China - Agriculture Technology Transfer Project (Vol. 1 of 5) : Social Assessment Report - General

35126 v 1 World Bank Financed China Agro-tech Project (Phase II) Social Assessment Report Guangzhou, China Aug 2003 1  Foreword Consigned by the World Bank, 10 assessment experts from the CCCC at the Sun Yet-sen University conducted the Phase II social assessment on the 88 established agro-tech projects in the 4 provinces of Shanxi, Heilongjiang, Hunan and Anhui from June 30-Aug 3 2003 in 2 groups. Among the above projects, the World Bank Study Group had already conducted a preliminary investigation (Mar 24- Apr 4) on those in Hunan (13) and Anhui (14), and had raised specific suggestions and comments. Affected by SARS, they were unable to investigate the projects in Heilongjiang and Shanxi. As required by the World Bank, we have formulated the task outline for this assessment (see Annex 1). The Social Assessment (SA) Team held forums with officials at all levels of project offices, the project companies, agriculturists and peasants at the selected villages in the 4 provinces, and chose some peasants for door-to-door interview. Through the above 4 levels of work, we have collected: 1. The progress of all the established projects; 2. The process of participation of affected peasants in the projects, their suggestions for the projects, comments on project benefits and influences; 3. learn the experiences and lessons in the "company + peasant" pattern; 4. suggestions from project companies, affected peasants and the government to improve the project effect, reduce risks and guarantee the wide participation of peasant beneficiaries; 5. problems in the established projects 6. The geography, climate, population, resources, present economic and social aspects of the affected areas. The social assessment report of the World Bank Financed China Agro-tech Project (Phase II) is made up of 6 parts: 1. General Report; 2. Hunan Report; 3. Anhui Report; 4. Heilongjiang Report; 5. Shanxi Report; and 6. Annexes. In these reports, we've completed the following tasks by collating and analyzing various investigation data: 1. briefly describe the project progress in the 4 provinces; 2. summarize experiences in and lessons from agro-tech popularization by the project companies, government and agro-technicians; 3. learn comments and suggestions of affected peasants for the project on the spot; 4. formulate the "Farmer Beneficiary Participation Formula", propose specific suggestions for the wide participation of peasant beneficiaries; 5. explore and think about relevant issues centering on the objective of how to realize the agro-tech demonstration and popularization; 6. exhibit the firsthand data collected and collated by the SA Team in the fieldwork in the Hunan, Anhui, Heilongjiang and Shanxi reports to reaffirm the viewpoints in the General Report. This assessment was completed on schedule with the guidance and help offered by Mr. Luo Luyong from the National Integrated Agricultural Development Office, as well as the great support from all levels of project offices in the 4 provinces, leaders and project managers of the investigated counties, towns/townships and villages, peasants at the points of investigation. We hereby express our devout acknowledgement! 2  Contents Chapter 1 Background......................................................................................................................... 5 Section 1 Objective and Method of Assessment ...................................................................................... 5 Section 2 Assessment Procedure and Coverage ....................................................................................... 5 Section 3 Data Source .............................................................................................................................. 6 Chapter 2 Review of Phase I Social Assessment........................................................................................ 7 Section 1 SA Team's Comments and Suggestions..................................................................... 7 I. SA Team's Comments......................................................................................................................... 7 II. SA Team's Suggestions ..................................................................................................................... 7 Section 2 Issues for Discussion................................................................................................................ 8 I. "Company + peasant" Pattern............................................................................................................. 8 II. Professional peasant associations will be the trend of agricultural industrialization......................... 8 III. Experts of the Northwest Agriculture & Forestry University and all levels of demonstration zone officials are exploring new connection patterns of peasants, rural areas and agriculture with market .. 8 IV. Women are presently the main forces of rural agricultural production ............................................ 9 V. "Demonstrative effect" is the most effective approach to converting peasants' sense of production and operation.......................................................................................................................................... 9 Chapter 3 Government, Company, Agriculturist and Project..................................................................... 9 Section 1 Government and Project........................................................................................................... 9 I. Status and Role of All Levels of Government in Project Execution................................................... 9 II. Project Supervision and Coordination by All Levels of Government ............................................. 10 III. Evaluation of Governmental Act by Companies, Peasants and Experts .........................................11 Section 2 Company and Project ............................................................................................................. 12 I. Determination of Project Companies................................................................................................ 12 II. Risks of Project Companies............................................................................................................. 13 III. Attitudes of Government, Peasants and Experts to Companies ..................................................... 14 Section 3 Agriculturists and Project....................................................................................................... 15 I. Technical Support Units and Experts................................................................................................ 15 II. Manner of Agro-tech Popularization by Agriculturists.................................................................... 15 III. Attitudes of Companies, Government and Peasants towards Experts............................................ 16 Chapter 4 Peasant Beneficiaries and Project..................................................................................... 16 Section 1 Determination of Affected Area and Affected Peasants ......................................................... 16 Section 2 Background Analysis of Affected Peasants............................................................................ 17 I. Key Problems Faced by Affected Villages........................................................................................ 17 II. Present Situation of Women at Affected Areas................................................................................ 18 III. Poverty Status at Affected Areas.................................................................................................... 19 Section 3 Peasant Beneficiaries' Experience in Participation in Company + Peasant Pattern ............... 19 Section 4 Current Situation of Peasant Beneficiaries'Participation in Project ...................................... 20 I. Current Situation of All Peasant Beneficiaries'Participation in the Project..................................... 20 II. Current Situation of Poor Population's Participation in Project...................................................... 21 III. Current Situation of Women's Participation in Project .................................................................. 22 Section 5 Interest Guarantee Mechanism of Peasant Beneficiaries........................................................ 22 I. Anticipated Risk of Peasants' Participation in Project...................................................................... 22 3  II. Interest Guarantee Mechanism for Affected Peasants ..................................................................... 23 Chapter 5 Problems Existing in Project Design and Execution and Suggestions..................................... 24 Section 1 Problems and Suggestions Proposed by World Bank Study Group........................................ 24 I. Problems and Suggestions Proposed for Hunan Project................................................................... 24 II. Problems and Suggestions Proposed for Anhui Project................................................................... 25 Section 2 Problems and Suggestions Proposed by POCAD................................................................... 26 I. Problems and Suggestions Proposed by Hunan POCAD ................................................................. 26 II. Problems and Suggestions Proposed by Anhui POCAD................................................................. 27 III. Problems and Suggestions Proposed by Heilongjiang POCAD..................................................... 28 IV. Problems and Suggestions Proposed by Shanxi POCAD............................................................... 29 Section 3 Comments and Suggestions Proposed by Project Companies................................................ 29 I. Comments and Suggestions on Project Funds.................................................................................. 29 II. Comments and Suggestions on Peasants' in Project........................................................................ 30 III. Comments and Suggestions on Government Support.................................................................... 32 Section 4 Comments and Suggestions Proposed by Peasants ................................................................ 32 Chapter 6 Comments and Suggestions Proposed by SA Team................................................................. 33 I. Comments and Suggestions on Project Establishment ..................................................................... 34 II. Comments and Suggestions on "company + peasant" Pattern ........................................................ 35 III. Comments and Suggestions on Government's Role and Positioning............................................. 37 Chapter 7 Discussion................................................................................................................................ 37 Section 1 Discussion of "company + peasant" Pattern........................................................................... 37 Section 2 Present Situation, Problems and Experiences of Agro-tech Popularization of China ............ 39 Section 3 Land Flow and Division of Income.......................................................................... 40 Appendix .................................................................................................................................................. 41 Appendix 1 Farmer Beneficiaries Participation Framework................................................................ 41 A. Farmer Beneficiaries Participation Framework of Heilongjiang project components .................... 41 B. Farmer Beneficiaries Participation Framework of Shanxi Projects Components............................ 93 C. Farmer Beneficiaries Participation Framework of Anhui project components ..............................119 D. Farmer Beneficiaries Participation Framework of Hunan project components ............................ 167 Appendix 2: SA team members and tasks............................................................................................ 174 4  Chapter 1 Background Section 1 Objective and Method of Assessment Key objectives of this assessment: 1. to learn the project execution progress in the 4 provinces; 2. to help formulate measures that can ensure the equitable benefit and participation of peasants in the project design and execution process; 3. to widely collect suggestions of beneficiary groups on how to formulate the "Farmer Beneficiary Participation Formula (FBPF)"; 4. to formulate the FBPF for each established project to attract peasants to participate in the project design, execution, evaluation and supervision processes. By visiting all levels of the project managerial bodies in the 4 provinces, agriculturists, enterprises and peasants involved in the project, apply the participatory rural assessment (PRA) and rural rapid assessment (RRA) approaches to the points of investigation, e.g., forum, participatory observation, in-depth interview, door-to-door interview and secondhand data collection, the SA Team has make a total social assessment of the present project progress. Section 2 Assessment Procedure and Coverage The SA Team has worked on 4 levels: 1. Hold forums with officials at all levels of project offices in the 4 provinces, to learn and collect: 1) the progress and evaluation of the local established projects, with special concern for women and poor peasants; 2) principle for selection of affected peasants; 3) analysis of project risks by peasants, companies, experts and the government, and their countermeasures for risk reduction; 4) suggestions for the project, including how to guarantee the equitable benefit of peasants, in particular women and the poor, and how to attract peasants to take an active part in the project design, execution, supervision and evaluation process, how to improve the project' effect; 5) about the existence of each established project; 6) forecast of possible influences of the project; and 7) collect all relevant literatures and statistical yearly statements from the province, county and township levels. 2. Hold forums with project companies and agriculturists, involving directors of such companies, experts of technical support units, project officials of the cities/counties where such companies are located. The topics of these forums include: 1) reason and purpose for participation in the project, project execution progress and evaluation of project companies; 2) experiences in and lesson from project companies' existing or designed "company + peasant" pattern; 3) operating process, performance and risk analysis of the "company + peasant" pattern in the project; 4) the relations between and role positioning of the government, companies, experts and peasants in the project; 5) problems existing in the project; 6) suggestions for improvement of the project effect and risk avoidance; 7) collection of the filed data of project companies for participation in the project; and 8) select a village involved in this established project as the main point of investigation. 5  3. Hold forums with villagers of the chosen villages separately, involving key beneficiaries of this project, especially representatives of poor peasants and women; cadres of the selected affected villages; villagers not involved in the project. Through such forums, we've learnt: 1) villagers' evaluation of the project design and practice; 2) villagers' process of participation, and their suggestions on how to improve the degree of involvement; 3) comments and suggestions on the "company + peasant" pattern; 4) existing problems in the project; 5) suggestions for improving the project's effect; 6) local natural resources and customs; 6) draw local resource distribution maps and community maps. 4. Door-to-door investigation on peasants. The selected interviewees include a certain proportion of women and the poor, in order to inquire of peasants about their experience of participation in the project, their true attitudes towards the degree of involvement, existing problems and raised suggestions. In the door-to-door interview, we've produced daily living charts, seasonal charts, labor productivity sequencing and other investigation items in PRA. The present production and living situation, experience of project participation and suggestions of women and the poor are the key concern of the SA Team. Section 3 Data Source The data collected in this assessment includes: 1. Firsthand fieldwork data, such as interview data, forum data, community resource map, various picture data, etc. 2. Background information related to the project and reports on project execution at all levels, e.g., the proposal of each established project, project feasibility report, poverty relief development planning, etc. 3. Official statistics, such as statistical yearbooks of all levels of government, policy documents enacted, etc. 4. Local annals, such as "Annals of Shaoyang City", "Annals of Dangtu County", "Annals of Hulan County", "Annals of Yaozhou County", "Annals of Fuyu County", etc. 5. Practical cases and theoretical literatures on agro-tech popularization and "company + peasant" pattern, etc. In applying the above references, the SA Team sticks to 3 principles: 1) use the latest statistics as far as possible; 2) wherever village-level statistical data is involved, use the firsthand data collected in fieldwork as far as possible to ensure the objectivity and accuracy of figures; and 3) the analysis and discussion of any issue has integrated the opinions and comments given by peasants, all levels of government, agriculturists and project companies, trying to be comprehensive and objective. 