posted by System Administrator on 11/10/06

"The development of the model for sustainable rural development involves identifying local sources of private capital while helping residents of rural areas come together to design, develop and operate their own business ventures.

This rural financial capacity includes building, identification of project portfolios, and outreach to local and international financing institutions to support rural Chinese business ventures. The Rural Finance Program has expanded activities to begin pilot projects in China’s southwest Guangxi Autonomous Region and Yunnan Province, both of which are poor mountainous areas with great importance in biodiversity conservation. Demonstration projects have been launched in Changshui Village and Shitou Township in Yunnan Province and Rongshui Township in Guangxi Zhuang Autonomous Region.

The project model involves the formation of farmer cooperative associations, the creation of financing mechanisms to service rural markets, and the establishment of market chains for business ventures in target project areas. Through this model we aim to introduce fundamental changes to organizational infrastructures for economic activities followed with technical support in broadening financial and market channels in target project areas."

The outcomes of this approach are as follows:

Capacity building in sustainable rural areas. The establishment of farmers’ cooperative associations. The creation of financial mechanisms to serve rural markets including the first guarantee fund in China to serve farmers. The establishment of a market channel for rural enterprises and farmers’ cooperative associations. The provision of technical assistance in areas of renewable energy, organic agriculture and eco-tourism. The formation of strong relationships with government at different levels and the creation of conductive policy framework in rural finance.

Excerpted from Global Environment Institute Sustainable Rural Development Program