IPP724 World Bank-financed Guizhou Rural Development and Poverty Alleviation Project Ethnic Minority Development Plan Foreign Capital Project Management Center of Guizhou Provincial Poverty Alleviation & Development Office May 2014 Contents Abstract ..................................................................................................................................................................... i 1. Introduction .......................................................................................................................................................... 1 1.1 Project Overview ...................................................................................................................................... 1 1.2 SA Overview .............................................................................................................................................. 1 1.3 Scope of this EMDP ................................................................................................................................. 2 1.4 Purpose of this EMDP ............................................................................................................................. 2 1.5 Objectives of this EMDP.......................................................................................................................... 2 2. Overview of Ethnic Minorities in the Project Area .......................................................................................... 3 2.1 Minority Population ................................................................................................................................... 3 2.2 Religious and Cultural Profile of Ethnic Minorities .............................................................................. 5 2.3 Socioeconomic Profile of Ethnic Minorities .......................................................................................... 6 2.3.1 Income ............................................................................................................................................ 6 2.3.2 Crop Cultivation ............................................................................................................................. 6 2.3.3 Stockbreeding ................................................................................................................................ 7 2.3.4 Land Resources ............................................................................................................................ 8 2.3.5 Infrastructure .................................................................................................................................. 8 2.4 Poverty of Ethnic Minorities .................................................................................................................... 8 2.4.1 Poverty of Ethnic Minorities in the Project Villages .................................................................. 8 2.4.2 Income Sources of Minority Residents ...................................................................................... 9 2.4.3 Participation of Poor Minority Households in FPCs ................................................................. 9 2.4.4 Participation of Poor Minority Households in Local Advantaged Industries ......................... 9 2.5 Prevailing Policy Framework for Ethnic Minorities ............................................................................ 10 2.6 Ongoing Projects Related to Ethnic Minority Development in the Project Area ........................... 12 3. Public Consultation and Perceptions of Development ................................................................................ 13 3.1 Participation of Minority Communities at the Preparation Stage ..................................................... 13 3.2 Perceptions of Rural Development ...................................................................................................... 14 3.3 Community Participation Plan .............................................................................................................. 16 4. Analysis of Differences and Vulnerability of Ethnic Minorities ................................................................... 17 4.1 Analysis of Differences among Ethnic Minorities ............................................................................... 17 4.1.1 Analysis of Ethnic Differences ................................................................................................... 17 4.1.2 Analysis of Gender Differences ................................................................................................. 18 4.2 Vulnerability Analysis of Ethnic Minorities........................................................................................... 21 5. Analysis of Minority FPCs................................................................................................................................ 23 5.1 Minority FPCs.......................................................................................................................................... 23 5.2 Attitudes of Ethnic Minorities to FPC ................................................................................................... 26 5.3 Issues of Minority FPCs and Causes .................................................................................................. 28 5.3.1 Issues of Minority FPCs ............................................................................................................. 28 5.3.2 Cause Analysis ............................................................................................................................ 28 6. Impacts of the Project on Ethnic Minorities .................................................................................................. 30 6.1 Positive Impacts...................................................................................................................................... 30 6.2 Risk Analysis ........................................................................................................................................... 31 7. Action Plan ......................................................................................................................................................... 33 7.1 Ethnic Minority Action Plan ................................................................................................................... 33 7.2 IAs and Implementation Schedule ....................................................................................................... 34 7.2.1 IAs and Capacity Building .......................................................................................................... 34 7.2.2 Implementation Schedule .......................................................................................................... 36 I 7.2.3 Financial Budget.......................................................................................................................... 36 7.3 Grievance Redress Mechanism ........................................................................................................... 36 8. M&E .................................................................................................................................................................... 41 Appendix 1 Sample Villages................................................................................................................................ 42 Appendix 2 Ongoing Projects Related to Ethnic Minority Development in the Project Area ..................... 42 Appendix 3 Summary of Early-stage Participation Activities .......................................................................... 43 Appendix 4 Fieldwork Photos.............................................................................................................................. 44 List of Tables Table 1-1 Scope of this EMDP ........................................................................................... 2 Table 2-1 Population Statistics of the Minority Project Counties ........................................ 4 Table 2-2 Population Statistics of the Minority Project Villages ......................................... 4 Table 2-3 Composition of Farmers’ Per Capita Income of the Minority Project Counties (2012) 6 Table 2-4 Income of Ethnic Minorities and Han People in the Minority Project Villages ... 6 Table 2-5 Crop Cultivation in the Minority Project Counties (2012) ................................... 7 Table 2-6 Stockbreeding in the Minority Project Counties (2012) ...................................... 7 Table 2-7 Land Resources in the Minority Project Counties (ha) ...................................... 8 Table 2-8 Infrastructure in the Minority Project Counties (2012) ....................................... 8 Table 2-9 Poverty in the Minority Project Villages .............................................................. 8 Table 2-10 Main Income Sources of Minority Poor Households (%) ................................. 9 Table 2-11 Statistics of Participation of Minority Poor Households in FPCs (%) ............... 9 Table 2-12 Mastery of Characteristic Production Skills by Minority Poor Households .... 10 Table 2-13 Willingness of Minority Poor Households to Participate in Local Advantaged Industries 10 Table 3-1 Public Participation Activities ........................................................................... 14 Table 3-2 Support of Ethnic Minorities for the Project ..................................................... 14 Table 3-3 Willingness of Ethnic Minorities to Participate in the Project ........................... 14 Table 3-4 Attitudes of Ethnic Minorities to Sources of Additional Income (%) ................. 15 Table 3-5 Main Causes of Poor Income on Farm Products Perceived by Ethnic Minorities (%) 15 Table 3-6 Necessity of Specialized Training Perceived by Ethnic Minorities (%) ............ 16 Table 3-7 Support of Ethnic Minorities for FPCs (%) ....................................................... 16 Table 4-1 Mandarin Chinese Proficiency of Yi People ..................................................... 17 Table 4-2 Vulnerability of Ethnic Minorities and Alleviation by the Project ....................... 22 Table 5-1 Basic Information of FPC of Ethnic Minorities ................................................. 24 Table 5-2 Years of Registration of FPC of Ethnic Minorities ............................................ 23 Table 5-3 Awareness of FPC among Ethnic Minorities (%) ............................................. 26 Table 5-4 Willingness of Ethnic Minorities to Join FPCs (%) ........................................... 26 Table 5-5 Expectations of Ethnic Minorities for FPCs (%) ............................................... 26 Table 5-6 Factors that Hinder the Development of FPCs Perceived by Ethnic Minorities (%) 27 Table 5-7 Attitude of Ethnic Minorities on FPC Training (%) ............................................ 27 Table 5-8 Scope of Training for FPC Expected by Ethnic Minorities (%) ........................ 27 Table 7-1 Establishment of Leading Groups in the Project Counties .............................. 35 Table 7-2 Implementation Schedule................................................................................. 36 Table 7-3 EMDP (Gender Action Plan) ............................................................................ 37 Table 8-1 Terms of Reference for EMDP M&E ................................................................ 41 List of Figures Figure 7-1 Organizational Chart of the Project ................................................................ 35 II Abbreviations EMDP - Ethnic Minority Development Plan FGD - Focus Group Discussion FPC Farmers’ Professional Cooperative M&E - Monitoring and Evaluation PMO - Project Management Office PRC People’s Republic of China SA Social Assessment Units Currency unit = Yuan (CNY) USD1.00 = CNY6 1 hectare = 15 mu III Abstract A. Project overview The World Bank-financed Guizhou Rural Development and Poverty Alleviation Project (hereinafter, the ―Project‖) is the first Bank -financed poverty reduction project in Guizhou Province. The Project has a construction period of 5 years, and consists of restructuring of agricultural sub-sectors, public infrastructure and services support, training and capacity building, and project management and M&E. The Project covers 241 villages in 63 townships, 11 counties and 3 cities in the Wuling Mountain and Wumeng Mountain contiguous destitute regions. The Project aims to increase local farmers’ income and improve local public services through agricultural restructuring and organizational improvement. B. SA overview This social assessment (SA) covers farmers’ professional cooperatives (FPCs) in 241 villages in 63 townships, 11 counties and 3 cities in the Wuling Mountain and Wumeng Mountain contiguous destitute regions. In January 2014, the SA team conducted SA for 15 days in 49 villages in 33 townships, 11 counties, 3 cities using the 7 SA methods of literature review, participatory observation, key informant interview, in-depth interview, FGD and questionnaire survey. 98 FGDs were held in 49 villages in 11 counties, including 49 ordinary FGDs and 49 FGDs with women. 169 men-times of personal in-depth interviews were conducted, including 85 minority persons, accounting for 50.3%; 78 women, accounting for 46.2%; and 64 poor persons, accounting for 37.9%. 219 key informant interviews were conducted with township and village officials, and 14 stakeholder discussion meetings held with county agencies concerned. The questionnaire survey covered 36 villages in 22 townships, 7 counties, with 1,080 copies of the questionnaire distributed and 1,013 copies recovered, accounting for 93.8%, including 537 male samples, accounting for 53%; 476 female ones, accounting for 47%; and 336 poor ones, accounting for 31.1%. The socioeconomic survey shows: 1) 90.5% of the respondents support the Project; 2) 94.3% of the respondents agree (including ―strongly agree‖ and ―agree‖) with the establishment of FPCs, 96.1% are willing to join FPCs, and 96.3% think it necessary (including ―very necessary‖ and ―necessary‖) to conduct FPC training; 3) 92.0% of the respondents think the Project is important (including ―very important‖ and ―important‖) for households, and 98.03% are willing to get employed under the Project; and 4) However, 81.5% of the respondents do not have or are short of skills for local advantaged industries. The SA team has developed a feasible social action plan in consultation with the APs, county PMOs, IAs and other agencies concerned to mitigate or evade social risks. This EMDP has been prepared to learn local minority residents’ needs for and suggestions on the Project, and ensure that the Project is implemented in a manner culturally suited to ethnic minorities. C. Identification of minority project area and population overview The range of this EMDP is 138 villages in 39 townships, 9 counties, 3 cities in Guizhou Province, including 10 minority townships, accounting for 26.64%, including 2 counties with 7 townships with 16 villages in Zunyi City, 3 counties with 10 townships with 15 villages in Bijie City, and 4 counties with 22 townships with 107 villages in Tongren City. The minority project area has a direct beneficiary population of 266,385, including a minority population of 202,820, accounting for about 76.14%. The minority population includes 98,863 Miao people, accounting for about 37.11%; 7,114 Yi people, accounting for about 2.68%; 56,253 Tujia people, accounting for about 21.12%; 34,679 Gelao people, accounting for about 13.02%, and a population of other ethnic minorities of 5,911, accounting for 2.22%. D. Objectives of this EMDP The objectives of this EMDP are: 1) providing all relevant project information in a manner suited to local minority cultures and customs, conducting adequate communication and consultation, and analyzing their needs; 2) incorporating minority needs for the Project into the project design; 3) establishing minority FPCs in a culturally adaptive manner; and 4) taking actions to minimize the Project’s potential impacts on and risks to minority residents, and enhancing their opportunities to i benefit from the Project in a way acceptable for them. E. Prevailing policy framework for ethnic minorities This EMDP has been prepared in accordance with the laws and regulations on ethnic minorities of the PRC, applicable regulations of Guizhou Province, and the Bank’s policies on ethnic minorities (OP4.10 and BP4.10). The prevailing state, provincial and local policies and regulations have given adequate consideration to the protection of basic civil rights, the equal political, economic, cultural and legal status of ethnic minorities, and the lingual right and religious freedom of ethnic minorities. These policies and regulations are consistent with the spirit of the Bank’s policies on ethnic minorities (OP4.10 and BP4.10). As long as these policies and regulations are complied with strictly, and this EMDP is implemented effectively, all rights and interests of local minority residents can be protected practically. F. Analysis of differences among ethnic minorities 1. Miao The main beliefs of the Miao people are natural and ancestral worship, and elders and authorities are respected. At the preparation and implementation stages, Miao elders and authorities in the Wumeng Mountain area play an irreplaceable role in FPC management and dispute settlement. In recent years, more and more Miao people are working outside, and employment income has become a great supplement to agricultural income, but the percentage of Miao people working outside is lower than that of Han people. In addition, transport costs of farm products are high due to backward traffic facilities, so that the marketing range of farm products with Miao characteristics is highly restricted. The Miao people in Yongna County in the Wumeng Mountain area mostly speak in the Miao language and write in Chinese. The Miao people in Wuchuan and Daozhen County in the Wuling Mountain area have lived together with Han, Gelao and Yi people for a long time, showing no ethnic difference in economic structure and level, and language. 2. Yi For the Yi people in the project area, the concept and role of ―lineage‖ have weakened, and village committees are now playing the role of social management. Yi villages in Guizhou are located in remote plateau and mountain areas with harsh natural conditions, simple cultivation skills and insufficient agricultural infrastructure, featuring low income and simple economic structure. The local Yi people have their own spoken and written language. According to the questionnaire survey, 60% of the Yi respondents cannot speak mandarin Chinese. The main festivals of the local Yi people are the Torch Festival and Yi New Year’s Day. Project publicity and training activities should be conducted in languages and modes accepted by local people, and avoid these festivals. 3. Tujia The Tujia traditional culture is reflected in the chieftain system, neighborhood administrative system, weddings, funerals, etc. Currently, a diverse cultivation structure composed of tobacco, tealeaf, mulberry and medicinal materials has been established, the overall income level of the Tujia people is low due to backward infrastructure and cultivation skills. Young Tujia people working outside do not have practical skills. The Tujia language has almost disappeared, and the Tujia people speak and write in Chinese. 4. Gelao Agriculture is the main income source of the Gelao people. Due to backward traffic facilities and cultivation skills, the income level of the Gelao people is lower than the local Han people. The local Gelao people once had their own language, which has disappeared gradually. All local Gelao people speak Chinese. Their traditional festivals include the Bird-Respecting Festival, New Food Festival and Dharma Wheel Festival. G. Vulnerability Analysis of Ethnic Minorities 1. Natural vulnerability and unsound public infrastructure First, the Project is located in the Wuling Mountain and Wumeng Mountain contiguous destitute regions, where as a direct result of the shortage of resources for development, minority residents ii can hardly evade the risk of poverty themselves; second, 70.7% of the minority respondents think local cultivation and stockbreeding facilities are insufficient, and the local public infrastructure is unsound, especially traffic and agricultural infrastructure. 2. Economic vulnerability 1) Lack of diversity in livelihoods, resulting in low resistance to economic risks: First, the local karst landform results in low land fertility, and local minority residents, especially poor ones, still rely on agriculture as their main income source; the questionnaire survey shows that 55.3% of the minority respondents live mainly on agriculture, and 35.4% live mainly on employment. Second, due to the lack of necessary human resources training and modern cultivation skills training, there is a lack of diversity in income sources of minority residents. Both factors have resulted in the low risk resistance of minority residents. 