6  Chapter 2 Review of Phase I Social Assessment In the social assessment on the Yangling "Agricultural Hi-tech Achievements Fair" (referred to as "Agro Hi-tech Fair" hereinafter) in Phase I (November 2002), we've investigated and analyzed the attitudes and viewpoints of all the interest groups towards the "Agro Hi-tech Fair" and Agro-tech Popularization Project, proposed the comments and suggestions of SA Team. In retrospect, the basic conclusions are briefly stated as follows: Section 1 SA Team's Comments and Suggestions I. SA Team's Comments 1. The "Agro Hi-tech Fair" has become a fair that integrates economy and trade, exhibition, technology and academic seminar. 2. Convert the government's function, reduce the administrative intervention. 3. Strengthen inter-provincial and international exchanges and cooperation. 4. Establish a technical service system that suits the small-scale peasant economy. 5. Establish a standard market system. 6. Pay full attention to all comments raised by peasants and exhibitions and make corrections correspondingly. 7. The "Agro Hi-tech Fair" still has a great distance from standard market operations. 8. The exhibitors are mostly northern enterprises and few southern agricultural enterprises attended. The "Agro Hi-tech Fair" is mainly oriented to serve the North China agricultural market, its geographical coverage does not have a nationwide significance yet. II. SA Team's Suggestions 1. Authoritative quality supervision & test points were set up during the fair to prevent sham products from framing up peasants. 2. Re-price the admission ticket to enable more peasants to enter the exhibition hall. 3. Set up more indicative signs outside the exhibition hall for the convenience of peasants. 4. No longer set up a central expert inquiry point, but scatter experts to exhibition zones that correspond to their respective disciplines. 5. The coverage of any future "Agro Hi-tech Fair" shall be more focal while being diversified formally to highlight the focus. For example, the next fair may take the popularization of agro-tech knowledge as the focus of publicity to peasants, or be focused on the agricultural laws and regulations connected to their immediate interests. 7  Section 2 Issues for Discussion I. "Company + peasant" Pattern "Company + peasant" takes farm product processing or circulation enterprises as the leader to bring along peasants to deal with specialized production and organically combine production, processing and marketing for integrated operation. This form helps overcome the contradiction between the decentralized operation of individual families and the changing great market, finds an effective link between them; helps realize the optimized configuration of agricultural resources and recombination of productive elements between the scatted household operation and the great market, improve the agricultural comparative benefit in a larger range and on a higher level; helps gradually realize the specialization, merchandizing, socialization of agricultural production on the basis of the household operation. However, there are also some major deficiencies in this pattern. For example, companies and peasants have prevalently realized that this pattern is unable to protect the rights and interests of both legally, because when the company's interests are prejudiced, it is impossible for the company to settle compensation with peasants, who are in the basic economic unit of family by legal means. Similarly, when a peasant, at a disadvantaged position, has its interests prejudiced by breach of the company, it can hardly win the lawsuit in fight against the company. II. Professional peasant associations will be the trend of agricultural industrialization This pattern is also known as intermediary driven type, where a professional economic cooperation organization (such as a professional association of peasants) acts as the intermediary to bring along peasants to deal with production and combine production, processing and marketing organically for integrated operation. Such organizations will take on the basic organizational form of "cooperative economic organization + peasants" generally. Our field investigation with companies and peasants has also shown that, the acceptance and recognition of this organizational form by both parties is higher than "company + peasant". It is thought that a professional association of peasants can better guarantee both parties' interests. Accordingly, in the next step--the project execution stage, there'll be 2 forms of peasant association available for reference: association spontaneously organized by peasants; peasant association organized by farm product production and marketing enterprises via rural grassroots political power organizations. III. Experts of the Northwest Agriculture & Forestry University and all levels of demonstration zone officials are exploring new connection patterns of peasants, rural areas and agriculture with market The "village-wide economy" pattern in trial is one of their research findings. This pattern is a brand new measure for agricultural restructuring raised based on the analysis of organizational resources, 8  land resources, labor resources and geographic relationship, kinship features in rural communities in Northwest China. The basic idea is, in the unit of existing administrative villages, scattered peasants in the production unit of families will be organized for large-scale operation based on existing rural grassroots political power organizations. For now, we think it inadvisable to popularize this pattern in a large range, it is suitable only for villages and communities where the relationship between the public and cadres is good and village cadres can practically represent peasants' interests. IV. Women are presently the main forces of rural agricultural production In Shanxi, since the marginal profit of agricultural production is low and there exists the "scissors difference between industry and agriculture", peasants suffer from negative values in both monetary input and labor input in agricultural production. For young adult rural male laborers, most part of a year and their effort is spent on working outside. Accordingly, in most peasant families (according to a preliminary estimate, over 60%), women have become the main force of agricultural production and housework. The range and degree of women's involvement in the project will directly affect the executive effect and the ability of sustainable growth of the project. V. "Demonstrative effect" is the most effective approach to converting peasants' sense of production and operation The frangibility of household agricultural production has determined the cautiousness of Chinese peasants in decision-making. Since agricultural production is less profitable, the risk resistance of the small-scale peasant economy is low and peasants' sources of income are limited, they're rather cautious as to planting decisions. Without seeing any familiar has made a profit by employing a new technique or new variety personally, it is very hard to persuade them to convert their decisions about productive investment. For this reason, the World Bank Project is suggested to take into account the important influence and action of the "demonstrative effect" on peasants' production and operation decisions while popularizing any new technique, new product, new agricultural pattern, including any new concept. Chapter 3 Government, Company, Agriculturist and Project Section 1 Government and Project I. Status and Role of All Levels of Government in Project Execution 1. Screening and approval of projects. The "Agricultural Development Offices" (Agricultural Development Bureaus) of the 4 provinces have determined the project establishment principles according to the spirit of the relevant conferences and notices of the National "Agricultural 9  Development Office", the provisions of the relevant State policies on integrated agricultural development and the comments and requirements of the World Bank Agro-tech Project Study Group. Specifically, the county-level "Agricultural Development Office" organizes the project declaration according to these principles. The projects have been approved and preliminarily selected by the city-level "Agricultural Development Office", then subject to the assessment demonstration made by the experts organized by the provincial "Agricultural Development Office" (Agricultural Development Bureau) and finally agreed through joint negotiation with the World Bank Study Group (The projects in Heilongjiang and Shanxi are to be finally agreed by the World Bank). 2. Establish an institutional guarantee system for project execution. When a project is established, all levels of government have done a lot of preparatory work, founded a special leading group or project execution office, held many organization and coordination meetings with all relevant functional departments, made publicity at the township and village levels, negotiated with both involved and uninvolved peasants for division of interests and contract drafting, and has made a collation of the relevant data. 3. Formulate an executive plan. By now, all levels of government of the 4 provinces have called upon the functional departments and agriculturists concerned to listen to peasants' comments, and has drafted the specific action plan and guarantee measures for project execution. Specific provisions have been made from the selection criteria of peasants, establishment of the training system, schedule of participatory activities of peasants, to operating procedures to standardize different tasks, establishment of evaluation and monitoring measures. In some planting projects, the provisions have even been itemized to the setup of a "field school", such as the triploid Chinese white poplar project in Changde, Hunan. II. Project Supervision and Coordination by All Levels of Government The government plays an organizing, coordinating and supervisory role in project execution, mainly appearing as: 1. Solve actual difficulties, such as the government guaranteed loan settles the difficulty in fund turnover, the government has invested heavily in some projects, which have a solid foundation and scale; 2. Guide, publicize and mobilize peasants to participate actively, coordinate and balance interests of different parties; 3. Solve contradictions, whenever there a dispute arises between peasants and the association or company, the government will mediate; 4. Give support with preferential policies, the government has brought the established projects into the industrial restructuring plan of all levels of local government, to make such projects roughly consistent with the development local industries and to ensure the sustainable growth of such projects; 10  5. Offer protection by licensing, prevent indiscriminate charging and various unjustified financial levies, stipulating that if the company meets with any such action, it may report directly to the competent administrator of the government; 6. Implement the fund supervision, the "Agricultural Development Office" has gained very good experiences in utilization and supervision of funds for agricultural development, such as setting up a special account, pursue such actions as special fund for special purpose, account rendering for money drawn, regular audit, irregular spot-check, etc. These experiences have combined with the World Bank's principles for fund use to ensure the secure use of the project funds. To point out specially, in almost every project, the superior government, companies, peasants and experts have fully affirmed the organizing and coordinating role of the "2 village-level committees" by thinking that the project cannot be executed with the support from the "2 committees". In most established projects, the "2 committees" have participated in the production management of some projects, can also represent peasants' interests in any conflict between the company and peasants. III. Evaluation of Governmental Act by Companies, Peasants and Experts We found in investigation that, project companies, peasants and experts have given full affirmation to the active role of all levels of government. It is thought by companies that the project selection by the government has shown its concern for and support to nongovernmental enterprise, the government at some project locations have enacted a great deal of preferential policies and development support measures, and have given meticulous guidance to the project application and execution. However, the companies have a worry that if the government is too much "concerned", there might be many adverse impacts, which has also been noticed by the SA Team, which has conferred with all levels of government. They say that the role of the government is embodied in service and coordination only, they will never interfere with the operating management of a company and refer it to the market law. It is prevalently reflected by peasants that whether they can participate in the project and benefit from it depends completely on the government's support. On one hand, the government has been the spokesman and interest maintainer of peasants, especially in regard to any "third party" (company, for example), the government represents the "law"; on the other hand, peasants worry that when a conflict of interest arises between them and the company, whether the government can really stand on their side. Even so, they could only believe the government, because they don't have any other choice. At present, peasants participate in the project in 2 ways mainly, one is the contractual order agriculture, where the company enters into a production and marketing contract with the peasant, the company shall provide technical training, technical guidance, production program and recover products at the protective price, the peasant shall organize production in strict accordance with the production program stipulated by the company. This is the most widely applied manner of peasant participation. The other is the involvement of any nongovernmental organization, e.g., association (cooperative). Though there are organizations like a peasant association in the design and execution of every project, they're now playing the role of information and personal communication, mostly have not become an entity or body corporate. 11  It is thought by agriculturists that, it is impossible to execute this agro-tech popularization project without the involvement and support of the government. Long-standing experiences show that, the government's organizing capacity and absolute authority are the fundamental guarantee to agro-tech popularization. However, they also worry that their own interests might cannot be fully guaranteed, such as transfer of patented technology, division of interest, basic scientific research funds, etc. All levels of government have also realized this, they agree that: in this agro-tech popularization project, without the active participation and intervention of experts, not only peasants will be unable to learn new techniques, but also the whole project might fail. Section 2 Company and Project I. Determination of Project Companies The project companies that have obtained an established project or passed the pre-qualification can basically master the philosophy and principles of the project. The project undertaking companies are agricultural industrialization leading enterprises or agricultural hi-tech enterprises with a certain economic scale, high technology level, strong market development capability, good market prospect and strong ability of radiation. These companies have established very close relations with peasants, practice marketized operations, have established the interest connection mechanism of "shared risks and interests", can give rise to the industrial development pattern that the market leads the leading enterprise, the leading enterprise leads the base and the base connects peasants. Due to regional and industrial differences, the 88 companies under this assessment take on different features. By province, those in Hunan and Heilongjiang are stronger and have a significant action of leadership; those in Anhui can actively explore and practice new practice patterns, and the ability of associations, cooperatives and other nongovernmental organizations to connect peasants is high; the project companies in Heilongjiang, based on the local and State industrial development planning, have ensure the wide participation of peasants. Those in Shanxi are highly characterized by hi-tech and have produced high demonstration effect, making peasants enthusiastic for the project. By industry, companies dealing with planting have a larger scale and the participation of peasants is high; in stockbreeding, companies have good profits and peasants have greatly increased the income; project companies dealing with deep processing can provide peasants with seasonal opportunities of employment, especially women and low-income peasants can directly benefit therefrom; in regard to technical popularization projects, the cooperation between the government and agriculturists has fully guaranteed the improvement of peasants' level of agro-tech; other service projects, such as the establishment of a trading market and technical service system, are based on the local development advantages and local resources to drive peasants to find new "growth points" of income. Although this World Bank financed project is not intended for poverty relief, the project companies have paid their concern for the poverty relief function. In selecting the subjects of participation, full consideration has been given to poor populations, women, minority and other disadvantaged groups. A considerable number of projects have even involved women only, such as the green long yellow 12  daylily project in Qidong, Hunan; nuisance-free quality pork pig breeding technical demonstration project in Dangtu County, Anhui; women technical training and business initiation project in Shanxi; Dongjin red grape production agro-tech popularization integrated demonstration project in Harbin, Heilongjiang. Some project companies are located at minority areas, where peasant beneficiaries are mostly minorities. For example, at the location of the borneol project in Xinhuang, Hunan Province, the minority population accounts for 86.6%, including 76% Tong people; at the affected village of the cow technical demonstration & integrated demonstration project in Fuyu County, Heilongjiang, minorities account for 74%, including about 70% Dawoer people. The execution of such projects will greatly promote the agricultural restructuring in minority poor mountain areas, settle surplus rural labor and women, increase peasants' income, strengthen the local financial building, develop the economy at minority areas, promote the agricultural sustained growth and social stability. II. Risks of Project Companies Risks of project companies are mainly embodied in 2 aspects: one is internal risks and the other is external risks. 