Poor Families Aid Program Chart of Program of Happiness The Organization Work Committee Program of Happiness Gansu, China Text of Poor Families Aid Program Gansu Province Program of Happiness Office of Gansu Province November 2003 Content

1. Name of the Program

2. Duration of the Program

3. Background and Causes of the Program

4. Measures to Implement the Program

5. Aim of the Program

6. Target Community

7. Location of the Program

8. Main Activities

9. Measures and Steps

10. Supervision and Evaluation

11. Person in Charge

12. Budget

13. Financial Resources

14. Cooperative Organizations

15. Effectiveness Forecast

16. Introduction of Sustainable Development

17. Enclosures

1. Name of the Program: Poor Families Aid Program

2. Duration of the Program: From December 2003 to December 2008

3. Background and Causes of the Program: 3.1 Natural Conditions 3.1.1 Geographical Condition Gansu Province is located at the upper reaches of the Yellow River and the intersection of Inner Mongolian Plateau, Loess Plateau and Qinghai-Tibetan Plateau. Its figure is thin and long with a width of 1,655 kilometers from east to west. The total area is 420,000 square kilometers, of which 70 percent is mountainous region or highland, 15 percent is desert and Gobi in the Northwest and 7.66 percent is arable land (that is 3,470,000 hectares). The altitude of Gansu Province ranges from 1,000 to 3,000 meters. 3.1.2 Climatic Condition Generally speaking, the climate of Gansu Province is arid and with great difference in temperature. The average temperature in Gansu Province is 4-14 Celsius degree and average rainfall is 300 millimeters every year. Dunhuang City is the most arid city in Gansu with a rainfall of 38 millimeters per year and an evaporation of 1,500-3,000 millimeters per year. 75 percent area of Gansu Province is arid and semi-arid region. 3. 1. 3 Natural Resources Gansu Province is rich in mineral and energy resources. There are 155 kinds of minerals verified in Gansu province. The deposits of Nickel, Cobalt, Platinum, Selenium, Foundry Clay and Snake Vein Rock rank the first place in China and another 29 kinds of minerals rank the top five places in China. It is deserved mentioning that, the deposit of copper and nickel sulfide in Jinchuan District, Jinchang city is the second largest in the world, less than the deposit in Canada. There is 8.637 billion ton coal deposited in Gansu Province, ranking the 13th place in China. The exploitable water energy is 11,200,000 kilowatt and the installed capacity of exploited hydroelectricity is 2,868,000 kilowatt, which is 25.6% of total. Additionally, nuclear material, wind power and solar energy all have their advantages. Experts evaluated that the potential of mineral resource in Gansu Province values RMB 800 billion. There are also abundant tourism resources in Gansu Province. Gansu is a province with long history and splended culture. It is one of birthplaces of Chinese civilization with 13,600 culture relics spots. Qin`an Dadiwan Cultural Relics, Dunhuang Mogao Grottoes, Tianshui Maijishan Mountain Grottoes, Yongjing Binglingsi Temple Grottoes, Xiahe Labrang Lamasery, Jiayuguan Pass, Pingliang Kongtong Mountain (a mountain well-known for its Taoism temples) in Gansu Province are comparatively well known at home and abroad. These scenic spots form a unique style and different levels tourism resources. 3.2 Population and Economic Condition The population in Gansu Province is 25,925,800 in 2003, of which 75 percent are rural residents. The population of minority nationalities is 2,184,000 (8.69% of the total population). Dongxiang, Yugu and Bao`an nationalities are unique in Gansu Province. The GDP of Gansu Province is RMB 116.1 billion in 2002, 9.6 percent increased than last year, per capital GDP is RMB 4,493, financial income of main resources is RMB 14.697 billion, financial income of local governments is RMB 7.631 billion and per capital pure income of peasants is RMB 1,583. There were once 41 counties under the aid of the National Help-the-Poor Office and 12 of the Help-the-Poor Office of Gansu Province. By the effort of many years, the national level aid counties reduced from 41 to 21 and the poor population drops to 1,400,000. Nowadays, there are only 3,500,000 people live a relatively comfortable standard of living in Gansu Province and 6,800,000 people still live a low level standard of living. The standard of township level here is 24.5%, which is 13 points lower than the standard of the country. According to the census taken by birth control authorities on a sample of 4,487,900 families, there are 50,838 poor families, of which 45,361 are rural families and 5,477 are urban families and 3,515 especially poor families. In 2, 399 families, the parents basically lose their labor capacity and children are disabled and lose their labor capacity or dead. In 1,116 families, the parents is disabled but can do some labor and children is disabled and basically lose their labor capacity.

