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How Was the Labor Transfer Training Program of “Loan-supported Training - Poverty Reduction Through Employment” Implemented? - Story of Yichang Qinghua Vocational School of Hubei Province

How Was the Labor Transfer Training Program of “Loan-supported Training - Poverty Reduction Through Employment” Implemented? - Story of Yichang Qinghua Vocational School of Hubei Province

Cover and Title Page Catalogue and Summary Main Body

Title : How Was the Labor Transfer Training Program of “Loan-supported Training - Poverty Reduction Through Employment” Implemented? - Story of Yichang Qinghua Vocational School of Hubei Province

Commencement Date : --

Implementing Agencies : Yichang City Poverty Alleviation Office

Support Organizations : Suzhou Ingmar Group

Actuator : Qinghua Vocational School

Members of The :

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CASE PROVIDER :

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Sources of Funds : City Department of Finance,Banks

Catalogue and Index :

Abstract Summary :

1 Introduction 22 1.1 Basic information of yichang city 22 1.2 Information of Relevant Departments 24 2 IMPLEMENTATION PROCESS & MAIN PRACTICES 25 2.1 Implementation process 25 2.2 Main practices 26 3 Implementation Effect 29 3.1 Lifted poor families out of poverty 29 3.2 Promoted the development of training agencies 29 3.3 Promoted the innovations of poverty alleviation mechanism 30 3.4 Played an important exemplary role 30 4 Existing Problems 30 4.1 Poor cash flow of schools 30 4.2 Unfavorable employment environment and conditions 31 4.3 Workers’ increasingly high expectations 31 5 Basic Experience 31 5.1 Incorporate vocational training schools into the poverty alleviation system 31 5.2 Improve workforce training loan mechanism 31 5.3 Accurate target at poverty to ensure precise poverty alleviation 32 5.4 Strengthen supervision on poverty-relief funds 32 5.5 Make innovations to the labor transfer and training mode 33 5.6Establish a market-oriented operation mechanism 33 5.7 Make propagandas on good deeds to create an atmosphere of helping the poor 33 5.8 Safeguard students’ rights and interests to ensure loan repayment through employment 33 5.9 Reform the cadre appraisal system and improve the management system of vocational education 34 6 Promotion value 34 6.1 make innovations to the Labor transfer training mode to achieve precise poverty alleviation 34 6.2Integrate vocational education into poverty alleviation 34 6.3Establish a grand pattern of poverty alleviation jointly by the government, market and society 35 7 Implementation conditions 35 7.1The central government’s advocacy of the “Rain Plan” 35 7.2Linkage of local government departments 35 7.3Stimulating effect of preferential policies 36 7.4Market demand for skilled workers 36 7.5Development of social organizations 36 7.6A large number of poor unskilled labors 36 8 References 37 9 Pictures 38 Under the guidance of LGOP, with support of Hubei Provincial Poverty Alleviation Office, jointly with the financial bureau and banks, Yichang City Poverty Alleviation Office launched the rural poor labor transfer training program themed on “Rain Plan”. The city and county-level poverty alleviation departments were strict in screening training schools, accurately targeted at poverty-stricken labors and issued subsidized loans for them. Training schools recruited poor trainees and held special technical trainings for them according to the “orders” of relevant enterprises, then dispatched them to relevant work positions, followed up their employment situation to safeguard their rights and interests, and set limits to the trainees’ post-employment expenditure to recover loans as soon as possible. With years of practice experience, Yichang City explored new path of labor transfer training themed on “Loan-supported Training - Poverty Reduction through Employment” and accumulated rich experience: incorporating vocational training schools into the poverty alleviation system, good labor loan training mechanism, the mechanism for accurate targeting at the poor, strengthening supervision on anti-poverty funds, new labor transfer training mode, market-oriented operation mechanism, making propagandas on good deeds to create an atmosphere for helping the poor, and incorporating anti-poverty work into the cadre performance assessment, etc. Since the implementation of the program, “Yichang Mode” has achieved good results. It has not only lifted many families out of poverty, but promoted the development of training agencies, made innovations to the poverty alleviation mechanism and played an important role in the poverty reduction of Hubei Province. Its main practices are in line with the spirit of the “Opinions on Mechanism Innovations to Steadily Promote Rural Poverty Alleviation and Development Work” (Zhong Fa Ban [2013] No.25) and are worth promoting; especially the labor transfer training mode has important promotion value for developing vocational education, creating the poverty alleviation pattern combining the efforts of government, market and social forces and for the accurate poverty targeting mechanism, etc.
1 Introduction 22 1.1 Basic information of yichang city 22 1.2 Information of Relevant Departments 24 2 IMPLEMENTATION PROCESS & MAIN PRACTICES 25 2.1 Implementation process 25 2.2 Main practices 26 3 Implementation Effect 29 3.1 Lifted poor families out of poverty 29 3.2 Promoted the development of training agencies 29 3.3 Promoted the innovations of poverty alleviation mechanism 30 3.4 Played an important exemplary role 30 4 Existing Problems 30 4.1 Poor cash flow of schools 30 4.2 Unfavorable employment environment and conditions 31 4.3 Workers’ increasingly high expectations 31 5 Basic Experience 31 5.1 Incorporate vocational training schools into the poverty alleviation system 31 5.2 Improve workforce training loan mechanism 31 5.3 Accurate target at poverty to ensure precise poverty alleviation 32 5.4 Strengthen supervision on poverty-relief funds 32 5.5 Make innovations to the labor transfer and training mode 33 5.6Establish a market-oriented operation mechanism 33 5.7 Make propagandas on good deeds to create an atmosphere of helping the poor 33 5.8 Safeguard students’ rights and interests to ensure loan repayment through employment 33 5.9 Reform the cadre appraisal system and improve the management system of vocational education 34 6 Promotion value 34 6.1 make innovations to the Labor transfer training mode to achieve precise poverty alleviation 34 6.2Integrate vocational education into poverty alleviation 34 6.3Establish a grand pattern of poverty alleviation jointly by the government, market and society 35 7 Implementation conditions 35 7.1The central government’s advocacy of the “Rain Plan” 35 7.2Linkage of local government departments 35 7.3Stimulating effect of preferential policies 36 7.4Market demand for skilled workers 36 7.5Development of social organizations 36 7.6A large number of poor unskilled labors 36 8 References 37 9 Pictures 38 Under the guidance of LGOP, with support of Hubei Provincial Poverty Alleviation Office, jointly with the financial bureau and banks, Yichang City Poverty Alleviation Office launched the rural poor labor transfer training program themed on “Rain Plan”. The city and county-level poverty alleviation departments were strict in screening training schools, accurately targeted at poverty-stricken labors and issued subsidized loans for them. Training schools recruited poor trainees and held special technical trainings for them according to the “orders” of relevant enterprises, then dispatched them to relevant work positions, followed up their employment situation to safeguard their rights and interests, and set limits to the trainees’ post-employment expenditure to recover loans as soon as possible. With years of practice experience, Yichang City explored new path of labor transfer training themed on “Loan-supported Training - Poverty Reduction through Employment” and accumulated rich experience: incorporating vocational training schools into the poverty alleviation system, good labor loan training mechanism, the mechanism for accurate targeting at the poor, strengthening supervision on anti-poverty funds, new labor transfer training mode, market-oriented operation mechanism, making propagandas on good deeds to create an atmosphere for helping the poor, and incorporating anti-poverty work into the cadre performance assessment, etc. Since the implementation of the program, “Yichang Mode” has achieved good results. It has not only lifted many families out of poverty, but promoted the development of training agencies, made innovations to the poverty alleviation mechanism and played an important role in the poverty reduction of Hubei Province. Its main practices are in line with the spirit of the “Opinions on Mechanism Innovations to Steadily Promote Rural Poverty Alleviation and Development Work” (Zhong Fa Ban [2013] No.25) and are worth promoting; especially the labor transfer training mode has important promotion value for developing vocational education, creating the poverty alleviation pattern combining the efforts of government, market and social forces and for the accurate poverty targeting mechanism, etc.