1. An enterprise's internal risks include: 1) Comprehensive competency of entrepreneurs. Leaders of project companies have grown in the environment of the market economy and have acute ability to meet an emergency in the market. Some of them acted as factory director or manager of state-owned enterprises and later set up their own business, some are "starting from scratch" entrepreneurs and some are expert entrepreneur. Their own competency will directly determine the success or failure of the company. All levels of government have already realized the severity of this problem and have offered them opportunities of further exercise and training, such as encouraging entrepreneurs to take part in various business administration training courses, leading them to attend investment and business invitation negotiation meetings of all sizes to widen their eyeshot. 2) Positioning of a company's strategic objective. A mistake in strategic decision-making in the development process of a company might cause the whole enterprise to fall. Therefore, aligning its own development strategy with the local industrial development policy can avoid the risk arising from such mistake to the greatest extent. 3) Internal managerial mechanism of a company. Whether a company is run in the mode of the modern enterprise system, whether the human resources framework is sound, whether the company's rules and regulations are fulfilled in place will directly affect its benefit and efficiency. 4) A company's market risks. Since most established projects are operated in the pattern of "company + peasant", which mainly addresses the "marketing difficulty" of peasants. If a company does not have a detailed marketing strategy and a sound marketing system, the market risk therefrom will directly lead to production risks of peasants. 13  2. An enterprise's external risks include 1) Adjustment of market supply-demand relation. For example, for paddy seed production, according to the existing experience, it will profit for a year and suffer from deficit for the next year. Accordingly, there must be storage equipment to postpone the marketing of seed to reduce losses arising from market fluctuations. 2) Natural disasters, which is especially true for planting. This problem can be addressed by constructing water conservancy works but cannot be completely avoided. Accordingly, an insurance fund must be set up. 3) Peasants' mastery of skills, which will affect the product quality; 4) Contract performance risk between the company and peasants, which relies on good faith and legal guarantee. Whether internal or external risks, a sound risk avoidance mechanism must be established. Some companies have made very good practices and plans, such as creating a risk fund, perfecting the evaluation and monitoring system, enhancing the service and training function, securing the internal management of a company, actively developing domestic and overseas markets, etc. III. Attitudes of Government, Peasants and Experts to Companies All levels of government think, project companies are leading enterprises in industrial development at their respective locations, some are even state-level agricultural industrialization state key leading enterprises with strong market adaptability and viability. However, since the economic development is unbalanced from place to place, some project companies are small in scale and should be further developed with the support from different parties to enhance their resistance to market risks. Peasants have a high recognition of the strength and good faith of the project companies, and most companies have already had years of good cooperation with peasants. Most companies have solved peasants' difficulty of fund shortage by means of "making loans in kind, to be deducted from and offset with proceeds", which has been welcome by peasants. Some peasants are somewhat worrying about the diversification development strategy of some companies, thinking that this might divert these companies from developing their leading industry. However, the companies think that such strategy will not weaken their attention to the project and will avoid their risks more effectively. Most agriculturists and project companies have had years of cooperation and united into an interest community, because they think these companies have potential and their leaders have the ability of market development. Company operation patterns, whether "company + base + peasant", "company + association + peasant", "company + technical expert + peasant", or "company + peasant + cooperative + the government", have been well proven in practice. However, experts suggest that, the "company + peasant" pattern is still very insufficiently operating presently and has certain risks. Accordingly, it is still necessary to introduce contractual binding and the government's supervision. They hope the companies not only bring along major peasant families, but also be concerned with disadvantaged peasants. However, this must be built on the expansion of a company's scale. They 14  expect the project can fulfill this objective. Section 3 Agriculturists and Project I. Technical Support Units and Experts The technical support and cooperative institutions for project companies are the local academy of agricultural sciences and agricultural university (college). In all the projects, 33 scientific research institutes and universities, collages have participated. In the projects in Hunan, 18 technical units participated the project design and execution, 2 in Anhui, 2 in Heilongjiang and 4 in Shanxi. These institutions not only have a solid scientific research strength, but also have been associated with the local government and peasants and combined their scientific research closely with peasants' actual needs. Their forms of cooperation with companies mainly include consultant engagement, technical support and cooperation. According to incomplete statistics, above 500 experts have participated in the technical guidance of the 88 projects, including Academician Yuan Longping, Academician Zhu Zhiti at the Chinese Academy of Engineering and Prof. Chen Zhangliang. They have placed ardent expectations on the project execution. The experts have mainly played a role of technical guidance, technical supervision and advice-giving in project execution, including selection of varieties, laying down technical schemes, providing spot guidance, preparing training materials, technical reading materials, product quality supervision and testing etc. II. Manner of Agro-tech Popularization by Agriculturists 1. Establish a "hierarchical training system", take the form of "major experts train minor experts, minor experts train native experts, native experts train peasants". Experts at scientific research institutes and institutions of higher learning shall train city/county-level agro-tech backbones annually, technical commissioners of companies shall also attend such training courses. Then, city/county and company technical experts shall train town/township agro-technicians in the country. Finally, these grassroots agro-technicians and peasant experts shall teach techniques to peasants hand in hand. 2. Prepare popular training materials. Since most peasants do not have a high educational level, experts have prepared "native teaching materials" by "editing" their own research findings into easy-to-read "popular science reading materials", simplifying operation flows as simple charts, fabricating and issuing leaflets to peasants. These measures are warmly welcome by peasants. 3. Field teaching of "field school". Experts give training courses to government officials regularly or irregularly to draw their attention. They also go to the rural "field" to directly guide peasants in the whole process from seeding, fertilization, organic fertilizer spraying to field management and reaping, storage, transport. These ways go crossways and are deeply favored by grassroots technicians and peasants. 15  4. Establish a feedback system to test the training effect. In the training process of experts, they have made deep friendship with peasants, so that peasants can directly contact experts either by telephone or by letter. Some peasants visit experts at the provincial capital personally to feed the relevant information back to experts. Sometimes, the association collects information and feed it back to experts and functional government departments by telephone or by letter, so that problems have been solved in time. III. Attitudes of Companies, Government and Peasants towards Experts At the beginning of growth of the project companies, there was almost no participation of technical experts. However, when they have developed to a certain stage before transformation or lift-up, they would apparently feel the insufficiency of their own forces, especially shortage of hi-tech products. Experts entered the companies at this point. It is prevalently reflected by the companies that, since the involvement of experts, their development jumped onto a new stage. Not only products with a higher technological level have been brought to them and the "bottleneck" in the development of a company is pointed out, but more importantly, new ideas and concepts have been introduced, which have changed the overall outlook of a company and improved its image and grade. It is reflected by the companies that, they especially welcome experts with theory linked to practice. In order to keep the sustainable growth of a company, a company attracts experts to become its shareholders in the form of technical shares. All levels of government highly recognize the promoting action of experts on the development of the companies and local society, thinking that the affiliation of experts enables the companies to be up to the international standard, informed, bringing them considerable social and economic benefits. In particular, in a government-dominated agro-tech popularization project, the direct involvement of technical support units and experts in the whole course of project operation will actually fulfill the technical popularization. The appreciation of peasants to experts is from the heart. They have established a deep friendship with experts. When the SA Team was visiting the base along with experts, it has also discovered this interdependent relationship between experts and peasants. Many peasants say that, without experts' door-to-door technical guidance, they might be still farming in the traditional manner and it might be a problem to make a livelihood, saying nothing of becoming rich. Chapter 4 Peasant Beneficiaries and Project Section 1 Determination of Affected Area and Affected Peasants The selection of the established projects in the 4 provinces is based on the following criteria: 1) The natural ecologic environment at the affected area meet the requirements for technical popularization. 2) There are already supporting facilities and social resources that are convenient for the execution and operation of the project. 3) There has been or there is cooperation with the project 16  company. 4) the popularity of the project among the government and peasants in the affected area. Through the field investigation of a village within the affected area of an established project, the SA Team has found that the requirement of the popularized technique, strength of the project company, mode of construction of the base, peasants' economic level and technical receptivity have directly affected the criteria of selection. 1. For projects needing centralized planting and management, e.g.,, in the cross bred paddy and soybean projects, the company plans a suitable planting area and peasants therein participate. Whether peasants participate in the project, the scale of participation and how they participate are preset by the company and technical support unit. 2. For projects with a high technical level and high costs, such as plant seed cultivation, livestock breeding, protected agriculture, cow breeding projects, many project companies involve some villages with a certain planting foundation and experienced major families, which will bring along minor families. 3. For projects with a moderate technical level and moderate costs, such as planting of traditional Chinese medicinal materials and quality fruits, sheep raising, beef cattle raising, the practice that peasants sign up on a voluntary basis or are recommended by the villager committee, the company or villagers' meeting decides affected peasants. Section 2 Background Analysis of Affected Peasants I. Key Problems Faced by Affected Villages The representative of the company responsible for the organic Chinese gooseberry industrialization demonstration base construction project in Shanxi said, "peasants hope to enlarge their agricultural scale, deal with industrialization and restructuring; however, they have neither technique, fund or market to do this. The policy publicity and the government's guidance are insufficient for peasants." This has actually reflected a series of interconnected problems faced by the affected villages in the 4 provinces: 1. Fund shortage, focused on the shortage of cash in the hand of peasants for productive input. It is found by the SA Team that, educational expenses, etiquette expenses, house building costs and medical expenses have occupied a greater part of peasants' cash spending, often leading to a small amount of cash balance of peasants or making them unable to make ends meet--some peasants have even maintained necessary productive inputs by borrowing money. There are mainly 3 ways by which peasants relieve the difficulty in turnover of productive and living funds: a. selling household properties, such as livestock as the savings of a family; b. borrowing money from relatives/friends; and c. loan. However, peasants cannot find a reliable loan guarantor and are often unable to borrow enough money. This problem is especially grave at the project startup stage. The problem that peasants do not have money to invest in relevant facilities and necessary means of production for the project is very prevalent. 17  2. Weak technical forces, mainly appearing as: a. aged varieties and low yield; b. The traditional mode of planting or breeding is still dominant; and c. The educational background of peasants in rural areas, especially poor areas, is low, the popularization of agro-tech is insufficient. This project's execution is expected to address this problem. 