　All these families can not produce and live by themselves. If they could not be helped in time, the course of the construction of relatively comfortable standard of living will be influenced, as well as the economy development and social progress in Gansu Province. 3.3 The Favorable Conditions to Implement the Program The first favorable condition in Gansu Province is its geographic location. Gansu Province is a hinge of transportation and communication in Northwest China and the only province connecting 3 autonomous regions (Xinjiang, Ningxia and Xizang). This condition decides that it will play a key role in promoting nationalities comity and protecting stability of the west region. The second favorable condition of Gansu province is that it is a key barrier region for ecology of the Yellow River` and the Yangtze River` drainage area. Mud and sand feeding into the Yellow River and the Yangtze River in Gansu Province occupies one third and one tenth respectively of the total amount. It is also an important region to harness large rivers` drainage area. The third favorable condition is the agricultural environment here. The agriculture in Gansu Province is highland agriculture with long time sunshine and great temperature difference between day and night, which is good for photosynthetic and nourishment accumulation and admitted to plant different kinds of crops.

　Along with the reform and opening-up policy being taken in Gansu, the development of economy leads a rapid speed. The GDP increased from RMB 6.473 billion in 1978 to 116.1 billion RMB in 2002. That is to say, the average increasing speed is more than 8.8 %. If we compare the economy level nowadays with the last years, we can see the improvement is great. But if we compare the economy of Gansu Province with other regions in China, we can also see in Gansu Province the real value of economy is little, the level is low and the competitive power is feeble. The per capital GDP in Gansu Provinc is half of which in China.

4. Measures to Implement the Program 4.1 Organization and Management Measures 4.1.1 Organization Institutions In order to ensure the implementation of the program, a Committee named Gansu Provincial Working Committee of the Program of Happiness was set in 1998. A vice general-secretary of Gansu Provincial Committee of CPC, a vice governor and the president of Gansu Provincial Birth Planning Association are appointed advisors of the committee. A vice director of Gansu Provincial People`s Congress is assumed the director of the committee. Leaders from the Publicity Department of Gansu Provincial Committee of CPC, the Provincial Birth Planning Committee, the Provincial Union of Women, the Provincial Financial Department, the Provincial Civil Affairs Department, the Provincial Help-the-Poor Office, the Provincial Science and Technology Committee, the General Workers Union of Gansu Province, the Provincial Birth Planning Association are assumed vice directors. The office of the committee is attached to the Provincial Birth Planning Association. Meanwhile, in order to work better, the Provincial Departments Working Committee, the Provincial Birth Planning Committee, the Provincial Union of Women and the Provincial Birth Planning Association cooperate together establishing Help-the-Poor Leading Group. The executive office is also attached to the Provincial Birth Planning Committee. 4.1.2 Management of the Program 4.1.2.1 All program municipalities (prefectures) and counties (districts) set Program of Happiness Offices, specified constitutional functions and establish management systems. Every family aided by the Program should make a sign at their house. 4.1.2.2 The program office shall organize training regularly. 4.1.2.3 The program office shall invite technicians to teach and instruct stuff of the institutions in the program regions regularly. 4.1.2.4 Persons in charge of all levels of the Program shall go to the program regions to learn situations, find problems and give advise on how to solve the problems regularly. 4.2 Measures and Policies 4.2.1 The Gansu Provincial People`s Government have already taken the Program of Happiness in discussion and regarded it as an important responsibility. All the program counties, towns and villages have leading groups and appointed persons being responsible for the program. All their work on the program will be written in their year-end assessments. Target contract shall be signed in all institutions to sure the program can be carried out at all levels. 4.2.2 All Funds will be allocated half and half by the Financial Department of Gansu Province regarding to relative rules. 4.2.3 The Help-the-Poor Office of Gansu Province shall show their inclinations to the poor families on allocating the aid capital. 4.2.4 Intensify the harmony, cooperation and management in different departments and supply qualified servant to concrete families and persons. 4.2.5 Conference shall be held every year to Sum up experience and commend outstanding units and individuals in the Program of Happiness. 4.2.6 In term of new items and new industries, funds can be accumulated by means of crowning with the program, etc. 4.3 Legislative Measures According to relative regulations in Economic Contract Law and Civil Law, an Agreement of Program Family Accepting Aid shall be signed. 5. Aim of the Program Relative policies and measures shall be made and taken to aid poor families. With instruction of these policies and measures, particular poor families in which the parents basically lose labor capacity and the children are disabled and totally lose their labor capacity or die shall be provided RMB 4,000 or more per year. Particular poor families in which the parents can do limited labor and children are disabled and basically lose their labor capacity shall be provided RMB 1,500 or program support valuing RMB 1500 or more with qualifications every year. The general poor families shall be provided RMB 800 or program support valuing RMB 800 or more with qualifications every year. The policies and measures can guarantee the poor families live a basic standard of living, improve their economic conditions and strengthen their self-relief ability. They can also help the poor people keep in line with the common level of local people on per capital income, make their lives happy and stable, harmonize the development of population, economy and society and ensure their sustainable development. 6. Target Community The target community of the program is the persons with per capital income of RMB 600 and below. 7. Location The program will be taken in Gansu provincial administrative regions. 8. Main Activities 8.1 Mobilize all levels and all sides of the society In order to enlarge the influence of the activity and foster a good environment, the four provincial authorities (the Gansu People`s Congress, the Gansu Provincial Committee of CPC, the Gansu Provincial Government and the Consultative Conference of Gansu Province) will have a united news press when the program starts up. They will invite leaders of relative departments to take part in the press, broadly publicize the aim and significance of the program and absorb strength from the society to pay attention to and take part in the program. The Departments Work Committee of Gansu Province will publicize the program in provincial departments at symposia. The Union of Women of Gansu Province, the Birth Planning Committee and Birth Planning Association will also make use of their systems to agitate and publicize the program to the society to foster a favorable environment. 8.2 Make Definite Responsibilities and Cooperate Together Aiding the poor families is an important task in the progress of relative moderately standard of living construction. All levels of governments shall make clear the responsibility of each department and cooperate together.

