people’s republic of china: shanxi inclusive agricultural ...higher than the shanxi average in the...
TRANSCRIPT
Poverty and Social Analysis
Project number: 48358-001 August 2017
People’s Republic of China: Shanxi Inclusive Agricultural Value Chain Development Project
Prepared by David Crosbie , Zhiyang He and Xuemei Zhang for the Asian Development Bank
Shanxi Inclusive Agricultural Value Chain Development Project (RRP PRC 48358)
Poverty and Social Analysis (Final) Project Number: 48358-001 August 2017
PRC: Shanxi Inclusive Agriculture Value Chain Development Project
Prepared by David Crosbie, Zhiyang He and Xuemei Zhang for the Asian Development Bank
I
Table of Content
EXECUTIVE SUMMARY ............................................................................................................................. V
A. INTRODUCTION ............................................................................................................................... 1
1. Project Background ............................................................................................................................. 1 2. Project Objectives ............................................................................................................................... 1 3 Methodology ......................................................................................................................................... 1 4 Organization of PSA ........................................................................................................................... 3
B. SOCIOECONOMIC CONDITIONS IN SHANXI (CHAPTER 2) ..................................................... 2
1. Shanxi Province ................................................................................................................................... 2 2. Project County ..................................................................................................................................... 3 3. Social and Poverty Conditions .......................................................................................................... 5 4. Project Beneficiaries ........................................................................................................................... 5 5. Ethnic Minorities in Project Area ....................................................................................................... 6
C. POVERTY CONDITIONS IN SHANXI AND THE PROJECT AREA............................................. 7
1. Official PRC Poverty Line................................................................................................................... 7 2. Poverty Status of Shanxi .................................................................................................................... 7 3. Poverty in the Project Areas .............................................................................................................. 8 4. Provincial Government-Led Programs for Rural Poverty Reduction ......................................... 10
D. STAKEHOLDER ANALYSIS (CHAPTER 4) ................................................................................ 14
1. ADB ..................................................................................................................................................... 14 2. Shanxi Provincial Government (SPG) ............................................................................................ 14 3. Project County Governments .......................................................................................................... 14 4. Agriculture Companies & Cooperatives ......................................................................................... 14 5. Local Farmers .................................................................................................................................... 15
E. IMPACT ASSESSMENT (CHAPTER 5) ........................................................................................ 16
1. Project Introduction ........................................................................................................................... 16 2. Project Beneficiaries ......................................................................................................................... 16 3. Expectations and Benefits ............................................................................................................... 17
F. GENDER ANALYSIS (CHAPTER 6) ............................................................................................. 19
1. Gender Profile in Project Counties/districts ................................................................................... 19 2. Gender Profile in Project Affected Areas ....................................................................................... 19 3. Issues for Women’s Development .................................................................................................. 20 4. Institutions for Women’s Development........................................................................................... 20 5. Project Impacts on Women .............................................................................................................. 21
G. SOCIAL & GENDER ACTION PLAN WITH CONSULTATION AND PARTICIPATION
STRATEGY (CHAPTER 7) ......................................................................................................................... 22
6. Introduction ......................................................................................................................................... 22 7. Objective ............................................................................................................................................. 22 8. Basis for the SDAP ........................................................................................................................... 22 9. Gender Action Plan ........................................................................................................................... 23 10. Project Management Support; Consultation and Participation............................................... 25
H. LAND ACQUISITION AND LAND TRANSFER (CHAPTER 8) ................................................ 35
1. MAIN CONCLUSIONS OF DDR ........................................................................................................... 37
I. GRIEVANCE REDRESS MECHANISM ........................................................................................ 39
J. PARTICIPATION STRATEGY, MONITORING, AND EVALUATION ........................................ 41
1. Consultation during Project Preparation ........................................................................................ 41 1. Expectation and Attitudes of Local Residents ............................................................................... 41
II
2. Consultations and Participation during Project Implementation ................................................. 45 3. Monitoring and Evaluation Plan ...................................................................................................... 46
K. CONCLUSIONS .............................................................................................................................. 48
III
List of Figures FIGURE 1: LOCATION OF PROJECT COUNTIES/DISTRICTS. RED CIRCLES DENOTE PROJECT COUNTIES .............. 2
List of Tables TABLE 1: PROJECT OUTPUTS AGAINST TIMELINES ................................................................................................. 3 TABLE 3. PUBLIC CONSULTATIONS AND PARTICIPATION FOR THE SOCIAL ANALYSIS STUDY................................ 1 TABLE 4: ADMINISTRATIVE UNITS IN SHANXI PROVINCE ....................................................................................... 2 TABLE 5: DEMOGRAPHIC PROFILE OF SHANXI PROVINCE (2016) ........................................................................ 2 TABLE 6: BASIC ECONOMIC CONDITIONS IN SHANXI PROVINCE (2016) .............................................................. 3 TABLE 7: ADMINISTRATIVE UNITS IN 18 PROJECT COUNTIES/DISTRICTS ............................................................. 3 TABLE 8: BASIC DEMOGRAPHIC PROFILE OF THE PROJECT COUNTIES/DISTRICTS (2015) ................................. 3 TABLE 9: ECONOMIC PERFORMANCE IN THE PROJECT AREA (2015) ................................................................... 4 TABLE 10. GROSS AGRICULTURAL OUTPUT IN THE PROJECT AREA (2015) (BILLION CNY) ............................... 5 TABLE 11. POVERTY CONDITION IN PROJECT COUNTIES/DISTRICTS (2016) ....................................................... 5 TABLE 12: PERCENT OF ETHNIC MINORITIES IN PROJECT COUNTIES/DISTRICTS (2015) .................................... 6 TABLE 13: SCOPE OF RURAL POVERTY IN CHINA (2010–2016) (MILLION) ......................................................... 7 TABLE 14: SCOPE OF RURAL POVERTY IN SHANXI (2010–2016) ........................................................................ 7 TABLE 15: POVERTY POPULATION IN THE PROJECT COUNTIES/DISTRICTS (2016) (10,000) .............................. 8 TABLE 16: SAMPLE DISTRIBUTION IN SOCIAL ECONOMIC SURVEY..................................................................... 10 TABLE 17: FAMILY STRUCTURE FROM HOUSEHOLDS SURVEY ........................................................................... 11 TABLE 18: PLANTING STRUCTURE OF SAMPLE HOUSEHOLDS ........................................................................... 11 TABLE 19 EDUCATION LEVEL OF SAMPLE HOUSEHOLD ...................................................................................... 12 TABLE 20. EMPLOYMENT SITUATION AMONG SURVEY WORKERS ...................................................................... 12 TABLE 21: LAND USE RIGHT TRANSFER.............................................................................................................. 12 TABLE 22: SOURCES OF INCOME OF SAMPLE HOUSEHOLDS (%) ...................................................................... 13 TABLE 23: KNOWLEDGE AND ATTITUDES TOWARDS PROJECT ........................................................................... 13 TABLE 24: STAKEHOLDER ANALYSIS ................................................................................................................... 15 TABLE 25 ADDITIONAL PROJECT BENEFICIARIES ................................................................................................ 16 TABLE 26: PROJECT LURT AND COOPERATION MECHANISM ............................................................................ 18 TABLE 27: EDUCATION LEVEL BY GENDER (%) .................................................................................................. 19 TABLE 28: EMPLOYMENT STRUCTURE BY GENDER ............................................................................................ 20 TABLE 29: GENDER ACTION PLAN (GAP) ........................................................................................................... 26 TABLE 30: SOCIAL DEVELOPMENT ACTION PLAN (INCORPORATES THE CPP) .................................................. 29 TABLE 31. COMPLIANCE REVIEW OF LAND CONTRACTS WITH PACS .................................................................. 36 TABLE 32: PUBLIC PARTICIPATION AND CONSULTATION DURING PROJECT PREPARATION ............................... 42
APPENDIX 1: CORE LABOR REGULATION DUE DILIGENCE .................................................................................. 49 APPENDIX 2 QUESTIONNAIRE TO PACS .............................................................................................................. 58 APPENDIX 3. QUESTIONNAIRE FOR FARMERS ..................................................................................................... 66 APPENDIX 4: HOUSEHOLD SURVEY ..................................................................................................................... 75
IV
ABBREVIATIONS
ACs Project Agricultural Companies HH Household
ADB Asian Development Bank IA Implementing Agency
MLA Minimum Living Allowance
C&P Consultation and participation PAC Project Agriculture Company
CPMOs County project management offices
PIU Project Implementing Unit
DDR Due Diligence Review PPEs Private Participating Enterprises
EA Executing agency PMO Project Management Office
EGM Effective Gender Mainstreaming PPMO Provincial Project Management Office
EMs Ethnic minorities PPTA Project Preparatory Technical Assistance
FGD Focus group discussion PRA Participatory Rapid Appraisal
FSR Feasibility study report PRC People’s Republic of China
GAP Gender Action Plan PSA Poverty and Social Analysis
GDP Gross domestic product SPS Safeguard Policy Statement
GRM Grievance Readiness Mechanism
WF Women’s Federation
V
EXECUTIVE SUMMARY A. Introduction
1. The objective of the Poverty and Social Analysis (PSA) was to develop a broad socioeconomic and poverty profile of the project area covering 17 counties /districts in 6 municipalities of Shanxi Province, with a brief analysis of the key social issues associated with the proposed project. The project directly affected areas are the 33 villages in 21 townships in the 17 project counties/districts since all project components will be conducted in this area. Examination of the current social patterns in the project affected areas and analysis of the basic stakeholder interests has enabled identification of both positive and negative impacts. Following Asian Development Bank (ADB) guidelines for poverty and social issues, the PSA examined impacts on vulnerable groups, such as poor and women. Through extensive consultation with stakeholders, and pro-poor and gender-sensitive approaches, the social assessment led to a range of proposed activities that will maximize positive and minimize negative impacts. These activities have been summarized in this study. B. Project Description
2. The project impacts will be increased inclusive economic opportunities and reduced poverty in the rural areas of Shanxi Province. The project outcome will be increased income-generating opportunities from selected local specialty agricultural products. The project particularly aims at strengthening the production, processing, storage, and marketing of 19 local specialty agricultural products (i.e., 19 subprojects) with untapped market potential in 17 counties in 6 municipalities. Two of the outputs of the project are: output 1: Agribusiness upgraded (investment for Agricultural Value Chain [AVC] companies and soft component on AVC); and output 2: Inclusive Business (IB) mechanism piloted (investment for 10 agriculture companies with IB model and soft component on IB)
C. Socioeconomic Characteristics
3. Shanxi Province is in Central region of the People’s Republic of China (PRC). In 2016, Shanxi had a population of 36.82 million, of which 43.8% and 56.2% were rural and urban, respectively. Male and female accounted for 51.2% and 48.8%. The total land area was 156,806 square kilometers (km2) in 2016. In 2016, the gross domestic product (GDP) of Shanxi Province was CNY1,293 billion, averaging CNY35,199 per capita, about 65.2% of the national average. GDP composition ratios for the primary, secondary, and tertiary sectors were 6.1%, 38.1%, and 55.8%, respectively. Income in rural areas was CNY10,082 per capita in 2016, which was only 81.5% of the national average (CNY 12,363). For urban residents, the average income was CN27,352 per capita, which was about 81,3% of the national average (CN33,616).
4. Project Counties/districts. The project will cover 17 counties/districts in 6 municipalities. Five of the counties/districts are national level poverty counties and another five are provincial level poverty counties. There are 190 township-level units in the 17
counties/districts, and 4,133 administrative villages with a total population of 5.22 million，
14.1% of the Shanxi total population. The 17 project counties/districts had a GDP of CNY128 billion. The agriculture sector in the 17 counties/districts accounted for 11.1% of GDP, 5 point higher than the Shanxi average in the same year (6.1%). The share of the secondary sector was 39.8%, just higher than the provincial share (38.1%), and the share of the tertiary sector was 49.1%, significantly lower than the provincial share (55.8%).1
1 Data on the project counties/district are data of 2015. Official data on 2016 are not available so far.
VI
5. Project villages. The project PACs are located and/or rent land from 33 villages of the 17 counties/districts in the 6 municipalities. There were 17,500 households and 57,500 persons in the 33 villages. Among them, 63.5% are rural labors, and 9.4% are poor. However, the benefit reach of the project goes beyond the immediate location of the PACs, which will benefit almost the whole counties/district. D. Poverty Status
6. In 2016, the rural poverty population in Shanxi Province was 1.44 million, with a poverty incidence of 5.94%, which was 1.4 percentage points higher than the national average (4.5%). The rural poverty standard in Shanxi Province was CNY2,952 per capita, which is same as the national standard in the same year.
7. There were 257,100 rural poor people in 17 project counties/districts in 2016, the rural poverty incidence was 6.18%, which was 0.3 percentage point higher than the provincial average.
8. In the 33 project villages, the average rural poverty incidence was about 9.4%, which is 5 percentage points higher than the project county average. E. Ethnic Minorities
9. Shanxi Province has a scattered ethnic minority population. Of the total population, 0.32% are ethnic minority people. There is no ethnic minority village, no ethnic minority townships in Shanxi Province. All of the 17 project counties or districts have less than 1% of ethnic minority population. Thus, the Project has been classified as C on Indigenous People according to ADB’s safeguard Policy Statement and no ethnic minority peoples’ development plan needs to be prepared. F. Stakeholders
10. The project stakeholders are: (i) SPG represented by provincial Department of Finance; (ii) project area county governments; (iii) participating project agriculture companies and cooperatives (PACs); and (iii) individual households who will directly benefit from the project through partnerships with PACs. Shanxi provincial project management office (PPMO) under the Provincial Poverty Alleviation Office and project county governments represented by County PMOs (CPMOs) are responsible for managing project implementation, while PACs are responsible for implementing the project activities. G. Project Impacts
11. The due diligence review indicated that all 19 PACs will use land through (i) existing state-owned land occupation, (ii) rural collective land leased from village committees and/or villagers, (iii) rural collective land contracted by PACs themselves from village committees. Thus, PACs have obtained consent for the use of household land without the need for acquisition or expropriation, thereby reducing negative impacts and instead providing an
additional income for households. Among the 19 PACs，14 PACs involved in LURT and
signed land use contracts for 19,315 mu land with farmer households or village committees.
H. Project Benefits
12. The project will bring considerable social benefits to an additional 209,100 persons from 73,250 households who will directly benefit by from an increase in employment and income; this will include 102,020 females with the project being able to serve 37,429 low
VII
income households and 5,128 rural poor.2 The project activities will directly improve PAC facilities for these households directly working as employees, suppliers, as their incomes will increase and the number of beneficiaries which the PACs will be able to reach to employ or hold contracts with will increase. In addition, through cooperation with PACs some households will receive additional income in terms of land rent, dividend of land equity, share of increased yield, and income from labor inputs, which will improve living conditions particularly for poor households. Through project implementation, the local population, particularly poor households will benefit from improved farming conditions such as improved infrastructure, advanced planting practices, and capacity strengthening, which will bring higher incomes for the majority of the local population. Farmers will also enhance their farming knowledge and skills through training and technical support provided under the project. Details of these measures have been included in the project design and specified in the social development action plan (SDAP) and gender action plan (GAP). I. Grievance Redress Mechanism
13. A Grievance Redress Mechanism (GRM) will be established as part of the project to receive and manage any social issues which may arise during project implementation. The main channels include: (i) village committee; (ii) township government; (iii) county agricultural bureau/County PMO (CPMO); and (iv) through legal procedures, to the people's court proceedings. The project agencies will ensure that potentially affected communities are informed of the GRM at an early stage of the project. Project agencies (i.e. those directly involved in the project) comprise the provincial, municipal and CPMOs, the PACs or project implementing units (PIUs), contractors, and village committees. The PPMO is the lead agency responsible for overall management, implementation, and reporting of the GRM. The PPMO social officer will coordinate the GRM and: (i) establish a simple registry system to document and track grievances received (including forms to record complaints and how they have been resolved); and (ii) report on progress of the GRM in the semi-annual social monitoring and progress reports to ADB. J. Participation and Information Disclosure
14. Within the project area, a large number of interviews of local officials and village representatives, and focus group discussions were conducted. Extensive consultations were conducted during the social and economic survey. In which, 213 sample households from 56 villages in 6 counties/district were surveyed. Local agencies interviewed included representatives from CPMOs, local poverty alleviation offices, civil affairs bureau, as well as PACs. Through a series of group discussions, the household survey, and key informant interviews among various stakeholders, the basic project objective and content was introduced and comments and suggestions for the project were collected.
15. To encourage meaningful participation of project stakeholders, enhance project benefits, improve project design and ensure effective implementation of all project activities, further consultations and participation with targeted groups are proposed during implementation. These should include consultations with local villagers on detailed scope and schedule of all proposed construction activities by participating enterprises, and detailed discussion of cooperation between enterprises and local villagers. Such consultations will allow local farmers to have basic understanding of the project activities, obtain their agreement for carrying out such activities, and provide details in terms of cooperation between enterprises and individual farmers so that they have better idea how they will benefit from the project.
2 The provision of services and employment to low income groups generated directly by the PACs
VIII
K. Arrangement of Implementation Agency
16. CPMOs and county governments will be responsible for implementing the SDAP, GAP and LURT in collaboration with enterprises, including the management, organization, coordination and implementation of internal monitoring. PPMO will recruit a consultant to conduct external monitoring and assessment of the SDAP, GAP and LURT implementation. L. Budget and Funding Sources
17. To ensure local farmers participate in project activities they should not be required to provide any additional budget. The budget for the SDAP and GAP will be part of the project budget as a single item list in the budget of project enterprises and will be provided by local government, including meeting room and printing fees. Local government agencies will work together with the PMOs and project implementing units. M. Monitoring and Assessment
18. The internal and external monitoring requirements have been included in Chapter K, the monitoring and assessment is to ensure smooth implementation of the SDAP, GAP and LURT. External monitoring will be carried out annually. The outline of external monitoring has been included in the report.
1
A. Introduction
1. Project Background
19. Shanxi Provincial Government (SPG) is applying for a loan from ADB to carry out the Shanxi Inclusive Value Chain project. The project outcome will be increased income-generating opportunities from selected local specialty agricultural products in 17 counties/districts and 6 municipalities.3 The location of the project counties/districts is shown in Figure 1. Through project activities such as enhancing agricultural production, processing, storage, and marketing of selected agricultural products strengthened the project aims at strengthening the value chains of local specialty agricultural products with untapped market potential.
20. Narrowing income inequality and eradicating extreme poverty in the lesser developed regions are still significant challenges for the Peoples Republic of China (PRC).”4 In Shanxi province, this challenge is intensified in a post-coal environment where the hitherto economic drivers of the region have been purposely scaled-down. The impact of an economic transition of this magnitude – moving away from a fossil fuel dependent economy impacts the poor and vulnerable the most.
21. The Shanxi Inclusive Agriculture Value Chain Development Project (hereon ‘the project’) presents a livelihood alternative to coal. Agriculture is still an important means of rural livelihood in Shanxi Province. The rural households of 16.12 million (43.79% of the total) rely on agriculture as a source of income. Despite the substantial rural population reliant on the sector, it contributed only 6.1% of the provincial gross domestic product in 2016 which is the lowest compared to other PRC provinces, except coastal provinces and municipalities. This is notably due to low productivity and low value addition of the agriculture sector. As a result, the sector does not generate sufficient income-generating opportunities for the rural population. To strengthen the supply chains within agriculture will offer indirect and direct employment opportunities.
22. The proposed project will aim to enhance agricultural output in Shanxi Province, through a number of significant and focused interventions. The project has two outputs:
(i) Output 1: Agribusiness upgraded (investment for Agricultural Value Chain [AVC] companies and soft component on AVC)
(ii) Output 2: Inclusive Business (IB) mechanism piloted (investment for 10
agriculture companies with IB model and soft component on IB)
23. All of these outputs will be accomplished by 19 PACs and one cooperative in 17 project counties/districts. The project locations are mapped in Figure 1. The project will be of significant benefit to economic and social development of these communities through establishing demonstration bases for promoting sustainable farming techniques and practices in the project area.
3 Those local specialty products include primary and processed products of livestock and meat, coarse grains,
vegetables, fruits, mushrooms, flowers, and Chinese herbs. 4 ADB concept Paper
2
Figure 1 Shanxi Project Counties/districts. Red circles denote project counties
3
24. Table 1: Project Outcome and Outputs provides a short description based on the design of the project.
Table 1: Project Outcome and Outputs
4
Source ADB.
2. Objectives
25. To strengthen the project design, ADB provided technical assistance (TA) support for the Inclusive business approach to select PACs and cooperatives most viable to form profitable and sustainable partnerships with farmers, and value chain analysis to design project investment to strengthen PACs and cooperatives, and their upstream and downstream businesses; and promote mutually beneficial cooperation between PACs and farmers. To enhance the social impacts of the project and to minimize and mitigate against any potential harm brought by the Project, TA-9206 conducted a social due diligence on the project. Due diligence involved a social, gender and poverty assessment to determine whether ADB social safeguard policies would be triggered for the Project. Integrated into the social analysis of TA-9206 was a component to verify where resettlement will take place and the impact of land transfers on households.
26. The objective of the social team’s assignment was to conduct the poverty and social analysis (PSA), assess the partnership arrangements between the farmers and the PACs, prepare a consultation and participation plan and prepare the PSA report, summary poverty reduction and social strategy (SPRSS), and a social development action plan and gender action plan based on the PSA.
27. The social team piloted their social survey in the project areas in February 2017 on both village farmers employed by a cooperative and on several agricultural enterprises. The actual interviews with the farmers and companies took place in March and April 2017 with additional household level surveys.
28. The social survey integrated the land acquisition / land use right transfer components into the social, poverty and gender analysis, by assessing impacts caused by proposed infrastructure facilities or from the need for voluntary land use rights transfer in the project areas. The social economic survey was undertaken in the project area to create a baseline within the project area, thus identifying awareness and attitudes towards the project as well as likely positive and negative impacts.
29. To avoid the involuntary resettlement impacts and develop necessary mitigation measures if needed, the resettlement specialist conducted due diligence on various issues relating to Land Use Right Transfer (LURT) and/or Land Acquisition and Resettlement (LAR) during the PPTA stage of this project.
Table 2. Subproject Activities
No. Project
Municipality Project County
Company Name
Type of Subproject
Subproject Activity
AVC IB Group Product
1 Changzhi Qin Shanxi Qinzhouhuang Millet Group Co., Ltd. Crop + Processing
Millet
2 Datong Guangling Guangling Beiye Edible Fungus Industrial Development Co., Ltd. √ Processing Fungus
3 Datong Datong Shanxi Phoenix Wine Industry Co., Ltd. √ Processing Wine
4 Jinzhong Taigu Shanxi Juxin Weiye Agricultural and Sci & Tech Development Co.,
Ltd. Crop Vegetables & fruit
5 Jinzhong Heshun Heshun County Lvhe Ecological Agriculture & Livestock
Development Co. Ltd.