3. There is urgent need to find an industry fitting the local conditions and have leading enterprises drive the development of villagers. China's agriculture is highly characterized by decentralized operation of individual peasants. Under the market economy background, individual peasants can hardly master market information comprehensively and timely to arrange their production and operation activities rationally. Moreover, they can hardly undertake the cost for expanded production or trial of any new technique. There has often been the phenomenon of "following others", which has finally rendered farm products, affecting peasants' income. Sometimes, this phenomenon has been caused completely by the industrial adjustment policy formulated by the government. It is found by the SA Team that, many affected villages have planted or bred any variety or breed on a large scale but finally failed, and some villages have even changed several varieties. The leadership of leading enterprises enables the setup of a complete production and supply system of farm products, solving the sales problem for peasants; and has improved the added value of these products by popularizing advanced agro-tech. II. Present Situation of Women at Affected Areas The SA Team has learnt the living and production conditions of some women and families in depth by holding women's forums and in-depth interview centering on the project execution. 1. Women at affected areas are burdened with heavy labor Through the discussion of such topics as "What is the main labor that women presently deal with? What about the labor intensity? What about labor proceeds and costs?" on women's forums, as well as the drawing of women's daily life charts and seasonal activity charts in the in-depth interview, the SA Team has found that the labor intensity of women at most affected villages is heavy. As a summary of the investigated villages in the 4 provinces, women are mainly undertaking housework (carrying water, chopping firewood, carrying excrement, etc), planting (corn, paddy rice, fruits, etc), stockbreeding (mowing, pig raising, cattle breeding, etc) and working outside, almost including all the industries and labors found at these villages. 2. Women at affected areas in the tide of working outside The investigation in Shanxi, Hunan and Anhui has shown that, working outside has already become a prevalent choice of survival of rural young adult laborers in the 3 provinces. The SA Team finds that, laborers exported are not surplus labor but are often adult male laborers in the family, leaving women at home. When the male laborers of the family are working outside, they have to stay home taking care of the field, cattle, the elderly and children. They although think their literacy is low and they are unable to earn money outside. The division of labor between men and women that "men work outside, women stay home" has come into being. The export of male laborers has brought the direct consequence of the reduction in household labor. Women have thereupon to do the labor that 18  was formerly done by men and become harder. On the other hand, some industries with a great deal of labor cannot be developed. On the contrary, the absence of labor has become a major restraint on the household economic level. 3. Roughly equal status between men and women The investigation has shown that there is no significant inequity between local men and women: a. a couple determine whether to participate in the project and other major family affairs jointly; b. at areas where fewer people work outside (such as Heilongjiang), women would undertake farm work and housework together with men, both contributing to the household economy; c. where working outside is prevalent, women undertake a great deal of farm work and housework. The SA Team has found the consequence of women's undertaking most of the farm work (especially stockbreeding) is, women have become one of the important pillars of the household income. The money earned by men by working outside is mainly used for children's education, grain purchase, repayment of debts; women's contribution is to provide expenditures and savings to the family while satisfying needs of the family. III. Poverty Status at Affected Areas The affected areas of some projects are originally poor areas, such as the affected areas in Hunan include a state-level poor county, 3 provincial-level poor counties; the Anhui affected areas include 2 state-level poor counties and a provincial-level poor county. Peasants involved are mostly poor populations with unsteady income (per capita annual net income of 625-820 yuan). The SA Team has learnt the poverty aspect of the investigated village via the following 3 ways: a. on villagers' forums, learn villagers' attitudes towards "What is the poor? Who are the poor?"; b. via the community map of an affect village, learn the quantity and distribution of poor families there; and c. through the door-to-door interview with poor peasants, learn the production and life aspects of poor families. The Team has found that the affected peasants of every village include relatively poor peasants of the village but the number is small and they mostly have the self-regenerability. Section 3 Peasant Beneficiaries' Experience in Participation in Company + Peasant Pattern In some projects related to peasants, some project companies have had long-term cooperation with peasants, some project companies have cooperated with the pilot village and some affected villages have cooperated with other companies or participated in other agricultural development projects. Peasants' attitudes towards the "company + peasant" pattern include the following 3 types: 1. The SA Team finds that some affected villages have failed in the "company + peasant" pattern, some villages have even failed many times. At such villages, some peasants worry that whether the "company + peasant" pattern will survive in this project, they also have no choice but to 19  participate in this project, because they have neither the ability nor the capital to find out and deal with an industry with guaranteed profit. Some other peasants show that they believe that the project company is strong enough to protect them from losses. An affected peasant in Hunan pointed out when summarizing his experience of failing the company + peasant pattern that, if the government can provide any other project to give rise to diversified operation along with the local single planting industry, risks will be reduced. 2. Some affected villages have entered into a long-term steady cooperative relationship with the project company. Peasants at these villages have a detailed understanding of the company's situation and the detailed rules of cooperation, warmly welcome the enlargement of the scale on which the company cooperates with peasants. 3. Affected villages planning or having just started to cooperate with the project company. The SA Team thinks these villages lack the necessary sense of risk--most peasants pay attention to the promise made by the company to them and think since the company has solved the marketing problem of farm products, there will be no risk. This shows the underestimation of market risks by peasants. Section 4 Current Situation of Peasant Beneficiaries' Participation in Project I. Current Situation of All Peasant Beneficiaries' Participation in the Project The SA Team has found that most affected villages have had or are cooperating with the companies. Since the project is in the initiation stage, activities in which peasant beneficiaries participate are: 1. Project design, including the determination of the project coverage, scale, location, planning and investment. The project companies have dominated the whole project design process based on the mastery of the external market policy environment according to their own strength and future development plan. The government and technical support units have proposed opinions and suggestions for the project design in their respective fields. Peasants have not and could hardly participate in this process. 2. Project publicity. The investigation shows that, project companies, technical experts, townships, towns, villages and association have conducted publicity activities at the affected villages, by means of holding villager meetings or technical training organized by the villager committee or association, represented by the project company and attended by technical experts; peasants' visit to the company's demonstration base under the organization of the project company. Most peasants at all the investigated villages know which industry their village is engaged in, name and commitment of the company. The villages that have cooperated or are cooperating with the company have a better understanding of the company's 20  situation, including the pattern in which it cooperates with peasants. Many new entry villages often know the company's name only. 3. Determination of affected peasants. All the established projects have determined peasants to be involved. It is up to the company to decide the selection criteria of affected peasants and the final list. Except some projects subject to centralized planting and management, peasants under most projects may elect whether to participate in the project. Whether they can participate as they will depends on the project's scale, their own conditions and the recommendation made by the villager committee and association. 4. Determine the pattern and rough coverage of cooperation with peasants. It is an important thing for all the project companies in publicizing the project to explain their plan and the pattern in which they cooperate with peasants to peasants. The villages that have cooperated or are being cooperating with the companies are very clear about the mode and detailed rules of cooperation. Peasants at the new entry villages are especially clear about the commitment made to peasants by the company. 5. Set up an association. The plan of most projects has included a professional association: some affected villages has an existing association, some villages have just set up an association for the project, some villages plan to set up one in future. A professional association is founded on a voluntary basis by peasants dealing with a certain industry, cadres and the bylaw are decided independently by peasants. The SA Team's investigation has shown among the villages already with an association, the association has played its role in project publicity, early-stage technical training and selection of affected peasants. 6. Planning and construction of relevant infrastructure, which is an important matter in the project design to be completed by the project company and informed to peasants. The role of peasants and affected villages is to cooperate and construct as planned, such as providing land, labor and funds, etc. 7. Enter into agreement with the township government, native enterprises, village and association. This is a trial made by the project companies to reduce various potential risks that peasants are exposed to. It was found in investigation that a considerable part of peasants did not know such agreement quite well. II. Current Situation of Poor Population's Participation in Project Most projects have considered the task to enrich poor peasants and provided preferential conditions for their participation in the project. For example, in some modification and expansion projects, for extremely poor peasants, such measures have been taken as free offer of lambs, calves, seedlings or the company bearing some costs and inviting laborers to work at its base to support the participation of poor peasants. This has reduced poor peasants' costs for participation in the project or exempted them from such costs, and minimized their risks in project operation. Some projects are carried out in poor areas. While promoting and driving the economic development of poor areas, the project has also improved the local agricultural infrastructure and updated the conservative concept there. 21  III. Current Situation of Women's Participation in Project Except the women technical training and business initiation project in Yangling, Shanxi, there is no project specially aimed at women, nor has any project laid down a participatory scheme for women. However, women are thought to be the main undertaker and beneficiary of some projects: 1) some projects are suitable for women, such as the Dongjin red grape production agro-tech popularization and integrated demonstration project in Harbin, Heilongjiang; 2) large numbers of men laborers in the affected areas are working outside, leaving women at home to undertake the project, such as the mandarin orange project in Yongzhou City, Hunan; and 3) the project execution term fits the leisure time of women, such as the organic vegetable planting project in Yangling, Shanxi. Section 5 Interest Guarantee Mechanism of Peasant Beneficiaries I. Anticipated Risk of Peasants' Participation in Project The SA Team finds that the detailed cooperative rules between the company and peasants planned by each established project, different natural and social conditions of the affected areas have directly affected peasants' attitudes towards project risks: Some affected peasants think there is little risk in participating in the project: a. The company shall purchase their farm products, solving the problem of price and sales; b. The participation of technical experts in the project and the introduction of new techniques have improved the output and reduced the possibility of their loss from any technical mistake; c. The company has undertaken a part of or most of the preliminary project costs or act as the guarantor for the loan, peasants should invest little fund in the project Some other affected peasants point out that project risks exist to some extent. As they point out, the project risks include: a. underproduction or even no harvest due to natural or man-made calamities; b. The company fails to perform the contract strictly. Peasants have enumerated several possible acts of default: the company does not purchase products in full or purchase at an unreasonably low price; c. The technical training on planting is not in place or the technical service system is not complete, leading to underproduction caused by any technical mistake; and d. some inherent restraints of the affected villages render the project hard to operate normally, such as inconvenient traffic, shortage of water conservancy and irrigation facilities. The SA Team thinks the "company + peasant" pattern has combined the company and peasants into a community featuring shared interests and risks. On this sense, the anticipated risks of peasants and those of the company are embodied as causality--potential risks of the project company will lead to the operating failure of affected peasants directly. If affected peasants fail to complete the products required by the company on schedule and up to the required quality and quantity, there might also 22  be risks to he company. II. Interest Guarantee Mechanism for Affected Peasants 1. Legal and policy guarantee The established projects in the 4 provinces are dedicated to introducing advanced agro-tech, which embodies the direction of agricultural restructuring and the construction objective of agriculture led industries of the provinces, cities, counties, townships and towns concerned, and has been supported fully by all levels of local government. The SA Team finds that many participant peasants have been able to enjoy the preferential policies made by all levels of government in support of agriculture led industries, mainly appearing as: a. allowance for planting projects, e.g., peasants participating in the soybean project in 3 counties in Heilongjiang have enjoyed the planting allowance granted by the government for developing this project; b. release of the restriction on loan. Affected peasants' interests are also protected by the relevant state laws, such as the "Seed Law of the P.R. China", "Contract Law of the P.R. China", "Land Management Law of the P.R. China". 2. Guarantee by the government and "2 village-level committees" The county/township government and the "2 village-level committees" in the 4 provinces have done a lot of preparation work at the initial stage of project construction, and will coordinate, supervise the project's normal operation. Many projects have entered into contract with the county/township government and the "2 village-level committees", all levels of local government have hence become the intermediary via which the company faces numerous families and a channel via which peasants reflect comments and suggestions. 3. Guarantee by social organizations Most projects have the plan of setting up a professional association or have already set up one, but professional associations play different roles in these projects. For example, the association in some projects is a service organization for the project operation and in some other projects is an interest entity in the project operation. Its main duties include: a. Publicize and organize training and technical services on planting techniques; b. Reflect suggestions and negotiate with companies and experts on behalf of peasant, and communicate ideas of companies, experts; c. Organize the purchase of qualified products; d. Manage large farm machinery and tools, irrigation facilities and farmland infrastructure; e. In some projects, the company signs an agreement with the association mainly, where the association has become an intermediary between the company and vast families. 