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Corporate Poverty Alleviation and Enterprise-village Cooperation for Common Development

Corporate Poverty Alleviation and Enterprise-village Cooperation for Common Development

Cover and Title Page Catalogue and Summary Main Body

Title : Corporate Poverty Alleviation and Enterprise-village Cooperation for Common Development

Commencement Date : Sun Jan 01 2006--Tue Dec 01 2009

Implementing Agencies : the United Front Work Department of Hunan Provincial Party Committee, private enterprises

Support Organizations : banks, villages

Actuator : party members, villagers

Members of The : Provincial Party Committee United Front Work Department

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Catalogue and Index :

Abstract Summary :

Background : Introduction 1 Basic Information Issue : Existing Problems Course and Plan of Action : Implementation Process Process of Action : Main Practices Results of action: Implementation Effect This paper mainly talks about the docking between Kaiyuan Group and Xiangbizui Village of Cili County, Hunan Province. The former is a well-known group in China and the latter is a key poor village of Hunan Province. They had nothing to do with each other but were twinned in the poverty alleviation project of “enterprise-village cooperation for common development”. In 2006, jointly with other relevant departments, the United Front Work Department of Hunan Provincial Party Committee organized and guided private enterprises to participate in the "Glorious Action". In 2007, based on the original “enterprise-village cooperation”, the United Front Work Department of Hunan Provincial Party Committee further promoted the activity of "enterprise-village cooperation for common development". To respond to the call of the United Front Work Department of Hunan Provincial Party Committee, under the guidance of its "red culture", Kaiyuan Group actively participated in the poverty reduction action of "enterprise-village cooperation for common development", twinned with Xiangbizui Village in the action. Through forming an economic interests community with rural households and developing "order" agriculture, Kaiyuan Group established the "economic cooperatives" and agricultural development company jointly with the villagers, created the industry chain development mode of "company + cooperatives + farmers + market" to boost the economic development of the village and achieved initial results. Through incorporate poverty alleviation, Xiangbizui Village shook off poverty and the farmers got rich. Meanwhile, Kaiyuan Group witnessed development and upgrading. With dry grain as the industry, with natural village as the entity and with the cooperatives as the link, through mutual support between parties, with the purpose of win-win results, the market-oriented enterprise-village cooperation for common development explored the industrial poverty alleviation mode of leading agricultural enterprises’ participation in the poverty alleviation and development of impoverished regions, promoted the poverty reduction of the masses through production and achieved the sustainable and healthy development of the enterprise. This kind of enterprise-village cooperation for common development with win-win results as the purpose relying on corporate social responsibility and market mechanism is sustainable and worth of promoting.
Background : Introduction 1 Basic Information Issue : Existing Problems Course and Plan of Action : Implementation Process Process of Action : Main Practices Results of action: Implementation Effect This paper mainly talks about the docking between Kaiyuan Group and Xiangbizui Village of Cili County, Hunan Province. The former is a well-known group in China and the latter is a key poor village of Hunan Province. They had nothing to do with each other but were twinned in the poverty alleviation project of “enterprise-village cooperation for common development”. In 2006, jointly with other relevant departments, the United Front Work Department of Hunan Provincial Party Committee organized and guided private enterprises to participate in the "Glorious Action". In 2007, based on the original “enterprise-village cooperation”, the United Front Work Department of Hunan Provincial Party Committee further promoted the activity of "enterprise-village cooperation for common development". To respond to the call of the United Front Work Department of Hunan Provincial Party Committee, under the guidance of its "red culture", Kaiyuan Group actively participated in the poverty reduction action of "enterprise-village cooperation for common development", twinned with Xiangbizui Village in the action. Through forming an economic interests community with rural households and developing "order" agriculture, Kaiyuan Group established the "economic cooperatives" and agricultural development company jointly with the villagers, created the industry chain development mode of "company + cooperatives + farmers + market" to boost the economic development of the village and achieved initial results. Through incorporate poverty alleviation, Xiangbizui Village shook off poverty and the farmers got rich. Meanwhile, Kaiyuan Group witnessed development and upgrading. With dry grain as the industry, with natural village as the entity and with the cooperatives as the link, through mutual support between parties, with the purpose of win-win results, the market-oriented enterprise-village cooperation for common development explored the industrial poverty alleviation mode of leading agricultural enterprises’ participation in the poverty alleviation and development of impoverished regions, promoted the poverty reduction of the masses through production and achieved the sustainable and healthy development of the enterprise. This kind of enterprise-village cooperation for common development with win-win results as the purpose relying on corporate social responsibility and market mechanism is sustainable and worth of promoting.