2) Short industry chain and weak market competitiveness: Due to low educational levels, few minority households in the project area are good at management, and minority residents have limited sources of market information, resulting in poor adaptation to the market. 3. Social vulnerability 1) Low educational levels and overall competencies: The percentage of minority residents having received senior high school/technical secondary school or above education is only 18.9%, so that they have difficulty in understanding the development concept of the Project and inadequate self-development capacity. 2) Lack of risk prevention and sharing mechanism: First, local minority residents live in remote mountain areas, have limited information sources, and weak market awareness, and are unable to respond to market risks. Second, since the poverty incidence of the minority project area is as high as 37%, there are no sufficient funds for risk resistance. Third, there is no farmers’ organization that represents the interests of rural households, so that the risk resistance of individual rural households is low. H. Analysis of minority FPCs 1. Current situation of minority FPCs 11 minority FPCs were covered in the survey, including two cooperative + household FPCs, accounting for 18.2%; 8 cooperative + base + household FPCs, accounting for 72.7%; one company + cooperative + household FPC, accounting for 9.1%; and two company + cooperative + base + household FPCs, accounting for 25%. Minority FPCs mainly deal with cultivation (vegetables, leek, tobacco, etc.) and stockbreeding (egg chicken, etc.). 2. Features of minority FPCs 1) Late establishment: Among the 11 sample minority FPCs, 6 were established by economically capable persons, accounting for 54.5%; and 5 by village officials, accounting for 45.5%. Among them, 7 were established in 2010 or thereafter, and are still at the exploration stage. 2) For most minority FPCs, rules and regulations are mostly developed by superior authorities in a unified manner, but are not necessarily compatible with minority cultures and management practices. 3) Among the 11 sample minority FPCs, except the unregistered one, the other 10 minority FPCs have their definite profit distribution measures, and their main modes of distribution include profit distribution based on shares, dividend distribution based on shares, reward, etc. In profit distribution, minority FPCs pay attention to assistance for vulnerable groups. 3. Attitudes of ethnic minorities to FPCs 1) Awareness: The survey shows that 67.8% of the minority respondents are unaware of FPCs (including ―unaware‖ and ―a bit aware‖), in which the awareness of FPCs among the Gelao respondents (including ―highly aware‖ and ―aware‖) is the highest, being 44.7%, and that among the Miao respondents is the lowest, being 35.6%. 2) Support: 96.4% of the minority respondents agree with the establishment of FPCs (including ―strongly agree‖ and ―agree‖). 3) Willingness to join FPCs: The survey shows that 430 minority respondents have not joined FPCs, accounting for 71.2%, of which 97.7% are willing to join FPCs through the Project. 4) Expectations for FPCs: 85.3% of the minority respondents expect FPCs to provide market information, 79.2% expect guidance on cultivation and stockbreeding skills, 68.2% expect marketing channels, 67.3% expect the purchase of means of production at preferential prices, and iii 41.4% expect dividend distribution. 5) Perceptions of and needs for FPC training: The survey shows that 98.5% of the minority respondents think it necessary (including ―very necessary‖ and ―necessary‖) to strengthen FPC training, and 78.6% think that FPCs should strengthen industrial skills training. I. Impacts of the Project on ethnic minorities 1. Positive impacts 1) Increasing job opportunities to improve the living standard of minority residents: At the implementation and operation stages, many jobs will be generated in the project area with the development of processing enterprises due to infrastructure construction and industry extension. Not less than 40% of such jobs will be first made available to minority residents, women, old people and other vulnerable groups. 2) Improving the capacity, organization level and subject consciousness of minority residents: By joining FPCs established under the Project and attending skills training, minority residents can develop their capacity, teamwork and subject consciousness continually through self-management, self-organization and self-development. 3) Improving the infrastructure to improve the production level and living standard of local residents: The Project will improve the infrastructure in the project area to support the development of local advantaged industries, especially traffic and agricultural facilities. 4) Promoting the development of minority women: First, the improvement of the agricultural infrastructure will reduce the labor intensity of women and reduce their burden. Second, through project implementation, minority women will be able to join FPCs and attend skills training, thereby opening their eyeshot and improve their self-development capacity. Finally, some minority women working outside may do jobs offered by local FPCs, so that they can work while taking care of families. 5) Promoting ethnic harmony and realizing project sustainability: The Project will increase minority residents’ income by offering jobs. Through participation in FPC establishment and operation, and skills training, social intercourse among different ethnic groups will be promoted, thereby contributing to ethnic harmony. 2. Negative impacts and risks 1) Perception risks of minority FPCs: First, the awareness of FPCs among minority residents is low due to inadequate project publicity and mobilization; second, minority residents can hardly have a comprehensive understanding of FPCs due to relatively low educational levels; third, their participation in FPCs may become a mere formality due to the lack of scientific perceptions. 2) Participation risks of minority residents: a) Lack of means of participation: First, minority residents living in remote areas and having traffic difficulty can hardly participate in project activities; second, minority residents may be unable to participate in and benefit from the Project equally due to low educational levels and overall capacity; b) Non-adaptation to participation modes: If minority customs are not respected, such as social intercourse, language and lifestyle, minority residents will be inadaptable; c) Inadequate participation capacity: Due to low educational levels, and limited experience and knowledge, minority residents don’t know how to participate effectively in the Project, especially poor minority households. 3) Risks of minority residents to benefit equally: In the Project, funds will be allocated to FPCs to support the development of local advantaged industries. However, project funds may not be allocated to minority households (especially poor households) equally through FPCs, so that minority residents may be unable to benefit equally from the Project. 4) Livelihood risks of minority residents: First, some industries under the Project require substantial investment, but minority households do not have necessary funds for startup or expansion due to low income, so that investment level and ability to pay will determine their enthusiasm for participation and the economic efficiency of the Project directly. Second, minority residents have limited income sources, mainly including cultivation, stockbreeding and employment, so this will challenge their income sources and level. 5) Operating risks of minority FPCs. As a new thing, FPCs have their own rules and patterns of operation and management. There is no experience for reference in FPC operation and management in the minority project area, and minority residents’ educational levels and overall competencies are generally low, so that minority residents may don’t know how to participate in FPC operation and management after establishing or joining FPCs. iv J. Recommended ethnic minority development actions 1. Empowering minority residents to participate equally, enhancing their identification with FPCs, and developing their subject consciousness: Strengthen project publicity to ensure that project awareness among minority residents is not less than 80%. Rules and regulations of FPCs should be developed in consultation with minority residents. Not less than 40% of unskilled jobs generated at the implementation stage should be first made available to minority residents, women, old people and other vulnerable groups. FPC counselors familiar with minority customs should be appointed. A sound, operable grievance redress mechanism should be established. 2. Promoting the equality and sustainable development of minority households: In the minority project villages, not less than 50% of FPC members should be minority residents; the board of directors or supervisors of each FPC should have at least one minority, one female and one poor member each. The profit distribution mode of each FPC should be determined at a general meeting. The former ownership structure should be transformed to establish an extensive joint stock system that involves minority residents. Profit distribution results should be disclosed regularly, and financial records kept for supervision by minority members. Each county PMO should appoint one member to be responsible for EMDP implementation. 3. Conducting training in various forms to strengthen the capacity building of minority residents: Pertinent training on mandarin Chinese, practical skills and FPCs should be provided to minority residents, in which not less than 40% of trainees should be women; in the minority project villages, the participation rate of minority residents should not be less than 50%, and that of poor minority residents not less than 40%. Trainers should be trained properly, and training programs welcome by minority residents developed. Timely feedback should be given on training effectiveness. 4. Publicity and training should be conducted in a manner that respects minority customs, scheduled to avoid traditional minority festivals, and given in languages or in the presence of minority interpreters and at places accepted by minority residents; training should be diversified and comprehensible. See Section 7.1 and Table 7-3 for specific recommended actions. K. Implementation schedule and M&E The Project will be implemented by the provincial and county PMOs mainly. This EMDP will be implemented at the preparation and implementation stages, and within half a year after the completion of the implementation stage. At the preparation stage, tasks related to ethnic minority development mainly include project information disclosure, project impact identification, project support rate survey, EMDP preparation and consultation, EMDP information booklet distribution, etc. At the implementation stage, tasks related to ethnic minority development mainly include project implementation, and internal and external monitoring. A summary evaluation will be conducted within half a year after the completion of the implementation stage. EMDP monitoring includes internal and external monitoring. Internal monitoring will be conducted by the PMO on EMDP implementation progress. In addition, the PMO will appoint an independent agency to conduct external M&E on ethnic minority development until project completion. The independent agency may be an academic institution, NGO or consulting firm, but it must have qualified and experienced staff members, and their terms of acceptance must be accepted by the Bank. Internal monitoring will be conducted semiannually and external monitoring annually, and external monitoring reports will be prepared. See Table 8-1. v 1. Introduction 1.1 Project Overview The Project is the first Bank-financed poverty reduction project in Guizhou Province, and was included in the List of World Bank-financed Projects of the National Development and Reform Commission, and Ministry of Finance (2013-2015) in July 2012. The preparatory work of the Project was started in November 2012. The Project has a construction period of 5 years, and consists of restructuring of agricultural sub-sectors, public infrastructure and services support, training and capacity building, and project management and M&E. The Project covers 241 villages in 63 townships, 11 counties and 3 cities in the Wuling Mountain and Wumeng Mountain contiguous destitute regions. The Project aims to increase local farmers’ income and improve local public services through agricultural restructuring and organizational improvement. The gross investment in the Project is CNY857.14 million, including a Bank loan of USD100 million, equivalent to CNY600 million (USD1 = CNY6), accounting for 70% of gross investment, and domestic counterpart funds of CNY257.14 million, accounting for 30% of gross investment. 1.2 SA Overview This SA aims learn current industrial and FPC developments in the project area, and stakeholders’ attitudes to and needs for the Project, identify the Project’s potential social risks, evade or alleviate such risks by developing an action plan, improve the project design, and involve individuals and groups that may be affected directly by the Project effectively in project activities. This SA covers FPCs in 241 villages in 63 townships, 11 counties and 3 cities in the Wuling Mountain and Wumeng Mountain contiguous destitute regions. This SA mainly includes economic and social development, stakeholder analysis, FPC analysis, poverty analysis, social and gender analysis, minority analysis, information disclosure and public participation, and action plan development and implementation. In January 2014, the SA team conducted SA for 15 days in 49 villages in 33 townships, 11 counties, 3 cities using the 7 SA methods of literature review, participatory observation, key informant interview, in-depth interview, FGD and questionnaire survey. 98 FGDs were held in 49 villages in 11 counties, including 49 ordinary FGDs and 49 FGDs with women. 169 men-times of personal in-depth interviews were conducted, including 85 minority persons, accounting for 50.3%; 78 women, accounting for 46.2%; and 64 poor persons, accounting for 37.9%. 219 key informant interviews were conducted with township and village officials, and 14 stakeholder discussion meetings held with county agencies concerned. The questionnaire survey covered 36 villages in 22 townships, 7 counties, with 1,080 copies of the questionnaire distributed and 1,013 copies recovered, accounting for 93.8%, including 537 male samples, accounting for 53%; 476 female ones, accounting for 47%; and 336 poor ones, accounting for 31.1%. The socioeconomic survey shows: 1) 90.5% of the respondents support the Project; 2) 94.3% of the respondents agree (including ―strongly agree‖ and ―agree‖) with the establishment of FPCs, 96.7% are willing to join FPCs, and 96.3% think it necessary (including ―very necessary‖ and ―necessary‖) to conduct FPC training; 3) 92.0% of the respondents think the Project is important (including ―very important‖ and ―important‖) for households, and 98.03% are willing to get employed under the Project; and 4) However, 81.5% of the respondents do not have or are short of skills for local advantaged industries. The SA team has developed a feasible social action plan in consultation with the APs, county PMOs, IAs and other agencies concerned to mitigate or evade social risks. The SA team identified ethnic minorities carefully by means of field investigation, literature review, key informant interview, etc. in accordance with OP4.10 with the support of the county PMOs, and agencies concerned (see Chapter 7 ―Minority Analysis‖ of the SA Report for the detailed identification process). This shows that the minority project area mainly includes Wuchuan Gelao-Miao Autonomous County and Daozhen Gelao-Miao Autonomous County, Zunyi City; Yongna County, Hezhang County and Weining Yi-Miao Autonomous County, Bijie City; and Dejiang County, Shiqian County, Yinjiang Tujia-Miao Autonomous County and Yanhe Tujia Autonomous County, Tongren City. The main ethnic minorities in the project area are Miao, Yi, Tujia and Gelao. This EMDP has been prepared to learn local minority residents’ needs for and suggestions on the Project, and ensure that the Project is implemented in a manner culturally suited to ethnic 1 minorities. 1.3 Scope of this EMDP The range of this EMDP is 138 villages in 39 townships, 9 counties, 3 cities in Guizhou Province, including 10 minority townships, accounting for 26.64%, including 2 counties with 7 townships with 16 villages in Zunyi City, 3 counties with 10 townships with 15 villages in Bijie City, and 4 counties with 22 townships with 107 villages in Tongren City. See Table 1-1. In this EMDP, the minority project area refers to the 138 minority villages in 9 counties as identified above, and the project area refers to all the 203 project villages in 9 counties. Table 1-1 Scope of this EMDP Project townships Project villages City County Minority Minority Remarks Total Total townships villages Wuchuan 2 0 7 7 Gelao, Miao, Tujia Zunyi City Daozhen 5 0 9 9 Gelao, Miao Total 7 0 16 16 Nayong 6 4 16 8 Miao, Yi Bijie City Hezhang 2 1 6 3 Yi, Miao Weining 2 1 13 4 Yi, Miao Total 10 6 35 15 Dejiang 7 2 42 42 Tujia Tongren Shiqian 3 2 7 7 Gelao, Miao City Yinjiang 7 0 33 33 Tujia, Miao Yanhe 5 0 25 25 Tujia Total 22 4 107 107 Total 39 10 158 138 Source: county PMOs 1.4 Purpose of this EMDP This EMDP has been prepared in accordance with the laws and regulations on ethnic minorities of the PRC, and the Bank’s policies on ethnic minorities ( OP4.10 and BP4.10). This EMDP is prepared to ensure that: (a) Affected minority residents receive social and economic benefits suited to their cultural customs; and (b) If the Project does have negative impacts on minority residents, measures are taken to avoid or minimize such impacts, or such impacts are compensated for. This EMDP will describe the demographic, social and cultural profile of local minority residents, the Project’s impacts on them, and measures to ensure that they benefit equally and allevia te negative impacts, including measures to improve their living standard, alleviate their poverty, improve their overall competencies, protect minority cultures and traditions, support vulnerable groups, etc. 1.5 Objectives of this EMDP The objectives of this EMDP are: 1) providing all relevant project information in a manner suited to local minority cultures and customs, conducting adequate communication and consultation, and analyzing their needs; 2) incorporating minority needs for the Project into the project design; 3) establishing minority FPCs in a culturally adaptive manner; and 4) taking actions to minimize the Project’s potential impacts on and risks to minority residents, and enhancing their opportunities to benefit from the Project in a way acceptable for them. 2 2. Overview of Ethnic Minorities in the Project Area 2.1 Minority Population Guizhou Province is inhabited by 18 ethnic groups, including Han, Miao, Buyi, Dong, Tujia, Yi, Gelao, Shui, Hui, Bai, Yao, Zhuang, She, Maonan, Manchu, Mongolian, Mulam and Qiang. The province governs 6 prefecture-level cities and 3 autonomous prefectures (Qianxinan Buyi-Miao Autonomous Prefecture, Qiandongnan Miao-Dong Autonomous Prefecture and Qiannan Buyi-Miao Autonomous Prefecture). Among the 56 ethnic groups of China, 54 can be found in Guizhou Province except Tajik and Uzbek. Guizhou has a minority population of 12.548 million, with the top 5 ethnic minorities being Miao (3.97 million), Buyi (2.51 million), Tujia (1.44 million), Dong (1.43 million) and Yi (830,000). According to the 5th national population census, Guizhou has a population of 34.7465 million, including a minority population 12.548 million, accounting for about 36.12%. In its minority population, there is a Miao population of 3.97 million, accounting for 11.43%; a Yi population of 830,000, accounting for 2.39%; a Tujia population of 1.44 million, accounting for 4.14%; and a Gelao population of 495,200, accounting for 1.43%. The project counties covered by this EMDP has a total population of 5.9976 million, including a Han population of 3.071 million, accounting for 51.2%; a Miao population of 618,900, accounting for 10.32%; a Yi population of 269,200, accounting for 4.94%; a Tujia population of 1.2009 million, accounting for 20.02%; a Gelao population of 486,500, accounting for 8.11%; and a population of other ethnic minorities of 323,900, accounting for 5.4%. See Table 2-1. The minority project area has a direct beneficiary population of 266,385, including a minority population of 202,820, accounting for about 76.14%. The minority population includes 98,863 Miao people, accounting for about 37.11%; 7,114 Yi people, accounting for about 2.68%; 56,253 Tujia people, accounting for about 21.12%; 34,679 Gelao people, accounting for about 13.02%, and a population of other ethnic minorities of 5,911, accounting for 2.22%. See Table 2-2. 