Introduction :

1 Introduction

Located in the central area of China, Hubei Province lags behind other provinces in economic development and has a large poverty-stricken population. It is rich in labor resources, but most of the labors are unskilled workers with low educational levels. In recent years, with the economic and social development, China's southeast coastal businesses have an increasing demand for skilled workers. On the one hand, it is difficult for the enterprises to find workers and, on the other hand, many people cannot find jobs. The market demand for skilled workers cannot be satisfied at all. The "Yichang Mode" is a good solution to this problem. Jointly with the financial bureaus, banks and Qinghua Vocational School, Yichang City Poverty Alleviation Office selected poor people to receive the trainings and provided subsidized loans for them. Qinghua Vocational School held the skills trainings, then sent the trainees to work in the eastern provinces and carried out follow-up survey on their employment situation to ensure that theyll repay the loans and shake off poverty. The "Yichang Mode" not only lifted poor families out of poverty, but boosted the development of the training agency, made innovations to the poverty alleviation mechanism and played an important demonstration role in the poverty reduction of Hubei Province. As a typical poverty alleviation mode in China, it not only integrated vocational education into poverty alleviation, made innovations to the labor transfer training mode, but also created a grand pattern of poverty alleviation and development jointly by the government, market and society, and has relatively high promotion value.

1.1 Basic information of Yichang City

Located in the southwestern part of Hubei province, at the junction of the upper and middle reaches of the Yangtze River and in the transition zone of West Hubei mountainous area towards Jianghan Plain, "connecting Bashu and Jingxiang Area", Yichang City covers a land area of 21084 square kilometers with a history of more than 2000 years, known as Yiling in the ancient times, and established the municipal (prefectural) system in 1992. By 2001, it got three cities (Yidu City, Dangyang City and Zhijiang City), five counties (Yuanan County, Xingshan County, Zigui County, Changyang Tujia Autonomous County and Wufeng Tujia Autonomous County) and five districts (Yiling District, Xiling District, Wujiagang District, Dianjun District and Xiaoting District), had a population of 4.15 million and covered a land area of 21,000 square kilometers, including an urban area of 4249 square kilometers. As of the end of 2013, its urban built-up area reached 150 square kilometers and the urban population reached 1.20 million.