6 Linfen Fenxi Fenxi Hongchang Breeding Co., Ltd. √ Livestock Chicken raising
7 Linfen Fushan Fushan Guheng Husbandry Sci. & Tech. Co., Ltd. Livestock Pig raising
8 Linfen Quwo Quwo Lvheng Agricultural Development Co., Ltd. Crop Mushrooms
9 Linfen Xiangning Shanxi Qierkang Elaeagnus Biological Products Co. √ Processing Chi Guo
10 Linfen Yaodu Dist. Linfen Zhongde Farming Technology Development Co., Ltd. Livestock Pig raising
11 Luliang Liulin Fuzhongyuan Livestock Breeding Cooperative Livestock Pig raising
12 Luliang Shilou Shilou Shude Jujube industry Co., Ltd. √ Processing Red dates
13 Yuncheng Ruicheng Shanxi Tian Zhi Run Jujube Industry Co., Ltd. √ Processing Red dates
14 Yuncheng Xinjiang Xinjiang Hefeng Grain Planting Technology Cooperatives √ Crop Double season Huai
15 Yuncheng Xinjiang Shanxi Xinjiang Vegetable Industry Development Co., Ltd. √ Service Vegetable trade
16 Yuncheng Yanhu Shanxi Kaisheng Fertilizers Group Co., Ltd. Crop Mushroom cultivation
17 Yuncheng Yanhu Yuncheng Xinke Taifang Vegetable Trading Co., Ltd.
18 Yuncheng Yuanqu Shanxi Shanlihong Food Co., Ltd. √ Processing
Hawthorn, apricot, tomatoes
19 Yuncheng Jishan Shanxi Jilong Cultivation Co., Ltd. Livestock Broiler chicken eggs
3 Methodology
30. The methods and tools used in this analysis include: (i) literature review; (ii) questionnaire surveys; (iii) FGD to both villages agriculture companies; (iv) key informant interviews; (v) rapid participatory appraisal tools; and (vi) field visit. The socioeconomic profile of the project affected area was established by PPTA team. The general socioeconomic background of 17 project counties/districts was developed based on data collected from existing statistics, working reports and interviews with relevant municipal or district government agencies, such as the poverty alleviation office. The situation in the project affected areas was obtained through interviews with village and town officials, small group discussions among affected villagers and a household survey of 213 households from 56 villages in 6 counties.
31. The poverty and social analysis of the Project is based on the guiding framework on social development, gender, poverty reduction, ethnic minorities, resettlement, and public participation in ADB’s Handbook on Social Analysis (2007) and Safeguard Policy Statement (2009).
32. Within ADB’s Handbook on Social Analysis and embedded within the principles of good social safeguard and social development practice the objectives of conducting a poverty and social analysis become apparent. Principally, the process of formulating the PSA was used to:
(i) Initiate a public participation process involving local stakeholders at the inception, or feasibility stage in ADB parlance. Active engagement between the public and project maintains a strong relationship between public and state whilst keep stakeholders informed of basic information.
(ii) Examine the social inclusion aspects of the projects – the depth, reach and systemic change that can be brought on by the project.
(iii) Examine the socio-economic profile, affected farmers and company needs, and the Project’s potential social impacts and risks;
(iv) Evaluate the extent to which the Project can promote local economic and social development which is gender inclusive. The objective here was to examine the extent to which the project will reduce poverty and improve livelihoods.
(v) Evaluate the Project’s potential impacts on ethnic minorities and other vulnerable groups, and promote their participation in the Project and improve their livelihoods; and
(vi) Propose an action plan based on the identified impacts and risks.
33. The methodology involved introducing a unique approach to Poverty and Social Analysis (PSA) which went beyond the household survey which is typically required. The notion was to understand the social inclusion aspects of the project. Therefore, two new elements where introduced based around the concept of village surveys but applied as a focus group discussion to elicit ex ante analysis of project impacts. The second survey directed at institutions, namely the chief operating officer, CEO or CFO of the agriculture companies to elicit information on the impact of their company expansion and how this would affect income and employment levels and employment type of the farmers. The company survey is provided in English in Appendix 2 Questionnaire to PAC’ and was translated into Chinese for the field
work.
34. Literature review. A number of documents have been reviewed. The documents and literature reviewed include the following: (i) ADB concept note for the loan (ii) Feasibility study reports of sub project investments of agriculture companies (iii) Social inclusion and impact assessments reports by ADB and consultants such as, TA 855REG inclusive business support; inclusive business ex ante impact assessment by Alice Chappelle; TA-8550 REG:
2
Inclusive Business Support for the ADB Primer on doing ex-ante impact assessment for Inclusive Business projects. (iv) Local development plans, which included the Outline of the 12th Five-year and draft 13th Five-Year Development Plan of Shanxi Province; (v) Sector and thematic Policies related to the project, such as Five Year Agriculture Development Plan, public health data in project area. (vi) Local socioeconomic statistics, including local statistical yearbooks, statistical bulletins, government’s annual reports, concerned bureaus’ annual reports, county annuals. (vii) Local policies and statistics on civil affairs, social security, public health, ethnic minority development, women’s development, environmental protection, etc. (viii) Statistics and materials at the country, Province and national level.
35. The contents of the final 13th Five-Year Plan do not have major changes as compared with the draft version, general reference has been made to the draft plan. The poverty alleviation development plan, have also not yet been published. These special plans are expected to be published later in the year in 2017. The basic socio-economic data as quoted in this PSA are therefore mainly from available data in 2015, with some updated information extracted from the 13th Five-Year Development Plan (Draft version) where appropriate.
36. Questionnaires. Three types of questionnaire were used for the surveys conducted between February and March 2017. Two separate questionnaires were prepared in consultation with Mr. Armin Bauer, (ex ADB Social Development Specialist) to examine the project’s impact and expected outputs based on applying a socially inclusive business
approach. The first questionnaire was used on the management of the PACs (see Appendix 2 Questionnaire to PACs) and second questionnaire was administered on village
farmers who have a relationship with the PAC in supplying or buying raw materials
(crops/livestock) (see Appendix 3. Questionnaire for Farmers).
37. The initial selection of the 19 companies to interview was based on a number of factors. Firstly, the inclusive business consultants who are part of this TA assessed each of the companies and scored them according to:
(i) Their integration in the value chain, (ii) their financial return of the company and the new business model (iii) the social impact (48% of total scoring), assessed through reach (how many
new jobs), depth (how well paid are the new jobs) and systemic impact on poverty reduction.
(iv) The business, social, and environmental innovation of the new model (17% of total scoring). The various information where quantified and scored.
38. The two FGD questionnaires were piloted in 9 counties in February 2017. Each survey took 2 to 3 hours to complete. Based on the responses from the interviewees. The formal questionnaires to companies and the villages were conducted week beginning March 6th-10th 2017.
39. In addition to the focus group style interview-questionnaire, a draft socio-economic household survey was submitted by the PPTA social team in their work plan (February 2017).
The household survey was later revised and can be reviewed in Appendix 4: Household Survey. The household questionnaire was conducted in 6 counties, covering 25 townships
in 56 villages and 213 households. See Appendix 4: Household Survey.
40. Focus Group Discussion (FGD). A number of FGD were held with companies using
the guiding questions provided in the work program for key informants Appendix 2 Questionnaire to PAC for a list of questions raised to institutions. Taking these
questions, the approach was to determine the likely impact.
41. Key Informant Interviews (KII). A number of key informant meetings took place with agriculture companies to understand the context of the project and to receive some ‘grounding’
3
of the sub-projects and how they operated, before the pilot surveys with the companies where undertaken. The objective was to understand institutional capacity of actors in the value chain and what training could be required based on identifying gaps from the interview. KIII were held with companies using the guiding questions provided in the work program for key informants. See Appendix 2 Questionnaire to PAC for a list of questions raised to institutions such as PMO members, relevant government organizations’ representatives, common rural villagers and urban citizens, representatives from relevant companies. Key informants also included (1) key government agencies, such as county PMO, county land resources bureau, agricultural bureau, poverty alleviation office and women federation; (2) township and village officials; (3) managers of participating enterprises and cooperatives; and (4) representatives of affected villagers.
4 Organization of PSA
42. This PSA consists of the following chapters:
43. Chapter 2 [chapter B] provides the ‘socioeconomic’ profile of Shanxi Province, 17 project counties/districts, and the direct project areas within 17 counties/districts, which are defined as project affected areas in this report. This chapter is based on published and unpublished data, supplemented by information collected from field surveys and institutional interviews.
44. Chapter 3 [Chapter C] addresses the ‘poverty’ situation in Shanxi Province, project counties/districts, and project affected townships and villages. A more detailed examination is made of the project affected areas. A definition of poverty, its underlying parameters, and its causes was applied to classify the project area population into poverty groups, and to present plans and programs for poverty reduction, based mainly on published information and data supplemented by findings during field surveys.
45. Chapter 4 [Chapter D] introduces, the main stakeholders. It explains both positive and negative impacts of the project and basic attitudes of the project beneficiaries.
46. Chapter 5 [Chapter E] provides and impact assessment of the project examining project beneficiaries and expectations and benefits of the project.
47. Chapter 6 [Chapter F] addresses issues concerning women’s status, education background, employment prospects, and skills training. It offers some suggestions in relation to the project, which are summarized into the GAP.
48. Chapter 7 [Chapter G] introduces the Social Development Action Plan (SDAP), Gender Action Plan (GAP) and the consultation and participation recommendations. Actions were developed from the beneficiary survey and extensive consultations with affected communities, local government agencies, and project proponents.
49. Chapter 8 [Chapter H] introduces the due diligence review which was conducted for land use impacts that arise from implementation of and expansion of PAC activities. The chapter concentrates on land use rights transfer agreements which are required for project implementation.
50. Chapter 9. [Chapter I] Provides the grievance redress mechanism (GRM).
51. Chapter 10 [Chapter J] integrates several components – the participation approach monitoring plans which are also targeted in the SDAP/GAP. Evaluation approach is also covered in this chapter.
52. Chapter 11 [Chapter K] presents conclusions from the analysis including suggestions to enhance positive and minimize negative impacts.
Table 3. Public Consultations and Participation for the Social Analysis Study.
Target Group Assessment Method
Location No. of Participants
Provincial Poverty Reduction Office Interviews with Office Directors
Shanxi PPRO 3
Affected Villages related to company Focus Group Questionnaire
Relevant Villages 8
Affected Villages in the project area Household surveys
Relevant Villages 213 HH (134 females and 56 poor)
Agricultural Companies Interview with Management Team
Relevant Counties 9
Cooperative FGD questionnaire
County 1
Land Transfer –affected villages Focus Group Discussion (FGD) interview
Province wide 35
B. Socioeconomic Conditions in Shanxi (Chapter 2)
1. Shanxi Province
a. Administration
53. Shanxi Province administers 11 municipalities with 85 counties, 11 county-level cities, 23 urban districts, and 1,169 township-level units including 564 towns and 632 townships. A breakdown of administrative units in Shanxi province is set out in Table 4: Administrative Units in Shanxi Province.
Table 4: Administrative Units in Shanxi Province Level Units Shanxi PRC
Prefecture Prefectures Autonomous Prefectures Municipalities Subtotal
0 0 11 11
8 33 293 334
County Cities (County Level) Counties Urban Districts Autonomous Counties Subtotal
11 85 23 0
119
361 1,397 921 117 2,850
Township Townships Towns Sub-Districts Subtotal
632 564 202
1,398
11,315 20,515 7,957 39,789
Village Administrative Village 28,122 588,407 Source: China and Shanxi Provincial Statistical Yearbooks (2016)
b. Demographic Profile
54. Shanxi has a population of 36.8 million in 2016, of which 43.8% and 56.2% are rural and urban respectively. Male and female ratios are 51.2% and 48.8%. The total land area is 120,146 km2 with an average population density of 304 persons per square kilometer (km2). Table 5: Demographic Profile of Shanxi Province (2016) provides an overview of current trends the Province.
Table 5: Demographic Profile of Shanxi Province (2016) Items Shanxi PRC Shanxi as % PRC
Total Population (million) 36.82 1,382.71 3%
Male Population (million) 18.86 708.15 3%
Female Population (million) 17.96 674.56 3%
Rural Population (million) 16.12 589.73 3%
Urban Population (million) 20.70 792.98 3%
% of Urban 56.21 57.35 98%
Area (1,000 km2) 15.68 960 2% Source: Statistical Communique of the People’s Republic of China on the 2016 National Economic and Social Development; Statistical Communique of Shanxi Province on the 2016 National Economic and Social Development
c. Economic Performance
55. In 2016, the gross domestic product (GDP) of Shanxi Province was CNY1,293 billion, averaging CNY35,199 per capita, about 65.2% of the national average. GDP composition ratios for the primary, secondary, and tertiary sectors were 6.1%, 38.1%, and 55.8%, respectively. Income in rural areas was CNY10,082 per capita in 2016, which was only 81.5% of the national average (CNY 12,363). For urban residents, the average income was
3
CN27,352 per capita, which was about 81,3% of the national average (CN33,616). Table 6 provides summary economic information for Shanxi Province. Like most other provinces, Shanxi has experienced rapid economic growth over the past two decades.
Table 6: Basic Economic Conditions in Shanxi Province (2016)
Economic indicators Shanxi PRC Shanxi as %of PRC
Total Population (million) 36.82 1,382.71 2.66
Total Rural population (million) 16.12 589.73 2.73
Total Urban population 20.7 792.98 2.61
Total GDP (billion CNY) 1,292.80 77,413 1.67
Per capita GDP (CNY) 35,199 53,980 65.21
GDP in agriculture sector (billion CNY) 78.5 6,367 1.23
GDP industrial sector (billion CNY) 492.6 19,623
2.51
GDP in tertiary sector (billion CNY) 721.7 238,422 0.30
Per capita income in rural areas (CNY) 10,082 12,363 81.55
Per capita income in urban areas (CNY) 27,352 33,616 81.37
Note: (1 ha = 15 mu). Source: Statistical Communique of the People’s Republic of China on the 2016 National Economic and Social Development; Statistical Communique of Shanxi Province on the 2016 National Economic and Social Development
2. Project County
a. Project Counties/districts
56. As illustrated in Table 7, there are 1,196 township-level units in the 85 counties/districts and 28,122 administrative villages in Shanxi province. The project will benefit 17 counties / districts in 6 municipalities, including 5 national level poverty counties and 5 provincial level poverty counties.
Table 7: Administrative Units in 18 Project Counties/districts Items Project Counties/districts Shanxi Province
Number of County 17 85
Number of County-Level Cities 0 11
Number of Districts 2 23
Number of Towns or townships 190 1,196
Number of Villages 4,133 28,122 Source: Relevant county statistical yearbooks 2016, and Shanxi Statistical Yearbook 2016.
57. The total population of project counties/districts was 5.22 million in 2015, accounting
for 14.1% of the population of Shanxi Province in the same year. The ratio of urban population
in project counties/districts was 50.1%, slightly less urban than the provincial average of
55.0%. Table 8 provides basic demographic profiles for the project counties.
Table 8: Basic Demographic Profile of the Project Counties/districts (2015)
Municipality Project County
HH number
Resident Pop.
Male Female Urban Rural
# Persons Persons Persons Persons Persons
Yuncheng 1 Yanhu 238,498 697,279 346228 351051 488,665 208,614
Yuncheng 2 Yuanqu 87,722 237379 122967 114412 114588 122791
Yuncheng 3 Ruicheng 151,544 406420 206419 200001 191408 215012
4
Municipality Project County
HH number
Resident Pop.
Male Female Urban Rural
Yuncheng 4 Xinjiang 100,643 342546 174865 167681 144308 198238
Yuncheng 5 Jishan 116,494 357495 181875 175620 134111 223384
Luliang 6 Shilou 43,838 115211 60134 55077 48566 66655
Luliang 7 Liulin 127,775 328560 176413 152147 131325 197235
Luliang 8 Xiangning
80,709 240057 126871 113186 86106 153951
Linfen 9 Fenxi 55,239 148618 76819 71799 63961 84657
Linfen 10 Quwo 65,360 244106 124024 120082 94473 149633
Linfen 11 Fushan 48,991 130246 67134 63112 48904 81342
Linfen 12 Yaodu 274,219 971438 486204 485234 660384 311054
Jinzhong 13 Taigu 118,093 307346 158097 149249 140764 166582
jinzhong 14 Heshun 56035 147187 77626 69561 66520 80667
Datong 15 Datong 81,760 191132 100148 90984 74617 116515
Datong 16 Guangling
78,880 187849 97196 90653 52691 135158
Changzhi 17 Qinxian 67,217 175744 91892 83852 69867 105877
Total
Project Counties
1793027 5228613 2674912 2553701 2611248 2617365
Shanxi 12,977,400
36,641,200 18,790,900 17,850,300
20,163,700
16,475,000
Source: Shanxi Statistical Yearbooks 2016.
b. Economic Profile
58. The 17 project counties / districts had a total GDP of CNY12.7 billion in 2015, or CNY22,854 per capita, 65% of the provincial average (CN35,018). The proportion of the agriculture sector in the overall economy, which is an important indicator of the level of economic development, was 15.5% in the project counties/districts, higher than the provincial average (6.1%). The proportion of the secondary sector (i.e., the industrial and building sector) was 38.8% in project counties/districts, slightly higher than the provincial average (38.1%). The proportion of the tertiary sector was 46.4%, lower than the provincial average (55.8%). Table 9 resents basic social and economic data on the project area.
Table 9: Economic Performance in the Project Area (2015)
County GDP Primary Secondary Tertiary GDP per
capita
Rural disposable income Per
capita billion % % % CNY CNY per capita
Yanhu 2,105,483 6.0% 29.4% 64.6% 30,256 9,983
Yuanqu 468,085 8.8% 48.2% 43.1% 19,750 5,779
Ruicheng 770,949 29.7% 31.4% 38.9% 19,017 9,225
Xinjiang 785,520 21.6% 44.8% 33.6% 22,991 9,524
Jishan 713,215 17.1% 37.1% 45.8% 20,000 9,014
Shilou 78,728 25.2% 3.2% 71.6% 6,851 2,727
Liulin 1,208,475 1.5% 67.0% 31.5% 36,871 9,974
Xiangning 803,725 3.5% 71.4% 25.1% 33,565 8,218
Fenxi 192,890 14.1% 30.9% 55.0% 13,012 3,136
Quwo 866,467 14.2% 57.5% 28.3% 35,584 12,287
Fushan 425,659 9.9% 66.4% 23.7% 32,705 7,478
Yaodu 2,492,097 3.7% 22.3% 74.0% 25,729 12,120
5
County GDP Primary Secondary Tertiary GDP per
capita
Rural disposable income Per
capita
Taigu 766,082 22.5% 25.9% 51.5% 24,986 15,254
Heshun 426,150 6.6% 50.9% 42.5% 28,990 5,284
Datong 258,479 28.6% 21.5% 50.0% 14,603 7,675
Guangling 213,681 25.2% 26.8% 48.1% 11,550 6,038
Qinxian 211,207 25.9% 12.4% 61.7% 12,056 5,227
Total Project county 12,786,892 15.5% 38% 46.4% 22,854 8,193
Total Shanxi 1,280 6.2% 40.8% 53.0% 35,018
Source: Shanxi Statistical Yearbooks, 2016
c. Agriculture
59. Table 10. Gross Agricultural Output in the Project Area (2015) (billion CNY) highlights two critical developments in agriculture in Shanxi, which is the highest gross output in agriculture is achieved in livestock and cropping. Both livestock and crops are the majority investments in the 19 enterprises. Table 10. Gross Agricultural Output in the Project Area (2015) (billion CNY)
Municipality / Province
Total (Billion)
Crops Forest Animal Fishery Others
Project county in total
1.93 61.7% 3.7% 30.5% 0.5% 3.7%
Shanxi Province 19.7 63.7% 6.4% 23.6% 0.7% 5.7% Source: Shanxi Statistical Yearbook, 2016 and county statistical yearbooks, 2016
3. Social and Poverty Conditions
60. Poverty conditions in the project area are detailed in Chapter 3. Generally, there were
257,144 rural poor people living in the 17 project counties/districts in 2016 with a poverty
incidence ratio of 6.18% (see Table 11. Poverty Condition in Project Counties/districts (2016)).
Table 11. Poverty Condition in Project Counties/districts (2016)
Rural poor (person)
Poverty incidence (%)
Project county 257,144 6.18
Shanxi 1,440,000 5.94 Source: Shanxi Poverty Alleviation Office.
4. Project Beneficiaries
61. The project will support 19 agricultural companies (PACs). These 19 PACs are located in 33 villages and/or rent land from the villages. However, the project benefit reaches much beyond these villages. Project investments are aimed at participating enterprises but their investments will impact directly on farming households in the villages working with the companies and cooperatives. A beneficiary survey was undertaken by the social team in which the term beneficiary was defined as: “A local person involved directly or indirectly in the value chain of the company either being employed or supplying and/or buying produce to or from the company”. A beneficiary of the project would therefore include: Contractual farmer (buy-back); Raw material supplier (farmers) to company; Farmers receiving goods and services
6
from company; labors working for the project companies full-time or part-time; Construction workers and a Collective land from farmers rented to company.
5. Ethnic Minorities in Project Area
62. Officially PRC government recognises 56 ethnic groups across the country. Shanxi Province is in Central China. In Shanxi province, there are 34 ethnic groups. However, the composition of ethnicity is dominated by the Han group (99.7%) and the Hui (0.2%).
63. There are no classified ethnic minority villages, or ethnic minority townships in Shanxi Province. All of the 17 project counties or districts have less than 1% of ethnic minority population as showed in Table 12. Thus, the project has been classified as C on Indigenous People in accordance with ADB’s Safeguard Policy Statement and no ethnic minority peoples’ development plan needs to be prepared.