3 Table 2-1 Population Statistics of the Minority Project Counties Gross Han Miao Yi Tujia Gelao Other Division population Population Population Population Population Population Population % % % % % % (0,000) (0,000) (0,000) (0,000) (0,000) (0,000) (0,000) Guizhou Province 3474.65 2219.85 63.88 397 11.43 83 2.39 144 4.14 49.52 1.43 581.28 16.73 Minority project 599.76 307.10 51.20 61.89 10.32 29.62 4.94 120.09 20.02 48.65 8.11 32.39 5.40 villages Wuchuan 45 1.62 3.60 18 40.00 / / 5.4 12.00 19.8 44.00 0.18 0.40 Daozhen 30.31 3.57 11.78 7.76 25.61 / / 1.65 5.44 14.54 47.99 2.79 9.18 Nayong 96 66 68.75 10.44 10.88 5.79 6.03 / / / / 13.77 14.34 Hezhang 79.24 62.44 78.80 4.46 5.63 10.96 13.83 / / / / 1.38 1.74 Weining 143.79 110.03 76.52 8.05 5.60 12.8 8.90 / / / / 12.91 8.98 Dejiang 53.8 8.42 15.65 1.17 2.17 / / 43.90 81.6 0.14 0.26 0.17 0.32 Shiqian 41 20 48.78 3.77 9.20 0.07 0.17 1.88 4.59 14.17 34.56 1.11 2.71 Yinjiang 43.76 12.47 28.50 7.33 16.75 / / 23.92 54.67 / / 0.04 0.08 Yanhe 66.84 22.55 33.80 0.91 1.31 / / 43.34 64.84 / / 0.04 0.05 Source: county PMOs Table 2-2 Population Statistics of the Minority Project Villages Han Miao Yi Tujia Gelao Other Gross Division Population Population Population Population Population Population population % % % % % % (0,000) (0,000) (0,000) (0,000) (0,000) (0,000) Guizhou Province 3474.65 2219.85 63.88 397 11.43 83 2.39 144 4.14 49.52 1.43 581.28 16.73 Minority project 266385 63565 23.86 98863 37.11 7114 2.68 56253 21.12 34679 13.02 5911 2.22 villages Wuchuan 28559 5088 17.82 13805 48.34 / / 3083 10.80 6583 23.05 / / Daozhen 34891 7389 21.18 8139 23.33 / / 1861 5.33 17502 50.16 / / Nayong 12838 4370 34.04 5377 41.88 2921 22.75 / / / / 170 1.32 Hezhang 8413 4716 56.06 1549 18.41 2148 25.53 / / / / / / Weining 7637 3903 51.11 1563 20.47 2045 26.78 / / / / 126 1.65 Dejiang 64887 8692 13.40 56195 86.60 / / / / / / / / Shiqian 29311 6408 21.9 3223 11.0 / / 3062 10.4 10492 35.8 5586 19.1 Yinjiang 44178 9249 20.94 8238 18.65 / / 26691 60.42 / / / / Yanhe 34872 13621 39.06 / / / / 21251 60.94 / / / / 4 2.2 Religious and Cultural Profile of Ethnic Minorities 1. Miao General characteristics: Currently, the Miao people live together in high and remote mountain areas in Guizhou, Hunan, Yunnan, Shaanxi, Chongqing and Guangxi mainly. Diet and clothing: The local Miao people eat corn and paddy rice mainly, and their diet is supplemented by wheat, potato, beans, meat etc. The ethnic clothing is worn on major festivals or at traditional ceremonies only. Festivals: The traditional festivals of the local Miao people vary from area to area. Language: The local Miao language belongs to the Miao branch of the Miao-Yao group of the Chinese-Tibetan family. The Miao people in Nayong County in the Wumeng Mountain area speak the Miao language mainly, and can hardly speak mandarin Chinese. Religion: The main beliefs of the Miao people are natural and ancestral worship, and elders and authorities are respected. 2. Yi General characteristics: The Yi people live in Yunnan, Sichuan, Guizhou and Guangxi mainly. The Yi people in Guizhou Province live in earth-wall and stone-wall houses mainly. Diet and clothing: The Yi people eat corn, buckwheat, rice, potato, wheat, oak and meat mainly, and prefer liquors, which are essential to dispute settlement, friend making, weddings and funerals. The Yi clothing is diversified and colorful. Festivals: The Yi people have many traditional festivals, including the Torch Festival, and have their spoken and written language. Language: The Yi language belongs to the Yi branch of the Burmese group of the Chinese-Tibetan family. 60% of the Yi respondents cannot speak mandarin Chinese, and only some young Yi people can speak mandarin Chinese. Religion: The main beliefs of the Yi people are natural, totemic and ancestral worship. Yi shamans are hosts of religious activities and disseminators of Yi culture. 3. Tujia General characteristics: The Tujia people live in Hunan, Hubei, Chongqing and Guizhou mainly. The Tujia people in Guizhou Province live beside mountains and waters mainly. Diet and clothing: The Tujia people eat corn rice mainly. Festivals: The Tujia folklores are very rich, including hand-waving dance and Aeolus worship. Language: The Tujia language belongs to the Burmese group of the Chinese-Tibetan family, but is spoken by a very small population. The local Tujia people generally speak and write in mandarin Chinese. Religion: The main beliefs of the Tujia people are natural, heroic, totemic and ancestral worship. 4. Gelao General characteristics: The Gelao people in Guizhou Province live in Wuchuan County and Daozhen Gelao-Miao Autonomous County in Zunyi City, Pingba County, Puding County and Guanling Buyi-Miao Autonomous County in Anshun City, Shiqian County in Tongren City, and Qianxi County in Bijie City. Diet and clothing: The Gelao people eat corn and paddy rice mainly, and also eat beans, potatoes, etc. They like to drink oil tea and liquors. Festivals: The traditional festivals of the Gelao people include the March 3 (in the ancient calendar) Festival (Mountain God worship), and the New Food Tasting Festival (ancestral worship). The Gelao people in Wuchuan County have many taboos, such as abstinence from sweeping, pouring waste and using kitchen knives during the Spring Festival Language: The Gelao people once had their own language, which has disappeared gradually. All local Gelao people speak Chinese. The Gelao people have a rich oral art and unique dramas. Religion: The Gelao people practice multi-god and ancestral worship. 5. Summary Due to the special relationship in origin between the Miao and Yi people in Weining, Nayong and Hezhang Counties, Bijie City, there is a high level of identification and interaction in language, ideology, cultivation customs and economic life. Their similar cultural backgrounds enable them to intermarry frequently and coexist in harmony. In Wuchuan, Daozhen and Shiqian Counties, the Gelao and Miao people have frequent social intercourse, and a strong level of identification. 5 2.3 Socioeconomic Profile of Ethnic Minorities 2.3.1 Income In 2012, the per capita net income of farmers of Guizhou Province was 4,753.00 yuan, including wage income of 1,977.73 yuan, household operating income of 2,249.21 yuan, transfer income of 454.53 yuan and property income of 71.54 yuan. 6 minority project counties have per capita net income of farmers of over 4,000 yuan, accounting for 66.67% of all minority project counties; Zhanghe County has the lowest per capita net income of farmers of 2,157 yuan. See Table 2-3. Table 2-3 Composition of Farmers’ Per Capita Income of the Minority Project Counties (2012) Per capita net Wage Household Transfer Property County income of farmers income operating income income income Zunyi Wuchuan 4285 1360 2171 263 488 City Daozhen 4439 / / / / Nayong 3703 663 2345 283 398 Bijie City Hezhang 2157 1281 480 136 260 Weining 4812 / / / / Dejiang 4206 1186 1908 915 333 Tongren Shiqian 4676 2147 1370 370 703 City Yinjiang 4369 1943 1697 711 45 Yanhe 3713 1476 1881 344 12 Source: Feasibility Study Report (FSR) In 2012, 105 Han respondents in the minority project area had annual household income of 10,001-20,000 yuan, accounting for 34.7% of all Han respondents; 128 minority respondents had annual household income of 10,001-20,000 yuan, accounting for 21.2% of all minority respondents. In the minority project area, The Han respondents with annual household income of 10,000 yuan or more account for 62.2% of all Han respondents, and the minority respondents with annual household income of 10,000 yuan or more account for 50.0% of all minority respondents. 124 Han respondents whose annual household income was below the national poverty line of 2,300 yuan, accounting for 40.9%; and 299 minority respondents whose annual household income was below 2,300 yuan, accounting for 49.5% of all minority respondents. Generally, the average household income of minority residents in the minority project area is less than that of Han residents, so minority residents have a more urgent need for development. Table 2-4 Income of Ethnic Minorities and Han People in the Minority Project Villages Han Ethnic minorities Income N Percent N Percent ≤1,000 yuan 3 1.0 19 3.1 1,001-2,000 yuan 14 4.6 39 6.5 Gross 2,001-5,000 yuan 46 15.2 123 20.4 household 5,001-10,000 yuan 52 17.2 121 20.0 income in 10,001-20,000 yuan 105 34.7 128 21.2 2012 20,001-30,000 yuan 52 17.2 83 13.7 30,001-50,000 yuan 29 9.6 76 12.6 >50,000 yuan 2 0.7 15 2.5 Total 303 100.0 604 100.0 ≤1,500 yuan 23 7.6 123 20.4 Per capita 1,501-2,300 yuan 101 33.3 176 29.1 net 2,301-5,000 yuan 115 38.0 182 30.1 income in 5,001-10,000 yuan 53 17.5 92 15.2 2012 10,001-30,000 yuan 10 3.3 29 4.8 >30,000 yuan 1 0.3 2 0.3 Total 303 100.0 604 100.0 Source: socioeconomic survey 2.3.2 Crop Cultivation In 2012, the gross sown area of crops of Guizhou Province was 5,182,860 hectares, in which 6 the gross sown area of food crops was 3,055,560 hectares, and the gross output of food crops was 10.795 million tons. In the project counties, the gross sown area of crops was 160,649 hectares, in which the gross sown area of food crops was 114,432 hectares (accounting for 71.23% the gross sown area of crops), and that of commercial crops 27,217 hectares, and the gross output of food crops was 268,985 tons. See Table 2-5. In the minority project counties, minority and Han residents do not differ much in crop cultivation. Their food crops are corn, potato and paddy rice mainly, and their commercial crops are medicinal materials, tobacco, tealeaf and walnut mainly. Table 2-5 Crop Cultivation in the Minority Project Counties (2012) Crops Gross sown area County Gross sown area Gross sown area Gross output of of commercial of crops (ha) of food crops (ha) food crops (ton) crops (ha) Zunyi Wuchuan 6257 4483 30395 2504 City Daozhen 22655 13985 40888 4842 Total 28912 18468 71283 7346 Nayong 33645 25636 66609 8743 Bijie City Hezhang 38149 31581 / 6568 Weining 42405 27081 87768 95 Total 114199 84298 154377 15406 Dejiang 4808 2834 6834 982 Tongren Shiqian 1019 568 10343 314 City Yinjiang 1882 1412 8469 471 Yanhe 9829 6852 17679 2698 Total 17538 11666 43325 4465 Total 160649 114432 268985 27217 Source: FSR 2.3.3 Stockbreeding In 2012, the year-end amount of large livestock of Guizhou Province was 5.4103 million, that of pigs 16.0409 million and that of sheep 2.9009 million. In 2012, the year-end amount of large livestock of the project counties was 1.3752 million, that of pigs 450,990, that of sheep 240,190 and that of poultry 1.80297 million, and forage cultivation area 16,478.92 hectares. See Table 2-6. All minority residents in the minority project counties have the tradition of stockbreeding, including sheep, pigs, chickens and cattle mainly, but the commercialization rate of animal products is low. In particular, underbrush chicken raising by the Tujia people in Yinjiang County has proven quite effective and accelerated the development of local stockbreeding. Table 2-6 Stockbreeding in the Minority Project Counties (2012) Year-end amount Year-end Year-end Year-end Forage County of large livestock amount of amount of amount of cultivation (0,000) pigs (0,000) sheep (0,000) poultry (0,000) area (ha) Zunyi Wuchuan 9.57 18.04 11.30 108.92 155.00 City Daozhen 13.67 62.36 11.44 296.66 3098.00 Total 23.24 80.4 22.74 405.58 3253 Nayong 21.36 30.17 9.99 288.40 0.00 Bijie Hezhang 9.86 14.20 15.36 56.23 9580.00 City Weining 39.05 202.89 37.32 455.24 0 Total 70.26 247.26 62.67 799.87 9580.00 Dejiang 18.00 35.07 120.95 146.39 251.00 Tongren Shiqian 3.06 6.00 4.90 127.30 225.60 City Yinjiang 8.57 35.54 7.19 230.72 3121.00 Yanhe 14.39 46.72 21.74 93.11 48.32 Total 44.02 123.33 154.78 597.52 3645.92 Total 137.52 450.99 240.19 1802.97 16478.92 Source: FSR 7 2.3.4 Land Resources The minority project counties have a total land area of 394,983 hectares, including 128,735 hectares of woodland (32.59%), 81,420 hectares of cultivated land (20.61%), and 60,624 hectares of wasteland (15.35%). See Table 2-7. Table 2-7 Land Resources in the Minority Project Counties (ha) County Land area Cultivated land Woodland Grassland Water surface Wasteland Zunyi Wuchuan 41945 9209 22764 95 240 2105 City Daozhen 82881 18916 55445 3947 2185 23943 Total 124826 28125 78209 4042 2425 26048 Nayong 68768 14529 21059 / / 31632 Bijie City Hezhang 84192 25433 29467 25766 573 2944 Weining 117197 13333 / / / / Total 270157 53295 50526 25766 573 34576 Dejiang 9580 3265 4580 1151 200 2265 Tongren Shiqian 17925 3302.19 3912 393 10 655 City Yinjiang 14310 1882 7187 2169 14 2036 Yanhe 27094 2933 8968 2714 317 3528 Total 79653 11968 29141 7073 670 9353 Total 394983 81420 128735 29808 2998 60624 Source: FSR 2.3.5 Infrastructure In the minority project counties, 167 natural villages are not connected by highways, 19 natural villages do not have power supply, 126 administrative villages are not covered by TV and radio service, and 27 administrative villages do not have clinics. In addition, the population not having safe drinking water is about 166,200. See Table 2-8. Table 2-8 Infrastructure in the Minority Project Counties (2012) Natural villages Population not Natural villages Admin. villages Admin. County not connected by having safe without telephone without TV & villages highways drinking water service radio service without clinic Zunyi Wuchuan 5 3844 / 9 / City Daozhen 23 48963 / 2 / Nayong 98 17021 / / 19 Bijie Hezhang / 37748 19 72 / City Weining 8 / / / / Dejiang 13 4580 / / 6 Tongren Shiqian / 11480 / / 2 City Yinjiang 20 3385 / 43 / Yanhe / 39202 / / / Total 167 166223 19 126 27 Source: FSR 2.4 Poverty of Ethnic Minorities 2.4.1 Poverty of Ethnic Minorities in the Project Villages The 203 project villages include 131 key villages for poverty reduction, accounting for 64.53%, and have 68,155 poor households, a poor population of 233,600 and a poverty incidence of 37%. Poverty incidence ranges from 89.59% (Shiqian County) to 20.02% (Hezhang County). See Table 2-9. Table 2-9 Poverty in the Minority Project Villages Project Key villages for Poor Poor population Poverty County villages poverty reduction households (0,000) incidence (%) Zunyi Wuchuan 7 5 6850 2.11 33.12 City Daozhen 9 9 3463 1.39 39.71 Nayong 20 20 5214 1.99 62.78 Bijie City Hezhang 18 18 7266 1.37 20.02 Weining 30 25 27442 9.95 31.73 8 Project Key villages for Poor Poor population Poverty County villages poverty reduction households (0,000) incidence (%) Dejiang 42 16 2753 1.17 32.77 Tongren Shiqian 19 5 6718 2.41 89.59 City Yinjiang 33 15 5107 1.68 37.09 Yanhe 25 18 3342 1.29 42.16 Total 203 131 68155 23.36 37.00 Source: FSR 2.4.2 Income Sources of Minority Residents In the minority project villages, agriculture is the main income source for 68.3% of minority poor households, employment for 29.2%, MLS for 0.5%, individual business for 0.5%, and other for 1.5%. Compared to Han poor households, a higher percentage of minority poor households deal with agriculture. Compared to rich and ordinary households, minority poor households lack diversity in livelihoods and rely mainly on traditional agriculture. For example, in Xiaojing Village, Xiaojing Xiang, Yanhe County, local Tujia poor households’ income is from the cultivation of paddy rice, corn, potato and taro mainly, and agricultural income accounts for about 70% of their gross income, while income from odd jobs accounts for about 30%. In addition, some poor households deal with stockbreeding on a very small scale. See Table 2-10. Table 2-10 Main Income Sources of Minority Poor Households (%) Ethnic group Agriculture Employment MLS Individual business Other Total Han 60.7 32.1 0.0 3.6 3.6 100.0 Miao 67.9 32.1 0.0 0.0 0.0 100.0 Yi 68.8 31.3 0.0 0.0 0.0 100.0 Ethnic Tujia 66.7 28.4 1.1 1.0 2.9 100.0 minorities Gelao 72.1 27.9 0.0 0.0 0.0 100.0 Total 68.3 29.2 0.5 0.5 1.5 100.0 Source: socioeconomic survey 2.4.3 Participation of Poor Minority Households in FPCs Among the minority sample poor households, 74.0% do not join any FPC; 21.9% join one FPC, 4.2% join two FPCs and 0.5% join over two FPCs. Compared to Han households, the percentage of minority poor households joining FPCs is much lower (26.0%<57.1%). Among all ethnic groups, the percentage of the Tujia people joining FPCs is the lowest, being 18.1%, while those of the Miao, Yi and Gelao people are 28.6%, 31.3% and 41.8% respectively. In view of this, the participation of minority poor households should be ensured in FPC establishment under the Project. Table 2-11 Statistics of Participation of Minority Poor Households in FPCs (%) Ethnic group Joining 1 FPC Joining 2 FPCs Joining over 2 FPCs None Han 50.0 7.1 0.0 42.9 Miao 28.7 3.7 0.0 71.4 Yi 18.8 12.5 0.0 68.7 Ethnic Tujia 14.3 3.8 0.0 81.9 minorities Gelao 37.2 2.3 2.3 58.2 Total 21.9 4.2 0.5 74.0 Source: socioeconomic survey 2.4.4 Participation of Poor Minority Households in Local Advantaged Industries Mastery of skills in advantaged industries is an important indicator of the capacity of minority poor households to participate in advantaged industries. According to the survey, 27.6% of minority poor households think that they master skills in advantaged industries, 33.9% think not, and 38.5% think that they have partial mastery. The percentage of minority poor households mastering skills in advantaged industries is higher than that of Han poor households by 9.7 percentage points, but minority residents have a weak mastery of skills in advantaged industries and limited participation capacity in general. 9 Table 2-12 Mastery of Characteristic Production Skills by Minority Poor Households Yes No Partial Ethnic group N Percent (%) N Percent (%) N Percent (%) Han 5 17.9 14 50.0 9 32.1 Miao 6 21.4 4 14.3 18 64.3 Yi 5 31.3 4 25.0 7 43.7 Ethnic Tujia 37 35.2 38 36.2 30 28.6 minorities Gelao 5 11.6 19 44.2 19 44.2 Total 53 27.6 65 33.9 74 38.5 Source: socioeconomic survey The willingness of minority poor households to deal with advantaged industries can indicate their recognition of such industries. In the question ―are you willing to deal with advantaged industries under the Project?‖, 97.4% of the minority poor respondents choose ―Yes‖, 2.1% choose ―No‖, and 0.5% choose ―Depends‖. The percentage of minority poor households willing to deal with advantaged industries is similar to that of Han poor households. Table 2-13 Willingness of Minority Poor Households to Participate in Local Advantaged Industries Willing Unwilling Depends Ethnic group N Percent (%) N Percent (%) N Percent (%) Han 27 96.4 1 3.6 0 0.0 Miao 28 100.0 0 0.0 0 0.0 Yi 16 100.0 0 0.0 0 0.0 Ethnic Tujia 101 96.1 3 2.9 1 1.0 minorities Gelao 42 97.7 1 2.3 0 0.0 Total 187 97.4 4 2.1 1 0.5 Source: socioeconomic survey 2.5 Prevailing Policy Framework for Ethnic Minorities Wuchuan Gelao-Miao Autonomous County, Daozhen Gelao-Miao Autonomous County, Weining Yi-Miao Autonomous County, Yinjiang Tujia-Miao Autonomous County and Yanhe Tujia Autonomous County enjoy ethnic autonomy in economic development, education, language use and festival celebration. In Weining Yi-Miao Autonomous County, primary schools in minority areas having difficulty in instruction in Chinese, bilingual instruction is practiced. This EMDP has been prepared in accordance with the laws and regulations on ethnic minorities of the PRC, applicable regulations of Guizhou Province, and the Bank’s policies on ethnic minorities (OP4.10 and BP4.10). See Table 2-14. The prevailing state, provincial and local policies and regulations have given adequate consideration to the protection of basic civil rights, the equal political, economic, cultural and legal status of ethnic minorities, and the lingual right and religious freedom of ethnic minorities. These policies and regulations are consistent with the spirit of the Bank’s policies on ethnic minorities (OP4.10 and BP4.10). As long as these policies and regulations are complied with strictly, and this EMDP is implemented effectively, all rights and interests of local minority residents can be protected practically. Table 2-14 Ethnic Minority Policy Framework Type Policy/regulations Contents and key points State laws and ①In addition to the same powers as local governments, the authorities of the localities of regulations: ethnic autonomy also have the following rights: autonomous legislative power; autonomy Constitution of the in the administration of local political, economic, financial, scientific, educational and PRC, Law of the PRC cultural affairs, the right to organize local public security forces, and the right to use and on Regional Ethnic develop ethnic minority languages, etc. ②Citizens of the PRC shall have freedom in State laws Autonomy, Law of religious belief, and the state and the authorities of the localities of ethnic autonomy shall and Organization of guarantee such freedom for citizens of all ethnic groups. ③Administrative regulations for regulations Villager Committee of ethnic minorities shall be formulated to promote the development economic and cultural the PRC, Regulations programs of ethnic minority Xiangs, protect the lawful rights and interests of ethnic on the Administrative minorities, and enhance the unity among different ethnic groups. ④Except those deprived Work of Ethnic of political rights, villagers attaining 18 years of age, regardless of ethnic group, race, sex, Minority Xiangs the occupation, family background, religious belief, education, property condition or term of 10 Type Policy/regulations Contents and key points th PRC, the 