What does it take to escape poverty and get rich? Grasp these 6 key points

Introduction

On the afternoon of October 16, the Ministry of Agriculture held the 2016 Industrial Poverty Alleviation Forum at the Beijing Conference Center. Centered on the theme "Innovating Policies and Models for Targeted Poverty Alleviation through Industry," the forum held in-depth discussions on ideas, key priorities and policy measures for industrial poverty alleviation, exchanged good experiences, good practices and good models from various localities, analyzed the difficulties and problems currently existing in industrial poverty alleviation, and built consensus among all parties, creating a favorable public opinion atmosphere for advancing targeted poverty alleviation through industry.

Leading officials from relevant departments such as the Ministry of Agriculture and the State Council Leading Group Office of Poverty Alleviation and Development, representatives of relevant experts and scholars, representatives of new-type agricultural business entities, and representatives of village officials attended the forum and gave speeches. At the forum, Yu Xinrong, Deputy Secretary of the Party Leadership Group and Vice Minister of the Ministry of Agriculture, delivered a speech titled "Strengthen Research, Build Synergy, and Deepen Industrial and Financial Poverty Alleviation."

Yu Xinrong pointed out that advancing industrial poverty alleviation is a systematic project, and that around the goal of increasing the income of registered poor people and lifting them out of poverty, the following six key points should be well grasped:

First, select the right industry. To select the right industry for poverty alleviation, one should choose distinctive features suited to local development, and seek production capacity and competitiveness from those distinctive features. Yu Xinrong believed that this distinctive feature is comparative advantage, and that this comparative advantage is not subjective but objective, not a matter of a single point in time but sustainable. One important point is to highlight the market, grasp market demand, vigorously advance structural reform of the agricultural supply side, work hard on making things better, finer and more distinctive, highlight the basic trend of modernized development, develop agricultural product processing in line with local conditions, advance the development of leisure agriculture and rural tourism, and extend the industrial chain and value chain. In short, it is necessary to continuously promote the integrated development of the primary, secondary and tertiary industries.

Second, cultivate new-type business entities. Increase support for new-type business entities such as large growers and breeders, farmer cooperatives and leading enterprises, help poverty-stricken areas introduce leading enterprises suited to local conditions, and improve the capacity for industrial value-added and the capacity to absorb poor laborers for employment and income growth. Guide and encourage rural talent such as returning migrant workers, secondary and higher school graduates and retired soldiers to start businesses and pursue development in poverty-stricken areas, lead poor households in developing industries, and promote mass entrepreneurship and innovation in poverty-stricken areas.

Third, improve the benefit linkage mechanism. Integrate the concept of sharing throughout the industrial development chain, innovate mechanisms for industries to benefit the poor, innovate mechanisms under which poor households, village collectives and enterprises all benefit, and let poor households and poor villages share in the dividends of industrial development. Summarize and promote targeted industrial poverty alleviation models such as direct assistance, order-based assistance, share cooperation and trusteeship, guide poor households to strengthen alliances and cooperation among themselves, with ordinary farming households, and with new-type business entities, and establish closer benefit linkage relationships. Yu Xinrong stressed in particular that industrial poverty alleviation is an economic activity, and economic activities carry risks; especially economic activities in the agricultural industry, whose uncertainty and variability are more obvious than those of other industries. Therefore, the adjustment of interests lies not only in administrative power, but even more in handling matters according to law. Whether enterprises or local governments, all must use the law to regulate the entire process of industrial poverty alleviation, including project implementation, which is very important for preventing unnecessary risks.

Fourth, build strong brands. In response to the current predicament in many poverty-stricken areas where agricultural products "have products but no price, have products but no brand" and industrial added value is low, Yu Xinrong pointed out that it is necessary to give play to the government's service and promotion role, mobilize the initiative of enterprises as the main entities, make regional public brands better and stronger, do a good job in brand cultivation, promotion, guidance and supervision, expand brand influence, enhance the core competitiveness of industries, and enable poor farmers to obtain more returns from industrial development. This is a very important point for poverty-stricken areas, or later-developing areas, to catch up with advanced areas and achieve leapfrog development. Yu Xinrong said that looking at the course of development over these years, because of a lack of attention to brands, we have paid no small price. A brand is a kind of culture, a brand is a kind of trust, and in the final analysis, whether for an enterprise or a local government, the brand of a place is the concentrated embodiment of all advantages and a key symbol. The content can change, but the brand will not change.

Yu Xinrong shared with everyone the example of Japan's Koshihikari rice. He said that when one mentions Koshihikari, one knows it is Japanese. When one mentions Japan, one knows its level of rice technology. Koshihikari rice was developed starting in the 1950s, but its standards today are no longer those of the 1950s; new standards have been continuously developed for it, and the standards for both rice quality and image are very high. The starch content of Koshihikari rice is not necessarily much higher than that of our country's rice, but one important difference is that Koshihikari rice does not go stale when cooled. It has strong market recognition. Yu Xinrong believed that some places in our country once had very good brands historically, but after a change of leadership or a change in enterprise leadership, the brands were thrown away, or even acquired by others. Therefore, in the process of poverty alleviation and development, the cultivation of brand awareness is especially important.

Fifth, strengthen science and technology services. Further support poverty-stricken areas in promoting the application of appropriate technologies, strengthen skills training for poor households, establish a mechanism for agricultural technology services precisely reaching households, and ensure that technical services reach households and individuals directly. Around the development of distinctive industries in poverty-stricken areas, strengthen the cultivation of new-type professional farmers and the training of leaders of practical rural talent. Guide and support enterprises in establishing labor training bases in poverty-stricken areas and carrying out order-based and targeted training. Yu Xinrong believed that industry ultimately depends on the role of leading enterprises, and how to cultivate, how to introduce and how to jointly build them is something that all poverty-stricken areas need to work hard on.

Sixth, strengthen financial support. Make good use of policies such as small-sum poverty alleviation loans and poverty alleviation re-lending, encourage financial institutions to innovate financial products suited to the characteristics of poverty-stricken areas, and guide social capital to participate in industrial poverty alleviation through crowdfunding and other means. Actively develop insurance for distinctive products, explore pilot programs for price insurance, encourage insurance institutions and poverty-stricken areas to carry out insurance for distinctive products and guarantee insurance for small-sum poverty alleviation loans, and provide a certain premium subsidy where conditions permit. Yu Xinrong pointed out that for outside enterprises to go to poverty-stricken areas to develop, it is not that they will come just because you invite them; one very important point is whether you can, before and after various risks arise, have the means to prevent and resist risks, and this is the establishment of an insurance system. Yu Xinrong believed that some places have already made very good explorations. In this regard, local governments can accomplish a great deal and learn from one another; at the national level, further strengthening is needed in insurance, finance, venture investment and other areas.