23  Chapter 5 Problems Existing in Project Design and Execution and Suggestions Section 1 Problems and Suggestions Proposed by World Bank Study Group In the 88 projects in this assessment, the World Bank Study Group has already made a preliminary investigation and assessment of 13 projects in Hunan and 14 projects in Anhui from Mar 24 through Apr 24, 2003, and has proposed specific comments and suggestions for every project. Below we'll classify and summarize these comments and suggestions province by province. The comments on project establishment, fund use scheme, peasants' pattern of participation, technical factors, risks of companies and peasants, channels via which peasants increase their income are described below: I. Problems and Suggestions Proposed for Hunan Project 1. Comments on established projects. The Study Group has affirmed the 13 projects, thinking that the feasibility study reports and executive plans submitted by the companies are feasible and meet the requirements and principles of the World Bank loan, and has expressly agreed with the establishment thereof. 2. Fund use scheme. The Study Group has given full concern to this issue and proposed specific comments and suggestions: 1) Most project companies have not fully considered the directly use of the funds on affected peasants or are vague about this requirement. It is required that the World Bank loan and the counterpart fund be preferably used for the directly benefit of affected peasants in a definite and quantitative way. 2) The Study Group has noticed that in the fund use scheme, most of the funds are used on the infrastructure construction, such as highways, water drainage stations, irrigation canals. The Study Group agrees with this arrangement but requires a reassessment of the scheme and prices, so that the project fund allocated to individuals or the peasant collective can be accurately recorded and quantitatively managed. 3) Aiming at the plan proposed by some companies to dedicate most of the funds to the construction of plants and purchase of processing equipment, the Study Group expressed clearly that this should not be supported by the World Bank's funds and suggests that these companies use their self-possessed funds or the counterpart fund in the manner of state appropriation. 4) Some project companies have applied for the loan by "binding" subprojects, the Study Group has noticed this and shown that a difference should be made. It suggests that the government provide for subprojects not directly connected to peasants' interests with its 24  subsidy and dedicate the World Bank loan to supporting the part of peasants' development, and should itemize, quantify and formulate the part that benefits peasants. 5) The Study Group has noticed that the funds for technical and research units may also be used to improve peasants' income and standard of living. Accordingly, it requires defining how this part of funds will be coordinated with peasants' interests. The companies are thus suggested to enter into agreement with the technical cooperation institutions and peasants to ensure peasants can benefit therefrom. 6) Issues such as how to convert the project funds into the capital for sustained development and which groups may benefit therefrom have been proposed. 3. Pattern in which peasants participate in project. The Study Group has affirmed the operating pattern of "company + base + association + peasants" adopted by all the companies, thinking this mode is most characterized by driving the participation of peasants. For this purpose, the Study Group has provided meticulous suggestions, such as special concern for poor peasants, women, minority and other disadvantaged groups; in the training of technical backbones, give priority to minority and women to ensure the quantity and universality of peasants involved in the project, so that they can get the chance of being benefited equally. 4. Technical considerations. The Study Group has noticed technical innovations of some project companies (such as "borneol" refinement technique in the borneol project in Xinhuang County) and the economic, social benefits from the brand on this basis. The deep processing equipment of some companies are leading at home or even worldwide. 5. Analysis of risks with companies and peasants. When companies dealing with deep processing have purchased peasants' products, they shall proceed with storage and deep processing. Such practice to stagger the marketing peak period can effectively avoid risks. For possible risks in the Xinhuang borneol project, which is unique at home, arising from peasants' absence of the power of transaction, the Study Group suggests the company consider the idea that peasants become a shareholder to avoid peasants' production risks. 6. Ways to increase peasants' income. The Study Group has proposed different ways for different projects, summarized as 6 points: providing stock ownership to peasants; providing peasants with multi-channel, multi-layer opportunities of income increase; the company guarantee the loan to peasants; lifting the purchase price of products; absorbing peasants as a shareholder of the company. II. Problems and Suggestions Proposed for Anhui Project 1. Opinions on project established. The Study Group has investigated 18 projects, 15 ones thereof are first-string projects submitted by the provincial "Agricultural Development Bureau", the Study Group has preliminarily confirmed 11 ones; in the 3 optional projects, 2 ones have been confirmed, amounting to 13 projects totally. The Study Group suggests further perfecting their executive plans. 25  2. Fund use scheme. The Study Group thinks, most projects have not distinguished peasants' fund from the fund used for the company, worrying that peasants cannot obtain the chance of being benefited equally. The operating and management costs of all kinds of associations should be defined and itemized; it suggests that except the World Bank loan, the company may also adopt multi-channel means of financing to enlarge its strength; requires that the product cost budget should be precise and detailed; does not approve the use of the World Bank's funds for building trading markets and processing plants; for the quality yellow cattle project in Mengcheng County, it suggests providing the loan for abattoirs and some breeding cattle fattening centers to the company. 3. Pattern in which peasants participate in project. Under the framework of "company + peasant", there are many "variants": scattered peasants cooperate with the company by means of equity participation, specialized production in the unit of family connects with the company, the role of an association becomes substantiated, explore the participatory mode of small families, the government dominates the peasant-participating technical popularization mode, give priority to poor population and women in the selection of affected peasants. 4. Technical considerations. The Group has affirmed the adoption of innovation techniques and equipment by the project companies, which would effectively increase peasants' income; the companies have their own technical backbones and technical workers; establish a scientific research and service system; some techniques are more traditional and low in technological level, adding to products' market risks; modes of technical popularization and product varieties applied should be diversified; enhance the technical training for women; technical support units have had long-term cooperation with the project companies, combining into an interest group. 5. Analysis of risks with companies and peasants. Some lack a definite market and peasants are thereby exposed to great risks; some companies still have to enlarge their scale and harmonize their management and operating mechanism; some companies' products are not closely linked to the market; export-oriented companies shall cope with the green technique barrier. 6. Ways to increase peasants' income, a. improve the unit land area yield and product diversity; b. when scattered peasants become a shareholder, their agricultural income and the utilization rate of assets can be increased; c. innovative techniques may improve the output and raise peasants' income; d. make sure the part of the loan funds used on peasants can be actually put in place; e. help peasants set up an industrial chain, make "discarded" resources not fully utilized play their benefits, such as exploring the integrated resource utilization mode of "pig raising-excrement --methane". Section 2 Problems and Suggestions Proposed by POCAD I. Problems and Suggestions Proposed by Hunan POCAD 1. Good project foundation. The State Agricultural Development Fund has made investments in quite a lot of companies preliminarily, laying down a good foundation. The scale and strength 26  of and companies are superior locally, bringing significant social and economic benefits to the local development; 2. Strong technical support forces are. In selecting technical support units, the project companies in Hunan have broken through geographical restrictions. In the selected units, except those in the province, there are 9 extra-provincial, overseas or even international technical support units, guaranteeing the technical leadership and objectiveness. Technical experts in these companies include internationally famous experts responsible for specific technical guidance, like Yuan Longping, Zhu Zhidi, chiefs of some companies have the background as a technical expert; 3. Since many technical institutions and functional government departments have participated in the operations of project companies, the coordination becomes very important; if there is buck passing in work, the project execution will be affected; 4. The leading industries to be developed by the project companies accord with the government's industrial development policies, which may guarantee the sustained growth of such projects; 5. Strong resistance of companies to risks, appearing as large scale of company, perfect marketing network, definite target market, advanced existing techniques and equipment, already certified brands can bring economic and social benefits that will effectively avoid the companies' risks; 6. Sound guarantee mechanism for peasants' participation and interests. The number of involved women, minority and poor population has been clearly defined, a legal contract has been made with peasants involved, a protective price for product purchase has been fixed; 7. Consider helping the companies construct processing plants, purchasing advanced processing equipment, increasing their scale and strength, improving their core competitiveness, avoiding the company's risks is actually avoiding peasants' risks; 8. The companies have done well in driving major peasant families, the next task is how to bring along the widest range of scattered peasants and integrating them into project, so that they can benefit thererom; 9. Strengthen the internal mechanism construction of the companies, improve their management level and the overall competency of their leaders and the ability to meet a market emergency. II. Problems and Suggestions Proposed by Anhui POCAD 1. The projects in Anhui are classified as: company-dominated (10), association dominated (2) and government dominated (2) projects. The project positioning is good, mostly consistent with the local industrial policy and being the local leading industry, to which the government will give high support. 2. The foundation and potential for company development is good, but the scale of the companies is to be enlarged. 27  3. The technical units in cooperation with the project companies are rather strong, they have not only established good relations with the company, but also had long-term cooperation with local peasants. 4. The systematicality of technical training is to be further enhanced, try best to involve women in the training, establish a training feedback and supervision system and strengthen the training on rural grassroots technical backbones. 5. The companies have explored a variety of modes of cooperation with peasants. All kinds of associations have been established, but their roles and functions vary greatly, mostly in a slack relationship with peasants and playing the role of information exchange and communication only. It is recommended to introduced advanced overseas practices as a reference. 6. Significant poverty-relief effect of the projects. The agricultural economy of Anhui is relatively undeveloped, peasants' income at the locations of the project companies is at a low level, the source household income is single and the ability of self-development is weak. The driving of the companies can effectively change this. 7. There is the defect of developing a single industry for a project. The issue of establishing an industrial development chain should be considered, such as combining grass with livestock and combining grass planting with cattle raising at flood basins, etc. 8. Some specific suggestions have been proposed: air-conditioned freshness preservation and anti season sales of "Dangshan pear", equity participation by land, peasants' benefiting from equity, disease prevention measures in stockbreeding, etc. 9. Establish a good supervision mechanism. Since the project companies in Anhui have a variety of operation modes and the government and various social forces are highly participatory, it is suggested to involve independent intermediaries in assessment and supervision to embody the principle of objectiveness and fairness. III. Problems and Suggestions Proposed by Heilongjiang POCAD For the first time undertaking a World Bank financed project, the provincial project office has used the Bank's procedure for reference. In the project selection, the first consideration is peasant. In this process, the criteria include development potential, compliance with the local layout and the ability to realize the agro-tech popularization. Secondly, the comprehensiveness is high. The modification of low-yield farmlands, capital construction of farmland and guaranteeing the state's grain security are combined with the agricultural industrialization and agricultural restructuring. Thirdly, leading enterprises are support and bases constructed to increase the technological level, which is a very important matter in the new era. Provincial project officials' suggestions for agro-tech popularization: 1) the stockbreeding industry provide guarantee to peasants, the government contact with the insurance to act as a guarantor; 2) the superior gives projects directly, changing the traditional practice of project submission from the lower levels. Peasants won't make an investment until they see others have made achievements; an 28  3) in the project design and preparation, the government should play a dominant role. In the project operation process, the government should exit to provide services and project management. IV. Problems and Suggestions Proposed by Shanxi POCAD 1. The projects in Shanxi have taken into account the orientation and objectives of the provincial agricultural restructuring, coincided with the advantages and distinctions of Shanxi as a major agricultural province and given play to the resource advantages. The efforts are focused on the demonstration and popularization of high agro-tech achievements to promote the execution of the "one line and 2 belts" strategy in Shanxi. 2. The projects have got reliable technical support, highlighting the advantages of combination of agricultural production, study, research and technological popularization, realizing the pattern of rural industrial development of enterprise + peasants + technique and fully driving peasants. The project construction will accelerate the conversion of agro-tech achievements, increase peasants' income and improve the integrated agricultural benefits. 3. Project objectives: one is to improve the conversion efficiency and speed of agricultural hi-tech popularization, accelerate the popularization of fine varieties, hi-tech and advanced practical techniques, improve the contribution of agro-tech to economic growth; secondly, to accelerate the updating of agricultural practical techniques in adaptation to modern agriculture; thirdly, to cultivate regionally advantaged and distinctive industries, optimize the structure of agricultural production at the affected areas, improve the overall agricultural economic benefit; fourthly, to promote the optimized configuration of agricultural resources at the affected areas, promote the effective transfer of rural surplus labor and increase peasants' income; finally, construct a range of influential leading enterprises and bases for demonstration and popularization of technical achievements. Section 3 Comments and Suggestions Proposed by Project Companies By summarizing all project companies' comments and suggestions for the established projects, the SA Team finds that their comments and suggestions include the following aspects: I. Comments and Suggestions on Project Funds 1. The World Bank's loan fund should be in position as soon as possible. Most enterprises have reflected this will to the SA Team, pointing out that: 1) The market is changing, the lagging in investment will greatly increase potential market risks of the project; 29  2) Agriculture is a highly seasonal industry. If the fund is not in place in time, the project's startup time will be delayed; 3) A great amount of money has been invested in expansion projects at the initial stage, it will be imperative to invest additionally; 4) For some projects involving poor populations or developed at poor areas, affected peasants are seriously short of funds to invest in the project, nor do the companies have the capacity to undertake this part of inputs. Accordingly, the project companies expect the World Bank to complete the project approval as soon as possible and make the project funds in place timely, or allow them to start the project construction in advance. 