12 residence, shall have the right to vote and the right to be elected. ⑤The state shall Five-year Plan for support all ethnic minorities financially, materially and technically to accelerate their Ethnic Minority economic development, cultural and other social programs. ⑥The protection of ethnic folk Programs cultures shall be subject to the principles of protection mainly, rational development, government dominance and social participation. ①The state shall support agricultural and rural economic development projects, which Law of the PRC on may be implemented by suitable FPCs. Farmers' ②Central and local finance shall support FPCs financially to conduct training, farm Professional product quality certification, agricultural infrastructure construction, marketing, technique Cooperatives extension, etc., especially for FPCs in minority and poor areas, and those producing urgently needed farm products. Some Provisions of Guizhou Province on the Implementation of the Law of the PRC on Regional Ethnic Autonomy; Working Regulations on Written and Spoken Languages of Regulations of Guizhou Province; Regulations on Autonomy of Wuchuan Gelao-Miao Autonomous Guizhou Province County, Daozhen Gelao-Miao Autonomous County, Weining Yi-Miao Autonomous County, Yinjiang Tujia-Miao Autonomous County and Yanhe Tujia Autonomous County ①Poverty and backwardness are the main problems of Guizhou Province, and accelerating development is its primary task. Guizhou shall become rich as soon as possible in order to narrow the gap between western China and the whole country. ②Development objectives: By 2015, breakthrough progress will be made in infrastructure construction; significant success will be achieved in industrial restructuring, the driving effect of industrialization and urbanization enhanced, and the modernization level of Some Opinions of the agriculture improved greatly; the energy consumption per unit of regional GDP will be State Council on State reduced substantially, the total volume of main pollutants controlled effectively, and Promoting the supporting overall environmental quality kept stable; the trend of rock desertification will be reversed Economic and Social policy preliminarily, and forest cover rate will reach 45%; the overall level of well being will be Development of close to the average of western China. Guizhou Province ③Strategic positioning—demonstration region for development-oriented poverty reduction: Apply innovative poverty reduction mechanisms to gain experience for future development-oriented poverty reduction. ④Demonstration zone for ethnic unity, progress and prosperity: Implement minority policies carefully, support the accelerated development of minority areas, promote ethnic equality, unity and harmony, and realize social progress. th Regional Outline of the 12 Five-year Plans for National Economic and Social Development of Guizhou Province, Bijie development City, Tongren City and Zunyi City, municipal and county development and poverty reduction implementation plans plans in the Wumeng Mountain and Wuling Mountain areas This policy aims to ensure that the development process fully respects the dignity, human rights, economies, and cultures of Indigenous Peoples. (1) The Bank recognizes that the identities and cultures of Indigenous Peoples are inextricably linked to the lands on which they live and the natural resources on which they depend. These distinct circumstances expose Indigenous Peoples to different types of risks and levels of impacts from development projects, including loss of identity, culture, and customary livelihoods, as well as exposure to disease. Gender and intergenerational issues among Indigenous Peoples also are complex. As social groups with identities that are often distinct from dominant groups in their national societies, Indigenous Peoples are frequently among the most marginalized and vulnerable segments of the population. As a Operational Policy result, their economic, social, and legal status often limits their capacity to defend their World Bank (OP4.10) and Bank interests in and rights to lands, territories, and other productive resources, and/or restricts Procedure (BP4.10) their ability to participate in and benefit from development. At the same time, the Bank recognizes that Indigenous Peoples play a vital role in sustainable development and that their rights are increasingly being addressed under both domestic and international law. (2) Bank-financed projects include measures to (a) avoid potentially adverse effects on the Indigenous Peoples’ communities; or (b) when avoidance is not feasible, minimize, mitigate, or compensate for such effects. Bank-financed projects are also designed to ensure that the Indigenous Peoples receive social and economic benefits that are culturally appropriate and gender and inter-generationally inclusive. (3) When a project affects Indigenous Peoples, the TT assists the borrower in carrying out free, prior, and informed consultation with affected communities about the proposed project throughout the project cycle. At all stages of the project, the parties consulted have 11 Type Policy/regulations Contents and key points prior access to information on the intent and scope of the proposed project in a culturally appropriate manner. It shall also be determined that if the affected communities give broad support to the project based on the SA and consultation process. (4) The EMDP should be flexible and practical, and include the following: legal and institutional framework suited to ethnic minorities; information on demographic, social, cultural and political features of affected communities, ancestral territories owned, used or occupied by them, and natural resources on which they live; a summary of SA; a summary of free, prior, and informed consultation results in affected communities at the preparation stage, which has gained broad community support for the project; a framework for ensuring free, prior, and informed consultation with affected communities during project implementation; an action plan for ensuring that ethnic minorities receive culturally appropriate social and economic interests; after potential negative impacts on ethnic minorities have been determined, an appropriate action plan that avoids, minimizes or mitigates, or compensate for such impacts; the financial budget and financing plan for the EMDP; a procedure for addressing appeals from minority communities arising from project implementation; and an M&E and reporting mechanism, and indicator system suitable for the implementation of the EMDP. 2.6 Ongoing Projects Related to Ethnic Minority Development in the Project Area The realization of the social benefits of the Project will rely on some ongoing projects in the project area, including: 1) whole-village advancement, Rain and Dew Program, work relief, discounted loan, mutual fund projects, etc. implemented by poverty reduction offices; 2) Sunshine Program, agro-technical training projects, etc. implemented by agriculture bureaus; 3) women’s business startup and employment training, small-amount secured loans for women projects, etc. implemented by women’s federations; and 4) ethnic cultural village building, ethnic minority development support projects, etc. implemented by ethnic and religious affairs bureaus. See Appendix 2 for details. 12 3. Public Consultation and Perceptions of Development Since the preparatory work of the Project was started in November 2012, a series of surveys and public consultation activities have been conducted. At the preparation stage, the FSR agencies (county poverty reduction offices), SA team, EMDP team and EIA agency disclosed project information, and conducted free, prior and informed consultation in minority communities. This EMDP has been prepared on the basis of the questionnaire survey, FGDs, in-depth interviews, key informant interviews, stakeholder discussion meeting, etc. 3.1 Participation of Minority Communities at the Preparation Stage 1. Project information disclosure 1) In November 2012, the Project was included in the List of World Bank-financed Projects of the National Development and Reform Commission, and Ministry of Finance (2013-2015). 2) In November 2012, the Guizhou PMO begun to screen project counties and components. 3) In April 2013, the Guizhou PMO submitted the Project Proposal, which was approved by the provincial development and reform commission. 4) In May 2013, the county PMOs begun to conduct project preparation, and prepared the General Proposal of the Project. 5) In August 2013, the county PMOs prepared the draft FSRs based on the Project Proposal. 6) In December 2013, the EIA Report of the Project (EIA-Category B) was disclosed for the first time. 7) In January 2014, the FSR of the Project was completed. 2. Field investigation 1) In June 2013, the Bank identification and technical preparation missions investigated project preparation and reached an agreement of intent for lending support. 2) In September 2013, the Bank experts conducted another investigation in Guizhou, and discussed the rationality and feasibility of the Project with the provincial and county PMOs; the county PMOs further revised the FSR based on expert opinions. 3) During December 19-26, 2013, Guizhou Design Institute of Environmental Sciences conducted an investigation in the project area. 3. Participation activities in EMDP preparation During January 2-16, 2014, the EMDP team conducted a field investigation in the minority project area to learn local production and living conditions, and poverty, and collect opinions and suggestions by means of questionnaire survey, FGD and interview. ①Questionnaire survey: The EMDP team conducted the questionnaire survey in 26 villages, 15 townships, 7 counties, with 780 copies of the questionnaire distributed and 722 copies recovered, accounting for 92.56%, including 635 minority copies, accounting for 87.95%.604 copies of the minority questionnaire were distributed, including 121 Miao sample, 40 Yi ones, 273 Tujia ones, and 170 Gelao ones. The survey covers agricultural development, participation in FPCs, needs for FPCs, project awareness, personal information, etc. ②FGD: The EMDP team conducted 64 FGDs in 32 villages, 18 townships, including 32 ordinary FGDs and 32 FGDs with women, covering attitudes to, suggestions on and needs for the Project. ③In-depth interview: The EMDP team conducted 90 men-times of in-depth interviews with some local residents (including minority residents, women, poor residents, etc.), including 68 minority residents, accounting for 75.56%, and 43 women, accounting for 47.78%, covering living conditions, project impacts, attitudes to and suggestions on the Project. ④Key informant interview: The EMDP team conducted 65 men-times of key informant interviews with township and village officials, religious workers, FPC heads, agro-technicians, etc., covering local socioeconomic profile, agricultural and stockbreeding development, women’s development and poverty, comments and suggestions, etc. ⑤Stakeholder discussion meeting: The EMDP team held 12 stakeholder discussion meetings with county poverty reduction offices, ethnic and religious affairs bureaus, agriculture bureaus, stockbreeding bureaus, women’s federations, etc. (including 3 city-level and 9 county-level stakeholder discussion meetings), covering project impacts, comments and suggestions, etc. See Table 3-1 and Appendix 3. 13 Table 3-1 Public Participation Activities Questionnaire In-depth Key informant Discussion County Townships Villages FGDs survey (copy) interviews interviews meetings Zunyi Wuchuan 2 4 116 6 9 7 1 City Daozhen 2 4 114 8 13 10 1 Nayong 2 2 / 4 5 5 1 Bijie Hezhang 1 1 30 2 3 3 1 City Weining 1 2 60 4 6 4 1 Dejiang 1 3 / 6 10 7 1 Tongren Shiqian 2 6 120 12 15 10 1 City Yinjiang 4 4 120 8 11 8 1 Yanhe 3 6 162 12 18 11 1 Total 18 32 722 62 90 65 9 Source: socioeconomic survey 3.2 Perceptions of Rural Development At the preparation stage, the SA team, EMDP team and EIA agency disclosed project information, and conducted free, prior and informed consultation in minority communities in order to learn local residents’ attitudes to, needs for and suggestions on rural development, and communicate with the county ethnic and religious affairs bureaus, poverty reduction offices, women’s federations, agriculture bureaus, stockbreeding bureaus, land and resources bureaus, civil affairs bureaus, social security bureaus, township governments, village committees, and collected comments from ethnic and religious workers. Their needs for and suggestions on rural development have been incorporated into the project design. The above public participation activities aim to minimize negative impacts on minority residents, and develop their capacity in modes accepted by them so that they benefit more from the Project. Minority perceptions of rural development include: 1. Attitude to and participation in the Project Minority support for and participation in the Project are an important prerequisite to successful project implementation and rural development. 97.7% of the minority respondents support the Project, and over 90% of the respondents of all the 4 ethnic minorities support the Project. 1.8% of the minority respondents don’t care, and 0.5% do not support the Project. Minority residents generally support the Project and are willing to assist in project implementation. Table 3-2 Support of Ethnic Minorities for the Project Ethnic Supporting Not supporting Don’t care group N Percent N Percent N Percent Miao 118 97.5 0 0 3 2.5 Yi 37 92.5 0 0 3 7.5 Tujia 267 97.8 1 0.4 5 1.8 Gelao 168 98.8 2 1.2 0 0.0 Total 590 97.7 3 0.5 11 1.8 Source: socioeconomic survey 96.8% of the minority respondents are willing to participate in the Project, 2.5% don’t care, and 0.5% don’t know. Most minority residents are willing to participate in the Project, because they think rural development is also the process of their own development and capacity building. Table 3-3 Willingness of Ethnic Minorities to Participate in the Project Ethnic Willingness Unwilling Don’t care Don’t know group N Percent N Percent N Percent N Percent Miao 119 98.3 0 0.0 2 1.7 0 0.0 Yi 34 85.0 0 0.0 3 7.5 3 7.5 Tujia 267 97.8 1 0.4 5 1.8 0 0.0 Gelao 165 97.1 0 0.0 5 2.9 0 0.0 Total 585 96.8 1 0.2 15 2.5 3 0.5 Source: socioeconomic survey 14 2. Perceptions of development directions Improving the income of local minority residents is an important objective of the Project. 87.3% of the minority respondents think that the source of additional income is characteristic cultivation and stockbreeding, followed by developing rural tourism and other tertiary industries (7.1%). Most of the minority respondents think that the large-scale development of characteristic cultivation and stockbreeding is key to income increase. In addition, farm and animal products should be further processed through an extended industry chain, and cooperation should be carried out with relevant enterprises or FPCs to develop more marketing channels. Table 3-4 Attitudes of Ethnic Minorities to Sources of Additional Income (%) Characteristic Developing Ethnic Individual cultivation and Reemployment tertiary Other group business stockbreeding industries Miao 94.2 4.1 1.7 0.0 0.0 Yi 75.0 20.0 5.0 0.0 0.0 Tujia 79.5 3.7 13.9 1.8 1.1 Gelao 97.6 1.8 0.6 0.0 0.0 Total 87.3 4.3 7.1 0.8 0.5 Source: socioeconomic survey 3. Perceptions of infrastructure construction Sound infrastructure is important for promoting industrial development and providing living convenience. For a long time, unsound public infrastructure has been a key restraint on rural development, especially in remote areas. 79.1% of the minority respondents think the top 3 causes of poor income on farm products are low output, inconvenient traffic, and not knowing marketing channels and transaction rules, accounting for 36.2%, 26.2% and 24.7% respectively (see Table 3-5). It is learned from in-depth interviews that the main causes of low output of farm products are low land fertility in karst areas, the shortage of irrigation facilities and tractor roads, and poor road quality. Local minority residents expect infrastructure improvement urgently. For example in Yangba Village, Yangxi Town, Daozhen Gelao-Miao Autonomous County, Zunyi City, roads connecting village groups are in poor quality, and some remote village groups are even not connected by roads. Tractor roads and field paths for agricultural production have limited accessibility, making transport effort and time consuming. Generally, the minority project villages are mostly remote, and their public infrastructure is backward, especially roads, irrigation facilities, farm markets, etc. Public infrastructure construction is an integral part of the Project, which will improve the local public infrastructure, and create favorable conditions for minority residents to become rich. Table 3-5 Main Causes of Poor Income on Farm Products Perceived by Ethnic Minorities (%) Low Poor Not knowing No Ethnic output quality of marketing Natural Inconvenient bargaining Other group of farm farm channels and disasters traffic power products products transaction rules Miao 45.6 0.9 18.4 6.1 1.8 27.2 0.0 Yi 69.6 4.3 17.4 0.0 0.0 8.7 0.0 Tujia 34.4 3.1 21.4 4.9 4.5 31.3 0.4 Gelao 23.9 17.9 38.5 0.0 0.9 18.8 0.0 Total 36.2 6.3 24.7 3.8 2.7 26.2 0.2 Source: socioeconomic survey 4. Perceptions of skills training Specialized skills are key to characteristic cultivation and stockbreeding. 95.1% of the minority respondents think that it is necessary or very necessary to conduct relevant skills training. Minority residents have strong needs for specialized skills training. It is learned that minority residents do not master specialized skills well, and think training on skills in advantaged industries should be strengthened. For example, at the FGD in Siping Village, Yangxi Town, Daozhen Gelao-Miao Autonomous County, villagers expect skills training on medicinal material cultivation, field 15 management and pest control. The training and capacity building component of the Project will meet minority residents’ needs for skills training. Table 3-6 Necessity of Specialized Training Perceived by Ethnic Minorities (%) Ethnic Very Very Necessary Neither, nor Unnecessary group necessary unnecessary Miao 90.9 9.1 0 0 0 Yi 67.5 25 7.5 0 0 Tujia 81.7 13.2 4 0.7 0.4 Gelao 54.5 38.8 7.6 0 0 Total 74.7 20.4 4.4 0.3 0.2 Source: socioeconomic survey 5. Attitude to FPCs Establishing FPCs is an effective way to improve the bargaining power of farmers in transactions, realize agricultural industrialization, and strengthen farmers’ capacity development. 90.4% of the minority respondents agree or strongly agree with FPC establishment. Minority residents generally agree with the establishment of FPCs to promote industrial development and increase income. They think that FPCs play a crucial role in industrial development, because FPCs can provide technical guidance on cultivation and stockbreeding, purchase means of production at lower prices, and open up marketing channels. In addition, FPCs can provide timely market information, which is especially important for minority households, especially poor households. Table 3-7 Support of Ethnic Minorities for FPCs (%) Ethnic Very Neither, Very Necessary Unnecessary group necessary nor unnecessary Miao 68.6 28.9 0.8 1.7 0.0 Yi 47.5 47.5 5.0 0.0 0.0 Tujia 58.6 35.5 5.9 0.0 0.0 Gelao 44.7 54.7 0.6 0.0 0.0 Total 56.0 40.4 3.3 0.3 0.0 Source: socioeconomic survey 3.3 Community Participation Plan In order to maximize the social and economic benefits of the Project for local minority residents, and evade the Project’s potential risks, it is necessary to take the following measures at different stages of the Project. See Section 8.1.3 of the SA Report for details. 1. At the preparation stage, not less than 50% of participants in publicity, mobilization and training activities should be minority residents, women and poor residents. 2. At the design stage, not less than 40% of participants in industry selection, infrastructure design, and the development of FPC rules and regulations should be minority residents. 3. At the implementation stage, In the minority project villages, not less than 50% of FPC members should be minority residents; the board of directors or supervisors of each FPC should have at least one minority, one female and one poor member each. In training on mandarin Chinese, practical skills and FPCs, not less than 40% of trainees should be women; in the minority project villages, the participation rate of minority residents should not be less than 50%, and that of poor minority residents not less than 40%. 4. At the operation stage, the grievance redress mechanism should be operable for minority residents. 5. Objections of few community residents should be treated seriously, and persuasion and explanation conducted properly to avoid confrontations and even conflicts. 16 4. Analysis of Differences and Vulnerability of Ethnic Minorities 4.1 Analysis of Differences among Ethnic Minorities 4.1.1 Analysis of Ethnic Differences 1. Miao The Miao people in the Wumeng Mountain area have kept cultural, lingual and religious customs very well, while those in the Wuling Mountain area show no significant difference in income and economic structure because they have lived together with Han, Gelao and Yi people for a long time, but some differences from other ethnic groups in culture and customs. Therefore, the analysis here covers the Miao people in the Wumeng Mountain area mainly. 