Table 12: Percent of Ethnic Minorities in Project Counties/districts (2015)
Municipality County/district
Ethnic minority (%)
Yuncheng
Yanhu 0.27
Yuanqu 0.66
Ruicheng 0.17
Xinjiang 0.41
Jishan 0.1
Lvliang Shilou 0
Liulin 0.08
Linfen Xiangning 0.04
Linfen Fenxi 0.01
Linfen Quewo 0.41
Linfen Fushan 0.18
Linfen Yaodu 0.26
Jinzhing Taigu 0.13
Jinzhing Heshun 0.93
Datong Datong 0.34
Datong Guangling 0.2
Changzhi Qinxian 0.02
Shanxi Total 0.32 Source: http://www.stats.gov.cn/tjsj/ndsj/renkoupucha/2000fenxian/htm/table1.htm
7
C. Poverty Conditions in Shanxi and the Project Area
1. Official PRC Poverty Line
64. The definition of rural poverty in the PRC has evolved over time. In the 1980s and 1990s, the definition of rural poverty focused on income. Since the early 2000s in the PRC, this definition was expanded to include non-income forms of poverty and allowed villagers to define poor households. The expansion included infrastructure factors (e.g. limited access to transportation, drinking water, and electricity), and health and education factors (e.g., low level of women’s health and deprivation of education for girls). The evolving new definition is proposed to be used to target the government’s specific poverty reduction programs in poor villages and households. This will enable PRC to designate “subsistence guarantee” or dibao at the household level. However, due to practical and administrative considerations, the PRC continues to use income as the primary indicator of poverty.
65. The government has used the rural poverty line of CNY2,300 since 2010. In Shanxi Province, the official rural poverty line was set same as the national poverty lines.
66. In 2016, there were 43.32 million rural poor in the PRC, which accounted for 4.5% of the rural population. Between 2011 and 2016, the national rural poverty population was reduced by 79.09 million. Table 13 provides a summary of poverty population trends since 2010.
Table 13: Scope of Rural Poverty in China (2010–2016)
Year National Poverty Line
(Per capita annual income) (CNY)
Total Poverty
Population (million) Poverty
Incidence (%)
2010 2,300 165.67 17.2
2011 2,536 122.38 12.7
2012 2,625 98.99 10.2
2013 2,736 82.51 8.5
2014 2,800 70.17 7.2
2015 2,855 55.75 5.7
2016 2,952 43.35 4.5 Source: China Statistical Yearbook (2010 – 2016); http://www.cpad.gov.cn/art/2017/5/23/art_82_63325.html
67. Whilst rural poverty is defined by a single national rural poverty line, the PRC has no official urban poverty line. The PRC has a variety of urban poverty line settings as benchmarks below which people are entitled to poverty relief benefits. Responsibility for financial assistance to the urban poor under the Minimum Living Allowance (MLA) lies mainly with municipal government. Under the MLA, each municipality sets its own poverty line. As a result, poorer cities tend to use harsher definitions of poverty, while richer cities apply more generous definitions.
2. Poverty Status of Shanxi
68. The number of rural poor in Shanxi Province was 1.44 million in 2016, accounting for under 5.94%. The poverty standard for rural poor was set at CNY2,952 per capita which same as the national standard (Table 14: Scope of Rural Poverty in Shanxi (2010–2016)).
Table 14: Scope of Rural Poverty in Shanxi (2010–2016)
Year Total Poverty
Population (million)
Poverty Line (CNY)
Per Capita Income
(CNY)
2010 2.76 1,274 4736
2011 4.52 2,300 5601
8
Year Total Poverty
Population (million)
Poverty Line (CNY)
Per Capita Income
(CNY)
2012 N/A 2,300 6356
2013 3.01 2,736 7949
2014 2.52 2,800 8809
2015 2.02 2,855 9454
2016 1.44 2,952 10082 Source: Shanxi Poverty Alleviation Office
3. Poverty in the Project Areas
a. Rural Poverty Population and Distribution
69. There were 257,144 rural poor people in the 17 project counties/districts, and the rural poverty incidence was 6.18%, higher than the provincial average (5.94%). In the villages where the project counties/district are located and/or rent land from, the average rural poverty rate was about 9.4%, about 3 percentage points higher than the project county average (Table 15).
Table 15: Poverty Population in the Project Counties/districts (2016) (10,000)
No Project County
/ District Poverty population
(person)
Poverty incidence
(%)
National poverty county
Provincial poverty county
1 Yanhu 9,014 2.0 No No
2 Yuanqu 15,607 9.4
No Yes
3 Ruicheng 9,901 2.8 No No
4 Xinjiang 10,060 3.5 No No
5 Jishan 5,758 1.8 No No
6 Shilou 27,625 28.2 Yes No
7 Liulin 9,771 3.3 No Yes
8 Xiangning 21,815 10.8 No Yes
9 Fenxi 22,693 17.3 Yes No
10 Quwo 2,717 1.4 No No
11 Fushan 9,068 8.3 No Yes
12 Yaodu 3,303 0.7 No No
13 Taigu 6,852 3.1
No No
14 Heshun 26,217 23.9 Yes No
15 Datong 29,209 21.6 Yes No
16 Guangling 27,027 17.5 Yes No
17 Qinxian 20,507 14.9 No Yes
Project county in total 257,144 6.18
5 5
Shanxi 1,440,000 5.94 36 22
Source: Shanxi Poverty Alleviation Office.
b. Causes of Rural Poverty
9
70. From the focus group discussions, meetings with key informants, such as the PACs, farmers, village leaders and the PMO, the characteristics of poor households and the causes of poverty in the rural project areas in Shanxi are the following:
(i) Climatic conditions in Shanxi have a variance of over 50 degrees Celsius. Whereas the summer months are humid and can reach above 25 degrees. Inevitably farmers are faced with 5 months of the year with permafrost over their crops and an inability to raise an income. Conversely some farmers face drought.
(ii) In Southern and parts of northern Shanxi the geography changes to a
mountainous region. Farmers survive by creating man-made terraces to grow crops. However, conditions remain difficult and land holdings are small, which can affect income levels.
(iii) Outside of the county towns, farmers work remotely with limited access to a
wider market base to sell their products. The distance from markets where they could independently gain a higher price or find employment opportunities is limited. In addition to remoteness, villages are faced with limited crops with low yields and potential for expansion.
(iv) Related to the last point above, low-income farmers have a lack of access to
capital to diversify their livelihood. Introducing alternative income sources in addition to farming, provides opportunities to improve standards of living and reduce risk for rural households. Furthermore, the lack of capital restricts investment in current operations; whether this to finance new farming equipment, such as greenhouses to enable cultivation through all seasons, or investing in pesticides to improve the quality of product, are the constraints to improving productivity and reducing poverty.
(v) For farmers and low income groups in rural areas, a combination of low
education level being achieved, a lack of professional skills (in farming, a limited number of farmers received training in management, or knowledge of how to optimize crop production) and insecure jobs (seasonal, low wages) only accentuates a low-income population.
(vi) Whilst not unique to Shanxi, rural China does face a conundrum of managing
the impacts of urbanization. The migration of a young workforce to urban areas leaves elderly farmers without successive workforce, which consequently limits confidence to invest and increase cultivation and yields.
(vii) Inadequate infrastructure such as weak access to irrigation systems, internet
etc., beget an equally poor access to social services such as education and health which are largely limited to administrative rather than remote natural villages. Weak access to physical assets and social services restricts income opportunities as the cost of accessing services (transport, health) remain high.
71. Of the 33 villages where the project companies/district are located and/or rent land from, 7 were poverty villages in 2016. From the interviews conducted by the team, the common reasons for poverty existing in households relate to disabled family members; chronic illness, or a lack of access to credit.
10
4. Provincial Government-Led Programs for Rural Poverty Reduction
72. In 2016, there were 58 poverty counties, including 22 provincial poverty counties in Shanxi Province. SPG is planning to conduct comprehensive and wide ranging poverty reduction strategy which targets strengthening transport infrastructure, diversifying livelihoods sources, compensation for ecological forest, supporting education and other programs to alleviate poverty. By the end of 2017, SPG plans to lift 14 counties with a poor population of 0.66 million out of poverty by 2018, 17 counties with 0.54 million poor people are planned to be lifted out of poverty; by 2019, 27 counties with 0.43 poor people will be removed from poverty and it is estimated that the remaining counties will be out of poverty by 2020.
73. The provincial poverty alleviation funds are concentrated in a number of areas. One is on key poverty villages for integrated effort on poverty reduction.
74. Another area to receive resources and attention is relocation of poor villagers living in scattered locations in mountain regions, where natural conditions are harsh and poverty reduction is costly, to locations closer to towns or central villages with easier access to schools, clinics and markets. Given the relocation program is carried out on a voluntary basis and many poor villagers are not willing to disrupt their social relationships, implementation is difficult compared other poverty reduction programs.
75. Economic development and poverty alleviation efforts are focused on two areas. One is to provide micro loans to individual poor farmers, which are often operated jointly by other poverty alleviation offices and the women’s federation. The program encourages poor farmers to engage in various income generating activities. Along with such loans, skill training is often provided. Another area of support is to provide financial assistance to leading agriculture enterprises, which will be able to develop scale production bases for various agricultural products. Through working with local farmers in the forms of land lease transfer, land input as equity, purchase agricultural products for agreed prices, and so on, many individual farmers and villages can increase their incomes.
Socioeconomic Profile of the Project Beneficiaries.
76. To have a better idea of the socioeconomic conditions of the project beneficiaries, 213 rural households from 56 villages were selected for the household questionnaire. Of the 213 households, 205 sample households are analyzed. 5 The sample households were categorized into three groups: (i) those who have already received benefits, one way or another, from the current operation of the project companies; (ii) farmer households who rent land to the project companies; and (iii) potential farmer households who will receive benefits from the project activities. Of the surveyed households, 56% of respondents were female and 44% male. About 12.7% of the respondents were poor households (Error! Reference source not found.), which is higher than the average poor incidence of the counties. The difference between 12.7% and the county average of 6.18% is because 7 of the total 33 project villages are poor villages which have more poor households and poor people. The surveyed households sampled were mainly around the project villages. The sample households include (i) those have already received benefits from the PACs; (ii) households who are in receipt of monies from renting their land to the PACs; and (iii) and other potential beneficiaries. Sample distribution of the sample households is presented in Table 16.
Table 16: Sample Distribution in Social Economic Survey No County Village Number No. of Households Poverty HH Female Respondents
1 Yuanqu 2 37 24.3% 51.4%
2 Quwo 19 36 22.2% 58.3%
3 Yaodu 3 35 17.1% 57.1%
5 Respondents from the other 8 households are either over 70 years who should not be a labor or too young or
more of time worked outside the counties and have very limited information on their households.
11
No County Village Number No. of Households Poverty HH Female Respondents
4 Taigu 7 30 16.7% 56.7%
5 Datong 6 34 44.1% 52.9%
6 Youyu 18 33 18.2% 57.6%
Total 56 205 23.9% 55.6% Sources: PPTA social survey, April 2017.
1. Family Structure
77. According to the sample household survey, there are 615 persons in the 205 sample households, averaging 3 persons per households (See Table 17).
Table 17: Family Structure from Households Survey
County No. of
sample households No. of
household members Person/HH
Yuanqu 37 102 2.76
Quwo 36 128 3.56
Yaodu 35 102 2.91
Taigu 30 84 2.80
Datong 34 91 2.68
Youyu 33 108 3.27
Total 205 615 3.00 Source: PPTA household social survey, April 2017.
2. Planting Structure & Land Holding
78. Crops cultivated in the project villages ranged from for walnut, hawthorn, chive, corn, wheat, and other minor crops, account for 3.4%, 4.4% 5.4%, 32.8% and 12.8% respectively of the total land holdings (Table 18). The remaining more than half was planted with (i) seedlings and flower for greening, apple trees, and vegetables which were mainly in Yuanqu, Quwo, Yaodu, and Taigu; (ii) minor crops, such as oat, hulless oat, which were mainly in Daitong and Youyu; and (iii) rent to companies or other farmer households. Part of interviewed households in Datong rent their land to companies for planting Day Lily. 79. There was 2,550 mu of farmland, 12.5 mu per household or 4.1 mu per capita. Such land holding is slightly higher than the provincial.
Table 18: Planting Structure of Sample Households
land area walnut scale
hawthorn scale
maize scale
wheat scale
chive scale
scale of other crops Total
yuanqu 7.3 16.2 20.8 14.0 12.7 0.0 36.3 100
quwo 6.1 0.0 0.0 29.9 35.5 0.0 34.6 100
yaodu 7.9 0.0 0.0 36.4 32.1 0.0 31.5 100
taigu 4.4 0.0 0.0 74.0 0.0 0.0 26.0 100
datong 23.0 0.0 0.0 59.4 0.0 0.0 40.6 100
youyu 26.5 0.0 0.0 20.5 0.0 21.5 58.0 100
Total 12.4 3.4 4.4 32.8 12.8 5.4 58.7 100 Sources: PPTA Social Survey, April 2017.
3. Education Level
80. In terms of educational background: majority of the respondents had low education attendance: 39.4% were primary or below; 48.5% had middle school education; and only 12% had high school education. No interviewees were educated at college or above (Table 19).
12
Table 19 Education Level of Sample Household
Yuanqu Quwo Yaodu Taigu Datong Youyu Total
primary school or below 8.1 16.7 17.1 16.7 55.9 39.4 25.4
Elementary school 70.3 72.2 68.6 70.0 38.2 48.5 61.5
High school 21.6 11.1 14.3 13.3 5.9 12.1 13.2
Total 100 100 100 100 100 100 100 Sources: PPTA Field Survey (April 2017)
4. Employment Structure
81. From the household survey, 16.6% of respondents relied on farming, 52% on animal husbandry. For those who were involved in farming and animal husbandry, majority were aged between 36 and 60 years old, and only 12% of young people (Table 20)
Table 20. Employment Situation among Survey Workers
Age Farming Animal husbandry Self-employed Factory worker Migrant Housework Total
18-35 11.8 1.9 20.0 55.6 9.4 7.7 8.3
36-50 52.9 36.4 10.0 22.2 40.6 30.8 37.6
51-60 32.4 52.3 60.0 22.2 50.0 38.5 46.8
60-70 2.9 9.3 10.0 0.0 0.0 23.1 7.3
Total 100 100 100 100 100 100 100
Sources: PPTA Social Survey, April 2017.
5. Land Transfer
82. Among the surveyed households, 17.1% had land use rights transferred to the project companies (PACs) in the form of land leasing. Total area of land transferred was 117.3 mu, varying from 1 mu to 6 mu per household (Table 21).
Table 21: Land Use Right Transfer
County No. of Households who rent
land No. of land rent
(mu)
Yuanqu 0 0
Quwo 10 33.3
Yaodu 15 49.5
Taigu 0 0
Datong 10 34.5
Total 35 117.3 Sources: PPTA Social Survey, April 2017.
6. Income Sources
83. Among the sample households, the average household income was CNY10,852 per capita, which was higher than the county average. Sources of income came from migrant work and self-employment (64.8), cropping (23.7%), livestock (7.6%), and others (3.9%). About 57.1% of households had an income less than CNY30,000. The major causes of poverty were a lack of labor, capital, or family members with chronic illness (Table 22Table 22).
13
Table 22: Sources of Income of Sample Households (%)
Household Percent Percent of Total Income
Income (CNY)
of samples Crop Livestock Migrant, self-employed Other
<10000 22.9 51.0 2.1 17.4 29.5
10001-20000 16.6 23.7 6.2 63.7 6.3
20001-30000 17.6 14.4 7.4 72.7 5.5
30001-40000 10.7 13.0 10.9 72.9 3.1
40001-50000 7.8 16.8 19.9 60.5 2.8
50001-60000 9.8 10.6 8.1 79.4 1.9
60001-70000 4.9 16.8 4.4 77.9 0.8
70001-80000 3.4 9.3 0.4 87.3 2.9
80001-90000 2.4 38.8 3.6 56.1 1.5
90001-100000 1.5 99.8 0.0 0.0 0.2
>100000 2.4 46.3 6.9 45.7 1.1 Sources: PPTA Social Survey, April 2017.
7. Attitude towards Project
84. Before the household survey in April 2017, 92.7% of the interviewees had knowledge, of the project. Some 43.9% received information from the PACS regarding the project, and 29.3% received information from village leaders and others from their neighbors. It is worth considering that many interviewees who received project information just before the PPTA household survey. Without the household survey, these interviewees would not have received project information. Hence considerable effort will need to be made during the project implementation period, to have a more consultative and engaging process with project beneficiaries. 85. Attitudes towards the project were sought from the interview which revealed that 95.1% of villager’s interviewed expressed support for the project, 4.9% unsure because they had no idea about the project before the household survey, and no interviewees did not support the project. About 75% believed that the project would improve local agricultural production, 68% thought that project would enhance family income, and 80% expected the project would promote local employment opportunities (Table 23).
Table 23: Knowledge and Attitudes towards Project Knowledge of the project Support Uncertain
No. of Household 190 195 10
% 92.7% 95.1% 4.9%
Sources: PPTA Field Survey（April 2017）
14
D. Stakeholder Analysis (Chapter 4) 86. The primary stakeholders identified include ADB, Shanxi provincial Government (SPG) represented by the PMO, project area county governments, participating project agriculture companies (PACs) and agriculture cooperatives (ACs) and individual households who will directly benefit from improved farming conditions, expansion of the enterprises (increase in volume produced / processed), improved farming facilities (e.g. refrigeration storage, greenhouses) that will extend a higher market value of products and from training.
87. Shanxi PMO and the project county government represented by CPMOs are responsible for managing project implementation, while participating enterprises and rural residents of project involved villages are responsible for the project implementation activities.
1. ADB 88. ADB’s Country Partnership Strategy for PRC (2016–2020) identifies inclusive growth as one of the three pillars, which is supported by enhancing rural livelihoods and improving access to enterprise finance. The project aligns to this strategy as it links innovation – in the form of a socially inclusive business approach to an actual project; which can be replicated and scaled up. The project has great potential for innovation and knowledge generation in, among others, value chain development, rural finance, and climate smart agriculture production techniques.
89. ADB will contribute about 70% of the project costs, yet it has good expertise for to help PMO design and implement the project. Government Capacity for inclusive rural development will also be strengthened by this project.
2. Shanxi Provincial Government (SPG) 90. Shanxi Provincial Government (SPG) is the Executing Agency (EA) of the project and has the role of guiding project counties to prepare and implement the project. As the most influential stakeholder, SPG will continue to influence the scale, and scope of how the project is designed and implemented. With Shanxi’s change of economic base from natural resources to reinvesting in agriculture, the provincial government is heavily investing support and finances in this project for demonstration affects to show central government that the approach can be scaled up. This project is a priority project in the agricultural sector for SPG.
3. Project County Governments 91. Project county governments involved in the project are also implementing the agricultural and rural development strategies (e.g., 13th five-year plan) and therefore are strong advocates of the project. The County governments will continue to use the Country Project management Office (CPMO) as the key agency - who have been involved in the design of the project, to progress to implement and monitor the project. Together with key functional agencies such as the agricultural bureau and the financial bureau the CPMO will take a leading role in organizing the projects at county, district and project level. As the project promotes, a socially inclusive approach of employing low income groups, women and offering long term benefits to locals, economic growth can be enhanced through agricultural and livestock production and processing improvements or with new farming practices, facilities and capacity development. Government Capacity for inclusive rural development will also be strengthened.
4. Agriculture Companies & Cooperatives 92. A total of 19 project agriculture companies (PACs) will be involved in the project. The PACs are responsible for implementing the project - for strengthening production, processing, storage and marketing of selected agricultural products.
15
93. PACs will employ 1,751 full time and 980 part-time of which 52% will be women.
94. As the footprint of PACs will increase to accommodate product expansion, these companies will need to lease farmland from local villages during project implementation. In accord with the social safeguard standards established by ADB, any cooperation agreements or land leasing agreements established between PACs and villages, will need to be signed and agreed prior to project implementation. Furthermore, any land leasing and farm products purchase agreements between PACs and villages will be signed to ensure mutual benefits between company and farmers.
5. Local Farmers 95. Local farmers working with the PACs – buying back products from companies to cultivate are direct project beneficiaries. Another classification of local farmers is those supplying the companies with raw materials. Through investment in 19 PACs, the project will improve local farmer opportunities to obtain a higher price for their products from an improvement in farming facilities, storage, training and technical guidance and an expansion of facilities. An additional 73,250 households with 209,100 individuals are expected to directly benefit from the project, including 48% of females, and 7% of the rural poor.
96. Table 24 below lists the key stakeholders, their interests and influence on the project, the project’s impact on them and their priorities towards the project.
Table 24: Stakeholder Analysis
Stakeholder Interests Influence
on the Project
Impact on Stakeholder
Priority
ADB
Inclusive growth Employment & Income opportunity
Poverty reduction Social safeguards
High Low High
SPG / PMO
Poverty Reduction, New Methods to harness
agricultural and rural development and inclusive growth
High Low Yes
County governments (CPMO)
Local economic growth
High Moderate Yes
Agriculture Companies / Coops
Loans to develop expand agriculture production, increase
yields and income. Medium High Yes
Farming Households Increase in employment & income.
Indirect suppliers/beneficiaries Low Low - high Moderate
ADB = Asian Development Bank, FPG = Shanxi Provincial Government, HH = household, PMO = provincial project management office. Sources: PPTA Social Surveys, February-April 2017.
E. Impact Assessment (Chapter 5)
1. Project Introduction
97. The investment from the Project will affect 19 PACs. The project activities will directly
improve farming conditions and facilities for these households by increasing their incomes and
generating additional or supplementary employment opportunities. In addition, through
cooperation with participating enterprises in various benefit-sharing mechanisms, additional
income from dividend/ rent of land lease, sharing of increased yield, and income from labor
inputs will be received by local people, which will help reduce poverty for poor households.
Major constraints for poor households are lack of capital, labor resources, and technology and
poor land quality. Through project implementation, the local population, particularly poor
households, will benefit from improved farming conditions, from the introduction of new plant
and investment in livestock varieties, improved planting practices and capacity enhancement
of PACs. This will result in higher incomes. Specifically, beneficiaries including farming and
low income households will benefit from the project in following ways:
(i) Improvement of agricultural infrastructure facilities; (ii) Additional income from cooperation with enterprises in terms of dividend from
leasing farmland to enterprises; (iii) Rental payment from leased land to enterprises; (iv) Cooperation with PACs in terms of purchase of farm products at agreed prices; (v) Wage income from increased temporary and permanent employment provided
by participating enterprises; (vi) Farmers will also enhance their farming knowledge and skills through training
and technical support.
