Market News International:
Experts predict that these over 100 million rural residents who have recently shaken off poverty could be the main middle-income spending force in the future. What kind of work should be done in order to help them move into middle-income groups? My second question is about infrastructure investment in rural vitalization. Will there be any financial support on the policy side? What will be the major methods in this regard? Will this increase the burden of debt for local governments? Thank you.
Wang Zhengpu:
You've raised two important questions. The first question is about how to help low-income populations become middle-income groups. This is Mr. Xia's field of work, so he will take this question. The second question is about investment, financing, and local government debt, which is Mr. Hong's field of work. Let's give the floor to them. Thank you.
Xia Gengsheng:
This is a good question. Although China has secured victory against poverty and a basic standard of living is now guaranteed among those who have shaken off poverty, a portion of them continues to live with a low income, and there remains a certain gap between them and middle-income groups as you mentioned. Helping the people who have just shaken off poverty gradually become a middle-income group will benefit our people, country, and the world. Once these 100 million people become middle-income earners, tremendous potential will be released by their spending activities and industrial development. To achieve a leapfrog development from poverty alleviation to middle-income level, we need to work on the following three aspects:
First, we need to promote income growth through industrial development. On the basis of effectively ensuring the supply of food and major agricultural products, we need to speed up efforts to develop specialized farming and livestock breeding methods that utilize local strengths, as well as develop the agricultural-product processing industry. We also need to foster new industrial and business models such as rural tourism, rural e-commerce, and real-life experience activities in rural areas. We need to extend the industrial chain, improve the value chain, and build the supply chain. Currently, we also need to redouble our supportive efforts via consumption. Over the past few years of poverty alleviation works, the farming and livestock breeding industries have produced many goods. Thus, we need to support them via consumption and translate their harvest into income, in a bid to build their capacity for self-development.
Second, we need to promote income growth by stabilizing employment. Employment is an important way of increasing income and ensuring its stability will help ensure a fundamental income for those lifted out of poverty. This year, we set the target of providing no less than 30 million job opportunities to people lifted out of poverty, and this has so far proved successful according to the current situation. These people now choose to either work as migrant workers or in areas closer to home, and the smooth flow of people between the two has been ensured. Migrant workers are organized by the labor cooperation program between eastern and western regions. This can provide targeted assistance for migrant workers in need and help them increase their income. In terms of job opportunities in places close to their homes, they are provided help via local poverty alleviation workshops, leading enterprises, and public-service sectors. In addition, carrying out vocational skills training programs is very important and can help those people lifted out of poverty to gain upgraded job opportunities and improve their potential for employment and income.
Third, we need to promote income growth via innovation, startups and entrepreneurship. Rural areas, especially those lifted out of poverty, have huge development potential and there are many ways and opportunities for them to promote income growth. This is opening new prospects for people to engage in innovation and start businesses. We will continuously improve the ecosystem for rural areas in innovation and business. For people who have been lifted out poverty and have the competence, are business-minded, and show willingness, we will encourage them to start businesses and increase their income. We will also focus on the training of family farm operators, farm cooperative leaders, innovation and business pioneers, rural e-commerce talents, and rural craftsman in a bid to promote entrepreneurship in rural regions and help those who have emerged from poverty increase their income and gain wealth. Thank you.
Hong Tianyun:
I'll answer the second question. The infrastructure investment for rural vitalization is mainly focused on rural development. Conducting the rural development initiative is a major arrangement made at the fifth plenary session of the 19th CPC Central Committee and an important focus for comprehensively promoting rural vitalization. This year marks the first year of comprehensively carrying out the rural vitalization development initiative and we will strive to succeed in the following five aspects: planning, construction, services, governance, and investment guarantees.
First, we will focus on planning. Rural plans are the blueprints for rural development. Planning should come before construction. As people often say, planning should be made scientifically and on a long-term basis, while construction should be pragmatic. We will clarify the layout and classification of villages, actively and orderly formulate a practical village scheme that integrates multiple plans, and realize the full planning coverage of those villages that have conditions and needs. Since the rural vitalization strategy was put forward at the 19th National Congress of the CPC, China's eastern region has taken the lead and gained good experience. We must start from the current basis and reality, retain the characteristics of the countryside, and avoid disordered and aggressive demolition and construction. In particular, we must strictly regulate the demolition and merger of villages, and must not force farmers to move into apartments. Rural development is to serve its residents.
Second, we will focus on rural infrastructure construction. We will continue to prioritize public infrastructure construction in the rural areas and strive to promote infrastructure coverage in villages, and by extension, to households. Access to "water, electricity, road, communication, and internet," energy supply, sanitation facilities, and garbage and sewage treatments are all basic elements necessary for modern civilized life in rural areas and the main focus of our rural development. We will guide local governments to determine the development priorities in light of local conditions and meet the most pressing needs of the rural residents.
Third, we will focus on providing services. We will improve the level of basic public services in rural areas, establish a mechanism for balanced allocation of public resources between urban and rural areas, strengthen the allocation of basic public services to rural areas, and gradually unify urban and rural standards and systems. Next, we will concentrate on key issues such as rural education, healthcare, elderly care, and social security, and continue to realize equal access to basic public services in urban and rural areas.
Fourth, we will focus on governance. We have launched a five-year campaign for improving rural living environments to promote the marked upgrading of urban and rural appearances. We will give priority to supporting household sanitation in the rural areas of China's central and western regions, and advance toilet upgrading and sewage treatment in rural areas in an integrated manner. We will encourage the sorting and treatment of household waste at the source in rural areas where conditions permit and intensify efforts to make villages cleaner and greener, making rural areas more livable and rural residents more satisfied.
With the four "focuses" mentioned above, investment in rural development must be guaranteed. We should, through innovating the mechanism of investment and financing, form a diversified investment pattern featuring prioritized financial guarantees, focused financial support, and active social participation. Earlier, Mr. Tang introduced the No. 1 Central Document for 2021 and answered questions from the press. As we all know, this year's No. 1 Central Document issues a series of specific policies for input guarantees. According to the document, the general public budget should continue to prioritize spending on both agriculture and rural areas, and the central government spending on agriculture and rural areas should be further expanded. In addition, the share of the revenue from land transfers diverted to rural areas should be increased and local governments should be supported in issuing general bonds and special bonds for modern agriculture facilities and rural development to continue to enhance their financial support.
Rural vitalization is a long-term and historic task. While proceeding with the work, we must spare no efforts within our capacities and seek truth from facts. At the same time, the relevant departments have also been very strict in managing local government debts. We believe that the debt burden among local governments won't increase overall and is manageable. Thank you.