1) Traditional culture The main beliefs of the Miao people are natural and ancestral worship, and elders and authorities are respected. At the preparation and implementation stages, Miao elders and authorities in the Wumeng Mountain area play an irreplaceable role in FPC management and dispute settlement. 2) Economy Agriculture is the main income source of the local Miao people, but this income source is unstable due to harsh natural conditions. In recent years, more and more Miao people are working outside, and employment income has become a great supplement to agricultural income, but the percentage of Miao people working outside is lower than that of Han people. In addition, transport costs of farm products are high due to backward traffic facilities, so that the marketing range of farm products with Miao characteristics is highly restricted. The local Miao people have an urgent need for infrastructure improvement and the development of advantaged industries. 3) Customs a) Language: The local Miao language belongs to the Miao branch of the Miao-Yao group of the Chinese-Tibetan family. The Miao people in Yongna County in the Wumeng Mountain area mostly speak in the Miao language and write in Chinese, and their ability to use mandarin Chinese is weak. Therefore, publicity and training activities in the Miao areas in Nayong County should be conducted in the local language or in the presence of minority interpreters. b) Festivals: The traditional festivals of the local Miao people include Miao New Year’s Day and Dragon Boat Festival, where Miao New Year’s Day is the most ceremonious festival of the Miao people and lasts 3-15 days. Project activities should be scheduled to avoid these festivals. 2. Yi 1) Traditional culture The harsh natural environment has made the good Yi traditions of endurance and mutual help. This lays a social foundation for FPC establishment and operation. For the Yi people in the project area, the concept and role of ―lineage‖ have weakened, and village committees are now playing the role of social management. 2) Economy a) Low income: The Yi villages in the project area are located in remote plateau areas with harsh natural conditions. Local Yi residents have simple cultivation skills and low mechanization level, and are short of tractor roads, water resources facilities and other agricultural infrastructure, resulting in their low income. b) Simple economic structure. Although more and more local Yi residents are working outside, their traditional small-scale economic pattern has not changed. Due to dietary, lingual and cultural differences, Yi residents working outside mostly deal with unskilled labor-intensive industries, and their income is generally low. 3) Customs a) Language: The Yi language belongs to the Yi branch of the Burmese group of the Chinese-Tibetan family, and local Yi residents have their own spoken and written language. According to the questionnaire survey, 60% of the Yi respondents cannot speak mandarin Chinese. Publicity and training activities in Yi areas should be conducted in the Yi language or in the presence of Yi interpreters. In addition, FPC counselors should be preferably Yi language speakers. Table 4-1 Mandarin Chinese Proficiency of Yi People Yes No Ethnic group N Percent N Percent 17 Yes No Ethnic group N Percent N Percent Yi 16 40 24 60 Source: socioeconomic survey b) Festivals: The main festivals of the local Yi people are the Torch Festival and Yi New Year’s Day. Project publicity and training activities should be conducted in languages and modes accepted by local people, and avoid these festivals. 3. Tujia 1) Traditional culture The Tujia people have their unique character and culture, including the chieftain system, neighborhood administrative system, weddings, funerals, etc. 2) Economy a) The crop structure is diversified but income is still relatively low. Currently, a diverse cultivation structure composed of tobacco, tealeaf, mulberry and medicinal materials has been established, the overall income level of the Tujia people is low due to backward infrastructure and cultivation skills. Therefore, infrastructure construction and industrial skills training will be important means for the Tujia people to increase income and improve living quality. b) Although more and more local Tujia residents are working outside, the livelihood pattern with focus on agriculture has not changed. Outside employment has increased income and widened eyeshot to some extent. However, due to their limited capacity, most Tujia households still rely on agriculture as the main income source but only have traditional cultivation skills. Therefore, developing more income sources and job opportunities for local Tujia residents is an important objective of the Project. 3) Customs The Tujia language has almost disappeared, and the Tujia people speak and write in Chinese. The Tujia people show slight differences in customs from the Han people. Such similarities provide a necessary social basis for the Tujia people to participate in and benefit from the Project equally. In addition, benefiting equally from the Project will further promote harmony among ethnic groups. 4. Gelao 1) Traditional culture During the evolution of the Gelao people, unique social institutions such as the chieftain system and neighborhood administrative system, economic institutions in agriculture, handicrafts and commerce, and cultural institutions in kinship and family have been established. 2) Economy Local Gelao residents rely heavily on agriculture as an income source. Due to backward traffic facilities and cultivation skills, the income of Gelao households is generally lower than that of local Han households. Therefore, increasing the income of local Gelao residents is an important objective of the Project. 3) Customs a) Language: The local Gelao people once had their own language, which has disappeared gradually. All local Gelao people speak Chinese. b) Festivals: Their traditional festivals include the Bird-Respecting Festival, New Food Festival and Dharma Wheel Festival. Project publicity and training activities should be conducted in languages and modes accepted by local people, and avoid these festivals. 4.1.2 Analysis of Gender Differences 1. Educational levels of minority women The questionnaire survey shows that the percentage of the male respondents having received primary school education (16.3%) is lower than that of the females (27.1%) by 10.8 percentage points; the percentage of the male respondents having received junior high school education (57.8%) is higher than that of the females (49.5%)8.3 percentage points; and the percentage of the male respondents having received senior high school/technical secondary school education (20.5%) is higher than that of the females (17.2%)3.3 percentage points. See Table 4-2. Table 4-2 Educational Levels of Minority Residents by Gender Male Female Total Educational level N Percent N Percent N Percent 18 Male Female Total Educational level N Percent N Percent N Percent Junior college or above 9 2.8 9 3.1 18 3.0 Senior high school/ 64 20.5 50 17.2 114 18.9 technical secondary school Junior high school 181 57.8 144 49.5 325 53.8 Primary school 51 16.3 79 27.1 130 21.5 Illiterate 8 2.6 9 3.1 17 2.8 Source: socioeconomic survey The percentages of the Miao, Tujia and Gelao respondents having received junior high school education are 57.1%, 50.0% and 50.0% respectively; the percentage of the Yi respondents having received junior high school education (18.7%) is much lower than those of the other 3 ethnic minorities. The overall educational level of Yi women is the lowest, with the percentage of primary school education being 68.8%, much higher than those of the other 3 ethnic minorities. In the same ethnic minority, it is usual that men are better educated than women. See Table 4-3. Table 4-3 Educational Levels of Different Ethnic Minorities by Gender Miao Yi Tujia Gelao Educational level Male Female Male Female Male Female Male Female Junior college or above 2.8 6.1 4.2 0.0 4.6 4.2 0.0 0.0 Senior high school/ 16.7 18.5 0.0 0.0 14.5 16.9 38.3 20.2 technical secondary school Junior high school 72.2 57.1 50.0 18.7 55.7 50.0 51.2 50.0 Primary school 8.3 16.3 37.5 68.8 20.6 26.8 10.5 26.2 Illiterate 0.0 2.0 8.3 12.5 4.6 2.1 0.0 3.6 Source: socioeconomic survey 2. Perceptions of the Project 61.8% of the minority respondents are aware of the Project, and 38.2% unaware; 61.0% and 62.5% of the male and female minority respondents are aware respectively. Among the male minority respondents who are aware of the Project, 7.8% are highly aware, 13.0% aware and 44.0% a bit aware; among the female minority respondents who are aware of the Project, 9.2% are highly aware, 12.5% aware and 29.4% a bit aware. 91.7% of the male minority residents and 91.4% of the female minority residents think the Project is important or very important for households, showing no significant gender difference. Table 4-4 Awareness of the Project among Minority Women Male Female Total Project perceptions N Percent N Percent N Percent Project Aware 191 61.0 182 62.5 373 61.8 awareness Unaware 122 39.0 109 37.5 264 38.2 Highly aware 22 7.8 24 9.2 46 8.5 Aware 37 13.0 33 12.5 70 12.8 Awareness A bit 125 44.0 77 29.4 202 37.0 level Unaware 80 28.2 120 45.8 200 36.6 Highly unaware 20 7.0 8 3.1 28 5.1 Very important 159 50.8 134 46.0 293 48.5 Importance Important 128 40.9 132 45.4 260 43.0 of the A bit important 20 6.4 16 5.5 36 6.0 Project for Unimportant 5 1.6 6 2.1 11 1.8 households Don’t care 1 0.3 3 1.0 4 0.7 Source: socioeconomic survey 3. Awareness of FPCs 6.7%, 22.0% and 45.7% of the male minority respondents are highly aware, aware and a bit aware of FPCs respectively, while the corresponding percentages of the female minority respondents are 7.2%, 20.3% and 46.7% respectively; 21.1% and 4.5% of the male minority respondents are unaware and highly unaware of FPCs respectively, while the corresponding 19 percentages of the female minority respondents are 22.0% and 3.8% respectively, showing no significant gender difference. According to FGDs with minority women, most women have heard of FPCs, but know little about their operating mechanism, equity participation, rules and regulations, and services offered. Generally, minority women have low awareness of FPCs, so relevant publicity should be conducted. Table 4-5 Awareness of FPCs among Minority Women Awareness of Male Female Total FPCs N Percent N Percent N Percent Highly aware 21 6.7 21 7.2 42 6.9 Aware 69 22.0 59 20.3 128 21.2 A bit 143 45.7 136 46.7 279 46.2 Unaware 66 21.1 64 22.0 130 21.6 Highly unaware 14 4.5 11 3.8 25 4.1 Source: socioeconomic survey  Women’s FGD in Leju Village, Weining County, Bijie City Only two women have heard of FPCs. After hearing of FPCs, all women present expected to establish FPCs to open up the market and receive training on cultivation skills. (4) Mastery of industrial skills 43.8% of the male minority respondents and 32.6% of the females think they master industrial skills, 40.3% of the males and 43.3% of the females think they master partial skills, and 16.0% of the males and 24.1% of the females think they don’t. It can be seen that minority men master industrial skills much better than minority women. However, minority women master tealeaf cultivation skills better than minority men because most laborers in this industry are females. In Gaodong Village, Huangdu Town, Wuchuan County, about 80% of laborers in tea garden management are females, and female laborers are more skilled than males. In households where husbands are working outside, all farm work is done by women. In farm work, men are usually responsible for cultivation and harvesting, while women are also responsible for weeding, fertilization and irrigation. Table 4-6 Mastery of Industrial Skills among Minority Women Mastery of industrial Male Female Total skills N Percent N Percent N Percent Yes 137 43.8 95 32.6 232 38.4 No 50 16.0 70 24.1 120 19.9 Partial 126 40.3 126 43.3 252 41.7 Source: socioeconomic survey 5. Willingness to receive training 96.1% of the male minority respondents and 95.9% of the females are willing to attend local training on advantaged industries, and 96.5% of the males and 96.2% of the females are willing to attend training on FPCs, showing no significant gender difference. It is learned from FGDs and interviews that in the minority project villages, a low percentage of women are trained. However, minority women have a strong desire for training. Not less than 40% of trainees in training on industrial skills and FPCs should be women. Table 4-7 Willingness of Minority Women to Attend Training Male Female Total Willingness N Percent N Percent N Percent Local Willing 301 96.1 279 95.9 580 96.0 training on Unwilling 3 1.0 4 1.3 7 1.2 advantaged Don’t care 9 2.9 6 2.1 15 2.5 industries Don’t know 0 0.0 2 0.7 2 0.3 Willing 302 96.5 280 96.2 582 96.3 FPC Unwilling 4 1.3 6 2.1 10 1.7 training Don’t care 5 1.6 4 1.4 9 1.5 20 Male Female Total Willingness N Percent N Percent N Percent Don’t know 2 0.6 1 0.3 3 0.5 Source: socioeconomic survey 6. Willingness to input labor 98.4%of the minority male respondents and 97.9% of the female respondents are willing to do jobs offered by the Project, and there is no gender difference in this respect. Table 4-8 Willingness of Minority Residents to Input Labor Labor Male Female Total input N Percent N Percent N Percent Willing 308 98.4 285 97.9 593 98.2 Unwilling 5 1.6 6 2.1 11 1.8 Total 313 100 291 100 604 100 Source: socioeconomic survey Generally, there is no significant gender difference in project awareness, FPC awareness, and willingness to attend training and input labor. The overall educational level of minority women is lower than that of minority men. Minority men master industrial skills much better than minority women. Therefore, more attention should be paid to minority women in all types of training. 4.2 Vulnerability Analysis of Ethnic Minorities 1. Natural vulnerability and unsound public infrastructure First, the Project is located in the Wuling Mountain and Wumeng Mountain contiguous destitute regions, where as a direct result of the shortage of resources for development, minority residents can hardly evade the risk of poverty themselves; second, 70.7% of the minority respondents think local cultivation and stockbreeding facilities are insufficient, and the local public infrastructure is unsound, especially traffic and agricultural infrastructure. The Project will play a significant role in reducing economic and social vulnerability through infrastructure construction, industrial restructuring and capacity enhancement. Table 4-9 Perceptions of the Shortage of Cultivation and Stockbreeding Facilities among Minority Residents Yes No Ethnic group N Percent N Percent Miao 67 55.4 54 44.6 Yi 36 90.0 4 10.0 Tujia 198 72.5 75 27.5 Gelao 126 74.1 44 25.9 Total 427 70.7 177 29.3 Source: socioeconomic survey 2. Economic vulnerability 1) Lack of diversity in livelihoods, resulting in low resistance to economic risks First, the local karst landform results in low land fertility, and local minority residents, especially poor ones, still rely on agriculture as their main income source; the questionnaire survey shows that 55.3% of the minority respondents live mainly on agriculture, and 35.4% live mainly on employment. Second, due to the lack of necessary human resources training and modern cultivation skills training, there is a lack of diversity in income sources of minority residents. Both factors have resulted in the low risk resistance of minority residents. Table 4-10 Income Sources of Minority Residents (%) Ethnic group Agriculture Employment Transport Tourism MLS Individual business Miao 64.5 20.7 0.8 0.0 0.0 13.2 Yi 60.0 37.5 0.0 0.0 0.0 2.5 Tujia 53.6 34.0 4.4 0.4 1.1 4.0 Gelao 58.5 39.7 0.0 1.2 0.0 0.6 Total 55.3 35.4 2.2 0.5 0.5 4.8 Source: socioeconomic survey 21 2) Short industry chain and weak market competitiveness Due to low educational levels, few minority households in the project area are good at management, and minority residents have limited sources of market information, resulting in poor adaptation to the market. The project area has a weak base of industrial development due to barren land and insufficient irrigation, farm and animal products have low added value, and the bargaining power of rural households is low. 3. Social vulnerability 1) Low educational levels and overall competencies The percentage of minority residents having received senior high school/technical secondary school or above education is only 18.9%, so that they have difficulty in understanding the development concept of the Project and inadequate self-development capacity. First, minority residents have weak participation capacity, and can hardly express their appeals due to poor oral and written expression abilities; on the other hand, although mutual help is advocated in minority cultures, minority residents cannot organize effectively due to the poor infrastructure, backward cultivation and stockbreeding, and capital shortage in the minority project area. Table 4-11 Educational Levels of Minority Residents (%) Junior college Senior high school/ Junior high Primary Ethnic group Illiterate or above technical secondary school school school Miao 4.1 17.4 66.1 11.6 0.8 Yi 2.5 0.0 37.5 50.0 10.0 Tujia 4.4 15.8 52.7 23.8 3.3 Gelao 0.0 29.4 50.6 18.2 1.8 Total 3.0 18.9 53.8 21.5 2.8 Source: socioeconomic survey 2) Lack of risk prevention and sharing mechanism Minority households in the minority project area are exposed directly to natural, market and social risks. There is no prevention mechanism in the minority project area due to capital shortage, low educational levels and unsound organizational structure. First, local minority residents live in remote mountain areas, have limited information sources, and weak market awareness, and are unable to respond to market risks. Second, since the poverty incidence of the minority project area is as high as 37%, there are no sufficient funds for risk resistance. Third, there is no farmers’ organization that represents the interests of rural households, so that the risk resistance of individual rural households is low. See Table 4-10. Table 4-2 Vulnerability of Ethnic Minorities and Alleviation by the Project No. Type Current situation Project effect in alleviating vulnerability Unsound public infrastructure, especially Constructing roads, especially tractor 1 Natural traffic and agricultural infrastructure roads and field paths vulnerability Limited information sources, and weak Development an economy of scale through 2 resistance to market risks FPCs to resist market risks High percentage of agricultural income; Establishing FPCs to increase 3 backward cultivation and stockbreeding nonagricultural income; introducing new Economic skills cultivation and stockbreeding skills vulnerability Short industry chain and weak market Extending industry chain, resisting market 4 competitiveness risks and improving self-organizing capacity through FPC establishment Low educational levels, overall Conducting necessary training and 5 competencies and self-development education Social capacity of minority residents vulnerability Lack of risk prevention and sharing Investing funds and conducting training, 6 mechanism and establishing FPCs to resist risks jointly 22 5. Analysis of Minority FPCs Due to social, economic and cultural differences, minority FPCs differ from Han FPCs in terms of establishment, operation, management, profit distribution, etc. Minority FPCs should be classified, and their features and problems analyzed in order to establish minority FPCs suited to needs of minority residents. 5.1 Minority FPCs 1. Types of FPCs 11 minority FPCs were covered in the survey, including two cooperative + household FPCs, accounting for 18.2%; 8 cooperative + base + household FPCs, accounting for 72.7%; and one company + cooperative + base + household FPCs, accounting for 9.1%. Minority FPCs mainly deal with cultivation (vegetables, leek, tobacco, etc.) and stockbreeding (egg chicken, etc.). See Table 5-1. 2. Features of FPCs 1) Late establishment Late establishment: Among the 11 sample minority FPCs, 6 were established by economically capable persons, accounting for 54.5%; and 5 by village officials, accounting for 45.5%. It is found that most minority FPCs are established under the advocacy of the government, and rely strongly on governmental support in establishment, operation and management. Among the 11 sample minority FPCs, one is under application, one is being registered, one was established in 2007, one in 2009, two in 2011, 5 in 2012 and one in 2013. The minority FPCs were mostly established in 2010 or thereafter, and are still at the exploration stage. Table 5-1 Years of Registration of FPC of Ethnic Minorities Year of establishment Number Percent (%) 2007 1 9.1 2009 1 9.1 2011 2 18.2 2012 5 45.4 2013 1 9.1 Under application 1 9.1 Total 11 100.0 2) Rules and regulations For most minority FPCs, rules and regulations are mostly developed by superior authorities in a unified manner, but are not necessarily compatible with minority cultures and management practices. For example, the Qianfurong Stockbreeding FPC in Guochang Village is led by village officials and capable persons, and its rules and regulations have been developed by them mainly. In addition, the Radix Codonopsis FPC in Yangba Village, Yangxi Town was initiated by college students and is composed of major cultivation households, and its rules and regulations have been developed by its founders in light of the applicable county and town policies, and are inoperable in practice. 