　The Provincial Departments Work Committee of Gansu Province shall make use of all provincial departments to keep in line with policies and organize donation. The Provincial Union of Women shall take the program as an important item of women work and focus on enhancing women` abilities. The Provincial Birth Planning Committee and Birth Planning Association shall keep in active touch with relative departments to set concrete schedules, be responsible for providing information and suggestions to all levels of governments and relative departments, and carry out the program and organizing donations and aid activities in their own systems. 8.3 Perfect the System and Pay Great Attention to Implementation The way to aid poor families shall be a combination of fund aid, policies support and self-relief. Under a precondition of fulfilling all favorable policies, the money provided to the poor people shall be 2,000 or more every year include financial aid, project aid, fund aid and one-to-one aid. Funds from all departments shall be provided to poor families firstly. The birth planning service Institutes shall provide free servant for poor families and charge examine expense at half price and state owned medical institutes provide favorable price. The Provincial Departments Committee shall organize relative departments to eliminate illiteracy in poor families. The four provincial level governments shall organize activities of Giving Sensation, Offer Love and Take Care of Poor Mother” in their systems, advocate aid activities in their jurisdiction and help the poor families develop economy and get rid of porvety. 8.4 Set Poor Family Aid Fund Poor family aid program is a long-term social project. Setting a special fund for poor families can ensure the project be concrete, lasting and stable. It is also commonweal of benefiting both the present age and the future. The four provincial level governments will set poor family aid fund separately. The resources of the special fund: The first resource of the fund is the money taken from special funds of Help the Poor by Technology Project, Help the Poor by Intelligence, Help the Poor by Education, Help the Poor by Society, Food and Clothing Project and Hope Project by the provincial departments under the coordination of the Provincial Departments Work Committee of Gansu Province. Meanwhile, mobilize the units and stuff to donate to the project. Each person donates RMB 50. The second resource of the fund is the money offered by the Women` Union of Gansu Province from the Help-the-Poor and Development Project in their own system. The third resource of the fund is donation from the birth planning system organized by the Provincial Birth Planning Committee and Birth Planning Association. Key support from the State Birth Planning Committee, State Birth Planning Association on Project of Three Combinations and Project Happiness and support from else provinces shall be actively strived for. The fourth resource of the fund is the money from charity bazaar and charity performance organized by the four provincial level governments cooperated with other departments. The fifth resource of the fund is donation from enterprises, units, associations and individuals actively caring for the work of poor family aid, woman development and procreation health. The sixth resource of the fund is donation from international organization, foreign trade corporations, associations and overseas individuals actively caring for the work of poor family aid, woman development and procreation health. The seventh resource of the fund is the capital raised by all departments making use of their advantages. Poor Family Aid Fund is managed and supervised by special persons who are assumed by the four provincial level governmerts separately and deposit in a special account. The donation rule and management prescriptions toward the fund shall be united and all of the fund shall be used to aid poor families. The fund can be provided to individuals directly by family-to-family policy. A liaison system shall be set between aid providers and the family being aided. A return visit shall be paid regularly and the information of the fund usage shall be publicized to the society and the name list of the families being aided shall be publicized on web page. In a word, the action shall be supervised by society and be open, fair and impartiality.