2. Comments and suggestions on fund allocation for the project. The World Bank requires that 50% of the project funds be used directly on peasants, many project companies have proposed their comments and suggestions on this requirement: 1) In some areas, the infrastructure for project development is backward, the shortage of farm machinery has impeded the smooth progress of the project, which shall allow the planning of some necessary infrastructure and farm machinery, peasants will also be the long-term and direct beneficiary of the improvement of the local infrastructure and the agricultural mechanization level. 2) It is suggested that the World Bank's fund can partially support the deep processing link, many project companies have also shown that they will construct processing plants with the counterpart fund and self-financed fund. The development of the farm product refined and deep processing industry can both greatly increase peasants' income and be another economic growth point of the companies. II. Comments and Suggestions on Peasants' in Project 1. Strict performance of the contract by peasants. Many project companies worry about whether peasants can perform the contract strictly. Some project companies that have cooperated with peasants have told the SA Team the specific default acts of peasants, such as failure to operate pursuant to the company's technical requirements, so that the product becomes unsatisfactory; failure to deliver all products to the company as provided in the contract but sell them to any other buyer at a higher price. These acts have made the companies unable to collect products at guaranteed quality and quantity on schedule, which is very disadvantageous to its operation. The project companies should make sure peasants act strictly on the contract by strengthening the education for peasants, applying a stricter technical training and product monitoring system, and practicing a constraint mechanism on peasants' noncompliance. In discussion with project companies, they have unanimously shown that they cannot independently undertake the above 3 tasks and need an intermediary between them and peasants on behalf of the company. 30  The project companies think that cultivating the professional planting association and obtaining the support from the local government are 2 feasible measures. Some project companies have already made beneficial trials, including: 1) Entering into agreement with the villager committee; 2) Entering into agreement with the professional association; 3) Founding a joint-stock company with local enterprises, which shall undertake the technical and product monitoring, product purchasing and primary processing, such as the Yangling GAP traditional Chinese medicinal materials production and processing project in Shanxi; 4) Entering into agreement with the county/township government. 2. Issue of technical training. The project companies point out that the educational qualification of most peasants is low, the traditional mode of agricultural production is deeply rooted, so that it will be slow for peasants to accept and rationally utilize advanced agro-tech. Accordingly, the project companies suggest that: 1) The government's agro-tech popularization department assists the companies and technical support units in providing technical training and service at the affected areas; 2) Professional associations and major planting families shall give daily technical guidance to peasants and collect their technical problems; 3) Peasants found technical mutual-aid teams. 3. Peasants lack the startup fund for investment in the project. To ensure the normal operation of the project, many project companies have borne this investment, bringing the problem of too large input at the initial stage. They suggest: 1) The World Bank's loan fund get in place as soon as possible; 2) The government release the restriction on loan to peasants; 3) The government increases the investment in the project. 4. The product quality can hardly be guaranteed due to the lack of technical supervision. Aiming at this problem, the companies have proposed to introduce the link of technical supervision and establish the mechanism of "shared interests and risks". 5. Peasants are over-dependent on the project companies. A company points out that considering its own strength is limited in driving peasants and most peasants cannot yet find the market on the basis of participation in the project. To change this, leading enterprises should play the key role: 1) enlarge their scale to increase the driving force; 2) strengthen the support and guidance to peasants in enlarging the project scale and finding the market, especially when peasants have master certain techniques; and 3) the local government shall provide peasants with information service and support profit-making intermediaries. 31  III. Comments and Suggestions on Government Support 1. In solving peasants' technical problems, it is suggested that the agro-tech popularization dept of the local government participate in technical training and services aiming at affected peasants. 2. As regards fund input, it is suggested to increase the investment in enterprises to enlarge their scale and enhance their driving force; where restricted of investment by the World Bank funds, such as processing, infrastructure, the government should be biased towards. 3. All levels of government at the affected areas are expected to assist the companies to monitor peasants' contract performance and ensure that the companies can deal with normal business operations locally. Section 4 Comments and Suggestions Proposed by Peasants 1. Natural disasters lead the project to failure. Some affected areas assessed by the SA Team are suffering from serious natural disasters, such as drought in Heilongjiang and south Hunan, and flood in Shou County, Anhui. Many affected peasants list natural disasters as one of the key project risks. Their influence on planting projects is especially considerable. To reduce losses arising from, peasants suggest: 1) The company should adjust the contract according to the situation of a disaster. 2) The company should indemnify peasants from losses. 3) The government should also peasants tide over the difficulty. 2. Technical mistakes might lead to losses. The learning and rational utilization of techniques is another important issue frequently mentioned by peasants, peasants dealing with stockbreeding projects show special concern for disease prevention and treatment techniques of animals and poultries. Peasants' complaints about technical matters include: 1) Technical training not in place. It is suggested to increase the field training; associations and major planting families should undertake the task of technical training. 2) Incomplete technical service system. Peasants suggest that there should be convenient and competent technical service personnel; build some self-contained technical service points nearby; found village-level technical service teams. 3) It is suggested that technical improvement and variety change should be gradually carried out to prevent the reduction in peasants' income during the transition period. 3. Losses to peasants' interests due to the company's default of the contract. Peasants worry about the following acts of breach: the company does not purchase all products or purchase at an unreasonably low price. The government should act for the benefit of the public to prevent the 32  occurrence of such breaches and formulate corresponding punishment measures. Peasants shall also participate in the supervision over project companies. 4. Lack of production startup fund and turnover fund for input into the project. The companies are suggested to provide such investment. According to their participation in the project, peasants have proposed such practices: 1) the government releases the restriction on loan to peasants; 2) the enterprise provides guarantee to peasants' loan; 3) the enterprise provides fine livestock and other means of production to peasants "in kind"; and 4) the enterprise undertakes the cowshed construction, feed supply and other necessary means of production. 5. Incomplete local infrastructure, making the project unable to play its benefits. As mentioned by affected peasants that, such infrastructure includes water conservancy works, farm machinery, power facilities and road traffic, of which water conservancy works and road traffic are the two aspects much mentioned by peasants. Peasants suggest that the government and the enterprise should jointly invest in the local infrastructure, while peasants will cooperate with them in the form of labor contribution. 6. Many peasants involved in project have expressed their desire for the project's execution soon and hope that the companies can enhance their strength through the project's execution, so that the companies can purchase more products from peasants. Chapter 6 Comments and Suggestions Proposed by SA Team The SA Team thinks the established projects in the 4 provinces: 1) have fully considered the interest of beneficiaries and involved a wide range of peasants, including women and poor people, which has direct or indirect contribution to the solution to the "3-peaasnt problem" of China; 2) have fully utilized local resources and given play to the local advantages, increased the added value of farm products through technological demonstration and popularization, which represents a direction of China' s future agricultural development; 3) given full play to the force of entrepreneurs, who have dominated the project design and execution process; 4) though the government plays a service and coordinating role in project design and operation, it pays attention to the project and offers support and guidance, so that the government, technical experts, enterprise and peasants can jointly create a good external environment for the smooth operation of the project; and 5) from the single "company + peasant" pattern to "multiplayer in a community", namely, companies, peasants, the government, association and technicians jointly participate in the project, which is good to integrating different forces. The SA Team's comments and suggestions for the 88 established projects in the 4 provinces mainly include: 33  I. Comments and Suggestions on Project Establishment 1. The SA Team finds there is prevalent repetition of projects in some provinces. The SA Team suggests: 1) In the project approval, select projects based on a province's own direction of agricultural development, advantages and characteristics. 2) Consider organizing a loose alliance of similar products, such as the planting of medicinal materials, fruit industry, dairy industry, beef cattle breeding, etc, to strengthen their mutual cooperation and reference and avoid cutthroat competition. 3) The SA Team finds there is a clear industrial chain relationship among some projects, the parties concerned can promote the unification of province-wide projects by building up the industrial chain to attain the "1 + 1>2" project effect, e.g., the cow embryo transplantation and fine breed improvement project may be combined with the centralized cow breeding project into a complete cow industrial chain. This can both reduce the project companies' costs, market risks and solve the problem of repeated project investment and construction. 4) For projects of a kind, the parties concerned may consider pursuing different development directions based on their respective focuses. 2. The SA Team points out that market risk is a common problem for any project company, so the project company must strengthen the market research and development on similar products but not be just limited to the local and domestic markets only. This is especially important for some farm product deep processing enterprises and those having not established their own market system and marketing network. 3. Jump out of the regional restriction in business philosophy. 1) In the selection of project companies and bases, companies should be selected nationwide as project companies based on their strength, such as coastal food processing enterprises. 2) The SA Team finds the repetition of technical support units sought for by the projects is very prevalent. For example, the 47 established projects in Shanxi are sharing 4 technical support units only. The Northwest Agricultural University undertakes the technical support task for above 90% projects. The SA Team suggests that technical support units should be sought for according to the requirements of the industry of a project without being limited to the locality and the region. 4. Each affected province should further publicize their own characteristics as a major agricultural province. The World Bank loan should be utilized to create a nationally famous brand, avoiding the repetition of small local brands. 5. The SA Team finds in investigation that what a few projects are popularizing have not yet been patented and are still at the pilot test stage. The SA Team thinks there are great technical risks in such projects. Whether a technique itself is suitable for popularization should be the primary criterion for project establishment. 34  II. Comments and Suggestions on "company + peasant" Pattern 1. From the perspective of agro-tech demonstration and popularization, 2. To drive peasants with the "company + peasant" mode, the coverage is very limited, and profit making companies mostly drive medium-income peasants with the self-regeneration ability. It is unlikely for them to absorb too many poor people in the project. The SA Team suggests: 1) While giving training and technical guidance to affected peasants, those uninvolved may attend the training courses on a voluntary basis. 2) The government and the enterprise may minimize the cash input of peasants in the project according to their practical situation, reduce the threshold of participation, such as offering of preferential loan by the government and fine seedlings by the enterprise. 3) Give fully play to the driving effect of major planting families on minor ones to reduce the costs and risks of peasants and the company in participating in the project. 3. The SA Team finds via investigation that the expectation of goodwill between peasants and the company is not high. The SA Team suggests: 1) The contract between the company and peasants should be as detailed as possible to fully take risks and defaults into account. The company shall first draft the contract and revise it in discussion with affected peasants, then execute it on a common understanding. 2) In the technical training for affected peasants, add the training on the sense of contract performance. 3) The government should serve as the intermediary to supervise their strict performance of the contract and make necessary, effective reactions when any party breaches the contract. 4) In the detailed rules of cooperation, design a mutual special assets investment mechanism that induces both parties to obey the contract self-consciously and gives rise to a mutually dependent situation--the cost for any party's withdrawal from the organization on its one will be extremely high, so as to keep the contract durable. The company's special assets investment includes such modes as setup of seedling (breeder) yard, processing and cold storage plants of farm and animal products, purchase and sales service agencies; providing fine breeds to peasants, production of quality feeds, technical guidance, product marketing, slaughter and processing, down-payment of production funds. Peasants' assets investment includes such modes as: setup of planting/breeding bases meeting the company's standard, purchase of production equipment, training expenses spent to obtain the production skills required by the company, down-payment of production costs. 5) The introduction of a peasant professional association will help increase the mutual trust between the company and peasants. A professional association shall consists of affected peasants' representatives, enter into a cooperative agreement with the company and then organize affected peasants to enter into an agreement with the company. In this case, the 35  association must be the interest link point between the company and peasants, becoming the main body of the agricultural industrialization operating organization. 4. Setup and perfection of new-pattern peasant professional associations (cooperatives). Although most established projects have set up or plan to set up a peasant professional association, there is investigation to show that due to the shortage of material inputs, insufficiency of the human capital and the insufficient publicity of laws and policies, most peasant professional association organizations cannot become an entity that links peasants and the company in project operation. The SA Team suggests: 1) Considering China's practical situation, at villages where the cadre-public relationship is good, the cadres of the "2 village-level committees" will lead the setup of an association. 