3) Profit distribution Among the 11 sample minority FPCs, except the unregistered one, the other 10 minority FPCs have their definite profit distribution measures, and their main modes of distribution include profit distribution based on shares, dividend distribution based on shares, reward, etc. In profit distribution, minority FPCs pay attention to assistance for vulnerable groups. 23 Table 5-2 Basic Information of FPC of Ethnic Minorities No. Mode Case Status Operation Foundation Composition Profit distribution Business Conducting cultivation on over 5 shareholders, composed of Yi Led by capable persons; farmers Founded in 500 mu of land rented at 500 residents mainly working for the FPC are paid 40 Cooperative Vegetable FPC in 2009, with a Leek yuan/mu, purchasing vegetables yuan/day in Year 1, and 50 1 + base + Kele Village, Kele Ordinary registered cultivation and at reserve prices yuan/day in Year 2 and household Xiang capital of marketing afterwards, and work about 100 50,000 yuan days a year Giving technical guidance on Initiated by 6 persons, with 98 Led by officials and capable tobacco growers to improve Founded in service staff members, serving persons; covering 4 purchase Tobacco Cooperative cultivation level and product 2013, with a 857 households with 3,856 stations in the whole township; Yongfeng Tobacco cultivation, 2 + base + Ordinary quality, resist market and natural registered persons having purchased 855,000 kg of FPC in Kele Village processing household risks, and increase income; capital of tobacco leaf, and generating and marketing assisting the tobacco company in 120,000 yuan income of 20.52 million yuan purchasing tobacco leaves Mopan Yunhai Granting seeds to vegetable 8 managers and 10 members, 5 members are managing a Cooperative Tobacco Vegetable FPC in growers, purchasing and selling Not formally composed mainly of Miao and 6,000 mu vegetable base 3 + household Bad processing Datang Village, vegetables; equivalent to hiring registered yet Gelao people + base and marketing Luolong Town farmers to grow vegetables ①Gratuitous technical advice and 8 managers and 10 members, Founded by college students, Radix Radix Codonopsis Cooperative services; ②fertilizer distribution; composed mainly of Miao and led by major cultivation Codonopsis FPC in Yangba Founded in 4 + base + Dormant ③purchase of medicinal herbs; Gelao people households, fees collected upon cultivation, Village, Yangxi 2013 household ④solving marketing problems equity participation purchase and Town marketing ①Gratuitous technical advice and 8 managers, composed mainly Led by officials and capable Yanping Vegetable Vegetable Cooperative services; ②fertilizer distribution; of Miao and Gelao people persons; practicing scientific FPC in Yangba Founded in cultivation, 5 + base + Good ③purchase of vegetables; management and marketing Village, Yangxi 2007 purchase and household ④solving marketing problems (including fertilizer and pesticide Town marketing application) Operating as a company, offering Composed mainly of Miao and Led by officials and capable Tobacco Shengxin Tobacco Cooperative tobacco cultivation services, Founded in Gelao people dealing with persons; equity participation with cultivation, 6 FPC in Yangba Good + household technical training and advice, 2012 tobacco cultivation land and capital; members have purchase and Village, Yangxi Town broadening marketing channels priority in receiving services marketing Haoweilai Medicinal Purchasing medicinal materials Involving many households, Organized by individuals Purchase of Cooperative Material FPC in without processing for sale to Founded in composed mainly of Miao and voluntarily 7 Bad medicinal + household Siping Village, major households, running with 2011 Gelao people materials Yangxi Town low profits 24 No. Mode Case Status Operation Foundation Composition Profit distribution Business Giving technical guidance, selling Composed of over 180 740,000 yuan contributed by 15 Founded in products to Zhejiang Province, households, including 50 poor persons; dividend distribution 2012, with a Company + Tanchun Tealeaf conducting standard production, households, headed by the based on shares: ①original Tealeaf registered cooperative FPC in Gaodong running a 2,400 mu base village secretary, with 15 shares: 20,000 yuan per share, cultivation, 8 Good capital of + base + Village, Huangdu managers, all being minority 37 shares in total, in which 9 are processing 740,000 yuan, household Town men, with a board of directors of held by the president; ②ladder and marketing assets of over 5 members, composed mainly shares: 100,000 per share 3 million yuan of Miao and Gelao people based on asset appraisal Purchasing, processing and 4 managers, over 200 tealeaf Member households may marketing tealeaves, with a 1,000 cultivation households; receive dividend or be subject to Pengjiazhai Tealeaf Tealeaf Cooperative mu tea garden; selling fresh composed mainly of minority purchase of tealeaves at market FPC in Dazhu Founded in cultivation, 9 + base + Ordinary tealeaves at 200 yuan/kg and dry residents price. Equity participation with Village, Huangdu 2012 processing household tealeaves at 2,000-4,000 yuan/kg land or capital is allowed; 50,000 Town and marketing yuan per share, about 20 shares in total. Selling tealeaves without Founded in 5 directors and 7 supervisors; Led by officials and village group Dashan Tealeaf Cooperative processing, offering tea seedlings 2012, with a including 7 poor households, heads; equity participation with FPC in Dazhu Tealeaf 10 + base + Ordinary and technical guidance for free, registered with two technicians, composed land or capital is allowed; 50,000 Village, Huangdu cultivation household with a 500 mu tea garden capital of mainly of minority residents yuan per share, 18 shares in Town 900,000 yuan total. Conducting chicken breeding, 12 members, 3 directors, 3 Led by officials and capable quarantine and marketing, feed supervisors, 2 accountants, 1 persons processing in a unified manner; purchaser, 2 drivers; 1,000 yuan A box of eggs has a cost of 36 Founded in having a large-scale breeding per share, dividend distribution yuan and a net profit of 52 yuan, cooperative Qianfurong 2011, with a Chicken base; its brand Qianfurong has at each year end in which 20 yuan is used for 11 +Base + Stockbreeding FPC Good registered breeding and been certified by the Ministry of public welfare, 6.3 yuan for household in Guochang Village capital of 2 marketing Agriculture as a green product dividend distribution, 2.57 yuan million yuan distributed to 12 members, 2.57 yuan to households, and the remaining as rolling capital 25 5.2 Attitudes of Ethnic Minorities to FPC At the preparation stage, the IAs and consultants learned local minority residents’ perceptions and attitudes to FPCs by means of questionnaire survey, FGD and interview. This is significant for improving FPCs and protecting minority interests. 1) Awareness of FPCs The FPCs in the minority project area are small in number and undeveloped. The survey shows that 46.2% of the minority respondents are a bit aware of FPCs, 21.6% unaware, 21.2% aware and 6.9% highly aware. Among the ethnic minorities, the awareness of FPCs among of the Gelao people (including ―highly aware‖ and ―aware‖) is the highest, being 44.7%, and that among the Miao people is the lowest, where 35.6% of the Miao respondents are unaware or highly unaware of FPCs. Table 5-3 Awareness of FPC among Ethnic Minorities (%) Ethnic group Highly aware Aware A bit Unaware Highly unaware Miao 0.8 5.0 58.7 30.6 5.0 Yi 7.5 25.0 37.5 25.0 5.0 Tujia 8.8 18.3 41.0 26.0 5.9 Gelao 8.2 36.5 47.6 7.1 0.6 Total 6.9 21.2 46.2 21.6 4.1 Source: socioeconomic survey 2) Support for FPCs 56.0% of the minority respondents strongly agree with FPC establishment, 40.4% agree, 3.3% don’t care, and only 0.3% disagree. It can be see that minority residents support FPC establishment strongly, because it will promote industrial development and increase income. See Table 3-7. 3) Willingness to join FPCs The survey shows that 430 minority respondents have not joined FPCs, accounting for 71.2%, of which 97.7% are willing to join FPCs through the Project, showing that minority residents have strong willingness to join FPCs. Although most minority residents do not know much about FPCs, they all think that FPCs can promote industrial development and increase income, and are willing to join FPCs. Table 5-4 Willingness of Ethnic Minorities to Join FPCs (%) Willing Unwilling Ethnic group N Percent (%) N Percent (%) Miao 108 98.2 2 1.8 Yi 36 100.0 0 0.0 Tujia 174 95.6 8 4.4 Gelao 102 100.0 0 0.0 Total 420 97.7 10 2.3 Source: socioeconomic survey 4) Expectations for FPCs Minority residents expect to address challenges in cultivation and stockbreeding skills, product marketing, information sources, etc. during industrial development by establishing FPCs. They expect guidance on cultivation and stockbreeding skills, receive timely market information, broaden marketing channels, and purchase means of production at more preferential prices through FPCs. 85.3% of the minority respondents expect FPCs to provide market information, 79.2% expect guidance on cultivation and stockbreeding skills, 68.2% expect marketing channels, 67.3% expect the purchase of means of production at preferential prices, and 41.4% expect dividend distribution. See Table 5-5. Table 5-5 Expectations of Ethnic Minorities for FPCs (%) Cultivation and Purchase of means Ethnic Marketing Dividend Market stockbreeding of production at group channels distribution information skills guidance preferential prices Miao 83.5 76.0 28.9 71.9 73.6 Yi 72.5 60.0 45.0 70.0 55.0 Tujia 75.0 71.3 47.1 68.0 59.9 26 Cultivation and Purchase of means Ethnic Marketing Dividend Market stockbreeding of production at group channels distribution information skills guidance preferential prices Gelao 85.3 68.2 41.2 48.9 85.3 Total 79.2 68.2 41.4 67.3 69.4 Source: socioeconomic survey Among factors that hinder the development of FPCs, 53.5% of the minority respondents choose small scale, 43.6% choose poor infrastructure, 35.4% choose insufficient government support, 29.5% choose lack of enthusiasm, 29.1% choose lack of leader, 21.4% choose unsmooth operation mechanism, and 26.8% choose unsound policies and regulations. In the minority project villages, it is necessary to promote overall balanced development through industrial expansion, bring external resources to improve cultivation and stockbreeding conditions through the Project and government support, and improve overall competencies of FPC leaders through education and training. Table 5-6 Factors that Hinder the Development of FPCs Perceived by Ethnic Minorities (%) Ethnic Small Insufficient Lack of Lack of Unsound policies Unsmooth operation Poor group scale support leader enthusiasm and regulations mechanism infrastructure Miao 29.7 19.5 18.6 20.3 9.3 11.9 68.6 Yi 90.0 67.5 7.5 2.5 7.5 7.5 37.5 Tujia 56.9 33.3 33.3 27.0 24.7 13.1 35.2 Gelao 58.8 44.1 36.5 47.6 48.2 45.3 39.4 Total 53.5 35.4 29.1 29.5 26.8 21.4 43.6 Source: socioeconomic survey 5) Perceptions of and needs for FPC training 60.6% of the minority respondents think FPC training is very necessary, 37.9% think it necessary, 1.3% think it neither necessary nor unnecessary, and 0.2% think it unnecessary, showing a strong desire for FPC training. Table 5-7 Attitude of Ethnic Minorities on FPC Training (%) Ethnic Very Very Necessary Neither, nor Unnecessary group necessary unnecessary Miao 71.1 28.1 0.0 0.8 0.0 Yi 27.5 65.0 7.5 0.0 0.0 Tujia 70.7 27.5 1.8 0.0 0.0 Gelao 44.7 55.3 0.0 0.0 0.0 Total 60.6 37.9 1.3 0.2 0.0 Source: socioeconomic survey Local agriculture and stockbreeding bureaus have offered a series of FPC training courses on the improvement of rules and regulations, and financial institutions. However, such training should be strengthened and enriched. In this respect, 78.6%, 12.2%, 6.6% and 2.6% of the minority respondents expect training on industrial skills, market information, rules and management knowledge, and project publicity and extension respectively, showing strong needs of minority residents for training on industrial skills and market information. Table 5-8 Scope of Training for FPC Expected by Ethnic Minorities (%) Ethnic Industrial Market Rules, management Project publicity Other group skills information knowledge and extension Miao 90.9 2.5 5.8 0.8 0.0 Yi 35.0 55.0 10.0 0.0 0.0 Tujia 74.0 14.3 6.2 5.5 0.0 Gelao 87.6 5.3 7.1 0.0 0.0 Total 78.6 12.2 6.6 2.6 0.0 Source: socioeconomic survey Generally, minority residents have low awareness of FPCs, but mostly support their establishment and expect to join FPCs to become rich. Statistics show that minority residents 27 expect FPCs to play a role in providing technical guidance on cultivation and stockbreeding, offering market information, and broadening market channels. 5.3 Issues of Minority FPCs and Causes 5.3.1 Issues of Minority FPCs 1. Internal issues 1) Low awareness and participation level: Only 28.1% of the minority respondents are highly aware of FPCs, and only 28.8% have joined FPCs. This is because most minority residents are unaware of FPCs and don’t know how to join them due to low educational levels. Second, most minority FPCs are led by capable persons and poor households do not benefit enough from them.  Key informant interview in Gaodong Village, Huangdu Town, Wuchuan Gelao-Miao Autonomous County, Zunyi City A tealeaf FPC was founded in the village in November 2012 and had 15 members then. Some villagers dare not join it, because they are not clear how it operates and makes profits. When villagers see that it is making profits, more and more people are joining it. Therefore, publicity on the FPC should be strengthened. 2) Low level of development and organization, and weak capacity in benefiting households: First, the minority FPCs were mostly established in 2010 or thereafter, and are still at the exploration stage. Second, the minority FPCs are not supported by stable resources, such as initial capital, market and infrastructure. 3) There is a lack of professionals and competent leaders, especially financial, marketing and technical professionals.  Interview with the master of the Wanzi Village agricultural economic station, Zhuchang Xiang, Nayong County, Bijie City Now the FPC has encountered many problems, in which the greatest one is the shortage of professionals. It is now led by local capable persons and village committee members, who are not competent enough to manage the FPC. 2. External issues 1) Weak industrial base: This is shown in the following aspects: 1) The minority project area is remote and has inconvenient traffic, where the weak industrial base can hardly support the establishment and development of FPCs; and 2) Due to traffic and information restrictions in the minority project area, the commercialization rate of farm and animal products is low, and agriculture and stockbreeding level is also very low. 2) Insufficient financial and technical support: 1) Fiscal support for FPCs in poor minority areas is limited; 2) Minority residents have low educational levels, and lack necessary industrial skills; 3) The minority FPCs deal with crop cultivation mainly and have limited financial capacity. 3) Institutional defects: The minority FPCs are usually established lately, and their rules and regulations are mostly developed by competent authorities in a unified manner, and not suited to local needs. The minority project area has unique cultural and social institutions, so FPCs should be operated and managed in a way that respects minority customs. 5.3.2 Cause Analysis 1. Remote location, poor topography and bad climate: The minority project area is remote, and has inconvenient traffic and a weak industrial base; industrial and financial support for FPCs is weak. Most minority villages are not covered by the Internet, and local residents obtain market information through limited sources.  Mr. Wang, Yanhe Tujia Autonomous CountyXiaojing Village, Xiaojing Xiang, Tongren City (53 years, Tujia) Our village is remote and inconvenient in traffic, and it takes over one hour to go to the county town by bus. We sell farm products ourselves, and no one provides market information to us. Some poor households have no TV set, let alone Internet access. 28 2. Most minority residents are insensitive to market information. In the minority project area, most minority residents live in remote and backward mountain areas, and are insensitive to market information, which means that they can hardly utilize existing resources and their ability to participate in the market is weak. 3. Minority residents have low educational levels and know little about FPCs, so that FPCs usually do not operate effectively at the beginning and can hardly promote the development of households. The existing FPCs are short of financial, marketing and technical professionals, while minority households do not have sufficient capacity and experience for self-organization. Therefore, the minority FPCs have a low participation level and insufficient human capital.  Interview with the head of Qianfurong Stockbreeding FPC in Guochang Village, Xinye Xiang, Yinjiang Tujia-Miao Autonomous County, Tongren City Although the FPC is growing, it is faced with many problems. Since many young villagers are working outside, there are few well-educated and flexibly-minded persons in the village. The greatest problem is the shortage of capable talent. 4. In the minority project area, the introduction and implementation of external projects relies strongly on local governments, and local minority residents have to accept new things gradually. Therefore, the Project should be suited to local knowledge and culture. 29 6. Impacts of the Project on Ethnic Minorities 6.1 Positive Impacts 1. Increasing job opportunities to improve the living standard of minority residents At the implementation and operation stages, many jobs will be generated in the project area with the development of processing enterprises due to infrastructure construction and industry extension. During infrastructure construction, such as tractor roads, markets and animal farms, some unskilled jobs will be generated, for which minority residents are competent; second, after the establishment of FPCs, local advantaged industries will be expanded and more laborers will be needed, so that minority residents can work for FPCs to increase income. Not less than 40% of such jobs will be first made available to minority residents, women, old people and other vulnerable groups to increase their income and reduce economic vulnerability.  Mr. Li, Kele Village, Kele Xiang, Hezhang County, Bijie City (34 years, Miao) After working outside for years, I returned home this year. I have contracted several mu of land for vegetable cultivation, which is fairly profitable. Several villagers of similar age plan to deal with cultivation together next year. 2. Improving the capacity, organization level and subject consciousness of minority residents The minority project area has limited FPCs, most of which do not operate well. In addition, only 40.6% of the minority respondents have joined FPCs. By joining FPCs established under the Project and attending skills training, minority residents can develop their capacity, teamwork and subject consciousness continually through self-management, self-organization and self-development. On the other hand, fine varieties can be introduced through FPCs to improve the quality of farm and animal products, and minority households can improve their resistance to market risks by attending FPC training. Therefore, by joining FPCs, minority residents can improve their own capacity and organization level, and develop subject consciousness. 3. Improving the infrastructure to improve the production level and living standard of local residents Infrastructure construction is an integral part of the Project, especially roads, irrigation facilities and markets, which are essential to industrial development. Local minority residents have a strong desire for infrastructure improvement, and the backward infrastructure has become a bottleneck on local economic and social development. In Hezhang County, Bijie City, ramie and related projects are local characteristic products, but are sold in the county town mainly due to bad traffic conditions. Therefore, the Project will improve the local infrastructure, promote the development of local advantaged industries, and improve production level and living standard.  