Introduction :

Under the new situation of poverty alleviation and development, based on the local conditions, the United Front Work Department of Hunan Provincial Party Committee explored a new path of poverty alleviation to promote the development of impoverished villages – Corporate Poverty Alleviation and Enterprise-village Cooperation for Common Development, not only lifting the impoverished villages out of poverty, but also enriching China’s poverty alleviation system. This paper will describe Corporate Poverty Alleviation and Enterprise-village Cooperation for Common Development by giving the example of the docking between Kaiyuan Group and Xiangbizui Village of Cili County, Hunan Province, and it is divided into the following parts:

The first part mainly introduces the basic information of the poverty alleviation participants - the United Front Work Department of Hunan Provincial Party Committee, Kaiyuan Group and Xiangbizui Village of Cili County, Hunan Province; the second part describes the implementation process and practices of corporate poverty alleviation and enterprise-village cooperation for common development to respond to the call of the United Front Work Department of Hunan Provincial Party Committee for “enterprise-village cooperation for common development”; the third part analyzes the main characteristics of such corporate poverty alleviation by Kaiyuan Group; the fourth party summarizes the poverty alleviation mode of enterprise-village cooperation for common development, sums up its results and analyzes the problems; the last part summarizes the experience of this poverty alleviation mode and presents its promotion value. 

1.1 Basic information

1.1.1 The United Front Work Department of Hunan Provincial Party Committee

The United Front Work Department of Hunan Provincial Party Committee is the functional department of Hunan Provincial Party Committee in charge of the work of the united front. Its main responsibilities are as follows: 

(1) Investigation and study of the united front theory and policies, organizing the implementation of the central and provincial policies on the united front; reporting the provincial party committee about the united front, making suggestions and recommendations for the united front work; inspection of the implementation of the united front policy and coordination of relationship between relevant parties of the united front. 

(2) Responsible for contacting the democratic parties and personages without party affiliation and timely information release about their situation and their views and recommendations; the study and implementation of the CPC-led multi-party cooperation and political consultation system and the policies for democratic parties; giving full play to the role of political participation and consultation and democratic supervision of the democratic parties and personages without party affiliation; organizing the political consultation between the provincial party committee and the democratic parties; reporting the spirit of the provincial party committee to the democratic parties and personages without party affiliation; supporting and helping the democratic parties to strengthen construction and cultivate a new generation of representatives; and assisting the relevant departments to help improve working conditions of the democratic parties.

(3) Responsible for the research and inspection of the major policies of relevant ethnic and religious work; contracting minorities and religious representatives; and assisting the relevant departments to develop and recommend minority cadres.

(4) Responsible for carrying out the overseas united front work with the reunification of the motherland as the core; contacting Hong Kong, Macao and Taiwan, overseas Chinese associations and their representatives; and promoting the relevant work of Taiwan compatriots and their relatives.

(5) Responsible for political arrangements of non-Party personages; jointly with the relevant departments, promoting the cultivation, selection, recommendation and arrangement of non-Party personages to serve the People's Congress, the government, CPPCC and its departments, the judiciary, research institutes, universities and people's organizations, etc.; promoting the cultivation of non-party cadre reserves and new representatives; assisting the provincial committees of democratic parties, the provincial Federation of Industry and Commerce and the Provincial Institute of Socialism in cadre management; coordinating the relevant departments to manage the City / State Party Committee United Front Work Department Ministers.

(6) Investigation and information release on the situation of the province's non-public economy representatives, relationship coordination, making policy recommendations; uniting, guiding and leading non-public ownership economy representatives to actively carry out ideological and political work.

(7) Investigation and study of the situation of non-party intellectuals and new social strata representatives, presenting views, coordinating relations and making policy recommendations; contacting and cultivating non-Party intellectuals and representatives of the new social strata.