1.1.1 Economic and social development situation of Yichang City

Since 2003, Yichang City has witnessed rapid economic growth and continuous GDP growth: Its GDP soared from 44.8 billion yuan in 2003 to 281.6 billion yuan in 2013, with an increase of more than five times.

 

Figure 1  Yichang Citys GDP since 2003

Source: "Yichang City Economic and Social Development Statistics Bulletin (2003-2013)" 

 

1.1.2 Per capita net income of rural residents of Yichang City

Since 2004, the net income of rural residents of Yichang City has risen year after year and the growth rate has also shown an increasing trend. In 2004, the per capita net income of rural residents was 2,928 yuan. In 2013, this figure soared to 9,121 yuan, with an increase of more than two times. In 2005, the per capita net income of rural residents was 3,108 yuan, up 6%. In 2011, this growth rate reached 18%. 

Figure 2  Per capita net income of rural residents of Yichang City since 2004 (yuan)

Source: "Yichang City Economic and Social Development Statistics Bulletin (2004-2013)"

 

1.1.3 Poverty situation of Yichang City

At the end of 2001, Yichang City had a total population of 3.9751 million, including an agricultural population of 2.7691 million and a non-agricultural population of 1.206 million. Among that, 1.4055 million were rural labors, including 384,900 rural surplus labors. After the implementation of the "Seven-year Priority Poverty Alleviation Program", at the beginning of the 21st Century, the food and clothing problems of most of the citizens have been basically solved and the total number of poor residents has been reduced significantly. On the whole, however, the distribution of the poor in this city presents the following features: First, the poor are increasingly scattered everywhere, requiring the transition from centralized poverty reduction to precise poverty alleviation; Second, the poor are concentrated in poor regions with harsh natural conditions, little arable land per capita, poor soil and backward infrastructure, increasing the difficulty of poverty reduction;. Third, there is a big income gap between farmers of poor areas and the city average.

1.2 Information of Relevant Departments

1.2.1 Yichang City Poverty Alleviation Office

In accordance with the spirit of the Notice on the Issuance of the Opinions on the Reform of Yichang City Peoples Government Institutional Reform’” (Yi Wen [2010] No.1) issued by Yichang City Party Committee and Government, Yichang City People's Government Office of Poverty Alleviation and Development became a public institution directly under the municipal government, equipped with the General Department, Development Guidance Department, Old Revolutionary Base Area Construction Department and Training and Finance Department. It has nine main functions, including the following related to this case: (1) Responsible for the anti-poverty fund raising, planning and distribution, project declaration, demonstration and approval; reviewing and approving poverty alleviation credit projects, foreign-funded poverty relief projects and other poverty relief projects jointly with the relevant departments; responsible for follow-up supervision and monitoring on the utilization of financial anti-poverty funds and old revolutionary base area construction funds as well as the project implementation, and organizing annual performance evaluation; responsible for the establishment of poverty alleviation and development project library. (2) Formulating cadre training planning for poor areas of old revolutionary bases in the city, organizing and guiding the cadre training work in poor areas of old revolutionary bases and poverty alleviation departments; responsible for the implementation of Rain Plan for rural labor transfer skills training and agricultural technical training; participating in the talent-based poverty alleviation program of poor areas. (3) Responsible for the city's poverty monitoring and statistical analysis; organizing the implementation of archiving work of the poor; responsible for linking pro-poor policies with the rural minimum living security system; and formulating and organizing the issuance of poverty alleviation and development reports.

1.2.2 Yichang Qinghua Vocational School

Yichang Qinghua Vocational School grew out of Zigui County Qinghua Vocational School founded in April 2002 as a private vocational school approved by the County Department of Labor and Administration. In March 2005, after careful evaluation of Yichang City Bureau of Labor and Social Security, it was renamed as Yichang Qinghua Vocational Training School. From June 2003 to June 2004, the Xingshan County Qinghua Vocational School and Changyang County Qinghua Vocational School were successively set up, and they were later merged into Zigui County Technical School. In April 2005, four branches were newly set up, respectively in Yuaan, Yidu, Badong and Baokang. In 2007, it got a total of seven branches, nine teaching areas and one employment agency. At the end of 2004, approved by Hubei Provincial Department of Labor and Social Security, Suzhou Labor Service Management Station of Hubei Provincial Department of Labor and Social Security was established. In early 2005, the school and Suzhou Ingmar Human Resources Company jointly set up Ingmar Education Group, equipped with five branches: Human resources, logistic services, management consulting, vocational training and teaching materials research and development. It has now the largest Ingmar staff living base in the city that can accommodate 8,000 people and the Ingmar Workers College. Also, it has set up offices in Shanghai and Guangdong, effectively combining training with job placement and boosting the development of the school. Covering a land area of 200,000 square meters, the school has now fixed assets of more than 10 million yuan, more than 200 faculty and staffs and more than 1000 sets of teaching equipment, and set a dozen professions including computer, clothing production, appliance repair, electronics, public relation, modern secretary and hotel management, etc. Each teaching area is equipped with the canteen, apartments and shops, providing a good learning environment for students. By the end of 2009, the school had held trainings for more than 18,000 people and arranged jobs for all the trainees, whose average monthly wage reaches 2000 yuan or more, lifting many needy families out of poverty.