Mr. Zhang, Yangba Village, Yangxi Town, Daozhen Gelao-Miao Autonomous County, Zunyi City (51 years, Gelao) Our village has developed in recent years and villagers are earning more, but medicinal materials such as Radix Codonopsis are unsalable due to poor road quality and inconvenient traffic. Some natural villages here are even not connected by roads, and there are insufficient field paths, so that it is difficult to carry fertilizers into fields. There is no irrigation, so that all farmland is rain-fed. We hope you to help us solve these problems.  Villagers’ FGD in Zhongjie Village, Zhongjie Xiang, Yanhe Tujia Autonomous County, Tongren City The sheep industry is developed in the village, but due to poor roads, most households would drive sheep to the market themselves. A nearby market is preferred. 4. Promoting the development of minority women First, the improvement of the agricultural infrastructure will reduce the labor intensity of women and reduce their burden. Second, through project implementation, minority women will be able to join FPCs and attend skills training, thereby opening their eyeshot and improve their 30 self-development capacity. Finally, some minority women working outside may do jobs offered by local FPCs, so that they can work while taking care of families.  Women’s FGD in Shujia Village, Shaxi Xiang, Dejiang County, Tongren City We all do farm work at home. Road construction will make it more convenient for us to work in fields. We are willing to do jobs offered by the Project to earn more income. 5. Promoting ethnic harmony and realizing project sustainability Compared to local Han residents, local minority residents’ income is generally lower than that of Han residents due to relatively low educational levels. The Project will increase minority residents’ income by offering jobs. Through participation in FPC establishment and operation, and skills training, social intercourse among different ethnic groups will be promoted, thereby contributing to ethnic harmony. 6.2 Risk Analysis 1. Perception risks of minority FPCs First, the awareness of FPCs among minority residents is low due to inadequate project publicity and mobilization; second, minority residents can hardly have a comprehensive understanding of FPCs due to relatively low educational levels; third, their participation in FPCs may become a mere formality due to the lack of scientific perceptions. 2. Participation risks of minority residents In terms of project participation, minority residents are faced with the risk of inability or insufficient ability to participate in mainly. 1) Lack of means of participation: First, minority residents living in remote areas and having traffic difficulty can hardly participate in project activities; second, minority residents may be unable to participate in and benefit from the Project equally due to low educational levels and overall capacity. 2) Non-adaptation to participation modes: If minority customs are not respected, such as social intercourse, language and lifestyle, minority residents will be inadaptable. Some minority residents cannot speak or understand mandarin Chinese. If trainers cannot communicate with minority trainees effectively or no interpreter is available, training will not work. Project activities should be scheduled and training designed rationally to ensure the participation of minority residents.  FGD in Shuichao Village, Shuitang Xiang, Hezhang County, Bijie City The main challenge is to find a market for farm products, which can only be self-consumed or used to feed animals. We have learned taro cultivation skills from other townships, but it took little effect. Moreover, only some village groups are connected to cement roads, and many villagers have to use earth roads. We expect village-level training under the Project. 3) Inadequate participation capacity: Due to low educational levels, and limited experience and knowledge, minority residents don’t know how to participate effectively in the Project, especially poor minority households. Measures should be taken to improve the participation level of minority residents at the initial stage, because participation will be more difficult with the progress of project implementation. 3. Risks of minority residents to benefit equally In the Project, funds will be allocated to FPCs to support the development of local advantaged industries. However, project funds may not be allocated to minority households (especially poor households) equally through FPCs, so that minority residents may be unable to benefit equally from the Project. Therefore, measures should be taken to ensure that project funds are distributed equally via FPCs and that minority residents benefit equally. For example, the vegetable FPC in Kele Village, Kele Xiang is managed by 5 Han persons and employs Miao residents, who deal with leek cultivation, and are paid 40-50 yuan/day, but cannot participate in FPC management. These Miao employees expect to participate in FPC management and have a greater voice in the FPC. Therefore, during FPC establishment, minority residents are 31 faced with the risk of being unable to benefit equally from FPCs. 4. Livelihood risks of minority residents First, some industries under the Project require substantial investment, but minority households do not have necessary funds for startup or expansion due to low income, so that investment level and ability to pay will determine their enthusiasm for participation and the economic efficiency of the Project directly. Second, minority residents have limited income sources, mainly including cultivation, stockbreeding and employment, so this will challenge their income sources and level. 5. Operating risks of minority FPCs As a new thing, FPCs have their own rules and patterns of operation and management. There is no experience for reference in FPC operation and management in the minority project area, and minority residents’ educational levels and overall competencies are generally low, so that minority residents may don’t know how to participate in FPC operation and management after establishing or joining FPCs. For example, at the FGD in Shaozuo Village, Longchang Town, Weining County, Bijie City, the Miao participants expect to establish an FPC, but don’t know how to run it, so they expect training on FPC operation and management, and market development. 32 7. Action Plan At the preparation, implementation and operation stages, the design agency and IAs should pay attention to the unique features and practical needs of the local ethnic minorities, and conduct project activities in ways accepted by them in order to make the Project sustainable in the minority project area. Local minority residents have some common features in vulnerability, such as harsh natural conditions, low educational levels and insufficient capacity, so that special attention should be paid to them during project implementation. Some recommended actions have been included in the Ethnic Minority Action Plan, and may be implemented by the IAs in cooperation with local agencies concerned, such as training on FPCs, mandarin Chinese and practical skills. 7.1 Ethnic Minority Action Plan 1. Empowering minority residents to participate equally, enhancing their identification with FPCs, and developing their subject consciousness Providing equal development rights to minority residents is an objective of the Project. Due to the insufficient capacity of minority residents, they are exposed to a greater risk of exclusion in FPC establishment and development. At the implementation stage, minority residents should be empowered to participate equally, and their identification with FPCs enhanced, and their subject consciousness developed. Suggestions: 1) Strengthen project publicity to ensure that project awareness among minority residents is not less than 80%. Rules and regulations of FPCs should be developed in consultation with minority residents. 2) Not less than 40% of participants in the development of FPC rules and regulations are minority residents. 3) Not less than 40% of unskilled jobs generated at the implementation stage should be first made available to minority residents, women, old people and other vulnerable groups. 4) FPC counselors familiar with minority customs should be appointed, and trained on FPC management, industry management, project management, minority cultures, etc.; 5) Establish a sound, operable grievance redress mechanism, and notify it to minority residents in a way accepted by them. In the Yi areas in Nayong, Hezhang and Weining Counties, Bijie City, and Miao areas in Nayong County, appeal handling agencies should have receptionists who can speak both mandarin Chinese and the minority language. 2. Promoting the equality and sustainable development of minority households Enabling minority households to benefit equally during project implementation, and providing financial support to them is essential to the realization of the project objectives and the sustainable development of minority households. Suggestions: 1) In the minority project villages, not less than 50% of FPC members should be minority residents; the board of directors or supervisors of each FPC should have at least one minority, one female and one poor member each. 2) The profit distribution mode of each FPC should be determined at a general meeting. 3) The former ownership structure should be transformed to establish an extensive joint stock system that involves minority residents. 4) Profit distribution results should be disclosed regularly, and financial records kept for supervision by minority members. 5) Each county PMO should appoint one member to be responsible for EMDP implementation. 3. Conducting training in various forms to strengthen the capacity building of minority residents The local ethnic minorities have unique features in traditional culture, customs, organizational structure, religion, lifestyle, etc. In view of the common signs of vulnerability of local minority residents, such as harsh natural conditions, low educational levels and weak capacity, particular attention should be paid to them to minimize their vulnerability, and it is very important to strengthen their capacity building. Suggestions: 33 1) Conduct pertinent training on mandarin Chinese to enhance the capacity of social intercourse of minority residents. 48.2% of the minority respondents cannot speak mandarin Chinese, 74.6% think this is inconvenient for outside employment, and 86.6% think it necessary (including ―very necessary‖ and ―necessary‖) to conduct training on mandarin Chinese. 2) Conduct training on practical skills for minority residents in order to enhance the ability of minority residents to participate in the Project, such as cultivation skills of medicinal materials, taro and ramie, and field management skills. 3) Conduct FPC training on FPC management, financial management, market development, organizational cooperation, etc. for minority residents to improve their capacity and enthusiasm for participating in FPCs. 4) Not less than 40% of trainees should be women; in the minority project villages, the participation rate of minority residents should not be less than 50%, and that of poor minority residents not less than 40%. 5) Trainers should be trained properly, and training programs welcome by minority residents developed. 6) Timely feedback should be given on training effectiveness. 7) Implement a training evaluation mechanism, and give feedback on training effectiveness for adjustment to minority needs. 4. Publicity and training should be conducted in a manner that respects minority customs and scheduled to avoid traditional minority festivals At the implementation stage, languages, modes, times and venues of publicity and training should be accepted by minority residents so as to ensure successful project implementation. Suggestions: 1) Publicity and training should be conducted in a manner that respects minority customs, scheduled to avoid traditional minority festivals. a. Miao: The traditional festivals of the local Miao people include Miao New Year’s Day and Dragon Boat Festival, where Miao New Year’s Day is the most ceremonious festival of the Miao people and lasts 3-15 days. Project activities should be scheduled to avoid these festivals. b. Yi: The main festivals of the local Yi people are the Torch Festival and Yi New Year’s Day. Project publicity and training activities should be conducted in languages and modes accepted by local people, and avoid these festivals. c. Tujia: The local Tujia people attach great importance to worship activities, so project publicity and training activities should avoid these activities. d. Gelao: Their traditional festivals include the Bird-Respecting Festival, New Food Festival and Dharma Wheel Festival. Project publicity and training activities should be conducted in languages and modes accepted by local people, and avoid these festivals. 2) Publicity and training should be given in languages or in the presence of minority interpreters. In some areas, minority residents cannot speak or understand mandarin Chinese, such as Miao people in the Wumeng Mountain area. Publicity and training should be conducted in minority languages or in the presence of minority interpreters to ensure effectiveness. 3) Publicity and training should be given at places accepted by minority residents, such as village committees and squares. 4) Training should be conducted in diversified forms, such as classroom instruction, field explanation and field demonstration, and be comprehendible to suit educational levels of minority residents and meet their practical needs. 7.2 IAs and Implementation Schedule 7.2.1 IAs and Capacity Building 1. IAs The project agencies have been established under the project leadership, implementation and supporting systems. The leadership agencies are led by the county project leading groups, and composed of leaders from the local development and reform commissions, finance bureaus, poverty reduction offices, audit bureaus, and other agencies concerned; the IAs are responsible specifically for project management and implementation; the supporting system consists of officials from provincial, municipal and county agencies concerned, and technicians from research institutes and universities. Project leading groups and PMOs have been established in all the project counties in order to 34 conduct project preparation and organizational leadership properly. The powerful organizational structure ensures the realization of the project objectives and the participation of minority residents in the Project. Leadership Implementation Supporting system system system 1) Provincial departments; Provincial project Provincial PMO 2) Research institutes, leading group universities, etc. Municipal project Municipal PMO Municipal departments leading group County project County PMO County departments leading group County leading groups FPC counselors FPCs Companies and other partners Village committees Households County and township supporting agencies Note: denotes a leadership or administrative relationship; denotes a supporting or coordination one. Figure 7-1 Organizational Chart of the Project Table 7-1 Establishment of Leading Groups in the Project Counties Province City County Agency Contact Tel Nayong County PMO Zou Jing 0857-3522653 Bijie Hezhang County PMO He Yue 0857-3222337 Weining County PMO Liao Zhizhong 0857-6233639 Daozhen County PMO Zheng Jianglin 0852-5828685 Zunyi Guizhou Wuchuan County PMO Xu Baoquan 0852-5624315 Yanhe County PMO Xiao Xiangming 0856-8229375 Yinjiang County PMO Rao Yi 0856-6223189 Tongren Dejiang County PMO He Lin 0856-8521953 Shiqian County PMO Yang Yong 0856-7628378 Source: county PMOs 2. Capacity building The PMO staff has attended training organized by the Bank, covering FSR preparation, project design, financial analysis, EIA, SA, etc.. See Table 8-5 in Section 8.1.5 of the SA Report. Domestically funded poverty reduction projects have been implemented in all project counties, and the staff has strong project implementation capacity. At the preparation stage, specialized training on financial analysis, project management, report preparation, etc. was conducted so that the staff of the IAs had an understanding of project preparation tasks, and the Bank policies and procedures. However, since no Bank-financed poverty reduction project has been implemented in the project counties, further training should be conducted at the implementation stage to improve operating efficiency and ensure successful project implementation. 35 At the implementation stage, the IAs plan to conduct a series of training on project management, operation and EMDP M&E, covering project overview and background, Bank policies, applicable laws and regulations, public participation, EMDP preparation, management, reporting, M&E, grievance redress, etc. 7.2.2 Implementation Schedule The implementation schedule of the EMDP has been prepared based on the progress of project preparation and implementation (see Table 7-2), and may be subject to adjustment in practice. 1. At the preparation stage, tasks related to ethnic minority development mainly include project information disclosure, project impact identification, project support rate survey, EMDP preparation and consultation, EMDP information booklet distribution, etc. 2. At the implementation stage, tasks related to ethnic minority development mainly include: 1) Project implementation: The IAs will conduct ethnic minority development activities to ensure successful project implementation. 2) Internal and external monitoring: Internal monitoring will be conducted by the PMO, which will submit an internal monitoring to the Bank semiannually. The PMO will appoint an independent agency to conduct external M&E on ethnic minority development through baseline and follow-up survey using participatory methods. An external M&E report will be submitted to the Bank annually. 3) A summary evaluation will be conducted within half a year after the completion of the implementation stage. Table 7-2 Implementation Schedule Stage Task Time Project information disclosure Nov. 2012 – Nov. 2013 Public participation of minority population Whole process Identification of impacts on minority population Jan. 2014 Support of minority population for the Project Jan. 2014 Preparation Preparation of EMDP and consultation with Jan. 2014 – Feb. 2014 minority population EMDP disclosure May 2014 EMDP approval Jun. 2014 EMDP information booklet Jul. 2014 Implementation 2014-2018 Submitting the M&E report (No.1, including baseline survey) during Implementation M&E May-July 2014, an internal monitoring report semiannually and an external M&E report annually at the implementation stage (2014-2018) Half a year after Submitting an EMDP summary evaluation report within half a year after Summary evaluation implementation the completion of the implementation stage 7.2.3 Financial Budget Funds for EMDP implementation will be from the project budget, government fiscal budgets, special funds of agencies concerned, and publicly raised funds, etc. See Table 7-3. 7.3 Grievance Redress Mechanism Since this EMDP will be implemented on the basis of adequate participation of minority residents, no substantial dispute will arise. However, a grievance redress mechanism has been established for minority residents so that they can file grievances and appeals about any aspect of EMDP implementation (see Section 8.4 of the SA Report for details). Particular attention should be paid to the following: 1. Each village committee appoints a member as the appeal acceptor; 2. Contact information of appeal acceptors at all levels is disclosed to the project villages; 3. Relevant information is disclosed in Chinese and local minority languages; 4. Information is closed at places accessible for minority residents, such as gathering places and village committees; 5. All agencies will accept grievances and appeals from minority residents for free, and costs so reasonably incurred will be disbursed from contingencies. 36 Table 7-3 EMDP (Gender Action Plan) Suggestion Targets IAs Stage Actions Budget Monitoring indicators I. Empowering minority residents to participate equally, enhancing their identification with FPCs, and developing their subject consciousness 1. Strengthen 202,820 PMO, design 1) Conduct publicity by multiple means, such as village Capacity 1) Awareness of minority FPCs; publicity on FPCs. persons in agency, county meeting broadcast and bulletin board, so that project building 2) Perceptions of minority FPCs; Implement the minority agencies, township aware among minority residents is not less than 80%. budget of 3) Mode, language and place of publicity -ation project area governments, 2) Conduct diversified and comprehendible publicity. 62.4 million and training village committees 3) Use languages accepted by minority residents. yuan 2. Rules and 202,820 PMO, design 1) Not less than 40% of participants of FGDs are minority Capacity 1) Number of minority FGDs, participants regulations of FPCs persons in agency, county residents. building and ethnic composition; should be developed the minority agencies, township 2) Not less than 40% of participants in the development of budget of 2) Percentage of minority residents among Implement in consultation with project area governments, FPC rules and regulations are minority residents. 