(8) Making propagandas on domestic and overseas united fronts; 

(9) Coordinating the united front work of relevant government departments; 

(10) Responsible for guiding the City/State Party Committee United Front Work and the training of heads of the united fronts; guiding the front work of large / medium-sized state-owned enterprises, universities, colleges and research institutes; leading the party group of the Provincial Federation of Industry and Commerce and the party group of the Provincial Institute of Socialism and guiding the work of the Provincial Federation of Industry and Commerce and the Provincial Institute of Socialism; leadership and management of the work of relevant social groups including the All-China Federation Of Taiwan Compatriots, the Provincial Whampoa Military Academy Alumni Association, China Association for Promoting Peaceful Reunification of China, the Provincial United Front Theory Research Society, the Provincial Overseas Sodality, the Provincial Guangcai Career Promotion Society, the Provincial Non-Party Intellectuals Association, the Provincial Enterprises United Front Research Society, Hunan Western Returned Scholars Association (Hunan Federation of Overseas Students), etc.; contacting the Provincial Taiwan Affairs Office, the Provincial Ethnic Affairs Commission, the Provincial Bureau of Religious Affairs, the Provincial Counsellors' Office (Research Institute of Culture and History), the Provincial Overseas Chinese Federation, Hunan Chinese Vocational Education Society, etc. 

(11) Accomplishing other tasks assigned by the Provincial Party Committee.

1.1.2 Kaiyuan Group

Founded in December 2000, Kaiyuan Group is a private joint-stock enterprise group and has 13 branch (subsidiary) companies, three cultural groups, two agricultural research institutions and more than 2,000 employees. Always adhering to the tenet of "scientific development, thanksgiving to the motherland and serving society", aiming at paying back society, active participating in social poverty alleviation and promoting the common development of urban and rural areas, the group has been constantly exploring the mode for mutual promotion between helping the poor and business development and made a positive contribution to boosting the economic development in impoverished regions and lifting the masses out of poverty, improving its business image. The Group has successively been titled China's "Good Faith Demonstration Unit", "National Advanced Private Business for Employment and Social Security", "National Excellent Enterprise for Staff Caring", "National Advanced Unit in Poverty Alleviation by Recruitment" and Hunan Province’s "Civilized Unit", "Most Respected Private Enterprise", and " Demonstration Unit" for the construction of a socialist new countryside, etc. In 2012, the Group’s Party Committee was titled the National Advanced Grassroots Party Organization. On October 18, 2014, the group was titled "Hunan’s Advanced Collective in Social Poverty Alleviation". The Central Organization Department, the Central United Front Work Department, LGOP, the Federation of Industry and Commerce, the Organization Department and United Front Work Department of the CPC Hunan Provincial Committee, Hunan Provincial Poverty Alleviation Office and Hunan Provincial Federation of Industry and Commerce carried out field research on the group’s pairing-off assistance work for many times and highly praised its mechanism, experience and achievements of “enterprise-village docking” and “mutual support”. 

This private business that started its business from hotel management and real estate development is now focusing on intensive and meticulous farming and has changed its real estate development-oriented industry structure to farming-oriented industry structure with real estate, hotel and cultural industry as the “two wings”. It has now two groups – Kaiyuan Group and Liuyanghe agricultural industry group with average annual growth of more than 25% in output value, profits and employee’s wages. 

The group’s enterprise-village cooperation for common development is a demonstration project of LGOP and the All-China Federation of Industry and Commerce. The group’s dry grain research project has been listed among the major projects of the provincial agricultural industry for the “12th Five-Year Plan” and provincial demonstration project of “enterprise-village cooperation for common development” by the provincial party committee and government.

1.1.3 Xiangbizui Village of Cili County, Hunan Province 

Located in the east of Lingxi Town, Xiangbizui Village is 14 kilometers away from the county and is the “East Gate” of Zhangjiajie City. It has 15 villager teams, 401 households, 1510 people and a four-member village leading group, including one college graduate cadre, and covers a land area of 8035 mu, of which more than 80% is forest area. It has been titled as "Demonstration Village of New Socialist Countryside" and "Well-off Model Village". 