2. Project Beneficiaries
98. The project beneficiaries are presented in Table 25 Additional Project Beneficiaries. Table 25 Additional Project Beneficiaries
No. HH No. of
Beneficiaries No.
of men No. of
women No. of Poor
HH
A. Employee (operational)
i Full time 1,751 1,751 838 913 163
ii part-time 980 980 470 510 55
B. Contractual farmer (buy-back) 33,413 100,239 51,349 48,890 2,479
C. Raw material supplier (farmers) to company 2,685 8,055 4,131 3,924 192
D. Farmers receiving goods and services from company
5,595 16,785 8,598 8,177 178
E. Construction workers 3,420 3,420 2,326 1,094 215
F. Collective land from farmers rented to company
0 0 0 0 0
G. Others 26,413 79,239 40,591 38,648 1,847
Total 73,250 209,100 107,080 102,020 5,128
17
3. Expectations and Benefits
99. The household survey, beneficiary survey, focus groups discussion, village questionnaires and key informant meetings revealed a number of benefits to local farmers, including to women and poor residents. For instance, the incomes of farmers who participate with the PACs will increase from a number of sources. An increase of revenues will be generated by the physical expansion, improvement in farming facilities and increase in size of operations of the PACs. Income will be enhanced through training provided in new farming practices, to improve cultivation and modern farming techniques, which will target women and poor families. Social inclusion aspects that will reduce poverty and increase women's participation have been developed and included in the Social Action Plan (SDAP) and Gender Action Plan (GAP). Rather than merely relying on increasing assets and training, farmers can increase their income through strengthening their involvement within the value chain. Having an opportunity to buy-back products from the PACs or in being a raw material supplier to the PAC raises income opportunity for farmers.
100. Employees working full and part time will also benefit from the physical expansion, improvement in farming facilities and increase in size of operations of the PACs which will require additional staff to be hired permanently and on a seasonal basis.
101. Farmers receiving goods and services from company will also be significant beneficiaries as they will receive subsidized products from the companies.
102. Construction will provide temporary and permanent jobs for local people. Villagers who are not part of project will also benefit indirectly through cooperation with PACs with improved farming access, which will reduce poverty in the project area.
103. Under the ‘Shanxi inclusive value chain project’, two different types of relationship exist between PACs and individual beneficiary farmers in relation to land. The first, is land use right transfer (LURT) agreements. This relationship held between PACs and individual farmers is established when PACs lease land from individual famers to be able to expand their existing operations. Land transfer agreements (LURT) stipulate the amount farmers who rent their land will receive annually from the PAC. Some farmers renting their land may be able to also work. Those farmers who continue to farm will also share the yields from these leased land areas and receive, rental payment and wages or part of yield income from working in the field, thus securing two incomes. According to the survey, 19,315.61 mu of land, accounting for 97.3% of total land area is involved under the project through land transfer agreements. There are 14 enterprises involved with LURT, benefiting 1,943 households and 6,808 persons.
104. The second type of relationship held between PACs and farmers over land is called ‘land cooperation’ which is an agreement made between a PAC and farmers to enable farmers to annually receive a share of the land output. For instance, when a PAC adopts a land cooperation agreement farmers contribute their farmland as a share to the cooperative to plant, for example, pears, thus benefiting from management and selling advantages of the group, and thus receiving annual returns from this PAC, after selling their produce (for example 20% of the output value of the land is leased out, increasing to 40% if the household participate in field management). From this one PAC, 786 mu is used type of cooperation, benefiting 42 households and 134 persons.
18
Table 26: Project LURT and Cooperation Mechanism
Cooperation mechanism
AC/ PIU Area (mu) HHs
involved
Persons Involved
LURT (Rent / working
opportunity, training opportunity)
Guangling Beiye Fungus Industrial Development
Co., Ltd. 77.8 30 100
Shanxi Phoenix Wine Industry Co., Ltd.
1790.5 52 167
Shanxi Juxin Weiye Agricultural and Sci &
Tech Development Co., Ltd.
774
194 776
Fenxi Hongchang Breeding Co., Ltd.
40 2 7
Heshun County Lvhe Ecological Agriculture & Livestock Development
Co. Ltd.
8300 22 70
Fushan Guheng Husbandry Sci. & Tech.
Co., Ltd. 200 19 61
Quwo Lvheng Agricultural Development Co., Ltd.
909.63 166 490
Shanxi Qierkang Elaeagnus Biological
Products Co. 3360.52 511 2044
Linfen Zhongde Farming Technology Development
Co., Ltd. 147.09 32 139
Fuzhongyuan Livestock Breeding Cooperative
100 14 50
Shilou Shude Jujube industry Co., Ltd.
35.2 0 0
Xinjiang Hefeng Grain Planting Technology
Cooperatives 3050.445 765 2448
Shanxi Kaisheng Fertilizers Group Co., Ltd.
400.42 105 370
Shanxi Jinlong Group Feed Co., Ltd.
130 31 86
Total 19,315.61 1943 6808
Source: ADB PPTA consultants
105. All PACs comply with the relevant Chinese regulations and laws on labor. See
Appendix 1: Core Labor Regulation Due Diligence, for a detailed tabulation of
each company’s compliance to the labor law and regulations.
19
F. Gender Analysis (Chapter 6)
1. Gender Profile in Project Counties/districts
106. Rural society in China has undergone significant social transformation over the past decades. The advent of rapid urbanisation, the introduction of transitory and permanent migration to urban centres, emigration from the countryside, an increase in basic literacy levels, and new economic linkages with emerging urban areas have had a contributory impact on women. All of these changes have had an impact on women in Shanxi affecting the social norms, impinging on various aspects of lifestyle and livelihoods, from marriage 6 , to employment and responsibilities and within the village.
107. In 2016, women comprised 48.8% of the population, in Shanxi. The gender demographic has equalled out in the province, and with this, parity has been achieved and surpassed in women being employed in agriculture production in rural areas of Shanxi. In the past, women have received support from government policy, financial resources and technical training and it is envisaged that this project will further such support in these areas for women living in the rural areas. According to the survey, and interviews held with the villagers, the economic position of women in their families is increasing, and they have more rights in family decisions, such as child education, house construction, or purchasing goods and consumables.
2. Gender Profile in Project Affected Areas
108. In 2016, women made up 48.8% of total population in the 17 project counties/districts and among the total rural labor force, women accounted for 50 percent of the workers. Their average education level however, was lower than that of men based on the sample household survey data. Females obtained a higher degree of primary education (29.8%) compared to men (19.8%). However, after middle school (elementary) educational attainment of women (57.9%) slips below that of men (65.9%) and continues to decrease rapidly by the time women reach high school, at which point only 12.3% obtain high school or above qualification. Women experience the lowest levels of middle and high school educational attainment at 12.3%; but whilst this figure is low, their male counterparts are only marginal higher 14.3% (Table 27).
Table 27: Education Level by Gender (%)
Primary & below Elementary High school & equivalent Total
Male 19.8 65.9 14.3 100
Female 29.8 57.9 12.3 100
Total 25.4 61.5 13.2 100 Source: Social survey, 2017
109. Table 28 provides information on employment structure for males and females among the sample households. What is significant is how women have achieved parity in employment in the agriculture sector. The majority of women (71%) worked in agricultural sector, which is 5 points higher than that of men (65.9%) and half of women work in animal husbandry (51.6%), which was almost equal to their male counterparts (52.6%). Similarly, the numbers of women working in farming (non-livestock) account for a greater share than men working, 18.4% women compared to 14.3% men.
6 Unique to the Southern municipalities of Shanxi is a custom similar to a dowry, whereby the household of wife-
to-be can request an apartment in nearby urban area, to be bought for the couple upon marriage. This must be paid for by the husband-to-be parents. This example was citied frequently by elderly farmers as a reason to keep working into their sixties and late sixties, to be able to pay for their sons’ dowry.
20
110. One can see significant social developments for women when analysing the non-agriculture sector in the project area. Firstly, women are less likely to be entrepreneurial (1.8%) compared to men (8.8%). This is most likely because of their current work demands in the field and at home (see below). Women are three times as likely to work in a factory than men, and ten times (10.5) more likely to be occupied by domestic duties then men (1.1%).
Table 28: Employment Structure by Gender
Gender Age Agriculture Non-agriculture Other
Total Farm Animal
husbandry Self-
employed
Work in Local
Factory Migrant
Housework, retired, etc.
Total
Male 18-35 28.6 14.3 14.3 28.6 0.0 42.9 0.0 100
36-50 80.0 25.7 54.3 0.0 2.9 17.1 0.0 100
51-60 59.5 7.1 52.4 11.9 2.4 26.2 0.0 100
60-70 71.4 0.0 71.4 14.3 0.0 0.0 14.3 100
Total 65.9 14.3 51.6 8.8 2.2 22.0 1.1 100
Female 18-35 40.0 30.0 10.0 0.0 50.0 0.0 10.0 100
36-50 69.0 21.4 47.6 2.4 2.4 16.7 9.5 100
51-60 77.8 14.8 63.0 1.9 1.9 9.3 9.3 100
60-70 75.0 12.5 62.5 0.0 0.0 0.0 25.0 100
Total 71.0 18.4 52.6 1.8 6.1 10.5 10.5 100
Source: social survey, 2017
3. Issues for Women’s Development
111. Cumulatively, the current employment scenario for women presents clear opportunities and constraints. The change in women’s’ role of working more than men in the agriculture and livestock sector in the project affected counties in Shanxi would indicate that the PACs need to clearly target women when it comes to training farmers, or engaging in financial or contractual matters.
112. Secondly, the lack of employment diversity for women outside of the agriculture sector indicates a lack of independence for the women (either imposed due to household restrictions or simply chosen by women) to start their own business. Further, a degree of independence is missing as one can see that men are twice as likely to migrate than women. Yet despite 90% of women working in paid employment, women remain the domestic and care givers.
4. Institutions for Women’s Development
113. The China’s Women’s Federation (CWF) addresses women’s welfare in each county in Shanxi. Although the local women’s federation is in charge of all women’s affairs, such as women’s health, childbirth issues, education for rural girls and women’s rights relating to domestic violence, the main focus of CWF is the economic development of women. Increasing the income and education and technical skills of women is a focus for CWF. The objective of CWF in targeting societal norms of women to emancipate women from domestic and family responsibilities is premised on achieving a greater position for women in the family and society. 114. Under this objective, the local women’s federations carry out activities aimed at increasing employment and income for local rural women. Since women are the key labor force in the local agricultural sector, with 70% females employed in agriculture in the project area, the activities of local women’s federations include organizing skill training, providing micro credit to women engaged in income generating activities, and participating in activities organized by local poverty alleviation offices.
21
5. Project Impacts on Women 115. Since more women work in agricultural sector than men, the project should bring more benefits to women. As women work in both livestock and farming sectors, the project impacts will occur throughout the PAC value chain, thus benefiting women through various stages of agriculture processing. There will be a 49% women working once all 19 sub-projects are implemented. An additional 913 women will be employed full time and 510 women will be employed part-time from the project.
116. The project impacts on women who work either on ‘agribusiness upgraded investments for AVC companies (Non IB) compared to investments in the IB PACs is high. For instance, of the additional 95,079 people expected to be engaged in contractual farming 7 for IB companies, by 2023, 49% will be women. AVC companies have an additional 5,160 will be engaged in contractual farming, the percentage of women expected to be employed will also be 49%.
117. Due to women’s vulnerability in Shanxi, such as low education, less participation in public consultation and noticeably from the survey data, a lack of involvement outside of agriculture, denoting a lack of independence outside of the family, barriers clearly remain for women to achieve gender equality in rural Shanxi. If women are to achieve greater employment through the aspects of the value chain and increase their incomes, as has been forecast from the beneficiary survey, certain actions and targets have to be taken, which are presented in the Gender Action Plan (GAP).
7 A farmer who has a contractual relationship by virtue of buying produce from an agriculture enterprise to cultivate
or rear, then resell back to the company.
22
G. Social & Gender Action Plan with Consultation and Participation Strategy (Chapter 7)
6. Introduction
118. To address various impacts of the project and enhance benefits for local communities, particularly for women, a Social and Development Action Plan (SDAP) and a Gender Action Plan (GAP) have been formulated for the project. They were prepared jointly by the PMO, related government agencies, with the assistance of the consultant’s social team. The SDAP and GAP were prepared based on consultations with key stakeholders including PACs and representatives of local communities.
7. Objective 119. The purpose of the SDAP and GAP is to ensure that social and poverty issues are addressed during project implementation. Any adverse impacts need to be avoided or mitigated and project beneficiaries should include members of all groups, particularly the vulnerable including the poor, women, elderly, and disabled.
8. Basis for the SDAP 120. The SDAP focus brings together the core elements of ‘inclusiveness’ as established under the IB model. In summary, the IB approach, aims to capture the ‘reach’ of each PAC, by recording the direct and indirect employment generated after the investment. The IB approach focuses on the ‘depth’, or the potential increase of incomes from each PAC. Finally, the IB approach aims apply a ‘systemic change’ to the PAC, such as promoting gender equity, supporting pro-poor networks; generating ownership by the poor and enterprise development and finally introducing sustainability and long term community impact. 121. Further, the SDAP focuses on issues relating directly to affected people, including vulnerable individuals, and various aspects of safeguards such as labor, as well as covering themes within the wider remit of social development. Measures to address the identified issues were formulated based on extensive consultations with local stakeholders in the field and survey data which was produced by the consultants. 122. As the project has been designed to achieve two outputs, Output 1: Agribusiness upgrading (investment for AVC companies and soft component on AVC) and Output 2: Inclusive Businesses (IB) mechanism pilot, the 19 PACs where divided based on these two outputs so the SDAP makes this distinction. Therefore, the actions for output 1 relate to the 9 AVC companies and the actions for output 2 are relate to the 10 IB PACs.
123. The proposed mitigation and enhancement actions of the SDAP for both outputs have been grouped under three areas: (i) employment generation to local population; (ii) generate additional income to farmers, (iii) compliance with labour laws. 124. For this project, the consultation and participation delivery has been integrated in the SDAP. The consultation and participation elements cover the implementation and monitoring requirements of ADB. The consultation and participation actions have been grouped under the following areas: (i) implementation of the GAP, SAP and LURT; (ii) Reducing risk between stakeholders (iii) regular disclosure on implementation arrangements (iv) and participation mechanisms. 125.
23
126. presents the details of the SDAP including the proposed actions, target groups, implementing agencies, timing, funding sources and monitoring indicators. The key tenants of the SDAP are outlined below in items (a) to (d).
a. Employment Generation to Local Population
(i) Increasing the Reach 127. Significant employment opportunities will be created by this project. The type of additional employment to be generated will be both full and part time in the PACs, contractual farming engaged through the PACs and temporary employment relating to construction. The project will give priority to using the local labor force, especially poor families and females, allowing them to benefit from the project. For recruited local workers, the PACs and the contractors will prepare proper employment contracts, which must be in accordance with national labor laws and core labor standards.
b. Generate Additional Income to Farmers
(i) Increasing the Depth
128. The ‘depth’ of the impact which the investment will have on the PACs will increase the incomes of participating farmers and non-farming households. Increasing the incomes of local households will not be uniform, as the range and type of beneficiaries are varied. Nevertheless, it is expected that there will be an increase of incomes to (i) farmers supplying raw material to the PACs, (ii) households providing goods and services to PACs (iii) households receiving additional land rent from the PACs (iv) and households who hold a contractual buy-back relationship with a cooperative.
c. Achieving Systemic Change (ii) Targeting the poor 129. Notably, each of the PACs will generate additional income and employment opportunities from this project whilst in addition the investments will have the ability to impact poor households. Each PAC investment will affect each beneficiary types (employee, supplier, beneficiary farmer, construction worker etc.) which includes poor households. The impact on poor households in obtaining employment or income measures will range from 3% to almost 13% of total beneficiaries. Such pro-poor targeting for both project outputs will assist SPG, and SPADO achieve their poverty reduction targets. With the project targeting poverty reduction at the ‘household level’, in both poverty counties and non-poverty counties, the ADB investment will facilitate PRC commitment to eradicate poverty by 2020.
d. Compliance with Labor Laws
130. PACs will (i) comply with labor laws and core labor standards, including no child labor, minimum wages, equal pay to equal work, occupational health and safety, (ii) provide training to workers on job related skills and relevant health and safety.
9. Gender Action Plan Background:
131. Community consultations with villagers and PACs provided the basis of the gender analysis for the PSA, which demonstrated that the project will have benefits for both women
24
and men in terms of improved employment, greater stability over employment periods (winter months), improved farming conditions in the project area, and training delivered by participating enterprises and an increase of incomes. Through cooperation between the PACs and individual villagers, socially inclusive benefits will become apparent as incomes of the local households, including women, improve. Gender-sensitive measures will be taken to enhance the project’s benefits and minimize negative impacts. The PSA sample household sample survey indicates that women provide the majority work force in the agriculture sector, as a large share of males work outside as migrant workers, or are self-employed in non-farming activities. Therefore, this project is critical in how it addresses the gender gaps. To ensure optimal gender outcomes the GAP was discussed with PMO at various stages and with PACs to identify where targets for women could be strengthened. 132. To maximize gender impacts, the project has been designed to meet the ADB Effective Gender Mainstreaming (EGM) categorization and a project GAP has been prepared. GAP features include focus on ensuring women’s equitable participation in project-related public consultation; incorporating gender-responsive project features; promoting increased employment opportunities for women and building EA/IA institutional capacity for gender mainstreaming. See Table 29 for the GAP.
a. Local Employment Generation to Women
(i) Increasing the Reach 133. Job opportunities created during project implementation, both skilled and unskilled, should be given to women, especially those from poor and women headed household who should be encouraged to participate in the project. Women should constitute at least 50% of full time employment in inclusive Business Companies and 40% of full time jobs in Agriculture Value Chain (AVC) companies. For part time employment women should constitute a minimum of 50% of all part time jobs in inclusive businesses and 50% for AVC companies. For any construction work required by the PACs or cooperatives women should hold 30% of all jobs generated.
b. Generate Additional Income to Women 134. It is expected that just under 100,000 women will benefit from receiving an additional income from new lines of work, or an increase of their household income by establishing firm relationships with PACs such as having (i) farmers supplying raw material to the PACs, (ii) households providing goods and services to PACs (iii) households receiving additional land rent from the PACs (iv) and households who hold a contractual buy-back relationship with a cooperative.
135. Employment targets have been established in the GAP to ensure that women will generate an additional household income. Therefore, for contractual farming - a farmer who has a contractual relationship by virtue of buying produce from an agriculture enterprise to cultivate or rear, then resell back to the company – women should be 45% of those employed. For the raw material suppliers, 45% of those employed should also be women. For farmer households who obtain (for free, subsidized cost or bought) a bi-product from AVC companies e.g. fertiliser, biogas, 40% of recipients should be women and 45% women recipients benefiting from for IB companies. For households who receive rental income from land lease agreements from the PAC, then the income should be generated equally to husband and wife, with 100% agreements to be verified, including consent of spouses and confirming that agreed rents/benefits have been provided.
c. Budget and implementation arrangements
25
136. An external social specialist consultant will provide guidance during the implementation of the GAP, which will be financed as a core part of the project budget and will be implemented over the five-year project period. With support from the social specialist, the PPMO will be responsible for coordinating implementation of the plan and will assign responsible staff.
d. Monitoring and evaluation
137. Monitoring and evaluation is embedded into the GAP will be incorporated into the overall monitoring and evaluation plan for the project. The external social specialist consultant will work with the PMO and other IA staff to orient them on GAP requirements and develop a detailed implementation and monitoring plan for gender activities. The social specialist will also provide guidance on drafting the first GAP implementation progress report, and reviewing subsequent reports prepared by the implementing agencies. Updated information on the status of GAP implementation should be included in all project progress reports. ADB staff with expertise in gender issues will participate in the midterm review. During project implementation, the implementing agencies will invite staff of the Women's Federation to participate, in the monitoring and implementation
10. Project Management Support; Consultation and Participation
138. During the consultation meeting, PMO will provide necessary information such as grievance mechanism and other information to participants, including male, female, poor, vulnerable groups and other individuals. In accordance with ADB's information disclosure policy, project information will be published by way of public consultation, the Government and the ADB website disclosure mechanisms, conferences, interviews, focus group discussions and community consultation meetings and communication.
(i) Training to EA personnel 139. To ensure smooth implementation of the project, training will be provided to staff of both PPMO and CPMOs in accordance with training plans developed during project preparation. They will cover different aspects of project management, such as monitoring and evaluation, land use rights transfer and the GRM. All staff of the executing agency (EA) and implementing agencies (IAs) will receive project management training provided by the project at least once. (ii) Implementation of Social Management System 140. To ensure project implementation meets ADB policy requirements, as part of project social management system, the SDAP and GAP were developed. Implementation of these plans will ensure smooth project implementation and compliance with ADB policy requirements. Both the provincial and county PMOs should appoint personnel responsible for implementation of the SDAP, GAP, to conduct internal monitoring and evaluation. Meanwhile the external social development expert will also be employed in charge of training and supervision. (iii) Ensure the Consultations and information disclosure
141. To ensure project information will be disclosed in a timely manner prior to project implementation, CPMOs will work with municipalities, project affected villages and PACs to disclose project related information and consult with affected stakeholders using various forums such as village meetings to collect farmers’ opinions during project implementation.
26
Table 29: Gender Action Plan (GAP)
Activities Targets Budget Responsible
Agencies Time
Output 1: Agricultural Value Chain Strengthened
1.1 Due to investment in agricultural facilities, the project agribusiness companies and cooperative (PACs) will create additional full-time (FT) employment in their operations.
Targets: Additional 571 people employed FT employment in operations, including minimum 40% being women. Baselines: 0, 0%
PAC daily operation budget
County project management offices (CPMOs), PACs
2018–2023
1.2 Create part-time (PT) employment in operations of the PACs.
Targets: Additional 648 people employed PT, including minimum 50% being women. Baselines: 0, 0%
PAC daily operation budget
Contractor, CPMOs, PACs
2018–2023
1.3 Engage farmers in contractual farming (e.g., buy-back guarantee) with the PACs, by ensuring spouses consenting to the scheme.
Targets: Additional 5,160 people benefiting from contractual farming, including minimum 45% of the beneficiaries being women. Baselines: 0, 0%
Project budget CPMOs, PACs 2018–2023
1.4 Engage farmers (men and women) as raw material suppliers to the PACs.
Targets: Additional 5,850 people benefiting from supplying raw materials, including minimum 45% of the beneficiaries being women. Baselines: 0, 0%
Project budget CPMOs, PACs 2018–2023
1.5 Provide farmers (men and women) with goods and services (e.g., agricultural inputs, technical advice, etc.) by the PACs.
Targets: Additional 3,345 people being recipients of goods and services from the PACs, including minimum 40% of the beneficiaries being women. Baselines: 0, 0%
Project budget CPMOs, PACs 2018–2023
1.6 Engage local people as construction workers during project construction.
Targets: Additional 2,050 people will be hired as construction workers, of which minimum 30% being women. Baselines: 0, 0%
Contractors budget
Contractor, CPMOs, PACs
2018–2023
1.7 Regarding land use rights transfer (LURT) agreements, develop and implement partnerships with farmers and villagers to rent land by the PACs.