9. Measures and steps 9.1 Aid Measures 9.1.1 Long-Term Aid Actively strive for special budgets from all levels of financial departments and provide poor families a certain amount of money every year. 9.1.2 Project Aid Provide poor families a certain amount of money on special projects funds from relative departments. 9.1.3 Fund Aid Different amount of money shall be provided regarding how poor the family is. 9.1.4 Family-to-Family Aid According to each person`s selection, family-to-family aid shall be taken. 9.3 Organization Styles Aid shall be given to only one group each year regarding the amount of aid fund. The group shall be divided by the difficulty degree of the families. Each year is a period. At the beginning of every year, aid plan shall by made by the provincial aid leading team and 2-3 persons assumed by each departments of the four provincial level departments will form a poor family aid work team to decide the name list of the families being aided in the year and put the plan into practice. At the end of the year, the four departments will employ experts to assess their work.

10. Supervision and Evaluation 10.1 How to Carry out the program The leading group of Poor Family Aid Program shall inspect and supervise the executive condition of the program at regular intervals or at optional time according to the progress of the program. The working team of Poor Family Aid Program should evaluate the work of each organization annually. 10.2 Aid Range Regarding to different style of objects, 30 percent of the families should be sampled for evaluation. 10.3 Evaluation Steps Municipal and county leaders` teams organize self-check work, provincial leaders` team does selective examination and annual evaluation work team organizes year-end evaluation. 10.4 Examination and evaluation items 10.4.1 Recognition level and achievement of leaders 10.4.2 Carrying out and fulfillment 10.4.3 Information on publicity and initiation 10.4.4 Capital management including capital input, effect and financial discipline

11. Person in charge of the program Liu Weizhong, the director of the Birth Planning Committee of Gansu Province

12. Budget 12.1 Particular poor families: 2399 families × 4000 RMB = 9596000 RMB 1116 families × 1500 RMB= 1674000 RMB 12.2 General poor families: 47323 families × 800 RMB = 378584000 RMB Total amount: 49128400 RMB

13. Financial Resource Appropriations from governments, donations from society, international donations and program funds

14. Cooperation Institution The Provincial Departments Work Committee of Gansu Province, the Enterprises Work Committee of Gansu Province, the Edcation, Science, Culture and Sanitation Work Committee of the People`s Congress of Gansu Province, the Overseas Chinese and Foreign Affairs Committee of the Political Consultative Conference of Gansu Province, the Provincial Birth Planning Committee, the Foreign Economic and Trade Cooperative Department of Gansu Province, the Financial Department of Gansu Province, the Help-the-Poor Office of Gansu Province, the Foreign Affairs Office of Gansu Province, the Youth Union of Gansu Province, the Union of Women of Gansu Province, the Industry and Commerce Union of Gansu Province, the Birth Planning Association of Gansu Province and the Individual Business Association.

15. Effectiveness Forecast 15.1 Economic Effectiveness 80 percent particular poor people in Gansu Province can get rid of poverty and become rich by aid of the program at first phase and more than 90 percent poor people can get rid of poverty and live a well off living in 5 years. 15.2 Social Effectiveness The construction of the program can add confidence and encouragement of the poor people to create fortune for society, to increase their lives standards and quality and speed up the construction progress of the relatively comfortable lives in Gansu Province. Meanwhile, the construction of the program can also do benefit to the development of economy and stability of society of Gansu Province. 16. Introduction of Sustainable Development The Poor Family Aid Program is a general social project.

The co-effect of government support, social participation, comprehensive management and polloi self-development is a new means and way to do help-the-poor work, which will surely arouse extensive attention and support from all around of the society and give experience to innovation in other fields. Along with the progress of the program, the coordinative development of population, economy and society will be improved greatly and the construction of relatively comfortable society will also be improved as well.

17. Enclosures ( sub-project of the Program of Happiness in Gansu Province) 17.1 The International Cooperative AIDS Prevention and Cure Project 17.2 The Women` Procreation Channel Infection Intervention Project in Gansu Province 17.3 The Bore Defect Intervention Project in Gansu Province 17.4 The Demonstration and Spread Project on Knowing and Choosing Conception Control and Birth Control. 17.5 The Meat Cow Raising Project in Ning County, Gansu Province 17.6 The Project of Reviving Lanzhou Yuzhong Kangu Medical Industrial