1.1.3 Poverty situation of Yichang City

At the end of 2001, Yichang City had a total population of 3.9751 million, including an agricultural population of 2.7691 million and a non-agricultural population of 1.206 million. Among that, 1.4055 million were rural labors, including 384,900 rural surplus labors. After the implementation of the "Seven-year Priority Poverty Alleviation Program", at the beginning of the 21st Century, the food and clothing problems of most of the citizens have been basically solved and the total number of poor residents has been reduced significantly. On the whole, however, the distribution of the poor in this city presents the following features: First, the poor are increasingly scattered everywhere, requiring the transition from centralized poverty reduction to precise poverty alleviation; Second, the poor are concentrated in poor regions with harsh natural conditions, little arable land per capita, poor soil and backward infrastructure, increasing the difficulty of poverty reduction;. Third, there is a big income gap between farmers of poor areas and the city average. 

1.2 Information of Relevant Departments

1.2.1 Yichang City Poverty Alleviation Office

In accordance with the spirit of the Notice on the Issuance of the Opinions on the Reform of Yichang City Peoples Government Institutional Reform’” (Yi Wen [2010] No.1) issued by Yichang City Party Committee and Government, Yichang City People's Government Office of Poverty Alleviation and Development became a public institution directly under the municipal government, equipped with the General Department, Development Guidance Department, Old Revolutionary Base Area Construction Department and Training and Finance Department. It has nine main functions, including the following related to this case: (1) Responsible for the anti-poverty fund raising, planning and distribution, project declaration, demonstration and approval; reviewing and approving poverty alleviation credit projects, foreign-funded poverty relief projects and other poverty relief projects jointly with the relevant departments; responsible for follow-up supervision and monitoring on the utilization of financial anti-poverty funds and old revolutionary base area construction funds as well as the project implementation, and organizing annual performance evaluation; responsible for the establishment of poverty alleviation and development project library. (2) Formulating cadre training planning for poor areas of old revolutionary bases in the city, organizing and guiding the cadre training work in poor areas of old revolutionary bases and poverty alleviation departments; responsible for the implementation of Rain Plan for rural labor transfer skills training and agricultural technical training; participating in the talent-based poverty alleviation program of poor areas. (3) Responsible for the city's poverty monitoring and statistical analysis; organizing the implementation of archiving work of the poor; responsible for linking pro-poor policies with the rural minimum living security system; and formulating and organizing the issuance of poverty alleviation and development reports.

1.2.2 Yichang Qinghua Vocational School

Yichang Qinghua Vocational School grew out of Zigui County Qinghua Vocational School founded in April 2002 as a private vocational school approved by the County Department of Labor and Administration. In March 2005, after careful evaluation of Yichang City Bureau of Labor and Social Security, it was renamed as Yichang Qinghua Vocational Training School. From June 2003 to June 2004, the Xingshan County Qinghua Vocational School and Changyang County Qinghua Vocational School were successively set up, and they were later merged into Zigui County Technical School. In April 2005, four branches were newly set up, respectively in Yuaan, Yidu, Badong and Baokang. In 2007, it got a total of seven branches, nine teaching areas and one employment agency. At the end of 2004, approved by Hubei Provincial Department of Labor and Social Security, Suzhou Labor Service Management Station of Hubei Provincial Department of Labor and Social Security was established. In early 2005, the school and Suzhou Ingmar Human Resources Company jointly set up Ingmar Education Group, equipped with five branches: Human resources, logistic services, management consulting, vocational training and teaching materials research and development. It has now the largest Ingmar staff living base in the city that can accommodate 8,000 people and the Ingmar Workers College. Also, it has set up offices in Shanghai and Guangdong, effectively combining training with job placement and boosting the development of the school. Covering a land area of 200,000 square meters, the school has now fixed assets of more than 10 million yuan, more than 200 faculty and staffs and more than 1000 sets of teaching equipment, and set a dozen professions including computer, clothing production, appliance repair, electronics, public relation, modern secretary and hotel management, etc. Each teaching area is equipped with the canteen, apartments and shops, providing a good learning environment for students. By the end of 2009, the school had held trainings for more than 18,000 people and arranged jobs for all the trainees, whose average monthly wage reaches 2000 yuan or more, lifting many needy families out of poverty.






Content :

2 IMPLEMENTATION PROCESS & MAIN PRACTICES

2.1 Implementation process

2.2 Main practices

2.2.1Main practices of Qinghua Vocational School

To effectively improve the trainees’ quality, employment competitiveness and income level to lay a solid foundation for their future business operation, and make it possible for them to repay the loans timely, Qinghua Vocational School adopted effective measures based on the actual situations of the poor trainees.

2.2.1.1 Implementation of order training to stimulate the learning initiative of the trainees

Qinghua Vocational School has its own employment agency and marketing team, and has been constantly broadening the channels for job placement under the principle of "school-enterprise cooperation and targeted training to ensure job placement". It has successively signed the labor transfer contracts with the hi-tech Industrial Zones of Guangzhou and Shenzhen, aiming to transfer 500 professionals on computer and electromechanical applications to these industrial zones every year; signed the labor transfer agreements with some enterprises in Shanghai and Suzhou, aiming to send 3000 trainees majoring in electronics, public relations and tourism to these enterprises. In such a way, the school strives to arrange jobs for all its trainees. In addition, as for professional choice, based on the employment orders and the trainees conditions, the school guided the trainees to select appropriate majors, and help them fully understand the enterprises employment conditions and requirements so that the trainees will have clear objectives and higher enthusiasm for learning.