2) Organizing an association under the leadership of local major planting/breeding families is also a feasible choice. 3) The professional association should become the interest link point between the company and peasants--on one hand, the association consist of representatives of affected peasants and has to stand for them; on the other hand, the association gains income by assisting the company as its funds for activity and remuneration for its staff. 5. The SA Team finds the phenomenon of "3 weaknesses" among affected peasants is prevalent, namely weak sense of risk, weak resistance to risk and weak self-development ability. The SA Team suggests: 1) It is necessary to establish a risk fund jointly by the company and peasants. The specific practice is contribute 2% of the company's annual after-tax profit and 1% of the annual income of peasants to the fund, which shall be kept, approved and issued by the provincial "Agricultural Development Office". In case of a force majeure that causes the project to fail, a full or partial compensation shall be made. 2) In the course of project publicity and technical training, add the training of peasants' sense of risk and resistance to risks. 6. The investigation shows that the educational qualification of peasants is low and their accept new techniques slowly. Technical experts can hardly perform the full-course technical tracking and training for all affected peasants. The SA Team suggests: 1) It is impractical for technical experts to undertake the full course of technical training and service to affected peasants. While giving limited technical training to all affected peasants, technical experts shall be focused on the training for native peasant experts, major planting families and technical demonstration families, to bring along other peasants to accept and correctly utilize agro-tech through their demonstration and driving action. 2) It is also necessary for technical experts to organize native peasant experts, major planting families and technical demonstration families to attend school for special training. 3) It may be considered to realize the daily technical service and training to peasants using the exiting agro-tech popularization system of the government. 36  4) The technical training should be systematic and combine with the production chain into a series by arranging the training coverage according to farming seasons. III. Comments and Suggestions on Government's Role and Positioning It is found in investigation that, all levels of government has played a powerful role in the project design and execution, the government somewhere has even included everything. At the preliminary stage of project execution, this is embodied in: 1) screening and approval of projects; 2) establish an institutional guarantee system for project execution; and 3) formulate the execution plan. During the process of project planning and execution, the government plays an organizing, coordinating and supervisory role. Though its support is the fundamental guarantee to the successful execution of the project, companies, experts, peasants and even some governmental officials think that, if too much "concern" is paid by the government, there might be many negative impacts, for example, peasants worry that at critical times, whether the government can standard for them. Experts worry that their own interests are not guaranteed. Accordingly, the SA Team suggests, the government should act as appropriate in the project execution. Specifically: 1) Define that the government's role is organization, coordination, supervision and service, other than executing and guidance, playing the function of "small government, big service"; 2) Let the company make decisions by itself, do not intervene in its operational management and refer everything to the law of market; 3) The government should act for the benefit of peasants, improve their level of organization and support the growth of nongovernmental organizations; 4) The government shall strengthen the rural agro-tech popularization work and secure the interest of technical units, mobilize the activity of peasants and agricultural planning experts. Chapter 7 Discussion Section 1 Discussion of "company + peasant" Pattern The "company + peasant" pattern is a operating organization for agricultural industrialization catalyzed by the market arising in Southeast China coastal developed areas since mid 1990s. In this organization, there are mainly 3 contract types by tightness and contents of contractual connection between both parties. 1) Pure market contract type. The company and peasants shall enter into a purchase contract based on the farm product market, providing a steady marketing guarantee to farm products produced by peasants. However, the economic interests of both parties are completely independent each other and the contract's contents are limited to price only, seldom involving quantity, quality and grade. Since the uncertainty in the output, quality and market of most farm products is 37  high, this contract type is highly risky. This type will not be dominant. 2) Quasi-market contract type. The company and peasants, by contractually stipulating their rights and obligations as regards production, marketing, service, interest and risk sharing, establish a relatively stable cooperative relationship featuring "shared interests and risks". Since they are still independent main bodies, this type is just a partial substitution for the pure market contract between them, known as the quasi-market (quasi-business) type. 3) Integrated contract type. By connecting all factors (labor, capital, land) between the company and peasants, peasants' production activities are internalized as an operating workshop of the company. At present, the mode of "run by land lease--labor employment" or "counter-leasing" is mainly adopted. Under such contract, peasants abandon their principal status in production operations and become a member of the "workshop" controlled by the company, obtaining the rent for land use right or wage for service at the company or both; the company owns the entire right of residual control and residual requisition, as well as benefits from the economy of scale. This operating organization is a full substitution of the market contract between both parties and is a purely integrated organization. The "company + peasant" cooperative pattern is costly in this type. Since agricultural land resources are relatively scanty in China, provided the rural social security mechanism remains unsound, land will always bear the function of security for peasants' basic livelihood. Under this background, the practicality of this organization will be extremely limited. 79 ones out of the 88 projects in the 4 provinces are directly related to peasants. The alliance modes between peasants and the company to be adopted cover the quasi-market and the integrated contract types, of which the former takes a greater part. Every project shall select any required combination from the company, the government, technicians, association, base and peasants. The SA Team finds there are at least 3 points to be disused in this mode. 1) Passive peasant participant. In this mode, the company and peasants are at different levels: the company are fewer than peasants and mostly have a strong sense of market economy, economic strength and strong decision-making, precise organization and perfect marketing systems, well know the economic policies and laws, have a full mastery of market information. In contrast, peasants' scale of household operation is small, they live scattered, have feeble financial and technical forces, are unable to fully, accurately and timely capture, appraise and identify market information. There're limited choices of cooperative companies available to peasants. Scattered peasants lack an organization that represents their interests. This makes peasants disadvantaged in contract negotiation with the company in the "company + peasants" operating organization, and their production and transaction are very easily controlled by the company. 2) Natural risks faced by agricultural production and operational activities and the uncertainty in quality of farm products increase the operating cost of the institution generated by the company and peasants contractually. How to accurately forecast the agricultural output? How to conduct effective supervision on agricultural production? How to accurately measure the farm product quality?, etc, have rendered both parties hard to form a perfect contract that completely covers the operation of agricultural production and the quality uncertainty of farm products. 3) The company and peasants in this mode are externally combined as different interest subjects. 38  Without an effective risk sharing and restriction mechanism, opportunistic acts in entering into and performing the contract by both parties can hardly be avoided. On one hand, the radical purpose of connection between the company and peasants is to reduce the cost of raw materials and to increase their economic benefits. Only when this is advantageous to its operation can it conduct specific transaction acts with peasants and provide corresponding services. Otherwise, the company will disregard peasants' interests, or even transfer risks thereto. This case occurs frequently when the farm product market is oversupplied or the market price is lower than the contractually protective price. Thus, peasants not only are unable to enjoy the interests from the processing and marketing links, might but also lose a part of or all production interests. On the other hand, for peasants, their interests are mainly associated with the sales price of their raw production materials. It is a rational choice to participate in the agricultural industrialization through contractual relations, improve the guarantee to raw materials distribution and transfer market risks to the company to the greatest extent. This will occur when the farm product market is oversupplied or the market price is lower than the contractually protective price. Section 2 Present Situation, Problems and Experiences of Agro- tech Popularization of China There are roughly 4 modes of agro-tech popularization in China: 1) from the top down, dominated by the government; 2) technical contracting type between popularization personnel and peasants; 3) guidance type by leading enterprise or company; and 4) from the bottom up, run spontaneously by the public. The type with focus on the government popularization system that formed in the planned economy is still dominant in China. The key problems with the exiting popularization mode are: 1. The government-dominated agro-tech popularization is mostly realized administratively, which will easily lead to: a. high operating costs of the whole system; b. grave formalism, disengaged with peasants' needs; c. popularization projects lack continuity and systematicality; d. stressing technique and neglecting the market; e. at some places, popularization projects lack scientific and systematic demonstration; and finally, the expensive cost of failure is often transferred to peasants. Accordingly, the agricultural popularization system of China is faced with a misery. 2. Low conversion rate of agro-tech achievements, the service direction and coverage cannot be adapted to the development needs of agriculture, peasants, rural economy. The social incentive system focused on title, promotion and technical glory has caused a great deviation of technical innovation at research institutions and universities from the requirement of quickly solving the specific problems in agricultural production. The low user orientation in agricultural research and poor adaptability to society and economy have rendered costly applied researches unable to be employed under peasants' production conditions. 3. The agro-tech popularization work is carried out centering on technical popularization only. It's shown in practice that agro-tech popularization with a single-minded focus on technique itself will not necessarily lead to a success, because the added value of agricultural production 39  is low, peasants are not necessarily willing to accept the technique being popularized, it is impossible to form a complete production, supply and marketing chain, even if peasants have accepted an advanced technique, it will likely lead to increased output without increasing their income, and there is no local knowledge that fits the local conditions. The purpose of popularizing advanced agro-tech through the "company + peasant" pattern is to set up an agro-tech popularization system that is suitable for the base of small-scale peasant economy. The operation of this pattern can well abate the abovementioned contradictions in China's agro-tech popularization: firstly, the successful execution of this work is dependent on the support from the government; in the "company + peasant" pattern, the government plays the role of coordination and supervision other than being absolutely dominant as in the past. Secondly, the malpractice that the administrative agro-tech popularization is disengaged with the market, a sophisticated production, supply and marketing system has been set up centering on enterprises' business operations. Thirdly, the cooperation between the enterprise and scientific research has introduced the incentive with the economic added value of the technique itself in addition to the social incentive system focused on title, promotion and technical glory, which is good to the conduction of peasant-oriented scientific research activities, improving the conversion rate of advanced agro-tech achievements. As revealed in this report, the decisive factor for the startup and healthy operation of the "company + peasant" pattern is the company itself. On one hand, it is impossible that there're too many strong leading enterprises; on the other hand, the company can drive a limited number of peasants based on its strength and development plan. These 2 factors have determined that the coverage of agro-tech popularization to be enabled by the "company + peasant" pattern is still very limited. There are still many scattered, technically backward peasants need to increase their income and output. Therefore, the focus of the future agro-tech popularization work is still to establish an agro-tech popularization system suitable for the base of small-scale peasant economy. The investigation on the 88 established projects in the 4 provinces has shown that, a self-contained agro-tech popularization system shall at least include the following: 1) a mature, feasible agro-tech; 2) an agro-tech popularization unit providing pre-production, mid-production and after-production technical services, 3) a reliable supply/marketing assurance system; 4) an information system that can collect, refine technological information and market information timely; 5) build up examples of demonstration by cultivating models of success (key personalities and successful demonstration parks); 6) a perfect feedback system; and 7) layered mode of technical training with focus on native experts. Section 3 Land Flow and Division of Income Land is not only a productive resource for peasants, but also a source of their livelihood and social security. How to let land exert the greatest economic benefit is the greatest concern of peasants. At the areas where the projects in Anhui, Hunan and Shanxi are carried out, the issue of how to raise the land benefit exists prevalent: firstly, after the "secondary land contracting", the marginal profit of land has reduced due to the small per capita land and depressed market price of farm products; secondly, many young adult peasants at the affected areas are working outside, almost accounting 40  for above 1/3 of the local labor population, causing land to be "laid idle"; thirdly, in the "company + peasant" pattern, 3 modes by which the land flow can generate benefits have been proposed in an exploratory way: 1) peasants purchase shares with land and "draw dividend by share" at the yearend; 2) the company leases land and establish its self-possessed base, peasants become its "workers"; 3) in the form of "order agriculture", peasants "carry land" to participate in the company's production and business operations, become a link in the company's industrial development chain. It is found in investigation that, peasants hardly accept the first mode, worrying about the "security" problem of their land; since the company is not strong enough to cover many peasants, peasants do not accept the 2nd mode. They well accept the 3rd one, thinking that it is "reliable". However, they have benefited little from land. In our opinion, the 1st and 2nd modes can let land flow and appreciate, increasing peasants' income. It's a beneficial trial to make organization by means of peasants' equity participation, which is good to the execution of unified planting, management and marketing by the company. What the SA Team worries is the fairness and transparency in share dividend. To avoid the black-box operation of the company, it is suggested to involve an independent accounting audit institution for financial supervision and the formulation of institutionalized