A senior official yesterday praised the participation of
non-government organizations in poverty alleviation, especially for
farmers.
"NGOs have been more active, professional and efficient in
broadening financing channels for poor farmers," said Gao Hongbin,
Deputy Director of the State Council Leading Group Office of
Poverty Alleviation and Development in Beijing.
Gao credited the NGOs' micro-finance projects collaborations
with financial institutions.
"It is a good beginning," Gao said at the signing ceremony of
the 100 million yuan (US$12.7 million) loan contract between the
China Development Bank and China Foundation For Poverty
Alleviation. "The cooperation is a healthy and sustainable model
for the capital thirsty poor farmers."
The newly-raised funds will aid poor farmers in four counties,
Fujian, Shanxi and Liaoning provinces who will receive loans
amounting to 20 million yuan (US$2.5 million).
This year, the foundation's micro-finance projects have covered
10 counties in seven provinces. More than 150 million yuan (US$18.9
million) was loaned to 330,000 rural poor households and repayment
rates have remained high.
The ratio of portfolio at risk over a 30-day period is only 0.1
percent, much lower than the international standard of 3
percent.
For the first time, money for the fund has been secured from
banks with interest. Previously, the fund was supported by
donations at zero interest.
The foundation, the first NGO in China to carry out poverty
alleviation micro-financing operations, has previously contributed
160 million yuan (US$20 million) annually.
Shortage of capital has been a problem for the foundation over
the last decade.
"The total loan for each pilot county is no more than 5 million
yuan (US$630,000)," said Wang Xingzui, executive director of the
foundation. "The amount cannot meet the demand of the poor farmers,
not to mention the sustainable development of the micro-finance
system.”
With back-up from commercial banks and a more flexible model
developed by the NGOs themselves, the micro-finance project may be
better able to serve better sustainable development, Gao said.
Nationwide, NGOs specializing in poverty alleviation have grown
as more urban well-off dwellers have raised their awareness in
volunteer work, Gao said.
But compared with western countries, China's NGOs are still too
few. With about 21 million people in rural China living below the
poverty line, more efforts from the NGOs are needed, he
concluded.
(China Daily December 21, 2006)