2.2.1.2 Implementation of standardized teaching to help trainees acquire excellent skills

Based on the market demands, it is strict in selecting knowledge-based, professional and capable teachers and suitable teaching materials, adopts scientific, reasonable and individualized training methods, holds professional skills trainings to ensure all the participants will be able to obtain the "professional qualification certificate", and issues the graduation certificate of secondary technical school to the trainees with the equivalent educational level.

2.2.1.3 Implementation of paramilitary management to help trainees develop good habits

The schools implements closed management and has hired military instructors to hold formal trainings, covering many aspects such as behaviors and habits. The trainees food, clothing, housing and behaviors are all under strict military management. In such a way, the school strives to help the trainees get rid of their bad habits and develop good habits of a generous manner, vigorous and resolute style, civilization, unity and cooperation.

2.2.1.4 Providing human services for trainees to maintain a healthy mental status

The school provides human services and treats each trainee equally, ignoring their families economic situation in school life; provides school uniform clothing and quilt for the trainees and provide six dishes and one soup for each meal of every eight trainees (one table). Students are required to wear the school uniform clothing to work so that the employers will feel that they are well trained. In such a way, the school has reduced the financial burden and mental stress on the poor trainees and helped them overcome the inferiority complex and enhance self-confidence. Whenever the trainees encounter economic difficulties, the school will pay relevant fees in advance. When the trainees get ill, the teachers will accompany them to see a doctor; and when the trainees have psychological fluctuations, the teachers will comfort them, making the trainees and their parents feel at ease. 

2.2.1.5 Opening up employment channels

Through the job placement of human resources companies and directly signing employment contracts with relevant enterprises, Qinghua Vocational School ensures that 100% of the trainees can find a job and achieved an employment consolidation rate of 99%. It has established long-term employment cooperation relationship with five enterprises, namely Jiangsu Sumitomo Electric, Philips Electronics, Samsung Electronics, Rouse Group and Shanghai Small Garden, signs the order training agreements for more than one thousand people every year and dispatches its trainees to these enterprises in batches after training.

2.2.1.6 Strengthening rights protection services

For the trainees arranged to serve with the coastal foreign-funded enterprises, Qinghua Vocational School designates special persons to implement team management, make unified accommodation arrangements and provide rights protection services in the regions where the enterprises are located, not only providing the employers high-quality supporting services, but also creating a good environment for the trainees employment. Meanwhile, Qinghua Vocational School set up offices in Guangdong and Suzhou to carry out regular visits and provide follow-up services for the trainees who have been arranged jobs. It will timely handle problems and coordinate the relevant relationship to ensure that the employees will be paid on time and their insurance will be guaranteed, effectively safeguarding the legitimate rights and interests of the trainees and consolidating the labor transfer and employment rate.

2.2.1.7 Restricting trainees' post-employment expenses

Trainees from needy families are required to use the wage income to lift their families out of poverty as much as possible after they are employed. The school opened one bank account for each trainee and gives the card to the trainee and gives the bankbook to his parents. The trainees can only save money and may not withdraw any money from the card, but their parents can withdraw money from the bankbook whenever they want. According to the regulations, trainees can only use 40% of the wage income as living expenses and pocket money, and the balance must be kept by their parents.

2.2.1.8 Implementation of the continuing training system

When the trainees under centralized management after they are employed cannot adapt to the job or want to be transferred to a working position with higher requirements for skills, the school will cooperate with the enterprise to hold on-site trainings to help the trainees adapt to their jobs.

2.2.1.9 Implementation of the achievement motivation system

Taking trainees money sending to their families as an important indicator, the school implements target assessment on the employed trainees and rewards them. For all the trainees meeting the relevant requirements of the annual assessment, the school will arrange a special car to send them back home in Spring Festival and pick up them when they come back. In such a way, the trainees all feel at ease and work hard, creating an atmosphere of learning from and surpassing each other.

2.2.2 Main practices of Yichang City government departments

2.2.2.1 Introducing the competition mechanism and determining the training base

Yichang City’s poor farmer transfer training is not funded by the government departments. Instead, pilot training projects were first implemented by Qinghua Vocational School in Zigui and Changyang. After its smooth operation and good comments are made, this school was designated as the poor farmer transfer training base of Yichang City. Since 2003, without any financial support from the government, "Qinghua Vocational School" has held trainings and arranged jobs for 1350 poor farmers, with an employment rate of 100% and an employment consolidation rate of 99%, reduced tuition fee of 150,000 yuan of 350 poor farmers, and delayed to collect tuition fee of 226,000 yuan. The beneficiaries are required to repay the tuition fees with wage income after they are employed. It effectively alleviated the fund shortage of poor farmers labor transfer training. After careful negotiation with the poverty alleviation department, the school promises: to ensure that 100% of the poor farmer participants of the trainings will obtain the vocational qualification, 98% of them will find a job, more than 90% of them will enjoy stable employment, and their wage level will not be lower than the average level of people with similar conditions; to reduce 50% of the tuition fees of the trainees from absolutely poor families or the families receiving subsistence allowances (i.e. destitute students), issue 1500 yuan of loans per person per year for the trainees from needy families and low-income families (i.e. poor students), and gradually recover the loans from the trainees wage income after they are employed. On the basis of the comprehensive survey and repeated comparison of the City and County Poverty Alleviation Departments, the relevant leaders of the City Party Committee and Government listened to the relevant work reports, carried out field research and finally determined to make this school the Poor Farmers Transfer Training Base of Yichang City. However, the counties, cities and districts may also look for schools with more preferential conditions to hold poor farmers job training. Thus, poor farmers will benefit more from the competition.