Target: 100% or all agreements are verified, including consent of both spouses and confirmation that agreed rents and/or benefits have been provided. Baseline: 0%
PAC daily operation budget
CPMOs, PACs 2018–2023
1.8 Other benefits from the PACs to farmers, e.g., company signs a buy-back or material-collection contract with farmer cooperatives, then the latter signs contract with farmer households.
Targets: 3,279 additional people receiving other benefits from the PACs, of which 50% of the beneficiaries being women. Baselines: 0, 0%
PAC daily operation budget
Contractor, CPMOs, PACs
2018–2023
1.9 Ensure that women have equitable access to toilet, shower, and washroom facilities at project work stations; and these facilities are separated for men and women.
Target: Toilet and washroom (shower) facilities provided by the PACs for men and women at project work stations. Baseline: 0
PAC daily operation budget
Contractor, CPMOs, PACs
2018–2023
1.10 Develop a comprehensive training program on the agricultural value chain for government officials and agribusiness companies.
Target: A comprehensive training program developed and delivered to government officials and agribusiness companies involved in the project, including at least 40% participants being women. Baseline: 0, 0%
Project budget Provincial project management office (PPMO), CPMO, PACs
2018–2023
28
Activities Targets Budget Responsible
Agencies Time
1.11 Strengthen farmer cooperatives with greater management capacity for better production, financial management and contracting arrangements.
Targets: Four farmer cooperatives, with at least 40% women executives, strengthened. Baselines: 0, 0%
Project budget PPMO, CPMO, PACs
2018–2023
Output 2: Inclusive Business (IB) Mechanism Piloted
2.1 Due to investment in agricultural facilities, the PACs will create additional FT employment in their operations with a target or priority for women.
Targets: Additional 1,180 people employed FT, including 50% being women. Baselines: 0, 0%
PAC daily operation budget
CPMOs, PACs 2018–2023
2.2 Create additional PT employment in operations of the PACs with a target or priority for women.
Targets: Additional 332 people employed PT, including minimum 50% being women. Baselines: 0, 0%
PAC daily operation budget
Contractor, CPMOs, PACs
2018–2023
2.3 Engage farmers in contractual farming (e.g., buy-back guarantee) with the PACs by involving both men and women in the scheme.
Targets: Additional 95,079 people benefiting from contractual farming, including minimum 45% of the beneficiaries being women. Baselines: 0, 0%
Project budget CPMOs, PACs 2018–2023
2.4 Engage farmers, including women, as raw material suppliers to the PACs.
Targets: Additional 2,205 people benefiting from supplying raw materials, including minimum 45% of the beneficiaries being women. Baselines: 0, 0%
Project budget CPMOs, PACs 2018–2023
2.5 Provide farmers, including women, with goods and services (e.g., agricultural inputs, technical advice, etc.) by the PACs.
Targets: Additional 13,440 people benefiting from goods and services from the PACs, including minimum 45% of the beneficiaries being women. Baselines: 0, 0%
Project management budget
CPMOs, PACs 2018–2023
2.6 Engage local people, including women, as construction workers during project construction.
Targets: 1,370 people will be hired as construction workers, of which minimum 30% being women. Baselines: 0, 0%
Contractors budget
Contractor, CPMOs, PACs
2018–2023
2.7 Regarding LURT agreements, implement partnerships with farmers and villagers to continue renting land by the PACs; and benefiting men and women.
Target: 100% or all agreements are verified, including consent of both spouses and confirmation that agreed rents and/or benefits have been provided. Baseline: 0%
PAC daily operation budget
CPMOs, PACs 2018–2023
2.8 Other benefits from the PACs to farmers, e.g., the company signs a buy-back or material-collection contract with farmer cooperatives, then the latter signs contract with farmer households benefiting women and men.
Targets: 75,960 people benefiting from ‘other benefits’ from the PACs, of which 50% of the beneficiaries being women. Baselines: 0, 0%
PAC daily operation budget
Contractor, CPMO, PACs
2018–2023
2.9 Ensure that women have equitable access to toilet, shower, and washroom facilities at project work stations; and these facilities are separated for men and women.
Target: Toilet and washroom facilities are provided by the PACs for men and women at project work stations. Baseline: 0
PAC daily operation budget
Contractor, CPMOs, PACs
2018–2023
2.10 Organize a training program on the IB approach for agribusiness companies.
Targets: A training program on the IB approach organized for agribusiness companies, including at least 40% participants being women. Baselines: 0, 0%
Project budget PPMO, CPMO, PACs
2018–2023
29
Activities Targets Budget Responsible
Agencies Time
Project Management Support and Capacity Building
3.1 Assign local staff at the CPMO and the PACs to collect relevant sex-disaggregated data. The CPMO will recruit one external consultant to carry out monitoring of implementation of the gender action plan (GAP) and the social development action plan.
Targets: At least one local staff at each CPMO and each PAC; one external social consultant; and at least 30% of the staff being women. Baselines: 0, 0%
Project management Budget
CPMOs, PACs, 2018–2023
3.2 Ensure the consultation and participation of local farmers, including female farmers and villagers, to obtain their views in the project design and implementation
Target: Female participants will be 50% of the total participants. Baseline: 0%
Project management budget
CPMOs, PACs, PPMO, Social consultant
2018–2023
3.3 Internal monitoring on the GAP will be reported annually, and monitoring will be conducted and supported by the social consultant.
Target: Annual monitoring reports produced. Baseline: 0
Project management budget
CPMOs, PACs, PPMO, Social consultant
2018–2023
3.4 Appoint a focal person within the CPMO, the PACs, and the PPMO who are trained to ensure the effective implementation of the contents of the GAP, the LURT agreements, the social development action plan, and other social aspects
Targets: Appointed focal person in each CPMO, each PAC, and the PPMO; and at least 30% of the staff being women. Baselines: 0, 0%
Project management budget
CPMOs, PACs, PPMO, Social consultant
2018–2023
3.5 Provide training on gender mainstreaming of agricultural investments so that employment and income benefits ensure equality of investment.
Targets: Training provided to each CPMO and the PACs, and at least 30% of the participants being women. Baseline: 0, 0%
Project management budget
CPMOs, PACs, PPMO, Social consultant
2018–2023
3.6 Capacity building of the PACs Targets: Training provided to each CPMO and the PACs, and at least 30% of the staff being women. Baseline: 0, 0%
Project management budget
CPMO, PACs, PPMO, Social consultant
2018–2023
3.7 Provide leadership training to farmer cooperatives and enterprises, targeting female executives and/or staff at managerial roles
Targets: Training provided to 361 executives and/or staff at managerial roles, including 40% being women. Baselines: 0, 0%
Table 30: Social Development Action Plan (incorporates the CPP)
Key Objectives
Main Task and/or Proposed Actions
Main Beneficiaries
and/or Stakeholders
Targets Method Timeframe Responsi-
bility Funds and Resources
1. Output 1: Agricultural Value Chain Strengthened
Employment generation to local population
1.1 Provide full-time (FT) employment to the local people in the operation of the project agribusiness companies and cooperative (PACs)
Farmers, poor households (HHs), and female laborers
Target: Additional 571 new FT jobs, including 48 jobs for poor HHs. Baseline: 0
The PACs employ local people; and with each county project management office (CPMO), ensure that women and the poor people are actively hired.
2018–2023 CPMOs, PACs
PAC daily operation budget
Employment generation to local population
1.2 Provide part-time (PT) employment to the local people in the operation of the PACs
Farmers, poor HHs, and female laborers
Target: Additional 648 new PT jobs, including 36 jobs for poor HHs. Baseline: 0
The PACs employ local people; and with each CPMO, ensure that women and the poor people are actively hired.
2018–2023 Contractors, CPMOs, PACs
PAC daily operation budget
Generate additional income to farmers
1.3 Engage local farmers in contractual farming (e.g., buy-back guarantee) with the PACs
Farmers, poor HHs, and female laborers
Target: Additional 5,160 people (1,720 HHs) benefiting from contract farming, including 144 poor HHs. Baseline: 0
The PACs and the farmers will sign agreements, and each CPMO will monitor.
2018–2023 CPMOs, PACs
Project budget
Generate additional income to farmers
1.4 Engage farmers as raw material suppliers to the PACs
Farmers, poor HHs, and female laborers
Target: Additional 5,850 people (1,950 HHs) benefiting, including 141 poor HHs. Baseline: 0
The PACs and the farmers will sign agreements, and each CPMO will monitor.
2018–2023 CPMOs, PACs
Project budget
Generate additional income to farmers
1.5 Provide farmers with goods and services (e.g., agricultural inputs, technical advice, etc.) by the PACs
Farmers Target: Additional 3,345 people (1,115 HHs) recipients of goods and services, including 49 poor HHs. Baseline: 0
The PACs and the farmers will sign agreements, and each CPMO will monitor.
2018–2023 CPMOs, PACs
Project budget
Employment generation to local population
1.6 Engage local people as construction workers during project construction
Farmers, poor HHs, and female laborers
Target: Additional 2,050 new jobs for construction workers, including 128 for poor HHs. Baseline: 0
Contractors provide information on labor recruitment and their requirements to local villages.
2018–2023 Contractors, CPMOs, PACs
Contractor’s budget
Generate additional
1.7 Develop and implement the partnerships with
Farmers Target: 100% or all agreements are
The PACs will implement the agreements in transparent,
2018–2023 CPMOs, PACs
PAC operation
31
Key Objectives
Main Task and/or Proposed Actions
Main Beneficiaries
and/or Stakeholders
Targets Method Timeframe Responsi-
bility Funds and Resources
income to farmers
farmers and villagers to rent land by the PACs
verified, confirming that agreed rents and/or benefits have been provided. Baseline: 0
fair, equitable, and consultative manner.
budget
Generate additional income to farmers
1.8 Other benefits from the PACs to the farmers, e.g., the PAC signs a buy-back or material-collection contract with a farmer cooperative, then the latter signs a contract with the farmer HHs.
Farmers, CPMO, Agriculture Bureau
Target: Additional 3,279 beneficiaries (1,093 HHs) will gain from ‘other benefits’ from companies, including 57 poor HHs. Baseline: 0
The PACs will support individual farmer HHs.
2018–2023 Contractors,CPMOs, PACs
PAC daily operation budget
Compliance with labor laws
1.9 The PACs will (i) comply with labor laws and core labor standards, including no child labor, minimum wages, equal pay to equal work, and occupational health and safety; and (ii) provide training to workers on job-related skills and relevant health and safety practices.
Farmers, PACs
Target: Ensure the compliance of all labor standards. Baseline: N/A
The Labor Bureau, CPMO social focal point, and the PAC social focal point will monitor.
2018–2023 Contractors, CPMOs, PACs
PAC operation budget
2. Output 2: Inclusive Businesses (IB) Mechanism Piloted
Employment generation to local population
2.1 Provide FT employment to the local people in the operation of the PACs
Farmers, poor HHs, and female laborers
Target: Additional 1,180 new FT jobs, including 115 for poor HHs. Baseline: 0
The PACs employ local people; and with each CPMO, ensure that women and the poor people are actively hired.
2018–2023 CPMOs, PACs
PAC operation budget
Employment generation to local population
2.2 Provide PT employment to the local people in the operation of the PACs
Farmers, poor HHs, and female laborers
Target: Additional 332 new PT jobs, with minimum 19 for poor HHs. Baseline: 0
The PACs employ local people; and with each CPMO, ensure that women and the poor people are actively hired.
2018–2023 Contractors, CPMOs, PACs
PAC operation budget
Generate additional income to farmers
2.3 Engage local farmers in contractual farming (e.g., buy-back guarantee) with the PACs
Farmers, poor HHs, and female laborers
Target: Additional 95,079 people (31,693 HHs) benefiting from
The PACs and the farmers sign agreements, and each CPMO will monitor.
2018–2023 CPMOs, PACs
Project budget
32
Key Objectives
Main Task and/or Proposed Actions
Main Beneficiaries
and/or Stakeholders
Targets Method Timeframe Responsi-
bility Funds and Resources
contract farming, including 2,335 poor HHs. Baseline: 0
Generate additional income to farmers
2.4 Engage farmers as raw material suppliers to the PACs
Farmers, poor HHs, and female laborers
Target: Additional 2,205 people (735 HHs) benefiting from supplying raw materials, including 51 poor HHs. Baseline: 0
The PACs sign agreements with end user, and each CPMO will monitor.
2018–2023 CPMOs, PACs
Project budget
Generate additional income to farmers
2.5 Provide farmers with goods and services (e.g., agricultural inputs, technical advice, etc.) by the PACs
Farmers Target: Additional 13,440 people (4,480 HHs) will benefit, including 129 poor HHs. Baseline: 0
The PACs sign agreements with end user, and each CPMO will monitor.
2018–2023 CPMOs, PACs
PAC operation budget
Employment generation to local population
2.6 Engage local people as construction workers during project construction
Farmers, poor HHs, and female laborers
Target: Total 1,370 construction workers, of which 87 for poor HHs. Baseline: 0
Contractors provide information on labor recruitment and their requirements to local villages.
2018–2023 Contractors, CPMOs, PACs
Contractors’ budget
Generate additional income to farmers
2.7 Develop and implement the partnerships with farmers and villagers to rent land by the PACs
Farmers Target: All agreements are verified, confirming that agreed rents and/or benefits have been provided. Baseline: 0
The PACs will implement the agreements with the farmers in transparent, fair, equitable, and consultative manner.
2018–2023 CPMOs, PACs
PAC operation budget
Generate additional income to farmers
2.8 Other benefits from the IB company to farmers, e.g., the IB company signs a buy-back or material-collection contract with farmer cooper-atives, then the latter signs contract with farmer HHs.
Farmers Target: Additional 75, 960 people (25,320 HHs) gaining ‘other benefits’ from the IB companies, of which 1,790 are poor HHs. Baseline: 0
The PACs will liaise with the farmers.
2018–2023 Contractors, CPMOs, PACs
PAC operation budget
Compliance with labor laws
2.9 The PACs will (i) comply with labor laws and core labor standards, including no child labor, minimum wages, equal pay to equal work, and
Farmers, PACs
Target: Ensure the compliance of all labor standards. Baseline: N/A
The Labor Bureau, the CPMO social focal point, and the PAC social focal point will monitor.
2018–2023 Contractors, CPMOs, PACs
PAC operation budget
33
Key Objectives
Main Task and/or Proposed Actions
Main Beneficiaries
and/or Stakeholders
Targets Method Timeframe Responsi-
bility Funds and Resources
occupational health and safety; (ii) provide training to workers on job-related skills and relevant health and safety practices.
3. Project Management Support (Including Consultation and Participation)
Ensure the implement-ation of the gender action plan (GAP), the land use rights transfer (LURT) agreements, the social development action plan (SDAP), and other social aspects
3.1 Appoint a focal person within the provincial project management office (PPMO), each CPMO, and each PAC who are trained to ensure the effective implementation of the GAP, the LURT agreements, the SDAP, and other social aspects, such as the grievance redress mechanism
CPMOs, PACs, and PPMO
Target: At least one focal person at the PPMO, each CPMO, and each PAC. 100% of the CPMO, PAC, and PPMO staff will receive training on the GAP, the LURT, the SDAP, etc. Baseline: 0
Project management training to the PPMO and the CPMOs for implementing the GAP, the LURT, the SDAP, etc. Relevant photo and records of training participants will be maintained.
2018–2023
CPMOs, External consultant, PACs, PPMO
Project capacity building and/or training budget
3.2 Collect baseline data disaggregated by sex, ethnicity, and geographic region
CPMOs, external consultant, the PACs, the PPMO, and village officials
Target: Disaggregated data by sex, ethnicity, and geographic region collected within 3 months of project implementation. Baseline: N/A
The PPMO social focal person will advise the CPMOs who will work with the PACs. The external consultant will train and monitor.
2018–2023
CPMOs, external consultant, PPMO
Project manage-ment budget
3.3 Recruitment of an external social specialist for regular monitoring and support to the PPMO and the CPMOs
External consultant, PPMO
Target: Hire a consultant for regular monitoring and support to the PPMO and the CPMOs, etc. Baseline: 0
Directly support the PPMO and the CPMOs for training and monitoring.
Intermit-tently over
5 years from 2018
to 2023
PPMO Project capacity building budget
Conduct monitoring and evaluation on the GAP and the SDAP
3.4 Monitoring on the GAP and the SDAP will be reported annually.
CPMOs, external consultant, PPMO
Target: annually. Baseline: N/A
Monitoring will be conducted and/or supported by an external expert, including field visits and interviews.
2018–2023 CPMO, external consultant, PPMO
Project consulting service budget
34
Key Objectives
Main Task and/or Proposed Actions
Main Beneficiaries
and/or Stakeholders
Targets Method Timeframe Responsi-
bility Funds and Resources
Reduce risks of conflicts between the PACs and the farmer HHs
3.5 Agreements between the farmer HHs and the PACs will be verified and monitored to ensure that they will be implemented as signed between the two parties.
Farmers in the project area and the PACs
Target: 100% of LURT agreements will be verified and monitored. Baseline: 0
CPMO and village committees will participate in the agreement process, including monitoring. External expert will support.
2018–2023 CPMOs, external consultant, farmers, PACs
Project manage-ment budget
Ensure the regular information disclosure about the implement-ation progress
3.6 Disclose the project contents and information locally, including the (i) participation of the farmers and the PACs in the project area in the implementation of the project; (ii) cooperation mechanism of the famers and the PACs; (iii) employment opportunities; and (iv) project training and information
County, city, and/or district agricultural bureaus; farmers; local TV stations; municipal and village committees; and the PACs
Target: 80% of the farmers are aware of the project activities. Baseline: N/A
Publicize the project to the local farmers; disclose project information by media; hold meetings with the local villagers; and prepare project information, print into booklets, and give out to the local villagers.
2018–2023 County agencies, CPMOs municipal and village committees, PACs
PAC operation budget
Establish the participation mechanism
3.7 Identify participating HHs and villages who will cooperate with the PACs and develop the partnership and/or cooperation mechanism; and establish an effective grievance redress mechanism, and publicize it to the stakeholders.
County and/or district TV stations, farmers, local government, the PACs, and village committees
Target: All the PACs will develop a cooperation and/or partnership with the local villages and/or farmers. Baseline: N/A
Hold public participation activities in consultation with the local farmers, including the poor and vulnerable people and the women, in the villages at an appropriate time; and timely inform the stakeholders, ensuring full information disclosure and participation; involvement of agencies, local governments, and the PACs; and the use of appropriate language and photos, if necessary.
2018–2023
County agencies, CPMOs, local government and village committees, PACs
PAC operation budget
Ensure ongoing consultation and participation
3.8 Ensure the consultation with and participation of local farmers during project implementation through focus group discussions,
CPMOs, farmers, PACs, village committees
Target: 100% local HHs will attend the focus group discussions through their representatives,
The CPMOs with the local Women Federation and Poverty Alleviation Office will organize the female farmers and villagers, and the poor
2018–2023 Contractor, CPMOs, local Women Federation, and Poverty
Project manage-ment budget
35
Key Objectives
Main Task and/or Proposed Actions
Main Beneficiaries
and/or Stakeholders
Targets Method Timeframe Responsi-
bility Funds and Resources
etc. to obtain and incorporate their views in the project design and implementation.
including 40% being women; and at least 10% from poor HHs. Baseline: N/A.
HHs to participate; record the meeting minutes; and record the number of participants in the meeting, including the female participants and the poor HHs.
Alleviation Office
H. Land Acquisition and Land Transfer (Chapter 8) 142. A separate due diligence report (DDR) on land use right transfer, land acquisition and resettlement was submitted by the PPTA social team and is being reviewed by EARD front office. Please refer to this separate LURT DDR for a full analysis of land issues involved in this project. A summary of the key findings are outlined in this chapter.
143. The DDR was prepared to assess both the legality and compliance of land being transferred directly to the participating enterprises, or under cooperation agreements with participating enterprises before commencement of project preparation, in terms of national laws and ADB policy. In addition, the DDR identified possible legal risks; reviewed public consultation process during contract agreement and information disclosure methods – including ADB policy focus on transparency, meaningful consultation and adequate and fair price during the negotiation. 144. To prepare the DDR, a survey team consisting of PMO staff and PPTA consultants conducted a number of surveys/interviews in 17 project counties/districts from March to April 2017. The team organized a number of consultation meetings and interviews with county level government agencies, townships, villages, enterprises, and farmers involved in land use rights transfer. The main contents of the DDR included: (i) overview of the actual situation of land use rights transferred; (ii) review of process of land use rights transfer, including the negotiation process, public participation and grievance redress mechanism, rent payment; and (iii) conclusions. 145. All 19 PACs will use land through (i) existing state-owned land occupation, (ii) rural collective land leased from village committees and/or villagers, (iii) rural collective land contracted by PACs themselves from village committees. Based on EIAs of all PACs, no land acquisition and resettlement (LAR) impacts are necessary in the scope of environmental protection for livestock raising PACs. Therefore, all 19 subprojects have been categorized as C in term of Involuntary Resettlement as per ADB’s Safeguard Policy Statement (SPS, 2009). 146. Among the 19 PACs, 14 PACs involved in LURT and signed 835 land contracts for 19,315.61mu (1,287.7 ha) land, within which 817 contracts with 4,503.745 mu signed directly with farmer families, 16 contracts with 14,676.66 mu land signed with village committees, 1 contract with 35.2 mu land signed with another enterprise and the remaining 1 contract with 100 mu land signed with a farmers’ cooperative. 147. All the 835 contracts of 14 PACs were based on voluntary, equal and open negotiation between the two counterparts of LURT and land cooperation. Agreements were reached on fairness and voluntariness. All contracts were in hard copies and signed formally with the signatures of different parts. The DDR LURT tabulates the status of all contracts signed. 148. Of the 14 LURT contracts with PACs, the contract duration varies from 8 to 70 years, with an average duration of 10.3 years. Amendments were made by the resettlement specialist to ensure the duration of lease contracts complied with ADB standards. See Duration of lease contracts in the LURT due diligence report (DDR) for details. 149. The annual rental rates of all land leasing contracts range from 2 yuan to 150 yuan per mu for barren land; 568.2 yuan per mu for construction land and 300 yuan to 1260 yuan per mu for farmland. The differences are due to the locations, output, demand and other factors. Of the 835 land contracts from the 14 PACs, rent payment cycles, such as one-time payment, annual payment, and 3 or 5-year payment cycles exist. There are 7 contracts with 5 PACs that have established a clear rental rate adjustment mechanism. Please refer to LURT DDR report for tabulated analysis of rental rates.