In recent years, Xiangbizui Village actively changed its concept of development, by improving the basic conditions, actively adjusted the industrial structure, developed the village collective economy, promoted ecological construction, strengthened the organizational construction and led the masses to work hard for common development, laying a solid foundation for the new rural construction

Infrastructure construction: cement roads have been built for each villager team, covering 95% of the rural households; tap water is supplied for all rural households in the village; completed the renovation of more than 90% of the riverbank; constructed the highroads surrounded by mountains to connect the forest farm and vegetable base; set up the village’s comprehensive building and shopping center, supermarkets, clinics and activity center of the elderly; completed the renovation of the village primary school; completed the renovation of the village organization activity center and set up the activity room, meeting room and farmers’ library for the center; and provided broadcasting services for 100% of the villagers. 

Industrial restructuring: Established five major industry models through enterprise-village cooperation for common development. 1. High-quality fruit industry. The village has 2620 mu of high-quality fruit, including 16 citrus per person with annual income of more than 3000 yuan per capita. In 2011, the citrus income reached 180,000 yuan. 2. Vegetable industry. The village has 500 mu of environmental protection vegetable bases with Korean chili as the leading industry, and the annual income per capita is up to 1500 yuan. In 2010, with the support of the county vegetables office, it built about 500 mu of pumpkin and other mountain vegetable production bases. 3. Ecological animal husbandry and aquaculture. Xiangbizui Village’s bacon hogs and American King Pigeon breeding-based special aquaculture industry is booming. The village has 16 major households engaged in farming and the largest has an annual net income of 60,000 yuan. 4. Skilled labor services. The farmers engaged in transport services account for 1/10 of the total population of the village. More than 140 skilled workers are migrant workers in non-local area with annual net income of more than 2.8 million yuan. 5. Ecological agriculture industry. Relying on its good natural environment and geological location, the village is going to create a sightseeing and leisure paradise integrating sightseeing and leisure services and, on this basis, it strives to promote the development of the village’s service industry. 

Economic development: The village invested more than 800,000 yuan to set up Xiangbizui Village Environmental Protection Brickyard and Huada Garment Factory, provided more than 180 jobs for the local surplus labors and women, promoting the income growth of the masses and the economic development of the village. In 2011, the village’s per capita net income reached 8000 yuan. 

Ecological construction: The village built 50 garbage tanks, set up the garbage dumping center, provided "two bags and one trash can" for each rural household, built flower beds for each household, mobilized the farmers to abide by modern ecological culture and make contributions to the construction of environment friendly countryside, passed the examination of Zhangjiajie municipal garbage treatment village and was titled the "provincial ecological demonstration village". 

Organizational building: Combined with the activity of creating excellence, the party branch constantly promoted the construction of a clean government and a learning party, striving to build up a CPC member team with a high ideological consciousness, sophisticated skills, outstanding performance and top-class quality. Its party branch has been titled as the provincial, city and county-level “Five Good” village party branch for many times, and was titled as the “Provincial Demonstration Unit for the Construction of A Clean Government” and the “First Batch of Provincial Demonstration Zone for the Construction of A Learning Government” in 2010. 

In 2012, adhering to the guideline of “four Cili”, combined with the construction of the projects of five villages, Xiangbizui Village will strive to grow into a rich and prosperous socialist new countryside. 


Content :

1 The lack of policy support for private enterprises to participate in the new rural construction

New rural construction is a systematic project with strong policy support and a wide coverage, but there is no clear policy to follow on how to comprehensively promote the work for the moment. As an important force to promote the modernization of agricultural construction, private enterprises mainly take it as an abstract or a call and seldom develop specific measures or targeted policy. Meanwhile, some preferential policies are imperfect and the incentive mechanism needs improvement, so there is not a broad and effective platform for enterprises to participate in new rural construction. The preferential policies developed by governments at all levels for leading agricultural enterprises can hardly be implemented. The special assets property and seasonal characteristics of operating funds of leading agricultural enterprises lead to financing difficulties of many leading agricultural enterprises. Although all levels of government have introduced many preferential policies to support the development of leading agricultural enterprises, the preferential policies on finance, tax, credit, land use, water use and electricity use can hardly be implemented as the project implementation involves the interests of many departments. 