2.2.2.2 Targeting at training objects and issuing support policies

Many farmers want to take part in the training, but the poverty-relief training funds are limited, so we must highlight the key points and target at the poor to directly benefit poverty-stricken farmers. Objects of the poor labor transfer training determined by Yichang City include: Labors who meet the vocational skills training enrollment conditions and come from the registered households in absolute poverty receiving subsistence allowances and low-income rural households. Poverty alleviation departments create files of the poor rural families and their labors and enter the data into computer for follow-up management. Governments at all levels attach importance to the poverty reduction effects of the training, are strict in training object screening to make sure the objects are selected in an open, just and fair manner and prevent equal support for all people, and make statistics based on the actual situation, not covering other types of trainees into the poor farmers labor transfer training system. Specific standards for supporting poor trainees: Destitute trainees are exempted from training fee of 1500 yuan  the poverty alleviation and Qinghua Vocational School each pay 50% for them; destitute trainees and poor trainees may apply for subsidized loans of 1500 yuan per person from the school.

2.2.2.3 Implementing microfinance for individuals and expanding the scale of training and employment

Usually, credit funds can hardly be issued for poverty alleviation. To overcome this difficulty, Yichang city government decided to earmark 800,000 yuan of financial funds every year to guarantee petty loans of poor rural households. With a big market, low risk and quick returns, labor transfer training enjoys a high rate of return on investment, and "Qinghua Vocational School" has explored management approach for loan-supported training and loan repayment through employment. Therefore, Yichang City uses the 800,000 yuan as the poor farmers labor transfer training guarantee fund and entrusts "Qinghua Vocational School" to issue an annual loans of 1500 yuan per person for 2000 needy trainees with repayment period of two years, and the poverty alleviation departments will issue the interest subsidy. The trainees signed the "loan contract" with the school and shall repay the loans with their wage income after they are employed as required. Qinghua Vocational School shall bear the loss when the loan recovery rate is below 93%, and the guarantee fund will be used to make up for the loss when the loan recovery rate exceeds 93%. To encourage Qinghua Vocational School to raise the loan recovery rate, when the recovery rate exceeds 95%, the government will reward the school.

2.2.2.4 Helping the poor through cooperation with Qinghua Vocational School

For labors from needy families, the biggest problem in taking part in the trainings is the poverty of their families, but the state funding is limited and cannot address all their problems. After careful negotiation with Qinghua Vocational School, Yichang City Poverty Alleviation Department implemented two measures to support the poor trainees: First, tuition waiver. Trainees from needy families only need to pay 50% of the training fee, and the poverty alleviation and Qinghua Vocational School will each pay half of the remaining. Second, subsidized loans. Issue petty subsidized loans to the trainees from needy families and low-income families who still have financial difficulties after tuition waiver is implemented. Each of these trainees can apply for bank loans through the school, for which the school shall provide guarantee and the government shall provide interest subsidy. The trainees are required to repay the loans with wage income after they are employed.

3 Implementation Effect

3.1 Lifted poor families out of poverty

Through labor transfer training and job placement, Yichang Qinghua Vocational School lifted many families out of poverty. Prior to 2010, through loan-supported training and poverty reduction through employment, the school held trainings for more than 18,000 labors of poor areas and lifted many poor families out of poverty. 500 yuan is deducted from the wage income of each employee and transferred to his familys bank account. In less than three years, in such a way, each family will have family savings of nearly 20,000 yuan.

3.2 Promoted the development of training agencies

In just a few years, Yichang Qinghua Vocational School has not only survived, but witnessed rapid growth. Its trainees increased from 307 in 2002 to 7000 in 2005, and it has grown from one-campus school into a large school with seven campuses and ten teaching areas. In 2005, jointly with Suzhou Ingmar Human Resources Company, it successfully established Ingmar Education Group and got an Ingmar employees living base that can hold 8,000 employees and the Ingmar Workers College as well. Meanwhile, it has set up offices in Shanghai and Guangdong.