37
i. Approval status of land use of facility agriculture 150. According to the land laws and regulations of PRC that have been designed to protect cultivated land,8 if farmland will be used for agriculture facilities, such as shelter of livestock,
greenhouses, for aquaculture facilities, storage and housing, the approval must be obtained by the land user in advance. 151. In summary, 9 PACs needed to obtain approval of facility agriculture land use from local land bureaus, within which 7 PACs have obtained such approvals as of the end of May 2017 and the remaining 2 PACs should complete the review and approval of facility agriculture land use as soon as possible.
ii. Compliance of Land Contracts with the PRC and ADB Requirements 152. After the proposed corrective actions are taken by PACs it was confirmed that all the land contracts are generally compliant with RPC’s regulations on land use and ADB’s requirements on voluntary resettlement, on the basis of documents review and KIIs with PACs. See details in Table 30.
Table 30. Compliance review of land contracts with PACs
No. PAC Name No. of
Contracts Transparent
Consultation and/or
discussion Voluntariness
Adverse impact
Rent Fairness
Hard Copy Records
#2 Guangling Beiye
1 Y Y Y N Generally, yes
Y
#3 Shanxi Phoenix
53 Y Y Y N Generally, yes
Y
#4 Juxin Weiye 2 Y Y Y N Generally, yes
Y
#5 Heshun Lvhe 1 Y Y Y N Generally, yes
Y
#6 Fenxi Hongchang
2 Y Y Y N Generally, yes
Y
#7 Fushan Guheng
1 Y Y Y N Generally, yes
Y
#8 Quwo Lvheng
2 Y Y Y N Generally, yes
Y
#9 Shanxi Qierkang
1 Y Y Y N Generally, yes
Y
#10 Linfen Zhongde
2 Y Y Y N Generally, yes
Y
#11 Fuzhongyuan 1 Y Y Y N Generally, yes
Y
#12 Shilou Shude 1 Y Y Y N Generally, yes
Y
#14 Xinjiang Hefeng
765 Y Y Y N Generally, yes
Y
#16 Shanxi Kaisheng
2 Y Y Y N Generally, yes
Y
#19 Jishan Jinlong
1 Y Y Y N Generally, yes
Y
Total 835 Y Y Y N Generally,
yes
Source: PPTA consultants
8 Specified in Notice on some issues of improvement of the management of facility agriculture land, Ministry of Land and
Resources Management and Ministry of Agriculture, No.155, 2010
38
153. Conclusions and Follow-up Actions
1. Main Conclusions of DDR
154. No LAR Impact will be caused by the Project. The project is categorized as C in terms of resettlement as per ADB’s SPS (2009) and IR requirements.
155. A total of 6 PACs will use their existing state owned land to implement all or part of their subproject, within which 2 PACs (Guangling Beiye Edible Fungus Industrial Development Co., Ltd. and Yuncheng Xinke Taifang Vegetable Trading Co., Ltd.) still need to obtain the formal land use right certificate in a timely manner to ensure its land use is fully legal prior to the construction of this subproject.
156. Among the 19 PACs, 14 PACs involved in LURT and signed 835 land contracts for
19,315.61 mu (1,287.7 ha) land, within which 817 contracts with 4,503.745 mu signed directly
with farmer families, 16 contracts with 14,676.66 mu land signed with village committees, 1 contract with 35.2 mu land signed with another enterprises, and the remaining 1 contract with 100 mu land signed with a farmers’ cooperative.
157. Based on the land location, quality, output value, market demand and supply situation as well as other related factors, the rental rates of all land leasing contracts are annually from 2 yuan to 150 yuan per mu for barren land, 568.2 yuan per mu for construction land, and 300 yuan to 1260 yuan per mu for farmland respectively. All land contracts have appointed the rent payment cycles, such as one-time payment, annual payment, every 3 or 5 years payment, etc. While 7 contracts of 5 PACs have established clear rental rates adjustment mechanism.
158. Based on the documents review and KIIs, it’s confirmed that all the 835 contracts of 17 PACs were based on voluntary, equal and open negotiation between the two counterparts of LURT and land cooperation. Agreements were reached on fairness, legality and voluntariness. All land contracts were kept in hard copies and signed formally with the signatures of different parties.
159. Three key issues were identified on basis of initial screening and review on original land contracts, including: (i) 13 contracts of 9 PACs lacked letters of authorization of LURT from involved farmer families; (ii) the period of 3 contracts of 2 PACs exceeded the remaining years of the second round farmland contract in project areas, thus making the contact duration invalid as per relevant laws of PRC; (3) 9 PACs needed to obtain approval of facility agriculture land use from local land bureaus. With the assistance of land and resettlement specialist, the necessary authorization letters from involved farmer families and supplementary corrective clauses on inappropriate contract duration have been provided by PACs to resolve the first two issues. However, only 7 of 9 PACs have obtained approvals of facility agriculture land use as of the end of April 2017, while the 3 PACs (Shanxi Kaisheng Fertilizers Group Co., Ltd.and Shanxi Jilong Group Feed Co., Ltd.) still need to obtain the formal land use right certificate in time.
39
2. Follow-up Actions (or Action Plan)
Complete the approvals of state-owned land use certificate and facility agriculture land use in a timely manner
160. Guangling Beiye Edible Fungus Industrial Development Co. and Yuncheng Xinke Taifang Vegetable Trading Co., Ltd will obtain the formal state-owned land use right certificate by the end of June 2017 to ensure its land use is fully legal before the implementation of the project. Two PACs, including Shanxi Kaisheng Fertilizers Group Co., Ltd., and Shanxi Jilong Cultivation Company Ltd, will complete the review and approval of facility agriculture land use by the end of June 2017. Make the GRM Operational on Land Use under continuous operation during the preparation and implementation stage of the project
161. GRM has been established in land contracts and this report. Such GRM on Land Use will be put in continuous operation during the implementation stage of the project to ensure all the potential disputes on land use can be redressed timely, legally, fairly and effectively. And all the complaint and grievance records will be reported to Shanxi PMO and ADB in time. Strengthen the capacity of relevant institutes and their staff on management and coordination of LURT and land cooperation
162. Focal persons will be appointed in PMOs in different levels and each PAC. Trainings on the requirements of land use, LURT and land cooperation of PRC and ADB will be provided continuously by the PMO’s social specialists for those responsible institutes and staff. Establish internal and external monitoring and evaluation system on land use during the implementation stage of the project
163. For internal monitoring, the actual land use and LURT situation, rental payment status, complaint and grievance records (if any) will be included as a separate section in the progress reports of the project which will be submitted to ADB. Meanwhile, an external social monitoring report, including the section of land use, LURT and land cooperation, will be prepared and submitted by external monitor to Shanxi PMO and ADB semi-annually during the implementation stage of the project.
40
I. Grievance Redress Mechanism 164. A Grievance Redress Mechanism (GRM) has designed by the social PPTA team to provide a mechanism to monitor social issues as they arise during implementation. Consultation and information disclosure was undertaken as part of the social and environmental due diligence by the consultants who discussed and raised awareness of the project with villagers. 165. Initial consultation and information disclosure as part of the safeguards assessment revealed few expected grievances to derive from the project. If, however, unforeseen issues occur an effective and transparent mechanism to record complaints and grievances needs to be established by the PMO. A mechanism which can cascade downwards from PMO to the county level and to the project will need to be established to receive and facilitate resolution of project affected person grievances on the project’s environmental or social performance. 166. The grievance mechanism should be transparent, credible, and predictable. Project affected persons need a process which is legitimate, reliable, transparent and cost-effective. Critically, the GRM should be scaled to the risks of the project. The project agencies will ensure that potentially affected communities are informed on the GRM at an early stage. Overview: The Proposed GRM 167. The CPMOs will coordinate the GRM at the local level. The CPMO social officers will (i) instruct the concerned PACs of their responsibilities in the GRM; (ii) establish liaison with PACs to ensure that all complaints received and immediately resolved by them are reported, and that more difficult issues are referred to the CPMO and set up their own recording system for gathering GRM data and passing it on to the PMO 168. Prior to project construction, the CPMO will notify all relevant agencies about the project and the GRM so that if these agencies receive complaints, they know to contact the CPMO and follow up as necessary. GRM for Land Use Transfer and Land Cooperation Complaints 169. Stage 1 (Stage 1 (maximum 5 days). If a concern arises, the affected person or group submits a written petition or oral complaint to the PAC and/or the village committees who will aim to resolve the issue of concern directly with the PACs designated social liaison person. If the complaint is eligible the following steps are taken.
(i) Step (i) PAC and/or the village committees receives complaint and assesses if the complaint is eligible. Eligible is defined as if the (i) the complaint pertains to the project; and (ii) the issues fall within the scope of social issues that the GRM is authorized to address.
(ii) Step (ii) Within 2 days of receiving the complaint, PAC and/or the village
committees will provide clear advice to the affected person or group on the proposed corrective action, with a given date of action. The corrective action(s) will be implemented no later than 5 days from the issuance of the letter from PAC. For a verbal complaint, the and/or Village Committee must take written records in a complaint register. If the complaint is successfully solved, the PAC and/or the Village Committee informs CPMO which records the grievance redress process in its central register. If the corrective action cannot be easily addressed by the PAC and/or the village committees then the complaint will be referred to the CPMO and Stage 2 actions.
41
(iii) Step (iii) The PAC submits all documentation on the case to CPMO. This will include making a written record of any oral complaints.
170. Note, if a complaint is assessed as ineligible, the PAC or Village Committee meets with the affected person and informs them and will ask the affected person if they would like to be referred to relevant agencies such as the Agriculture Bureau.
171. Stage 2 (maximum 10 days). For complaints not resolved in Stage 1
(i) Step (i): The CPMO social focal point meets with the affected person or group to discuss the grievance and to seek a possible solution. The responsible agency (e.g., PAC, village committee, contractor) implements the agreed solution. The outcome is reported to the CPMO within 5 working days of receipt of this advice.
(ii) Step (ii): If step (i) is unsuccessful (i.e. no solution can be identified or the
affected person/group is unsatisfied with the proposal), the CPMO will refer the complaint to the provincial PMO. The provincial PMO will work with all stakeholders (CPMO, APs, county administrative bureaus) to identify an acceptable solution. The agreed solution will be implemented within 5 days and progress reported to the PMO.
172. Stage 3 (maximum 10 days). For complaints not resolved in Stage 2, Stage 3 is initiated, which follow the same procedures as stage 2. The provincial PMO will take lead to address and solve the complaints, or coordinating with its level project leading group and administrative bureaus. 173. In any stage, affected persons (APs) can file an action in a court in accordance with the relevant Laws of the PRC. Affected persons can decide to go through the legal system directly or may decide not to use project level grievance channels. An aggrieved person may also express grievance to the external monitor, who would then report to it to PMO and ADB. Alternatively, the aggrieved person(s) may submit a complaint to the ADB project team to try to solve the problem. If good faith efforts are still unsuccessful, and if there are grievances that stemmed from a violation of ADB’s safeguard policy, the affected persons may appeal directly to ADB in accordance with ADB’s accountability mechanism. All agencies will accept grievances and appeals from the APs for free, and costs reasonably incurred will be disbursed from the contingencies.
42
J. Participation Strategy, Monitoring, and Evaluation
1. Consultation during Project Preparation 174. Extensive consultations were conducted during project preparation, using a mixture participatory methods during the social analysis led work by the PPTA team. Within the project area, a total of 56 villages from 25 townships and 6 project counties were selected, by the Social Team. In addition to site visits by the PPTA social team, 11 site visits to the PACs were undertaken by the PPTA environment team and 11 site visits were undertaken by the PPTA IB team. An additional 15 domestic environmental consultations where undertaken by the Design institute to deliver the FSRs with the expectation that more consultations will be undertaken as the project components become finalised. 175. Interviews of local officials and village representatives, as well as focus group discussions were carried out in these villages. In addition, a sample household survey was conducted among 213 households in these villages. Local agencies interviewed include CPMOs, SPADO, local poverty alleviation offices, project agricultural companies and cooperatives. Through a series of group discussions, the household survey, and key informant interviews among various stakeholders, the basic objectives and content of the project were introduced and various comments and suggestions for the project collected.
1. Expectation and Attitudes of Local Residents 176. Through discussions and consultations with stakeholders the project activities will bring significant social benefits to the local communities with few negative impacts. From the FGDs held with farmers working for PACs (as suppliers or customer of PAC output) 100% of participants where in the favour of the project, citing an increase in income and employment opportunities as their reason for supporting the project. The household surveys undertaken with 213 households showed a similar level of support for the project (95%). The household surveys also reflected the opinions taken from the village meetings with farmers with 68% expect the project will increase household income, 80 % expect the project to promote local employment opportunities and 75% of project affected households consider the project will improve local agricultural production. 177. From the 9 village FGDs, one of the most frequent requests from farmers was to receive training in agriculture or livestock production/rearing from the PACs. Other suggestions that were made included, improving local roads and receiving guaranteed prices from the PACs. 178. Table 31 summarizes the public participation and interviews which took place during the project preparation stage.
Table 31: Public Participation and Consultation during Project Preparation
Time Participants Mode Location
Participants Purpose
Number of Interviews
Held
Total participant
Female
Feb 2017 (6-16)
Farmer meeting village farmers in project area PMO social specialist, PPTA social specialist CPMO, PPTA social team,
Socio-economic Focus Group Discussion (FGD) ‘survey’ and interview
5 project affected villages
6 50 40%
- To Pilot the questionnaire and FGD approach - Introduce the Shanxi Agriculture Value Chain project
background and objectives. - To understand living standard of the farmers, and their
economic status; and farming methods. - Learn about the acceptance and view of the project - Identify the ex-ante impacts on farmers, including for women
vulnerable groups (including the poor and low income) - Identify adverse impacts and consider benefit measures - To learn the proposals and views on women and poor
households
PAC meeting PMO and PPTA social specialists, Environmental PPTA team; PPTA IB team; CPMO, PPTA social team
Focus Group Discussion (FGD) interview
On-site
15 (includes
repeat visits and different PPTA teams interviewing
PACs)
Average 2 senior staff per meeting
40%
- To pilot FGD approach - To understand the needs and perceptions of PACs. - Introduce the objectives of ADBs social, poverty gender and
land components against those of the project investment - To learn the willingness and views of the farmers - To discuss ex-ante employment and income expectations - To obtain commitment/assurances from PAC on targets. - 11 PACs interviewed by PPTA environment team to review
FSR data
CPMO Meeting Shanxi PMO, CPMO, PPTA Social team
Informal Discussions
On-site 5 3 0
- Introduce the background and objectives of social / poverty component of ADB in relation to the project to CPMO - To learn the social context of the project area - To have the knowledge of local agricultural projects being implemented by local government - To understand current proposals of local government regarding the implementation of the project - To learn the views of other government agencies
March 2017 (6-21)
Farmer meetings village farmers in project area PMO social specialist, CPMO, PPTA social team,
Socio-economic Focus Group Discussion (FGD) ‘survey’ and interview
5 project affected villages
5 90 40%
- Introduce the Shanxi Agriculture Value Chain project background and objectives.
- To understand living standard of the farmers, and their economic status; and farming methods.
- Learn about the acceptance and view of the project - Identify the ex-ante impacts on farmers, including for women
vulnerable groups (including the poor and low income) - Identify adverse impacts and consider benefit measures - To learn the proposals and views on women and poor
households
PAC meeting: PMO social specialist, CPMO, PPTA social team; PPTA environment team; PPTA IB team
Focus Group Discussion (FGD) interview
On-site 15 Average 2 senior staff per meeting
30%
Introduce the background and objectives of the project To learn the willingness and views of the farmers Identify the impacts on farmers, including women and vulnerable group
44
Time Participants Mode Location
Participants Purpose
Number of Interviews
Held
Total participant
Female
Identify mitigate adverse impacts and enhance benefit measures To learn the proposals and views on women and poverty population
CPMO Meeting: Shanxi PMO, CPMO, PPTA Social team
Informal Discussions
On-site 5 3 0
Introduce the background and objectives of the project To learn the basic situation of the project area To learn the views of various government agencies To have the knowledge of local agricultural projects being implemented by government To learn the proposals of local government on the implementation of the project To learn the basic situation, needs and perceptions of enterprises
April 10-18 (2017)
Farmer households PPTA Social team
Household survey
6 project counties (25 townships/ 56 villages)
213 households
400+ 50%
- Introduce the Shanxi Agriculture Value Chain project background and objectives.
- To learn household opinion and acceptance of the project - To understand living standard of the farmers in the ‘wider’
project area and their economic status - Identify the ex-ante impacts on farmers, including for women
vulnerable groups (including the poor and low income) - Identify adverse impacts and consider benefit measures
Farmer meetings: village farmers in project area PMO social specialist, CPMO, PPTA social team,
Focus Group Discussion (FGD) interview
4 project affected villages
72 24
- To learn about the concerns, attitudes, willingness, opinions, options of involved household and other stakeholders.
- To obtain key information on the local practices and experiences of LURT in project areas, analyse the potential risks and difficulties in LURT and/or LAR, and sought for effective measures to overcome these challenges
-
PAC meetings PMO social specialist, CPMO, PPTA social team; PPTA environment team; PPTA IB team
Focus Group Discussion (FGD) interview
4project affected villages
15 (includes
repeat visits and different PPTA teams interviewing
PACs)
35 10
- To learn the land types, land status, land ownership, and land outputs which is involved in land lease of PACs
- To collect and review the necessary documents on land use, LURT as well as land cooperation
Note：The social survey team was divided into two groups during April 10-18, 2017.
179. During PPTA consultations, both PACs and farmers provided comments and suggestions on the design and expectation that the project may bring. For the farmers, there was some limitation in the suggestions in ex-ante benefits from the investment as the PPTA team in many cases were informing them of the project for the first time. Once the project was explained, suggestions were raised by the group. Furthermore, using a participatory FGD approach the PPTA team raised guided questions to draw out specific responses such as: “What additional things should the company provide to make the project more successful to the poor and low income people in the village?” This question was followed up with suggestions that could improve the relationship between farmers and PAC or strengthen the project, farmer, or village. From the consultations, farmers raised some issues for consideration which are listed below: 180. Comments from Farmers
(i) Provide farmers with training that will increase yields and outputs. They hoped more training will be provided on farming techniques, animal husbandry, and new product promotion, such as on the use of fertilisers, modern rearing or planting techniques.
(ii) On land use transfers agreements, villagers were supportive recognising that this could provide an additional income for households.
(iii) On employment opportunities, they hope that during construction, temporary
work opportunities will be provided to local farmers.
(iv) Regarding information disclosure of the project, farmers requested that details of project scope from the PAC, their timeframe and agreed outputs be informed to all concerned households in the project area.
181. Comments from PACs. The guided interview (see Appendix 2 Questionnaire to PAC) with the PAC provided an understanding of operations and relationship with farmers.
Questions on income levels, employment, systemic change and corporate social responsibility components were raised. Of particular interest, asking the PACs what commitments they would aspire to upon receipt of the loan. Some of the main points are raised below:
(i) There was a commitment to increase employment figures (reach) to project beneficiaries (farmers).
(ii) There was a commitment to increase income (depth) to project beneficiaries (iii) Some companies offered to continue to provide free transportation or collection
services of product from farmers. (iv) Provide annual training to farmers on technical matters (v) A target to hire more women (vi) Provide subsidised equipment to rent to farmers (vii) Pay incentives for good performance. A higher price is paid by the PAC to the
farmer for high quality product. It was noted that farmers with managerial skills are paid more to train other farmers.
46
2. Consultations and Participation during Project Implementation 182. Consultation is continuous activity with project design. To encourage meaningful participation by project stakeholders, enhance project benefits, and ensure effective implementation of all project activities, consultations with targeted groups are proposed. This should include consultations with local villages on the scope and schedule of the PAC. The purpose of such consultations is to ensure beneficiaries farmers, particularly women and low income and poor households have a basic understanding of the proposed sub-project activities of each PAC. Also, for any construction work it will be essential to obtain their endorsement and monitor compliance to any land use transfer agreements which are in place. Finally, consultation between PAC and farmers will benefit both parties during and after implementation as information on project is shared. Yet critically consultation reduces the risk exposed to the project which could occur on a number of social issues such as land transfer agreements being breeched, delay in payments 183. Measures to ensure the participation of farmers were considered and raised during the meetings with PACs and the farmers. The main points are included below and are reflected in the SDAP:
(i) Consultation with farmers should be held on regularly, to understand their problems, needs and priority issues during project implementation and provide timely help (and therefore reduce project risk);
(ii) Encourage the participation of women and vulnerable groups in the PACs and
in the farmer cooperatives. (iii) Appoint and train focal person within PPMO/CPMO and PACs trained to ensure
effective implementation of the content of the SAP, GAP, LURT and any social aspects, such as GRM
(iv) In the internal and external monitoring and evaluation process, consult with
farmers (men, women, and the poor), PACs and cooperative. (v) Recruitment of an external social specialist for regular monitoring and support
to PPMO, CPM during the project implementation period. (vi) Disclose project contents and information locally, including: participation of
farmers and PACs in project area in the implementation of the project; cooperation mechanism of the famers and PACs; Disclosure on employment opportunities; Project training and information.
(vii) Identify participating households and villages who cooperate with PACS and
develop partnership/cooperation mechanism. Establish an effective Grievance redress mechanism and publicize this to stakeholders.
(viii) Ensure consultation with and participation of local farmers during project
implementation through focus group discussions, etc. to obtain and incorporate their views in the project design and implementation.
