Approximately 6.5 million people have been assisted out of
poverty in the past 12 years by private enterprises in China most
notably by financing agriculture and industry projects in
poverty-stricken regions of western China.
By the end of November the China Society for Promoting the
Guangcai Programme (CSPGP), a national poverty-alleviation project
funded by private firms, had distributed 124.7 billion yuan
(US$15.6 billion) in poor rural areas through 14,529 such projects,
said Xie Boyang, vice-president of the programme at a press
More than 19,982 entrepreneurs from the Chinese mainland,
Taiwan, Hong Kong and Macao have funded the projects. "In five
years the Guangcai Programme will continue to fund sustainable
development of 10,000 villages in poor rural areas," Xie said. The
official said "help and support" would be offered to agriculture or
industry projects that were designed to promote local economies
The Guangcai Programme has developed a unique framework of
partnership between investors and beneficiaries which is usually
referred to as the model of "company plus farmer." Investors and
beneficiaries form legally binding contracts to determine each
party's responsibilities, rights and obligations.
"Different from many other charitable projects the Guangcai
Programme is outstanding in its efforts to help the poor through
industrial projects which have more long-term benefit than a simple
financial donation," the official said. "It's a real salvation for
China's poverty-stricken population."
Ten private entrepreneurs initiated the Guangcai Programme in
Internationally the CSPGP has set up the Sino-Africa Commerce
Society. To date the organization has recommended 356 investment
projects to countries such as Ghana, Nigerian, Cameroon, Kenya and
Mozambique. This year 15 private enterprises have been selected to
engage in further investment in Africa.
To further facilitate its poverty-alleviation efforts the CSPGP
Fundraising Association was established last December with the aim
of better attracting and managing public donations. To date the
association has gathered a contracted value of 80 million yuan (US$
9.8 million) in donations.
"The Guangcai Association is one of only 21 foundations in China
that enjoy a complete exemption from both corporate and individual
income tax while for other charities the exemptions are 30 per cent
and 3 per cent respectively," said Sun Gonglin, secretary general
of the CSPGP.
Part of the funds raised go to international poverty-relief
projects. The CSPGP donated 1.2 million yuan (US$148,000) to
Pakistan earlier this year when the country was struck by an
(China Daily December 4, 2006)