3.3 Promoted the innovations of poverty alleviation mechanism

The establishment and promotion of the model of "loan-supported training and poverty reduction through employment" promoted the poverty alleviation mechanism innovation and the poverty relief project management system reform. Taking it as a fundamental strategy to reduce poverty, the poverty alleviation departments at all levels of Hubei Province incorporated poor labor transfer training into the scope of poverty relief project management and implemented standardized management and "sunshine operation". First, established the graded responsibility system, and made clear the division of responsibilities of the provincial, city and county poverty alleviation departments: The provincial poverty alleviation department is responsible for planning formulation, the city poverty alleviation department is responsible for implementation and the county poverty alleviation department is responsible for student enrollment. Second, implemented assistance object publicity system. Third, implemented the project management contract system. The Municipal Office of Poverty Alleviation signed the project implementation contract with the training agency, and the training agency signed the training and employment contracts with the trainees. Fourth, improved the inspection and acceptance system. After training and employment, the students shall write the self-assessment reports and submit to the poverty alleviation departments for check, forming the acceptance reports. Fifth, strictly implemented the subsidy reimbursement system. Based on the practices of various regions, Hubei Provincial Poverty Alleviation has developed the "Rural Poor Labor Transfer Training Project Management Measures of Hubei Province", and the Provincial Department of Finance and the Provincial Poverty Alleviation Office jointly formulated the "Trial Measures on the Management of Rural Poor Labor Transfer Training Funds of Hubei Province".

3.4 Played an important exemplary role

Yichang Qinghua Vocational School has been identified as the national labor transfer training base for poor areas by LGOP, and is also the Rain Plan demonstration base for rural poor labor transfer training of Hubei Province identified by Hubei Provincial Poverty Alleviation Office. The poverty-relief training mode jointly developed by the provincial and city poverty alleviation offices and the school was fully affirmed by the Provincial Party Secretary, who gave an important instruction of promoting this mode across the province; LGOP also held the national meeting on sharing the experience in labor transfer trainings of poor areas in Yichang to promote the successful practices of Qinghua Vocational School. Qinghua Vocational School is playing an increasing demonstration role and its training mode of "loan-supported training and poverty reduction through employment" has been gradually promoted in poor areas of Hubei Province. Following the principle of "government guidance, market operations, risk sharing and joint promotion", with the operation mode of "financial security, poverty-relief interest subsidy, bank loans, school lending, student reloan and loan repayment through employment", Shiyan City established the student-aiding loan training system.

4 Existing Problems

4.1 Poor cash flow of schools

Due to weak policy enforcement and for some other reasons, the "national subsidy for secondary vocational schools" was not issued in full for Yichang Qinghua Vocational School. As a result, Yichang Qinghua Vocational School Changyang Branch defaulted a total of 154,727 yuan of wages 20 teachers for the period from May to October. All the teachers of Yichang Qinghua Vocational School Changyang Branch reflected this problem on the hotline website of Yichang City government working style on October 21, 2010 and said that they would strike if the problem is not addressed timely. The relevant officer of Changyang County Bureau of Human Resources and Social Security responded to them on October 26, 2010 and addressed the problem, but it still indicates that Yichang Qinghua Vocational School encountered great financial difficulties in school running and the relevant government departments did not do a good job.

4.2 Unfavorable employment environment and conditions

With the rapid economic development, Suzhou has become a hot area for China's regional economic growth and investment and a large number of foreign-funded enterprises want to settle down here. In particular, with its unique policy advantage, complete infrastructure and good investment environment, Suzhou Industrial Park has attracted many of the Fortune 500 Companies to invest here, boosting economic development and creating many employment opportunities. Despite the strong demand for labors, more and more enterprises raise the employment threshold as "two certificates": technical or secondary vocational school education certificates, increasing the difficulty of the short-term training participants without such certificates in finding a job.

4.3 Workers’ increasingly high expectations

In recent years, the labor market in Suzhou City is gradually changing from the "buyer's market" to the "seller's market", and the market demand for labor force, which is regarded as a scarce resource, is increasing. Some enterprises of Suzhou have begun to recruit in the eastern provinces, and the graduates of Qinghua Vocational School can no longer meet the order requirements of Ingmar Group. The booming labor market stimulated the workers’ "appetite", and many skilled workers can easily find jobs but they want to serve the enterprises with weak labor intensity, high income levels and good benefits and compete for the working positions of these enterprises. Currently, the workers are no longer satisfied to be dispatched to a certain enterprise, challenging the unified mode of "labor dispatch and follow-up employment" of Qinghua Vocational School.

5 Basic Experience

5.1 Incorporate vocational training schools into the poverty alleviation system

Previous poverty alleviation was mainly "blood transfusion" poverty alleviation, such as the relief-oriented poverty reduction of increasing public services. These practices can improve the living standards of poor areas to some extent, but cannot help poor families achieve sustainable development and will probably make them fall into poverty again. "Yichang Mode" incorporates vocational training schools into the poverty alleviation system and, through vocational education, helps the poor labors master a skill for survival and become competitive in the market. This "blood making" poverty alleviation is a fundamental solution to the poverty problem of the trainees families.

5.2 Improve workforce training loan mechanism

The "Yichang Mode" has three core operation mechanisms, which provide mechanism guarantee for the labor transfer training and loan repayment through employment. First, the guarantee mechanism. The government provides guarantee for the poor to obtain loans to participate in the trainings; second, the lending mechanism. Financial agencies issue loans to the school and the school then issues the loans to the students to ensure that the subsidized loans will benefit the real poor; third, loan repayment mechanism. The employers transfer the wages to the bank account of the dispatching unit every month, who then deducts the loans before issuing the wages to the employees to enhance their ability to repay loans.