3. Monitoring and Evaluation Plan 184. The purpose of this section is to present the participatory monitoring and evaluation approach for the project. It is expected that the monitoring and evaluation will generate data and information required to assess and quantify the social and poverty benefits of the project. As implementation progresses, it will also monitor the processes for project implementation. 185. The objectives of the monitoring and evaluation are to set out a method to assess changes in the social and economic conditions of the project area after project implementation. It will generate:
(i) Data and information to identify effects and project impact including qualitative information to describe social changes;
(ii) Provide internal monitoring on GAP, SAP will be reported semi-annually. (iii) Agreements between households and PACs will be verified and monitored to
ensure they will be implemented as signed between two parties (iv) Analysis and documentation of the results for future planning of agricultural
development; (v) Initiation of participatory approaches needed to plan and implement
complementary activities; and (vi) Focus on key actions and processes learned from the project for replication in other
areas of project counties/districts. 186. Monitoring and evaluation will cover the process of SDAP and GAP. The proposed approach will use participatory assessment methodologies and techniques supported by statistical data. 187. The identification of key indicators to monitor the project impact will be a part of the monitoring plan. The monitoring program will be long term, starting from the beginning of the project. Once initiated, monitoring will continue. The IAs’ and EA’s staff responsible for monitoring will regularly visit the sites at appropriate intervals and record key changes and impacts in close participation with people in the affected areas. 188. The collection of data should be kept to a minimum and concentrate on data that is known to be readily available. The following list provides some broad indicators that are of greatest importance:
(i) GDP per capita; (ii) Rural income per capita; (iii) Income per capita in the project affected villages; (iv) Rural poverty incidence in the project area; (v) Illiteracy rate; (vi) The number of jobs created directly by PACs (for women, poor, full time, part
time and potentially low income groups, if an agreement can be reached over what is the low income poor rate in the rural counties)
(vii) The number of jobs created directly in the value chain from the PACs 189. Other indicators may be drawn from the SDAP and GAP. The monitoring program should begin after the first year of the project and then continue semi-annually, which will provide baseline information and will allow for the commencement of community participation.
48
190. Surveys will be carried out in villages located in the area affected by the project. The villages should be monitored over a continuous period. A survey team within the EA or IA should be set up to take responsibility for this task. One training session will be conducted for participating staff, which will be organized by the external social specialist and attended by staff that will take part in the monitoring. 191. At the end of each assessment a monitoring report should be drafted highlighting the main conclusions and the next steps forward. A summary highlighting the main lessons learned should be prepared and circulated to the EA/IA and ADB.
49
K. Conclusions 192. The proposed Shanxi Inclusive Agriculture Project will have effective, immediate and direct impact for the 17 project counties/districts, in 33 villages where the project PACs are located and/or rent land from. There were 17,500 households and 57,500 persons in the 33 villages. Among them, 63.5% are rural labors, and 9.4% are poor. However, the benefit reach of the project goes beyond the immediate location of the PACs, which will benefit farmers supplying and purchasing raw materials from the PACs in 51 towns/townships and 122 villages. 193. About an additional 209,100 people from 73,250 households will benefit from the project, including 102,020 women and 5,128 poverty households. The project (IB and AVC companies) will be able to target 37,429 low income households. With PACs technical guidance and cooperation (from land rent, land shares and contract farming), income of farmers will increase and these families will participate in the project during construction. In addition to income and employment opportunities, the project will improve agricultural production facilities. 194. During project construction, contractors and PACs will provide temporary and permanent jobs for local people. Directly involved PACs and indirect farmer cooperatives in the project are also beneficiaries, but the core beneficiaries are farmers, particularly women. There will be an increase share in the number of poor families who will benefit from the project. Due to lack of funds of poor families, they are currently unable to purchase inputs, and lack technology; through Enterprise drive and cooperation, which will reduce poverty rate in project areas. In addition, the project will provide the families with free agricultural production and other training, particularly for women and poor families. Thus, agricultural production management and technology will improve. 195. The project will not involve permanent and temporary land acquisition and house demolition activities. 196. The Project will involve a total voluntary use of 19857.71 mu of land areas. This includes two types of land ownerships: state owned land accounting for only 2.7% of total land area and village collective owned land accounting 97.3% of the land areas. 197. Based on an understanding of basic social and economic conditions of project beneficiaries, and potential positive and negative impacts of the project, a set of suggestions were proposed to improve project design to minimize negative impacts and, more importantly, to increase social benefits to the local communities and enhance poverty alleviation impacts through project implementation. These suggestions, incorporated in an SDAP and GAP, are a mix of mandatory and suggested actions that are intended to amplify the pro-poor impacts of the project. The actions have been formulated as a result of the analysis in this Social and Poverty Assessment. Both SDAP and GAP ensure that poor, women, and vulnerable groups will benefit equally from the project, and promote equal access to increase social inclusion and employment opportunities. The SDAP and GAP will be implemented by the CPMOs under assistance of social development and gender experts. PPMO will monitor and supervise implementation of these plans.
Appendix 1: Core Labor Regulation Due Diligence⑨
No.
1 2 3 4 5 6 7 8 9 10 11
Project Municipality Yuncheng Linfen
Project County Yanhu Xinjiang Yuanqu Ruicheng Jishan Quwo Yaodu Fenxi Fushan
Project Implementing Unit/PACs
Xinketaifang Kaisheng
Xinjiang Vegetable Company
Hefeng
Shanlihong Tianzhirui Jinlong
Livestock Lvheng Zhongdemuye Hongchang Guhuangmuye
Nature of State-owned enterprises
enterprise Private enterprises √ √ √ √
√
Joint venture √ √ √ √ √ √
Total staff number (current?) 100 500 48 43 126 210 405 40 82 800 45
Total 15 20 8 7 12 20 31 10 7 30 5
Managerial Female number 4 5 15 2 6 7 2 3 3 8 2
staff Number for minority 0 0 0 0 0
Number for poor family
5 22 2 1 1 12
Total 16 120 10 8 29 20 130 14 9 235 5
Technical staff Female number 2 70 4 3 21 9 20 8 2 480 1
Number for minority 0 0 0 0 0 4
Number for poor family
50 4 5 0 2 485
Total 69 360 30 28 85 170 244 16 66 535 35
Other staff Female number 52 90 35 12 69 Over 1000 140 0 20
Number for minority 0 0 2 0 0
Number for poor family
90 45 200 15 323 0 18
Unionized workers Contracted full-time
31 500 20 45 126 210 30 55 783
⑨ Data collected for labor regulations, covered all 24 companies reflecting the original design of the project. The data presented here represents the amended total of sub-projects *Empty cells indicate no data provided, or insufficient data for analysis.
51
No.
1 2 3 4 5 6 7 8 9 10 11
Project Municipality Yuncheng Linfen
Project County Yanhu Xinjiang Yuanqu Ruicheng Jishan Quwo Yaodu Fenxi Fushan
Project Implementing Unit/PACs
Xinketaifang Kaisheng
Xinjiang Vegetable Company
Hefeng
Shanlihong Tianzhirui Jinlong
Livestock Lvheng Zhongdemuye Hongchang Guhuangmuye
Non-unionized workers
Contracted full-time 0 0 18 350 0 210 27 0
Contracted workers 100 80 21 0 0 200 0 30
Temporary staff
Not contracted workers
0 329 0 1000 0
Number of workers aged
Number of workers aged 14-16
0 0 0 0 0 0 0 0 0 0 0
14-16 Number of workers aged < 14
0 0 0 0 0 0 0 0 0 0 0
A. Compliance with Labor Law and applicable regulations
1. Has the company established rules and regulations based on current laws, to guarantee the labor to enjoy its rights and fulfill the obligations?
Y Y Y Y Y Y Y Y Y Y Y
2. Has the company establish labor safety and health standard according to current occupational safety and health standard, and require the labors to strictly abide by the rules?
Y Y Y Y Y Y Y Y Y Y Y
3. Has the Company updated its internal labor procedures within the past three years to comply with legislative changes, if any?
Y Y Y Y Y Y Y Y Y Y Y
4. Has the Company released updated rules and regulations?
Y Y Y Y Y Y Y Y Y Y Y
B. Employment contracts
52
No.
1 2 3 4 5 6 7 8 9 10 11
Project Municipality Yuncheng Linfen
Project County Yanhu Xinjiang Yuanqu Ruicheng Jishan Quwo Yaodu Fenxi Fushan
Project Implementing Unit/PACs
Xinketaifang Kaisheng
Xinjiang Vegetable Company
Hefeng
Shanlihong Tianzhirui Jinlong
Livestock Lvheng Zhongdemuye Hongchang Guhuangmuye
1. Does your company sign employment contracts with every employee?
Y Y Y Y Y Y Y Y Y Y Y
2. Has the Company conducted negotiation with labors when contract signing?
Y Y Y Y Y Y Y Y Y Y Y
3. Is the contract provided by social security agencies? If not, has the contract been reviewed by labor union and social security agencies?
Y Y Y Y Y Y Y Y Y Y Y
4. during the employment and contract signing, has the Company informed the employee about the working content, working conditions, places, occupational hazards, production safety conditions, labor compensation, and other conditions required by the employees for understanding?
Y Y Y Y Y Y Y Y Y Y
5. Whether the Company seized ID card or other certificate, and require guarantee from employee?
N N N N N N N N N N
6. Whether the Company pay for the social insurance for full-time employees?
Y Y Y Y Y Y Y Y
7. Has the Company bought accident insurance for temporary workers?
Y Y Y Y Y Y Y Y
C. Core labor regulations
53
No.
1 2 3 4 5 6 7 8 9 10 11
Project Municipality Yuncheng Linfen
Project County Yanhu Xinjiang Yuanqu Ruicheng Jishan Quwo Yaodu Fenxi Fushan
Project Implementing Unit/PACs
Xinketaifang Kaisheng
Xinjiang Vegetable Company
Hefeng
Shanlihong Tianzhirui Jinlong
Livestock Lvheng Zhongdemuye Hongchang Guhuangmuye
1. Are there any policies and procedures relating to employment and labor regulation at the workplace approved by the company’s management?
Y Y Y Y Y Y Y Y Y Y
2. Are there any statements ensuring equal employment opportunities in these policies?
Y Y Y Y Y Y Y Y Y
3. Are there any statements on equal wages for all workers of the same level in these policies?
Y y Y Y Y Y Y Y Y
4.Are there any statements on prevention of labor discrimination in these policies? If yes, please specify the preference.
N N N N N N N N N N
5. Are there any adopted and implemented Occupational Health and Safety procedures, to prevent the occurrence of accident? If yes, what is the frequency? When is the last training?
Y Y Y Y Y Y Y Y Y Y
6. Has the Company arranged medical check for employees? What is the frequency? Who is paying?
Y Y Y Y Y Y Y
7. Has the Company implemented the employee daily working hours according to labor laws? If yes, how long is the daily working hours?
Y Y，8
hours
Y，8
hours Y Y，8 hours
Y，8
hours Y
Y，8
hours Y Y，8 hours
54
No.
1 2 3 4 5 6 7 8 9 10 11
Project Municipality Yuncheng Linfen
Project County Yanhu Xinjiang Yuanqu Ruicheng Jishan Quwo Yaodu Fenxi Fushan
Project Implementing Unit/PACs
Xinketaifang Kaisheng
Xinjiang Vegetable Company
Hefeng
Shanlihong Tianzhirui Jinlong
Livestock Lvheng Zhongdemuye Hongchang Guhuangmuye
8. Has the Company require its employee extend working hours often? If yes, generally how long?
N Not often, N N N Not often N Not
often N N
9. Has the Company paid for the extension working time? What is the remuneration standard as to salary?
Y Y Y Y Y Y Y Y Y Y
10. Whether the Company will conduct negotiation with Trade Union or employee if the working hour extension is necessary for the production?
Y Y Y Y Y Y Y Y Y Y
11. Does the company use forced labor ?
N N N N N N N N N N
12. Are there any employees under the age of 16? If yes, please specify the number.
N N N N N N N N N N
13. Does the company sign contract with juvenile?
N N N N N N N N N N
14. Are there any vocational training systems implemented? If yes, when is the time for last training? And what is the training content?
Y Y Y Y Y Y Y Y Y Y
D. Freedom of association and collective bargaining?
1. Are workers in your company members of a trade union?
Y Y Y Y Y Y Y Y Y Y
2. Do the female workers join the trade union?
Y Y Y Y Y Y Y Y Y Y
55
No.
1 2 3 4 5 6 7 8 9 10 11
Project Municipality Yuncheng Linfen
Project County Yanhu Xinjiang Yuanqu Ruicheng Jishan Quwo Yaodu Fenxi Fushan
Project Implementing Unit/PACs
Xinketaifang Kaisheng
Xinjiang Vegetable Company
Hefeng
Shanlihong Tianzhirui Jinlong
Livestock Lvheng Zhongdemuye Hongchang Guhuangmuye
3. Are there any staff meeting for discussion any regulations related its interest, such as remuneration, working hours, rest and vacation, safety and healthy, insurance, vocational training and labor quota management?
Y Y Y Y Y Y Y Y Y Y
4. Do women participate in collective bargaining processes?
Y Y Y Y Y Y Y Y Y Y
E. Conclusion
Does the company comply with:
1.PRC Labor Law Y Y Y Y Y Y Y Y Y Y
2. PRC Labor Contract Law Y Y Y Y Y Y Y Y Y Y
3. PRC Labor Regulations Y Y Y Y Y Y Y Y Y Y
4. PRC Trade Union law and Labor Union regulations
Y Y Y Y Y Y Y Y Y Y
No. 12 13 14 15 16 17 18 19
Project Municipality Lingfen Jinzhong lvliang Changzhi Datong
Project County Xiangning Heshun Shilou Liulin Qinxian Datong Guangling
Project Implementing Unit Qierkang Juxinweiye Lvhe Shudezaoye
Fuzhongyuan
Qizhouhuang
Phoenix Beiye
enterprise Private enterprises √ √ √ √ √ √ √ √
Joint venture
Total staff number 185 160 45 200 20 400 200 78
Total 37 14 3 5 4 35 45 8
Managerial Female number 13 4 2 2 1 15 15 4
staff Number for minority 0 10 0 0 0
Number for poor family
0 0 0 2 0 0
Total 28 26 5 38 4 20 10 8
Technical Female number 14 0 0 2 10 3
staff Number for minority 0 0 0 0 0
Number for poor family
0 0 0 2 2 2 0
Total 120 120 37 157 12 345 145 62
Other staff Female number 38 45 0 150 4 7 80
Number for minority 0 0 0 0 0
Number for poor family
83 10 20 130 18 3 0
Unionized workers
Contracted full-time 0 160 0 150 0 0
Non-unionized workers
Contracted full-time 185 160 0 0 0
Contracted workers 75 50 0 0 7
Temporary staff
Not contracted workers
0 0 0 0
Number of workers
Number of workers aged 14-16
0 0 0 0 0 0
aged 14-16 Number of workers aged < 14
0 0 0 0 0
1. Has the company established rules and regulations based on current laws, to guarantee the labor to enjoy its rights and fulfill the obligations?
Y Y Y Y Y Y Y Y
2. Has the company establish labor safety and health standard according to current occupational safety and health standard, and require the labors to strictly abide by the rules?
Y Y Y Y Y Y Y Y
3. Has the Company updated its internal labor procedures within the past three years to comply with legislative changes, if any?
Y Y Y Y Y Y Y Y
4. Has the Company released updated rules and regulations?
Y Y Y Y Y Y Y Y
B. Employment contracts
1. Does your company sign employment contracts with every employee?
Y Y Y Y Y Y Y Y
57
No. 12 13 14 15 16 17 18 19
Project Municipality Lingfen Jinzhong lvliang Changzhi Datong
Project County Xiangning Heshun Shilou Liulin Qinxian Datong Guangling
Project Implementing Unit Qierkang Juxinweiye Lvhe Shudezaoye
Fuzhongyuan
Qizhouhuang
Phoenix Beiye
2. Has the Company conducted negotiation with labors when contract signing?
Y Y Y Y Y Y Y Y
3. Is the contract provided by social security agencies? If not, has the contract been reviewed by labor union and social security agencies?
Y Y Y Y Y Y Y Y
4. during the employment and contract signing, has the Company informed the employee about the working content, working conditions, places, occupational hazards, production safety conditions, labor compensation, and other conditions required by the employees for understanding?
Y Y Y Y Y Y Y Y
5. Whether the Company seized ID card or other certificate, and require guarantee from employee?
N N N N N N N N
6. Whether the Company pay for the social insurance for full-time employees?
Y Y Y Y Y Y Y
7. Has the Company bought accident insurance for temporary workers?
Y Y Y Y Y Y Y
C. Core labor regulations
1. Are there any policies and procedures relating to employment and labor regulation at the workplace approved by the company’s management?
Y Y Y Y Y Y Y Y
2. Are there any statements ensuring equal employment opportunities in these policies?
Y Y Y Y Y Y Y Y
3. Are there any statements on equal wages for all workers of the same level in these policies?
Y Y Y Y Y Y Y Y
4.Are there any statements on prevention of labor discrimination in these policies? If yes, please specify the preference.
N N N N N N N N
5. Are there any adopted and implemented Occupational Health and Safety procedures, to prevent the occurrence of accident? If yes, what is the frequency? When is the last training?
Y Y Y Y Y Y Y Y
6. Has the Company arranged medical check for employees? What is the frequency? Who is paying?
Y Y Y
58
No. 12 13 14 15 16 17 18 19
Project Municipality Lingfen Jinzhong lvliang Changzhi Datong
Project County Xiangning Heshun Shilou Liulin Qinxian Datong Guangling
Project Implementing Unit Qierkang Juxinweiye Lvhe Shudezaoye
Fuzhongyuan
Qizhouhuang
Phoenix Beiye
7. Has the Company implemented the employee daily working hours according to labor laws? If yes, how long is the daily working hours?
Y Y Y Y Y Y Y Y
8. Has the Company require its employee extend working hours often? If yes, generally how long?
N N Not often N N Not often, sometimes
N Not often, sometimes
9. Has the Company paid for the extension working time? What is the remuneration standard as to salary?
Y Y Y Y Y Y Y Y
10. Whether the Company will conduct negotiation with Trade Union or employee if the working hour extension is necessary for the production?
Y Y Y Y Y Y Y Y
11. Does the company use forced labor ?
N N N N N N N N
12. Are there any employees under the age of 16? If yes, please specify the number.
N N N N N N N N
13. Does the company sign contract with juvenile?
N N N N N N N N
14. Are there any vocational training systems implemented? If yes, when is the time for last training? And what is the training content?
Y Y Y Y Y Y Y Y
1. Are workers in your company members of a trade union?
Y Y Y Y Y Y Y Y
2. Do the female workers join the trade union?
Y Y Y Y Y Y Y Y
3. Are there any staff meeting for discussion any regulations related its interest, such as remuneration, working hours, rest and vacation, safety and healthy, insurance, vocational training and labor quota management?
Y Y Y Y Y Y Y Y
4. Do women participate in collective bargaining processes?
Y Y Y Y Y Y Y Y
E. Conclusion
Does the company comply with:
1.PRC Labor Law ? Y Y Y Y Y Y Y
2. PRC Labor Contract Law ? Y Y Y Y Y Y Y
3. PRC Labor Regulations ? Y Y Y Y Y Y Y
4. PRC Trade Union law and Labor Union regulations
Y Y Y Y Y Y Y Y
Appendix 2 Questionnaire to PACs
Guiding questions for
social impact assessment at company level Methodology [internal only – do not read this out]: To generate a baseline for an already designed rural income generation project, this questionnaire has been produced to discuss the project with the management team of agricultural companies. The focus of the questions is on job and income generation through the new ‘business model’**(see glossary). Two questions (question 4 and 5) require you to obtain information in advance of the interview from the consultants. Rather than using general questions, we suggest getting quantifiable answers; hence the questionnaire has been designed accordingly. Make sure that when interviewing you have at least two members of management from the company, either the CEO, CFO and the CTO in the room. The interview would take about 2 hours; please inform the company accordingly in advance.
1. Introduction
1. Good morning/afternoon. My name is ____ and this is ___ and ____. We also have with
us here Mr. ___ and Ms. ___ from the Shanxi provincial government. We are part of the
team which is preparing the project for agribusiness support which also includes your
company. This discussion is to get more information on the social impact of the project,
which the government would use as a baseline for further monitoring and later evaluation.
We will also have discussions with farmers which your company is investing in. We
would like to get as much as possible reliable quantifiable information.
2. We might have follow up questions later. Please provide the name and contact details
(email and telephone number) of a staff of your company we can ask if needed.
3. Let us first know who is attending this meeting:
2. Background:
Name of the interviewer: _____________________
Date of interview: _____________; start ____________; end : __________
Name of the company: ____________________;
Location: village ____ Township: ________________; county: ________
Who is attending the discussion o CEO o Finance: o Technical o Social: o Others:
Who is the contact person for follow up questions? o Name: o Tel Number: o Email:
60
3. Relevance of the business model
We would now like to ask you some questions on the expected social impact of the project:
4. In the project area – where you rent land from the villagers*, what percent of the people
are either poor or non-poor using the categories below [Note 1. Use percentages only, as
companies would not know the numbers]
In your village, how many households do you consider are Poor?
Vulnerable
Very poor Poor Low income better off Total
Number
percent % 100%
*If the company does not rent land from the village then ask the same question but relating to where the majority of their employees are from.
5. Using the table below, how poor is the village compared to other villages? [please refer to
the same village as above, where land is hired or from where the majority employees are
from]
6. How would your business model contribute to poverty reduction and better living
conditions of the poor and low income people (those below earning RMB 2120 per
month, or US$4.6/day)
______________________________________________________________________
______________________________________________________________________
7. How important is new job creation for the village(s)?
8. How many people do you directly employ?
(a) Directly employ_____________________________________________
(b) Indirectly employ [this might be difficult for the company to estimate]?__________
9. Will the number of jobs listed in Q.11 be enough to reduce poverty in the ‘village’?_____
10. Upon receiving additional finance from government and ADB, how many new jobs will
your company create to reduce poverty in the villages (see table below)?
___________________
name verypoor poor lowincome betteroff
Netincome(RMB)perhouseholdperyear 952 1500 2119 4000
compartedtointernationalpovertyline/day 1.9(1.25) $3.1($2) $4.6($3)
inthevillage
comparedtonearbyvillages
inthetownship
inthecounty
intheprefecture
Shanxiprovince Shanxiprovince 9.4% 39.0% 57.0%
Howpooristhevillage(connectivity,infrastructureandpeople)comparedtonearbyvillages(percentofpeople)
43.0%
61
11. How important is your company for job creation and income generation compared to
other income earning opportunities in the region? (see table below)
4. Reach: Employment and job generation.
12. We understand that your business model will create ___ new jobs, up from currently
____. Is this correct?
13. What we want to know is who will get these jobs and what type of jobs these are.
** ‘full time’ assumes 8 hours a day and a minimum of 5 days or more a week**
5. Depth: Income generation
14. What do you know about the income situation of the workers and suppliers (see table
below).
17.i. What is the monthly earning of different income groups in the village where
you source the majority of your products?
17.ii. In your company now
17.iii. In the new business model
we provide __% of the jobs for
the low income farmers
less than 5% 5-10% 10-20% 20-30% 30-50% more than
50%
currently
with the new business model
very importantmedium importantnot so important; there
are many other
companies
How important is your company for job creation and income generation compared to other income earning
opportunities in the investment region
Newjobopportunities
Total Laborers Suppliers
fulltime parttime
Currentnumberofjobs
Total
Howmanymen
Howmanywomen
Howmanypeoplewithdisabilities
howmanyethnicminorties
Expectedjobsafterinvestment/loan
total
Howmanymen
Howmanywomen
Howmanypeoplewithdisabilities
howmanyethnicminorties
62
17.iv. In other competitor companies
15. We would like to know also more about the income generation. So, we will ask you
further detailed questions, such as:
What do women and men currently earn and what will they earn in the new model?
