China's rural poor need greater access to credit, insurance - World Bank |
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Fri, 19 Oct 2007 16:54
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BEIJING (XFN-ASIA) - China's rural poor need greater access to banks and agricultural insurance to improve their living standards and ensure sustainable development, the World Bank said.China also needs to increase its absorption of new technologies to help stamp out rural poverty, it said.Launching its World Development Report, the World Bank added that China should use funds allotted to rural development more efficiently.'Investment comes from so many sources that it is difficult to centralize it all in one local area,' said Sari Soderstrom, rural sector coordinator for the World Bank in China.'There are over 100 different fund sources and programs for rural development and such a high number of levels in the government that by the time (the funds) get to the farmer there are already lots of leakages,' she said.According to one of the authors of the report, China funnels a global average of 7 pct of its GDP to agricultural development.However the amount of money used for agri-sector development and rural poverty alleviation is not in itself the most important factor, said Harold Alderman, who oversaw the World Development Report.'It is not an issue of more money, but the use of funds more efficiently and effectively to reach the goals desired which is important,' he said.The report stated that greater investment in agriculture in transforming economies is vital to the welfare of 600 million rural poor living in Asian countries.It said that in transforming economies, such as China, agriculture contributed an average of only seven pct to GDP growth between 1995 and 2003, even though the sector accounts for about 13 pct of the economy and employs over half the labor force.The report recommended that in transforming economies the agricultural agenda should focus on reducing the disparity between rural and urban incomes and raising the incomes of the rural poor.It noted that agriculture can provide pathways out of poverty for millions of rural poor who would otherwise be left behind in transforming economies.fergus.naughton@xinhuafinance.com-xfnfn/xfnrc/xfnrcCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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