5.3 Accurate target at poverty to ensure precise poverty alleviation

Yichang City government and Qinghua Vocational School both adopted relevant measures to ensure that all the trainees come from needy families. Changyang County Poverty Alleviation Office, in cooperation with local civil affairs bureau and statistical bureau, did a lot of work to confirm the poor households of the county, divided the rural households into four categories through mass participation based on their wealth situation, and established the poor population management system to make the targeting more accurate. The relevant departments of Zigui County set up 12 working teams, spent six months in investigation, made statistics of the relevant families annual income, population, labors, crop categories, educational levels and specialties, and established the first database of rural households. According to Qinghua Vocational School, all the trainees must come from the poor rural families confirmed by the village and verified by the township and county poverty alleviation departments, the students enjoying the preferential policy of Rain Plan must come from needy families, mainly those aged 16-40 from the families with per capita net income of less than 1000 yuan, and the young and middle-aged labors and new labors meeting the employment requirements with a certain educational level and good health status, especially the poor young among those who fail to pass the examinations for senior high school or college / university education.

5.4 Strengthen supervision on poverty-relief funds

To ensure the "Rain Plan" funds are used for poor labor transfer training, Hubei Province implemented two initiatives to ensure the standardized operation, security and efficiency of the "Rain Fund". First, incorporate the rain fund into the project management. The Provincial Poverty Alleviation Office and the Provincial Department of Finance jointly issued the "Rain Plan Project Management Approach of Hubei Province", regarding the transfer trainings as poverty-relief projects. Based on the training objects, contents and time, subsidy standards and transfer employment, the poverty alleviation departments signed the project contracts with the training agency to prevent illegal behaviors of the trainees after the training course and the post-employment assessment. In the form of "training vouchers", subsidies for each poor trainee are directly given the poor students by the poverty alleviation departments. The "training vouchers" are under real names of the trainees. After the training course, the students sign the "training vouchers" and present the copies of their ID cards to the training school. Imposture, false report, transfer and sale are prohibited. The training agency set up the poor labor transfer training account. The financial department uses the "training vouchers" as waiver certificates. The training course should complete the examination and acceptance report and relevant material preparation and strict implement the reimbursement system. Secondly, implement sunshine operation of the "Rain Fund". The training agency invites bidding publicly and the training fees shall be verified by the pricing department. The training topics, training time, recruiting plan, charging standard, tuition waiver, subsidy standard and employment transfer should all announced publicly to accept social and mass supervision and released at the Hubei Rain Plan Website. Set up informants’ hotlines, strengthened the audit and inspection and investigated the legal liability of relevant units and individuals according to law when involving cheat, misappropriation and corruption in the use of the "Rain Fund".

5.5 Make innovations to the labor transfer and training mode

After the training, job transfer is an important task. To make 100% of the students achieve job transfer, the poverty alleviation departments of Hubei Province, including that in Yichang City paid equal attention to the construction of training bases and employment bases, vigorously held market-oriented targeted and order trainings and explored the labor transfer mode of labor dispatch, with employment separated from management. After receiving the trainings, poor students are dispatched to the human resources agencies, which then dispatched them to different enterprises. Yichang Qinghua Vocational School worked closely with Suzhou Ingmar Human Resources Corporation. The school recruits poor students and holds trainings of six to twelve months, then dispatches the students to Suzhou, and Suzhou Ingmar Human Resources Corporation will then dispatch the students to different enterprises. The enterprises use the labors but are not responsible for the staff management, while the Suzhou Ingmar Human Resources Corporation is responsible for the workers management. The students work for eight hours in the enterprise, and their accommodations after the working time, rights protection and wage issuance are all under the responsibilities of Ingmar Group. The employers transfer the wages of the workers to Ingmar, which then deducts a certain amount of loans from the wages before issuing the wages to the workers, facilitating the loan-supported training and loan repayment through employment.

5.6 Establish a market-oriented operation mechanism

This is mainly reflected in two aspects: when to enroll students and how many; selection of training contents. First, launch the student enrollment after receiving enterprises’ "orders" to ensure that students will be employed after graduation. Second, in terms of training contents, Yichang Qinghua Vocational School did not follow the traditional training mode, but arranged the training contents according to the enterprises needs so that the students will meet the requirements of the relevant enterprises after graduation. Therefore, the students will be able to apply what they learn to meet the market demand and then shake off poverty soon.

5.7 Make propagandas on good deeds to create an atmosphere of helping the poor

At the initial stage, to meet the competition requirements for student enrollment, Zigui County Qinghua Vocational School proposed to Zigui County Poverty Alleviation Office the free training of 50 rural poor students. On the basis of a strict investigation into the poor families of the whole county, the students were enrolled in strict accordance with the requirements of household application, village evidence, township inspection, county approval and public announcement. For two consecutive years, Qinghua Vocational School held free trainings for a total of 100 students from needy families. After one year of training, these 100 students were employed by South Korea's Samsung, Nidec, Soutec, Sumitomo Electric and some other well-known enterprises, creating 100 propaganda points of Qinghua Vocational School, enhancing the influence and reputation of Qinghua Vocational School and creating the “Yichang Mode” of poverty alleviation by loan-supported training and loan repayment through employment.

5.8 Safeguard students’ rights and interests to ensure loan repayment through employment

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