What is the typical salary paid for similar work in the area?
An Inclusive Business company typically pays 20% more than the going market rate. What is your company paying labourers (men and women)?
16. What will people actually earn in your new business model (give numbers per day or per
months - whatever is better).
Give earnings by products (e.g. for 1 sack vegetable we will give them RMB ___ and they will deliver ____ sack per day or per week or per month
Earnings per day or per week or per months
17. What do you consider are the reasons for the poor and low income groups not receiving a
higher income in your business model?
verypoor poor lowincome betteroff total
RMB 952 1500 2119 4000
USD(PPP)
Inthevillagewhereyousourcefrom
Individualsinyourcompany
Engagedinothersimilarcompanies
Inyouropinionwhataretheincomelevelsofthefollowingpeople
AfterreceivingADBloan
labourers
fulltime parttime
Whatisthegoingmarketrate(RMB)
Whatarepeoplecurrentlyearninginyourcompany
Women
Men
Whataretheyearninginthenewbusinessmodel
Women
Men
suppliers
Earnings
63
18. What is your company doing in the new business model to enhance the income of the
poor and low income people? What are your innovations (see table below)?
6. Systemic change
19. Do you rent land from the villagers?
How much? ______ Total mu
What is the price? ___ /mu
Under the new business model, how many farmers will you rent land from?
What will you use this additional rental land for?
Why do the farmers rent you the land?
Is it beneficial for the farmers to rent you their land? Please explain
add to a total of 10 points
the business model does not provide more to share with them
if I give them more I would not earn enough
they do not demand more
the poor and low income have low productivity
other reasons (please name)
Total 10
Why do the poor and low income people not earn more. Please name the most
important things for you by distributing a total of 10 points
importance
(1-…)
rate by
importance,
add to a
total of 10
points
we provide training for the farmers
we give them additional access to capital
we provide inputs cheaper
we gurantee fix prices and long term contracts so
that the farmers do not have risks
others please name
Total 10
what are you doing to enhance income
64
20. What will change in the village after your investment?
21. What will change with the poor and low income people after your investment?
22. How will your investment change the situation of women in the village?
23. What can you do more to improve the situation of the poor and low income (see table
below)?
In your business model
Through corporate social responsibility money***
Which of these things could we agree on and then monitor?
(0= not important, 3= very important)
7. Connectivity and support services
24. As you know the project is not only about money from the provincial government, but
also the government arranging additional services that are useful for your companies and
the farmers. We would like to know more what your business model would require from
the government.
Please describe some things you wish the government to do.
Later we will ask you to rank them these items
is important I will do by when how much
giving training for farmers
providing
I can hire more women
I can pay better for women
I can arrange for additional funding for the farmers
I can reduce their transportation costs
I can rent my equipment and other inpouts cheaper
I can pay incentives for good performing
I can actually hire more people
I can hire disadvantaged and handicapped people
others
Through CSR I can do social work in the village, like
(give examples)
rank 0, 1, 2, 3
what can and will you do more
65
25. Does your company need business support and further incubation? For what? (rank each
item from 0-6)
not
important low medium high
0 1 2 3
infrastructure
better road connection
stronger internet
establish public marketring facilities
create water and sanitation facilities for the company
social and municipal services
improve the housing conditions of the farmers
improve the social conditions of the farmers
create water and sanitation facilities for the farmers
marketing
improve the local markets at county level
help marketing in Shanxi
help marketing in China
help marketing abroad
financing
help the farmers getting financehelp the company getting additional financing from banks
provide special incentives for inclusive business companies,
because they create large social impact (many and well paid jobs)
help improving the reputation of the company
others (please name)
what other things would your need from the government to benefit the poor and low income farmers and your
business model?
not at all not so much some very much
0 1 - 2 3 - 4 5 - 6
for further financial due diligence
help with access to finance
help with general business development
help with improving the social impact
help with social impact monitoring and evaluation
others (please name)
Would your company need further business support and incubation and for what
66
8. What are the specific innovations of your company
26. Business innovations
27. Environmental innovations
28. Social innovations and CSR
9. Comments and suggestions
Any questions?
Thank you very much for this very useful interview.
***Glossary***
Business model: refers to the new approach taken by the agricultural after receipt of the
ADB and Government loan.
Corporate Social Responsibility(CSR): is a broad concept which encourages
companies to be more aware of the impact of their business on society, including their
own stakeholders and the environment. CSR is a business approach that contributes to
sustainable development by delivering economic, social and environmental benefits for
all stakeholders. CSR addresses various topics such as human rights, corporate
governance, health and safety, environmental effects, working conditions and
contributions to economic development and a drive towards sustainability.
67
Appendix 3. Questionnaire for Farmers
Guiding questions for
social impact assessment at village level Methodology [internal only – do not read this out]: To generate a baseline for an already designed rural income generation project a questionnaire for focus group discussions was designed, rather than a household survey. The focus of the questions is on income generation and employment. Similar questions can then be used during project implementation as a monitoring tool.
The questions are intended to explore the self-rated socio-economic situation of the affected village and the low-income people therein and how the project would change these people, rather than collecting detailed statistical household data.
For the focus group discussions 15-25 people in each of the 8 villages where the sub-projects will be implemented, will be gathered for about 2 household discussions.
The results from the questionnaire will be discussed after the interview again within the interview team for which at least 1 hhs time should be budgeted
Additional information can be gathered through individual discussions.
You may not be able to get all the information. Leave questions out when it is too difficult for people to answer.
A focus group discussion should be about 2 hours. If needed go back to the village another time (within 2 weeks) to get additional information
The information gathered in the field will be supplemented by statistical information and compared with the information gathered from the company interviews.
The question guide will be tested in 1 location and then implemented in 8-10 locations where sub-projects source from farmers. 4 focus group discussions will be held by the PMU and 4-6 by the consultant team. The selection of the interview area was based on the following criteria: sub-sector, accessibility, poverty area, IB and not IB, relevance for poverty reduction. Below is a question guide.
Introduction of the interview team:
Good morning. We are coming from the provincial poverty alleviation office (PADO). My name is ___ and this is ___, ____, and ____. The Shanxi Poverty Alleviation Group and Shanxi Provincial Government is implementing an investment project together with the Asian Development Bank to create new income opportunities for the poor and low income people in rural Shanxi. 24 subprojects will be implemented together with commercial companies and cooperatives in ___ countries of Shanxi province. We are here to get some more information from you on the social situation in your area, explain the project to you in which the government will invest and which will benefit your village. We would like to find out the expected impact of the project, especially on the income situation of the poor and low income people in your village. We would like to first ask you some questions, and then at the end you can ask additional questions and make suggestions to us. We will not get individual information, but wish to have information for the whole village. All the information will be kept confidential, Thank you very much for taking the time today!
0. Background:
Name of the interviewer: _____________________
Date of interview: _____________; start ____________; end : __________
68
Name of the village: ____________________; Township: ________________; county: ________
Is the village classified as o a poverty village : yes ______ no: _________ o an ethnic minority village: yes ______ no: _________
Number of people attending the FGD: _______________ o Of which: women _________, men _______ o Children (below 18) _____, elderly(above 60) _____ o working age (18-60) _____, of which women _______, men ______
Name of company investing: ___________________ product or sector: ____________ Estimates number of jobs generated: ______
1. Socio-economic situation in the village
1. Number of families, number of people per village
2. (a) Number of ethnic minority households in the village?
(b) ①Han ② Hui ③ Manchu ④ Manchu ⑤ Tibetan ⑥ other_______
2. Connectivity:
How well is the village infrastructure
Transportation connectivity: good and short _____ (within 1/2 hour to the next market and county center), good but a bit far ____, not good ____, very far _____
Energy
IT
Water
3. How poor is the village compared to other villages
4. (a) Main income opportunities
agriculture industry
services/and/
administration remittances total
percent/of/households
How//many/people/are/engaged/in/the/following/activities/as/their/main/source/of/inome/in/the/
village/(use/all/households,/also/abroad)
name very poor poor low income better off rich
income (RMB) per family per months 952 1500 2119 4000
comparted to international poverty line 1.9 (1.25) $3.1 ($2) $4.6 ($3)
in the village
compared to nearby villages -
in the township
in the county
in the prefecture
in Shanxi province Shanxi province 9,4% 39,0% 57,0%
how poor is the village (connectivity, infrastructure and people) compared to other villages (percent of people)
43,0%
69
(b) Income derived from agriculture products
5. Employment
(a) Numbers employed by sector
how many of the people are employed in income generating activities (including production activities for self-consumption)
agriculture industry services total
full time full time full time
percent of workers
No. of workers*
* calculate after the interview.
animal&
husbandry
fruits,&
vegetable,&
nuts
grainother&
agriculture
total&
agriculture
agriculture&
as&%&of&
total&
family&
income&of&
&&&&&
&&&&percent&of&
farmers&in&the& 100%
How&many&people&are&employed&in&different&agriculture§ors&in&your&village&
how&many&people&are&
involved&in
6.(a) Aspirational thoughts:
To the poor and low income people working in agriculture
o Do you have time left for other work, outside of farming? Yes ____, No ___
o How many additional days per year? ______days
o If we could give you a new job what would you like to do?
o Where do you see new income opportunities: in your village, or nearby?
o What type of employment and social conditions would encourage your sons/daughters or extended family to return to the village?
6. Income and employment in Agriculture and other sectors
(a) Agriculture
From the following sectors, what is the typical income level for households
70
RMB/per year/household animal
husbandry
fruits, vegetable,
nuts grain
other agriculture
total agriculture
give range
give average
average for poor and low income people
(b) Other sectors
RMB/per(year/household industry services Total(
Give%range
Give%average
Average%for%poor%and%low%
income%people
From(the(following(sectors,(what(is(the(typical(income(level(for(
households(
7. Use of agricultural land
Unused''''
land
Production'
for'own'
consumption
Production'
for'the'
market'/'
sale
Rented'to'
other'
farmers
Rented'to'
agribusines
s'company
Total'(mu)
Land'use'in'the'
village
How'much'land'
is'used'among'
poor'and'low'
income'groups
Use'of'agricultural'land'in'the'village'(mu)
Used'Land
The following questions (9A-9C) focus on leasing land to agribusinesses and how much the farmers receive.
8. When leasing your land to agribusiness companies, who receives the payment within the household? (1) husband (2) wife (3) both (4) other______________
9. What price do you get if you rent your land to an agribusiness company?
What price do you get if you rent your land to an agribusiness company?
Monthly lease per mu
Annual Yearly lease per mu
Purchase price of land per mu
CNY
9.A.2. Are rental payments monthly, seasonal or continuous throughout the year?
71
(If payments are seasonal or not for 12 months ask the how they obtain an income when not leasing the land, due to frost or snow)
9.A.3. How much (or %) of the rental payment is taken by the village committee?
9.A.4. Who determines the price of the land to rent?
(1) household (2) Village committee (3) the company (4) municipality (5) other_____
9.A.5. How much land did you lease to agribusinesses last year______mu/per year (2016)
9.B Have you ever regretted leasing your land to companies?
9.C. Do you find that the price you get for leasing land is fair/unfair? And what should be the appropriate price for leasing land?
Do you find the price you get for leasing your land is…
Fair Unfair what should be the right price per mu
number
percent
10. Women empowerment and gender equity situation
11. How would you describe the situation of the women in your village? _____________
_______________________________________________________________________________________________________________________________________________________________________________________________________________
12. How many women are working?
agriculture industry services subtotal agriculture industry services subtotal
number2of2women
percent2of2women
number2of2men
percent2of2men
How2many2women*2are2working2and2in2which2sectors?2
Total2number2
in2the2village2
**
Full2time2employment* Part2time2employment*
* working age (18-60) ** Fill in either number or percentage (%) or both.
Do you ever regret leasing your land?
yes no total (%)
number 100%
percent 100%
72
13. What type of work (e.g. full time/part time) are women and men mainly doing (e.g. marketing, livestock, vegetable growing, grains) in agriculture?
14. What is the typical income of women in agriculture compared to men?
%animal'
husbandry
venegtable,'
fruits,'nutsgrain
marketing,'
inputs,'
others
animal'
husbandry
venegtable,'
fruits,'nutsgrain
marketing,'
inputs,'
others
women
poor'and'low'income
better'off'and'rich
men
poor'and'low'income
better'off'and'rich
part'time
what'are'women'and'men'mainly'doing'in'agrioculture'(in'%)
full'time
15. What can be done to improve the situation of women through agricultural employment? _________________________________________________________
_______________________________________________________________________________________________________________________________________________________________________________________________________________
full time part time
women
poor and low income
better off and rich
men
poor and low income
better off and rich
Full and part-time work of women and men work in agriculture
73
16. The project impact
Background: The intention of the project is to both increase capacity and profits of the ____ (agricultural company) and to create well paid jobs for the poor and low income people. In this village, the government will invest RMB ___ in the ____ company, and the company will invest RMB ___.
The business model of the ____ company is to increase its ____ production from currently ____ to ____ by 2022. This will create ____new jobs. It is expected that each of these jobs will pay ___% more than the going market rate.
In the following questions, we want to understand what you know of the project and how you think it might benefit your community.
17. Income opportunities
What do you think the poor and low income people typically will earn employed as the following?
A
laborer A supplier
Full time full time part time employment
10-30% job 31%-60% 61%-90% job
Currently
With the new project
What do you earn if you supply to, or work for other companies in the same sector
what is the market rate
18. What do you think will be the increase of income as a result of this project?
income increase through the project
no increase
little Medium high
0-5% 6-10% 10-30% 31%+
for the poor
for the low income
for the better off
for the rich
19. What will you do with any additional money which will raised because of the project?
Men_________________________________________________________________
Women______________________________________________________________
74
20. What do you expect will change in the village because of investment to agriculture company?
____________________________________________________________________
___________________________________________________________________
_
21. What additional items should be provided by the government to strengthen the project? Rank each item 0-3 (0= no support, 3= fully support)
22. What additional things should the company provide to make the project more successful to the poor and low income people in the village?
Support Rank
infrastructure
improvetheroad
imporveinternetconnectivity
buildmarket
transparentpricingmechanisms
trainingforfarmers
microfinanceloanstofarmers
otherspleasename
Whatadditionalitemsshouldbeprovidedbythegovernmentto
strengthentheproject
supervisingthecompanytofulfillits
contractobligationwiththefarmers
Support Rank
Payhigherpricesforsuppliedgoodstocompany
5%-10%more
10%more
11-20%more,ifpossible
21%-30%more,ifpossible
morethan31%more
buymoreproducefromus(thefarmers)
providetraining&adviceonimprovedgrowingtechniquesandmarketing
Improveinputservices(veterinary,…)
Introducemorelongtermsupplycontracts
Improvetheconditionsofthesupplycontracts
Increaseinlandpricesleasedtothecompany
employmorewomen
others(pleaselist)
Totalnumberofpeoplepresentinthemeetingandmakingsuggestions
Whatadditionalitemsshouldthecompanyprovidetoenhancethesocialimpactonthepoorand
lowincomepeople
Providebetterfinancingconditions
No.ofpeople________
75
23. Participation
24. How good is the relationship between the village and the company?
25. How is the company and his owner related to the village?
26. How was the village involved in the design of the new business model of the company?
27. How can the poor (very poor to low-income below 2000 RMB/month/family) be more involved in the business model of the company?
28. How can women be more involved in the business model
29. What shall the government (or township) do to ensure that voice of the village is more heard when implementing the project
30. What shall the government do to ensure that voice of the ^poor and low income people is better heard when implementing the project
31. What shall the company do better to ensure that voice of the village is more heard when implementing the project
32. What should be done during implementation to guarantee better participation of the poor and low income people in the project?
33. What should the government look at during monitoring and evaluation to ensure that the voice of the poor and low income people is considered in the project?
34. Other recommendations for the project
Please list
Thank you very much for your time We will use the information to monitor whether the company is actually implementing the project as stated in their agreement with the government and the Bank
76
Appendix 4: Household Survey
No.：□-□-□□□ Household Questionnaire
Interviewer
Interviewee address： City County/district township Village
Section 1: Your Knowledge and Expectation on this Project What is your awareness of this XXX project before this interview? □1 no □2 a little □3 much
If you know, from which channel did you know the project？
□1 yes □2 no □3 not sure Section 2: Basic information of the household
How many people do your household have person，of which, male person，female
person
Table 1: Information on your household members（2016）
Gender Age Education Ethnicity Main job Job location
Non-farm Income (CNY )
Together Economically
spouse father mother son daughter others, specify
male female
＜18
18-35 36-50 51-60
＞60
≤primary Elementary school High school College and above
Han others
livestock crops workers locally urban migration
self-business housework others
w/in the county outside the county, w/in Shanxi outside Shanxi
yourself
Is your household an identified poor household? □1 yes □0 no Does your household belong to which income groups in your village? And why? □1 low income □2 middle level income □3 better off Subsidies/donation have your household received in 2016
Name Grain subsidy Subsidies for the poor Donation Others
Amount (CNY)
Section 3: Land Resources
Table xx: Situation of your household Land（2016） Quantity Cultivable land Barren land Others
Land your hh contracted from your village
Land your hh cultivated
Differences of the above two
Quantity your hh rent out
Prices rent out
- When did your household rent your land to the company? □0 don’t know □1 - Does your household have a copy of the land rent contract? □0 no □1 yes □2 unsure - Have you signed on the land rent contract or authorized land rent to your village
committee?
77
- Are you satisfied with the price of the land transferred? □1 yes □0 no □2 others Section 4: Working Time Season
Table xx : Major Working Time of yourself Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Crop
Livestock
Work in local companies
Self employed
Urban migration
Others
Section 5: Main Crops Cultivated
Table xx：Crop and Vegetable（2016） Name of Crop
Cultivate scale (mu)
Produce name
Produce Quantity
Sales volume
Sale location
Sold to whom
Marketing channel
Price Contract or market price?
Gross Income
Table xx : Inputs of the Crops
Input Name Place of input
sourced Amount Average
Price Contract or
market price Total cost
Seedling
Section 6: Main Livestock Raised
Table xx：Livestock Inputs （2016）
Livestock raised
Inputs bought Amount Price
From whom
Purchased channel
Purchased location
Total cost
Piglets
Chick
Lamb
Feed
Facilities
Labor
Other
Table xx: Livestock Marketed (2016)
Livestock raised
Name of Animal
sold Quantity
sold Location
sold price Sold to whom
Sale channel
Gross income
Animals left and the
value
78
Do you think the current model of livestock/crop production and selling is good or not? Why? □1 good □2 not good □3 unsure
Your suggestions for you to benefit more from this project？
Section 7: Household Expenditure
Table xx: Household Expenditure in 2016 Items Amount Specify
8.1 Education/training
8.2 Fitting, tourism
8.3 Daily life
8.4 Medical fee
8.5 Others, specify
Section 8: Participation in project companies/Cooperatives Has your household involved in business o the XXX company/cooperative? □1 yes □0 No If yes, what kinds of business has your household involved? (Multiple choices) □1 employees of the company □2 rented household land to the company □3 contract hh of the enterprise □4sell production material to the company □5sell products to the company □6manure etc. receiver □7consumer of the enterprise’s product □8others, specify If employee, how many of your household members are employed? female male Section 9: Training and capacity training Did you receive any training and technical training in 2016? □1 yes □0 No If yes, what kinds of training did you received in 2016? □1 pig raising □2 chick raising □3 sheep raising □4 walnut cultivation □5 Chiguo cultivation □6 Chinese date cultivation □7 mushroom □8 chives □9 seedling nursery □10 Others Who provided the trainings? □1 people from XXX company □2 others, specify Do you think which areas of the follows should be improved? □1 training contents □2 training methods □3 training location □4 training time □5 trainers □6 others, specify Do you need training in 2017 or in the coming 3 years? □1 yes □0 No If yes, what kinds of training do you need? □1 pig raising □2 chick raising □3 sheep raising □4 walnut cultivation □5 Chiguo cultivation □6 Chinese date cultivation □7 mushroom □8 chives □9 seedling nursery □10 Others If not need, what are the main reasons? □1 the training contents could not meet my needs □2 Any other suggestions do you have? Section 10: Land Use Right Transfer/Land Leasing: How many land has been leased to Agriculture Company from your HH? mu. How did your HH land leasing contract sign with agriculture company? (1) Directly by your household (2) By Village committee (3) By villager cooperative If not signed by your household directly, did your HH give a formal authorization to the village committee or villager cooperative? (1) yes (0) No, why?
79
What do you think of the following questions about land leasing?
Items Questions Yes No, and why?
1 Transparency
(1) Was your HH provided the information about the project related to land leasing?
(2) Was HH provided the information about specific purpose of land use?
(3) Did your HH support the project and intended use of land?
2 Consultation
(4) Did your HH attend the consultation process (e.g., meetings) for land leasing?
(4) Were contents of the land leasing agreements explained to your HH?
(5) Were spouse and/or other dependents in your HH also consulted during land leasing?
3 Voluntariness (6) Did your HH sign land leasing agreement without any pressure?
(7) Did spouse and/or other dependents in your HH provide consent?
4 Fairness/equity (8) Is the rent equivalent to AAOV or market price?
(9) Has your HH received rents, etc. according to the contract?
5 written documentation
(10) Is your HH provided with a written contract?
(11) Is the contract in a simple language understandable to your HH?
6 Third-party verification
(12) Has your land leasing contracts been verified/certified by a third-party?
(13) Is your land leasing contract copy available with the third-party?
Is the rent received as cash or through banks? (1) Cash (2) through banks If your HH face some disputes during land leasing, which agency and/or person will you seek for help to redress such issues? (1) Village sage (2) Village committee (3) Township Government (4) County/city Government departments (5) civil court (6) others, please specify here: Do you think such dispute can be redressed equally and fairly? (1) yes (0) no After land leasing, what livelihood activities did your household take part in? (1)Employed by the Agricultural company (2) Get employed in other companies or institutes (3) cultivate on remaining farmland (4) start business (5) Others, specify here: Do you think the income and living condition of your HH is improved after landing leasing? (1) yes (0) no , why? Is your HH likely to suffer any adverse impacts (livelihoods, etc.) from land leasing? (1) no (2) yes, please specify here: 11. If any adverse impacts, does the contract address any potential impacts? (1) Yes (2) No, why: Thanks for your great cooperation!