62.4 million participants in the development of FPC -ation minority residents. village committees 3) A management mechanism for minority participation is yuan rules and regulations; designed. 3) Recognition of FPC rules and regulations among minority residents 3. Offer jobs suitable 202,820 PMO, design 1) FGDs are held at the design stage to collect needs and / 1) Number of minority FGDs and specific for minority residents persons in agency, county comments from minority residents. suggestions; so that they benefit the minority agencies, township 2) Not less than 40% of unskilled jobs generated at the 2) Percentage of minority residents and equally from the project area governments, implementation stage should be first made available to women receiving unskilled jobs; Project. village committees Implement minority residents, women and other vulnerable groups. 3) Percentage of minority residents -ation 3) Capable and willing minority residents are encouraged offering catering and other services to to provide catering and other services to construction construction workers; workers during construction. 4) Mode and language of employment 4) Project employment information is disclosed in information disclosure Chinese and local minority languages. 4. Appoint FPC 202,820 PMO, design 1) FPC counselors familiar with minority customs are Capacity 1) Educational level and experience of counselors FPC persons in agency, county recruited. building FPC counselors; counselors familiar the minority agencies, township 2) FPC counselors are preferably minority language budget of 2) Ethnic identity and lingual ability of FPC with minority project area governments, speakers. 62.4 million counselors; Implement customs. village committees 3) Well-educated and capable counselors are recruited. yuan 3) Mastery of minority customs and local -ation 4) Strengthen training for FPC counselors, covering FPC knowledge by FPC counselors; management, industrial management, project industrial 4) Frequency, number of participants and management and minority customs. scope of training for FPC counselors; 5)The content of FPC counselors. 5. Establish a sound, 202,820 PMO, design 1) Dedicated appeal acceptors are appointed at village Project 1) Number of acceptors appointed; operable grievance persons in agency, county committees. management 2) Mode, place, language, frequency and Implement redress mechanism, the minority agencies, township 2) Contact information of appeal acceptors at all levels is budget of time of disclosure on the grievance -ation and notify it to project area governments, disclosed to the project villages. 29.34 million redress mechanism; minority residents in village committees 3) Relevant information is disclosed in Chinese and local yuan 3) Awareness of the grievance redress 37 Suggestion Targets IAs Stage Actions Budget Monitoring indicators a way accepted by minority languages. mechanism among minority residents; them. 4) Information is closed at places accessible for minority 4) Feedback from minority residents residents, e.g., gathering places and village committees. II. Promoting the equality and sustainable development of minority households Establish minority 202,820 PMO, design 1) In the minority project villages, not less than 50% of Capacity 1) Number and percentage of minority FPCs to promote the persons in agency, county FPC members should be minority residents; the board of building households joining FPCs; equality and the minority agencies, township directors or supervisors of each FPC should have at least budget of 2) Percentage of minority residents, sustainable project area governments, one minority, one female and one poor member each. 62.4 million women and poor residents in FPC development of village committees 2) The profit distribution mode of each FPC should be yuan, local management staff; minority households. determined at a general meeting. fiscal budget 3) Ownership transformation of existing Implement 3) The former ownership structure should be transformed FPCs; -ation to establish an extensive joint stock system that involves 4) Details of profit distribution mechanism, minority residents. and awareness among minority residents; 4) Profit distribution results should be disclosed regularly, 5) If each county PMO has dedicated staff and financial records kept for supervision by minority members responsible for EMDP members. implementation 5) Each county PMO should appoint one member to be responsible for EMDP implementation. III. Conducting training in various forms to strengthen the capacity building of minority residents 1. Conduct pertinent 202,820 PMO, design 1) Learn the willingness to attend mandarin Chinese Capacity 1) Frequency of training, number and training on mandarin persons in agency, county training. building percentages of participants; Chinese to enhance the minority agencies, township 2) Consult with minority residents on the design of the budget of 2) If minority residents are consulted with Implement the capacity of social project area governments, mandarin Chinese training program. 62.4 million in training design; -ation intercourse of village committees 3) Select training time, location and language based on yuan, local 3) Minority population able to speak minority residents. local conditions. fiscal budget mandarin Chinese; 4) Time, venue and language of training 2. Conduct training 202,820 PMO, design 1) Conduct skills training on cultivation and Capacity 1) Frequency of training, number and on practical skills. persons in agency, county stockbreeding, such as medicinal materials, taro and building percentages of participants; the minority agencies, township ramie cultivation, and field management. budget of 2) Frequency of market awareness project area governments, Implement 2) Conduct market awareness training. 62.4 million training, number and percentages of village committees -ation 3) Conduct training on other labor skills. yuan, local participants; 4) Conduct practical skills training in cooperation with fiscal budget 3) Types and frequency of other labor local agencies concerned. skills training, number of participants; 4) Time, venue and language of training 38 Suggestion Targets IAs Actions Stage Budget Monitoring indicators 3. Conduct FPC 202,820 PMO, design 1) Learn the willingness to attend FPC training. Capacity 1) Frequency of training, number and training. persons in agency, county 2) The scope of training is selected in consultation with building percentages of participants; the minority agencies, township minority residents. budget of 2) If minority residents are consulted with Implement project area governments, 3) Select training time, location and language based on 62.4 million in training design; -ation village committees local conditions. yuan, local 3) Time, venue and language of training 4) Conduct FPC training in cooperation with local fiscal budget agencies concerned. 4. Ensure the 202,820 PMO, design 1) Respect women’s needs for training. Capacity 1) Training records; participation of persons in agency, county 2) Not less than 30% of trainees are minority women; building 2) Number and percentage of minority women in training. the minority agencies, township Implement 3) Training courses for women are designed. budget of women trained; project area governments, -ation 62.4 million 3) Comments of minority women on village committees yuan, local training fiscal budget 5. Ensure the 202,820 PMO, design 1) Not less than 50% of trainees are minority residents. Capacity 1) Training records; participation of persons in agency, county 2) Not less than 40% of trainees are poor minority building 2) Number and percentage of minority minority and poor the minority agencies, township Implement residents. budget of trainees; residents. project area governments, -ation 62.4 million 3) Number and percentage of poor village committees yuan, local minority trainees fiscal budget 6. Trainers should be 202,820 PMO, design 1) Trainers are preferably minority residents familiar with Capacity 1) Number and percentage of minority trained properly, and persons agency, in county minority customs. building trainees; training programs agencies, township Implement 2) Trainer training includes basic operations, training the minority budget of 2) Frequency and scope of trainer training; welcome by minority governments, project area -ation skills, communication skills, minority customs, etc. 62.4 million 3) Needs for and comments on training; residents developed. village committees 3) A training program accepted by minority residents is yuan 4) Training program developed developed. 7. Timely feedback 202,820 PMO, design 1) Implement a training evaluation mechanism. 1) Establishment and implementation of Capacity should be given on persons in agency, county 2) Give feedback on training effectiveness for adjustment the evaluation mechanism; building training the minority agencies, township Implement to minority needs, such as the cultivation of taro, tobacco budget2) Improvement of minority residents in of effectiveness. project area governments, -ation and medicinal materials. mandarin Chinese proficiency; 62.4 million village committees yuan 3) Number of minority residents employed through skills training IV. Publicity and training should be conducted in a manner that respects minority customs and scheduled to avoid traditional minority festivals 1. Publicity and 202,820 PMO, design Publicity and training should be conducted in a manner Capacity 1) Publicity records; training should be persons in agency, county that respects minority customs, scheduled to avoid building 2) Time and mode of publicity and training; conducted in a the minority agencies, township Implement traditional minority festivals, such as Miao New Year’s budget of 3) Frequency of training, number and manner that respects project area governments, –ation Day and Dragon Boat Festival of the Miao people, Torch 62.4 million percentages of participants; minority customs, village committees Festival and Yi New Year’s Day of the Yi people, worship yuan 4) Minority needs and comments on scheduled to avoid activities of the Tujia people, and Bird-Respecting publicity and training 39 Suggestion Targets IAs Stage Actions Budget Monitoring indicators traditional minority Festival, New Food Festival and Dharma Wheel Festival festivals. of the Gelao people. 2. Publicity and 202,820 PMO, design 1) In Yi areas, publicity and training is given in the Yi Capacity 1) Language of publicity and training; training should be persons in agency, county language or in the presence of Yi interpreters. building 2) Ethnic identity of trainers, and familiarity given in languages the minority agencies, township 2) In Miao areas, publicity and training is given in the Miao budget of with minority customs Implement or in the presence of project area governments, language or in the presence of Miao interpreters. 62.4 million 3) Minority needs and comments on -ation minority interpreters. village committees 3) Trainers are preferably local experts familiar with yuan publicity and training minority customs and able to speak minority languages, or are accompanied by minority interpreters. 3. Publicity and 202,820 PMO, design Publicity and training should be given at places accepted Capacity 1) Place of publicity and training; training should be persons in agency, county by minority residents, such as village committees and building 2) Suggestions of minority residents on Implement given at places the minority agencies, township squares. budget of publicity and training places -ation accepted by minority project area governments, 62.4 million residents. village committees yuan 4. Training should be 202,820 PMO, design 1) Training should be conducted in diversified forms, such Capacity 1) Training records; diversified and persons in agency, county as classroom instruction, field explanation and field building 2) Selected training mode; comprehensible. the minority agencies, township Implement demonstration. budget of 3) Minority needs and comments on project area governments, -ation 2) Training should be comprehendible to suit educational 62.4 million publicity and training village committees levels of minority residents and meet their practical yuan needs. 40 8. M&E In order to ensure that this EMDP is implemented effectively as expected, it is necessary to monitor and evaluate the implementation thereof. EMDP monitoring includes internal and external monitoring. Internal monitoring will be conducted by the PMO on EMDP implementation progress. In addition, the PMO will appoint an independent agency to conduct external M&E on ethnic minority development until project completion. The independent agency may be an academic institution, NGO or consulting firm, but it must have qualified and experienced staff members, and their terms of acceptance must be accepted by the Bank. Internal monitoring will be conducted semiannually and external monitoring annually, and external monitoring reports will be prepared. See Table 8-1. Table 8-1 Terms of Reference for EMDP M&E Methods Scope M&E agency Interval and reporting ①M&E methods shall include The independent Internal monitoring will Semiannual internal field investigation, sampling monitoring agency shall be performed by the monitoring reports will be survey, computational analysis conduct monitoring PMO, and external submitted by the PMO to the and overall expert assessment; semiannually during the M&E by a qualified Bank; external M&E reports ②The field investigation will be implementation of the independent M&E will be submitted by the conducted comprehensively on EMDP, with focus on the agency. independent M&E agency to the implementation progress of following activities: the Bank annually. the EMDP, availability and ①Are the right of the The reporting requirements effectiveness of funds, ethnic minorities and are as follows: institutional and management minority groups to Submitting the M&E report aspects; participate in the project (No.1, including baseline ③The subproject area and equally guaranteed survey) during May-July households (especially ethnic practically? 2014 minority households) shall be ②Are the linguistic and Submitting an internal subject to sampling survey using cultural rights of the ethnic monitoring report the classified random sampling minorities respected? semiannually and an external method to track typical ethnic ③Which specific measures M&E report annually at the minority households regularly. have the local PMOs taken implementation stage ④The sampling ratio shall not be according to the MEGDP? (2014-2018); less than 20% of the affected How effective are these Submitting an EMDP population, in which the measures? summary evaluation report proportion of ethnic minority ④How do the ethnic within half a year after the households shall not be less than minorities and minority completion of the 40% of all sample households; to groups evaluate these implementation stage collect relevant information, measures? complete the impact form and ⑤How does the main compare with the existing EMDP population evaluate these data, a socioeconomic survey measures? and a resettlement survey shall ⑥Is a MEGDP M&E be conducted. mechanism in place? Does ⑤In addition to written materials, it work? photos, videos, audio records and physical objects shall also be collected to establish a database of public participation and results. 41 Appendix 1 Sample Villages 32 villages in 9 counties, 3 cities in Guizhou Province were covered by FGDs, key informant interviews, personal interviews and the socioeconomic survey. See Attached Table 1-1. Attached Table 1-1 Summary of Sample Villages City County Village Ethnic minority Daozhen Datang, Yangba, Siping, Wuyi Gelao, Tujia, Miao Zunyi Wuchuan Gaodong, Dazhu, Tiancun, Chaping Gelao, Tujia, Miao Nayong Zhuozuo, Wanzi Miao, Yi Bijie Hezhang Kele Miao, Yi Weining Guiping, Leju Miao, Yi Dejiang Wanba, Shujia, Sibao Tujia Shiqian Qibi, Gong’e’ao, Fenghuangtun, Laozhai Miao Tongren Yinjiang Tuanshan, Tangkkou, Lengcao, Guochang, Yanziyan, Fengyi Tujia, Miao Yanhe Huanglong, Manao, Zhongjie, Dongliu, Longxing, Xiaojing Tujia Appendix 2 Ongoing Projects Related to Ethnic Minority Development in the Project Area Project IAs Funding source Remarks Special budget of Poverty reduction, reemployment training, new Whole-village poverty reduction countryside building advancement office Mutual fund for poor 100,000-150,000 yuan per village Public finance villages Poverty Development of technical backbone and Rain and Dew Program reduction office State finance leaders in becoming rich Poverty reduction Zhijin County, Bijie City: cultivation of Provincial finance county demonstration characteristic crops and medicinal materials Provincial and Providing central assistance to 6,000 Rural assistance local finance administrative villages in the province State, provincial Construction of ecological waste bins, cultural Ethnic and Ethnic cultural village and municipal squares, sewer lines, etc. in minority villages religious affairs building poverty reduction bureau funds Beautiful countryside Construction of traffic, water and power supply, Provincial finance building Agricultural communication facilities, and housing, etc. Special supporting committee 4 million yuan per annum Provincial finance fund for FPCs Tax reduction and Exempting farm products produced and sold by Finance bureau State finance exemption for FPCs FPCs from VAT Granting agricultural loans to FPCs mainly to Preferential Loan Financial Financial meet their seasonal and temporary financial Rates for FPCs institutions institutions needs at preferential interest rates Women’s Women’s business startup and employment Women’s business State poverty federation, startup and reduction funds, poverty employment training provincial finance reduction office Granting small-amount secured loans for Small-amount secured women’s Provincial finance women to eligible rural poor women, especially loans for women federation capable women and female FPC leaders 42 Appendix 3 Summary of Early-stage Participation Activities No. Activities Time Venue Participants Remarks Guizhou PMO, Bank Guizhou Design Institute of Environmental Sciences Project Nov. 2012 experts, county PMOs, prepared the EIA Report of the Project; the FRS agency 1 information – Jan. Project area local residents, FSR conducted a field investigation to prepare the FSR of the disclosure 2014 and EIA agencies Project. 1) In June 2013, the Bank identification and technical preparation missions investigated project preparation and reached an agreement of intent for lending support; 2) In September 2013, Bank experts conducted another Jun. 2013 Field Bank experts, Guizhou investigation in Guizhou, and discussed the rationality and 2 – Dec. Project area investigation PMO, EIA agency feasibility of the Project with the provincial and county 2013 PMOs; the county PMOs further revised the FSR based on expert opinions; 3) In December 2013, Guizhou Design Institute of Environmental Sciences conducted an investigation in the project area. 722 valid copies were recovered, including 635 minority Project Questionnaire Jan. 2-16, Local residents, SA copies, accounting for 87.95%. The survey covers 3 villages, survey 2014 team, county PMOs agricultural development, participation in FPCs, needs for homes FPCs, project awareness, personal information, etc. Key 65 men-times in total, covering local socioeconomic profile, Jan. 2-16, Project Key informants, SA 4 information agricultural and stockbreeding developm ent, women’s 2014 villages team interviews development and poverty, comments and suggestions Project 90 men-times, covering living conditions, project impacts, In-depth Jan. 2-16, 5 villages, Villagers, SA team attitudes to and suggestions on the Project interviews 2014 homes Project 64 FGDs in total, covering attitudes to, suggestions on and Jan. 2-16, 6 FGDs villages, Villagers, SA team needs for the Project 2014 homes 12 stakeholder discussion meetings, covering local Stakeholder Jan. 2-16, Agencies SA team, heads of socioeconomic profile, minority and women’s development, 7 discussion 2014 concerned agencies applicable policies, ongoing projects, comments and meetings suggestions 43 Appendix 4 Fieldwork Photos Women’s FGD in Wanzi Village, Zhuchang Xiang, Villagers’ FGD in Leju Village, Xinfa Xiang, Nayong, Bijie City Weining County, Bijie City Villagers’ FGD in Kele Village, Kele Xiang, Organizational FGD in Dejiang County, Hezhang County Tongren City Industrial road in Qianbi Village, Shigu Xiang, Access road in Qianbi Village, Shigu Xiang, Shiqian County, Tongren City Shiqian County, Tongren City Villagers’ FGD in Manao village, Guanzhou Town, Interview at the Yinjiang County Yanhe County, Tongren City Stockbreeding Bureau, Tongren City 44 Qianfurong Egg Chicken Breeding Cooperative in Villagers’ FGD in Chaping Village, Fengle Xinye Xiang, Yinjiang County, Tongren City Town, Wuchuan County Key informant interview in Datang Village, Luolong Women’s FGD in Tiancun Village, Fengle Town, Daozhen County, Zunyi City Town, Wuchuan County, Zunyi City Organizational FGD in Wuchuan County, Zunyi City A leading enterprise in Wuchuan County, Zunyi City 45