2 Corporate financing difficulties lead to a shortage of working capital

The shortage of anti-poverty funds has a negative impact on the enterprises’ enthusiasm for participating in the new rural construction to some extent. Financing difficulty has been one of the major bottlenecks in the development of private enterprises. Especially for private agricultural enterprises, as agricultural production is a kind of seasonal production, the order development and the storage and purchase of agricultural raw materials in the business development bases need a large sum of cash. The business financing difficulty caused by unsmooth financing channels and imperfect loan guaranty system has not only restricted the development of enterprises, but is not conducive to farmers’ income growth and has a negative impact on the enterprises’ participation in new rural construction. 

3 Weak corporate influence increases difficulties in continuous income growth of farmers

First, most enterprises are small with limited strength and do not have strong cohesion or influential brands. With the development of the market economy, people has got stronger market concept and brand consciousness. Most enterprises’ brands cannot develop well, not only affecting business development, but also is not conducive to the rural economic growth and rural industry development. Second, the mechanism linking the interests of leading enterprises, bases and farmers needs further improvement. Restricted by the business scale and influence, most of the leading enterprises, bases and farmers have not formed a close relationship for win-win development and their cooperation needs to be strengthened. 

The leading agricultural enterprises lack an effective risk aversion mechanism and can hardly avoid various risks as the “leading” part of the chain of “company + base + farmers”. The leading agricultural enterprises can only provide a limited number of jobs, and their interest linkage with the bases and farmers are not so strong. 


Appendix :

In early 2006, jointly with the relevant departments, the United Front Work Department of Hunan Provincial Party Committee organized and guided private enterprises to carry out the “Hand-in-hand Pairing-off Support – Ten Thousand Entrepreneurs’ Participation in the Glorious Action of Building A New Socialist Countryside of Their Home Village”, starting the cooperation between entrepreneurs and farmers. Since March 2007, on the basis of Xiangtan City Party Committee United Front Work Department’s experience in “Building A New Countryside through the Cooperation between One Hundred Enterprises and One Hundred Villages”, the United Front Work Department of Hunan Provincial Party Committee strived to promote the cooperation between banks and enterprises and the cooperation between enterprises and villages to make the united front work serve the central work of the party committee, enhanced the quality of “Glorious Action” and carried out the activity of “enterprise-village cooperation for common development” across the province. As an important part of the activity of “enterprise-village cooperation for common development”, since 2009, Hunan Province launched the activity of “mutual assistance between party organizations of villages and enterprises”, actively explored the path of “enterprise-village cooperation in talent cultivation and party member management, resource sharing and integrated development” and encouraged and guided private enterprises and non-public personage to devote into the construction of a new socialist countryside. In 2007, the opening ceremony of the “enterprise-village cooperation for common development” organized by the United Front Work Department of the Provincial Party Committee, the Provincial Federation of Industry and Commerce and the Provincial Society for Promotion of the Guangcai Program was successfully held in Changsha. Relevant principals of the provincial departments, more than 200 private entrepreneurs and 14 village party secretaries attended the event. 

Focusing on private enterprises’ investment and development projects, characterized by village development through project implementation and industrial development, enterprise-village cooperation for overall advancement”, with five key tasks – industrial extension, chain operation, resource development, infrastructure construction and labor transfer, the activity of “enterprise-village cooperation for common development” will guide a number of competitive backbone enterprises with outstanding performance to cooperate with the village and promote the fixed-point poverty alleviation and contact works of 1000 villages in three years. 

The Provincial Agricultural Bank, the Provincial Agricultural Development Bank and the Provincial Rural Credit Cooperative Union signed the project loan agreements with the Provincial Federation of Industry and Commerce and the Provincial Society for Promotion of the Guangcai Program and planned to provide ten billion yuan of project funds in three years. The activity will organize and guide the private enterprises and entrepreneurs to carry out enterprise-village cooperation for the fixed-point poverty reduction of 1000 villages in three years. The Provincial Agricultural Bank, the Provincial Agricultural Development Bank and the Provincial Rural Credit Cooperative Union stated that they would invest 10 billion yuan to support the program in three years. 

On the basis of voluntary docking, the activities include participating in the industrialized management of agriculture, developing non-agricultural industries with local characteristics, promoting rural commodity circulation, developing rural tourism, promoting the transfer of rural surplus labor force, participating in rural social welfare and encouraging private entrepreneurs to serve as part-time village cadres or act as economic consultant in the twinned villages.