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The poverty trap
How can you escape poverty if you have little money and few resources? If you
do not have much education and you live in a remote area with poor soil and
extreme weather conditions of heat and cold, flood and drought, it is even more
difficult. These are the problems facing people in poverty in many parts of
the world, including some rural areas of China.

Poverty and plenty
Economic changes in China have lead to a quadrupling of GDP since 1978 (to
$US5,000 per capita). It is the second-largest economy in the world after the
US (measured on a purchasing power parity basis). (CIA The World Fact Book 2003)
Its economic growth rate has averaged over 9% per annum over the past 15 years
but most of this economic boom is centred on the coastal towns and cities. Inland
and western areas are falling behind as wages lag behind urban incomes and millions
of rural workers are unemployed. Of the estimated 80 million people living in
poverty in China, most live in rural areas. While local governments within poverty
areas are striving very hard to assist people in poverty, they are often constrained
by the lack of financial and other resources.
In Guangxi Autonomous Region in southern China, an Australian Government aid
program, implemented by CARE Australia, has been helping poor rural villagers
in Du An, Yao Autonomous County become self employed, increase their incomes
and move out of poverty. A high percentage of Guangxi's 46 million people are
ethnic minority groups including the Zhuang, Miao and Yao people. It is one
of China's poorest regions, although you may not realise this if you see or
hear about the tourist areas like the famous Guilin or big cities like the capital,
Nanning.
In Du An county, only 8% of the land can be cultivated as most of it is steep,
sloping, limestone karst. The area has hot, humid summers with a long dry season
when water sources dry up and each drop of water is precious but flooding can
also occur. Poor roads meant the people cannot get their goods to market. There
was no school and well trained teachers did not want to stay in the area.

A way out
In these difficult circumstances, how can poor families increase their incomes
and move out of poverty? The Du An Women's Union, working with the staff of
CARE Australia, suggested that the answer lay in the work and resources that
are traditionally the women's responsibility - care of animals and fruit trees
around the house. The growing towns in Guangxi and neighbouring provinces needed
a regular supply of meat and fruit. With training in how to breed and raise
larger numbers of animals and fruits, the women would have surpluses for sale
to these markets.
World-wide, improving women's knowledge and skills leads to an increase in
family income, health and welfare. Women are more likely to spend their earnings
on the family, investing in present and future improvements to overcome poverty,
such as more nutritious food, health, better housing and children's education.
In consultation with the Women's Union and local communities, CARE Australia
staff agreed that the project would train women in animal husbandry and fruit
tree growing. To ensure that women could purchase animals and seedlings and
that these would survive, two more things were included in the project:
- a revolving loan fund so the women could borrow money to purchase animals,
fodder and seeds and
- water tanks to provide a reliable source of water in the dry seasons.

The three pronged approach
Women attending the training courses came from poor and remote
areas and agreed that on returning to their villages, they would teach others
what they had learnt. The animal husbandry courses were the most popular, especially
chicken rearing. Most participants had completed at least primary education
but a few had never been to school and were illiterate. Special classes were
conducted in their local dialect.

By learning proper animal husbandry, women are better able to manage small business opportunities.
After completing the courses, they were given small loans from
the revolving loan fund to purchase chickens, pigs or goats. In a revolving
loan fund, once the first borrower pays the money back, it is lent out again
to another borrower. This way, many benefit from the original amount as it 'revolves'
around the community.

Bringing water closer
Local government water bureau technicians advised villagers on the location,
construction and maintenance of water tanks which were installed in remote areas
where the dry season lasts at least three months. Instead of walking several
kilometres up steep limestone mountains to the spring and back down with two
buckets of water weighing up to 40 kilograms, women now have easier access to
clean water near home.

By learning how to build and maintain water tanks, women have access to water close to their home saving much time and hard work.
Setbacks
Ironically, it was too much water, not too little, that interrupted the project's
progress. In 1998, it rained for two months non-stop, causing severe floods
in July-August which affected Du An county as well as many other areas. Many
of the recently planted seedlings were destroyed by the floods.
The revolving loan fund also faced some difficulties. Early loan agreements
were not written down and since many villagers had not been involved in a loan
fund before, they did not understand that the money had to be paid back. In
the 1998 floods, food was scarce and some families had to exchange cash or animals
for rice or corn. Loan repayments had to be extended by a year to help people
recover from this disaster.
Despite these setbacks, the project has seen increased incomes for the families
involved. Before the floods, annual per capita income for program participants
increased by a minimum of 80 - 100% or 200 - 300 Yuan ($A40.00 - 60.00). Although
increases were reduced by natural disasters, approximately 80% of participants
have raised their incomes to move above the poverty line for Du An county. These
figures are encouraging as they show the project has given many poor women a
'kick-start' to get over the initial (and most difficult) hurdles. It is often
the poorest women and their families who find it hardest to access credit, but
once they can access even a little credit and appropriate training, many are
able, in the long-term, to raise their incomes higher and higher above the poverty
line. The supply of animals also helped many families avoid starvation during
the floods.

Goat husbandry increases business and trade opportunities with towns in Guangxi and neighbouring provinces.
The water tanks proved their worth when the 1998 floods were followed by a prolonged drought in the dry season - the worst in Du An county
history. The tanks supplied approximately 2,400 people and 2,000 animals with water. This has led a number of other villagers to ask for tanks.
The Du An Women's Union has gained valuable experience and strengthened its
management skills through its involvement in the project, especially the loan
fund. It now has the experience, skills and capacity to handle larger projects
involving more community participation.
This case study shows that people and their commitment to change are the most
important resource for overcoming poverty - even in areas poor in natural and
material resources, with difficult terrain and climate. Projects that include
education and training, especially for women, access to credit and basic services
like water can create self-employment, generate income and help people escape
from poverty.
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