,000 people nationwide in connection with poverty relief efforts last year, according to official statistics.

While the poverty alleviatio­n program has helped millions of poor people, critics point to the campaign’s rigid definition­s. The program assists people classified as extremely poor at some point from 2014 to 2016, without adding others who may have fallen on hard times since then. It also does very little to help poor people in big cities where wages are higher but workers must pay far more for food and rent.

The party’s campaignst­yle approach also fails to tackle deep-seated problems that disproport­ionately hurt the poor, including the cost of health care and other gaping holes in China’s emerging social safety net. Villages provide limited health insurance — only 17% of the cost of Jia’s arthritis medicine is covered, for example. Hefty medical bills can ruin families.

 ?? KEITH BRADSHER/THE NEW YORK TIMES ?? Constructi­on workers shovel dirt onto a road for traction Dec. 16 near a remote mountain village that is part of China’s poverty alleviatio­n program in Gansu province.
KEITH BRADSHER/THE NEW YORK TIMES Constructi­on workers shovel dirt onto a road for traction Dec. 16 near a remote mountain village that is part of China’s poverty alleviatio­n program in Gansu province.

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