measures to guarantee peasants' interests, such as by contracting, while ensuring peasants can obtain the "land dividend", peasants have the chance to become a "worker" of the company. This will enable the company to lease peasants' land on a larger scale to generate the scale effect that will accelerate the progress of agricultural restructuring. Appendix Appendix 1 Farmer Beneficiaries Participation Framework A. Farmer Beneficiaries Participation Framework of Heilongjiang project components 1. Heilongjiang Bin County Soybean Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting Villager the elderly meeting technical unit and Broadcast & committee Project Villager Company high-oil soybean billboard, Company publicity committee rep technique leaflet, Technical Company Technician Estimate of publicity support unit rep s project benefit and manual Rep of risk technical 41  support unit Explain the selection principle of affected all villagers, peasants including Persuade peasants women and Village within planned the elderly meeting Villager This project has Determine planting range to Company Company committee fixed the principle Holding affected take part in project rep rep Company to select affected village meeting peasants Explain the Villager Rep of Technical peasants by reason for not committee technical support unit connected land participation to Rep of support unit peasants outside technical the planed range support unit who have the intent Introduce the company's existing The SA Team cooperative plan Peasants Village suggests the Villagers raise Villagers Determine within planned meeting company advance suggestions and discuss the manner of planting range Company Villager the seedling money comments on the mode of cooperation Company rep committee for peasants and company's plan participation with project rep Rep of Company later deduct it from Company revises with company company Villager technical the purchase the cooperative rep committee support unit payment of plan until products recognized by both parties Association's duties: Convene and Discuss the need organize village to set up the training and association, role services on high-oil and possible Company rep Affected soybean planting benefits of discusses with peasants, techniques association village cadres including Village Reflect peasants' Discuss the mode Affected Villager women and meeting comments and of operation of the peasants committee the elderly Association suggestions to the association discuss with Company Found Villager meeting company and Determine the company rep Technical soybean committee Company experts on behalf of rules and duties of Association support unit association Company rep peasants the association leaders Cadres of rep Rep of Organize the Villager sign up discuss with soybean Technical technical purchase of for the association, company association support unit support unit qualified products elect association Determine Manage large cadres. the mode of farm machinery and Company enters cooperation tools, irrigation into cooperative facilities and other agreement with the field infrastructure association Assist in fulfilling the "4 unifications", i.e., unified seed 42  supply, unified recovery and unified technical scheme The SA Team suggests the villager committee and major planters take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage Participator Involved Manner of Organ in Activity coverage Manner of activity Remarks y Activity parties inquiry charge The company drafts the contract Villagers raise Association comments/suggestion Company rep Affected Association Company In contracting, the s on the draft discusses with the families, Company enters into association should Company revises association cadres women and rep Association contract act as an coordinator the draft until Association takes the elderly Rep of Company with between company recognized by both the lead in holding a Company rep technical peasants and peasants parties village meeting Technical support unit Company enters support unit into formal contract with peasants Hold Association is the regular/irregular propagandist and Train major training courses, organizer of planters involving all affected training. Technical Train ordinary peasants support unit must villagers Field training and Association make clear the basic Association Special training for guidance Planting information of Affected women and poor Open a technical technique Association affected peasants, families, families service hotline for demonstratio Technical lay down varied women and Training Prepare training feedback by peasants n families support unit training programs the elderly materials and question Technical Company according to their Technical Technical guidance answering by experts support unit rep differences. The support unit and Q&A Villager technical Company training of technical Company rep Provide mutual aid teams rep demonstration convenience for Distribute training families and setup those unable to take manuals of villager technical part in the project Members discuss, the mutual aid teams are association collect essential helpers of technical problems technical experts. 43  Be sure to mobilize women to attend the training. Determine different training coverage and methods for different farming seasons. Technical experts explain the time, coverage and method Association Village meeting Association of field management Planting Association Village broadcast, Affected Association technique Planting billboard, leaflet families, Field publicizes, organizes, demonstratio technique Communications women and managemen supervises the field n families demonstratio among affected the elderly t management Technical n families peasants, between Technical executed in a unified support unit Technical affected peasants and support unit manner, and reflect Company support unit the association Company rep problems in time rep Affected peasants' field management The SA Team suggests the soybean association undertake the control and maintenance of farm Formulate the rules machinery. In for use and control of Association project operation, farm machinery Affected relevant expenses of Determine the Association Association Use and Village meeting families, farm machinery are custodian, maintainer Technical Technical control of Association cadres women and borne by the and future owner of support unit support unit agricultural discuss with company the elderly company, without such machinery Company Company machinery rep Technical charging the Formulate the rep rep support unit occupancy charging standard for Company rep expenses. After use of farm project completion, machinery the association shall continue to manage such machinery, the company shall fix a lower charging standard The SA Team Association suggests that after Affected the project Association Association Use and Village meeting families, completion, such Formulate the rules Technical Technical control of Association cadres women and facilities shall be for use and control of support unit support unit irrigation discuss with company the elderly offered to peasants irrigation facilities Company Company facilities rep Technical free of charge, the rep rep support unit village collective Company rep shall undertake the duty of control and 44  maintenance Technical unit and company decide spec, price of products to be Association recovered that year Association Village meeting Affected Association meeting Association cadres families, Association communicates ideas Company Product discuss with company women and Company of the company and rep recovery rep and technical unit the elderly Technical technical unit, calls Rep of rep Company rep support unit peasants to strictly technical Project Technical stick to the contract support unit support unit Peasants hand in products, company recoveries products and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 2.Heilongjiang Soybean Processing Project 1) Preparation stage: Participato Manner of Involved Manner of Organ in Activity coverage Remarks ry Activity activity parties inquiry charge Project Company Holding all villagers, Village Villager 45  publicity introduction village meeting including meeting committee Introduction to Broadcast & women and Company Company technical unit and billboard, the elderly rep Technical high-oil soybean leaflet, Villager Technician support unit technique publicity committee s Estimate of manual Company project benefit and rep risk Rep of technical support unit Explain the all villagers, selection principle including of affected peasants women and Village Persuade peasants the elderly meeting Villager This project has within planned Determine Company Company committee fixed the principle planting range to Holding affected rep rep Company to select affected take part in project village meeting peasants Villager Rep of Technical peasants by Explain the reason committee technical support unit connected land for not participation Rep of support unit to peasants outside technical the planed range support unit who have the intent Introduce the company's existing The SA Team cooperative plan Peasants Village suggests the Determine Villagers Villagers raise within planned meeting company advance manner of discuss the suggestions and planting range Company Villager the seedling money cooperatio mode of comments on the Company rep committee for peasants and n with participation company's plan rep Rep of Company later deduct it from project with company Company revises Villager technical the purchase company rep the cooperative plan committee support unit payment of until recognized by products both parties Found Discuss the need Association's soybean to set up the duties: association association, role Convene and and possible Company rep organize village Affected benefits of discusses with training and peasants, association village cadres services on high-oil including Village Discuss the mode Affected Villager soybean planting women and meeting of operation of the peasants committee techniques the elderly Association association discuss with Company Reflect peasants' Villager meeting Determine the company rep Technical comments and committee Company rules and duties of Association support unit suggestions to the Company rep the association leaders Cadres of company and rep Rep of Villager sign up discuss with soybean experts on behalf of Technical technical for the association, company association peasants support unit support unit elect association Determine the Organize the cadres. mode of purchase of Company enters cooperation qualified products into cooperative Manage large agreement with the farm machinery and association tools, irrigation 46  facilities and other field infrastructure Assist in fulfilling the "4 unifications", i.e., unified seed supply, unified recovery and unified technical scheme The SA Team suggests the villager committee and major planters take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Hold Association is the Train major planters regular/irregular propagandist and Train ordinary training courses, organizer of villagers involving all affected Association training. Technical Association Special training for peasants Planting support unit must Affected women and poor Field training and technique Association make clear the basic families, families guidance demonstratio Technical information of women and Training Prepare training Open a technical n families support unit affected peasants, the elderly materials service hotline for Technical Company lay down varied Technical Technical guidance feedback by peasants support unit rep training programs support unit and Q&A and question Company according to their Company rep Provide convenience answering by experts rep differences. The for those unable to Villager technical training of technical take part in the project mutual aid teams demonstration Distribute training families and setup 47  manuals of villager technical Members discuss, the mutual aid teams are association collect essential helpers of technical problems technical experts. Be sure to mobilize women to attend the training. Determine different training coverage and methods for different farming seasons. Technical experts explain the time, coverage and method Association Village meeting Association of field management Planting Association Village broadcast, Affected Association technique Planting billboard, leaflet families, Field publicizes, organizes, demonstratio technique Communications women and manageme supervises the field n families demonstratio among affected the elderly nt management executed Technical n families peasants, between Technical in a unified manner, support unit Technical affected peasants and support unit and reflect problems Company support unit the association Company rep in time rep Affected peasants' field management Technical unit and company decide spec, price of products to be recovered that year Association Association Association Village meeting Affected meeting communicates ideas Association cadres families, Association Company Product of the company and discuss with company women and Company rep recovery technical unit, calls rep and technical unit the elderly Technical Rep of peasants to strictly rep Company rep support unit technical stick to the contract Project Technical support unit Peasants hand in support unit products, company recoveries products and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Set up Issue "complaint Association Association The project Association villager form for project Affected meeting supervision and Company Villager feedback execution", to each families, Company evaluation system Technical monitoring system villager team, so women and rep shall consist of 4 support unit & feedback Establish that villagers can the elderly Rep of levels--the World Provincial system villager raise comments Company rep technical Bank, province, project office project timely Technical support unit county/city and supervision Set up a complaint support unit Officials of villager, peasant 48  system telephone at the Provincial provincial beneficiaries can provincial project project office project office directly participate office in the villager Association monitoring and collects affected feedback system. peasants' comments and suggestions anytime Set up a technical expert hotline 3. Heilongjiang Fujin City Soybean Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company high-oil soybean billboard, committee Company publicity rep technique leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit Explain the selection principle of affected all villagers, peasants including Persuade peasants women and Village within planned the elderly meeting Villager This project has Determine planting range to Company Company committee fixed the principle Holding affected take part in project rep rep Company to select affected village meeting peasants Explain the Villager Rep of Technical peasants by reason for not committee technical support unit connected land participation to Rep of support unit peasants outside technical the planed range support unit who have the intent Introduce the The SA Team company's existing Peasants Village suggests the cooperative plan Villagers Determine within planned meeting company advance Villagers raise discuss the manner of planting range Company Villager the seedling money suggestions and mode of cooperation Company rep committee for peasants and comments on the participation with project rep Rep of Company later deduct it from company's plan with company company Villager technical the purchase Company revises rep committee support unit payment of the cooperative products plan until 49  recognized by both parties Association's duties: Convene and organize village training and services on high-oil soybean planting techniques Reflect peasants' comments and suggestions to the Discuss the need company and to set up the experts on behalf of association, role peasants and possible Company rep Affected Organize the benefits of discusses with peasants, purchase of association village cadres including Village qualified products Discuss the mode Affected Villager women and meeting Manage large of operation of the peasants committee the elderly Association farm machinery and association discuss with Company Found Villager meeting tools, irrigation Determine the company rep Technical soybean committee Company facilities and other rules and duties of Association support unit association Company rep field infrastructure the association leaders Cadres of rep Rep of Assist in fulfilling Villager sign up discuss with soybean Technical technical the "4 unifications", for the association, company association support unit support unit i.e., unified seed elect association Determine supply, unified cadres. the mode of recovery and Company enters cooperation unified technical into cooperative scheme agreement with the association The SA Team suggests the villager committee and major planters take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge 50  The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. Technical experts explain the time, coverage and method Association Village meeting Association of field management Planting Association Village broadcast, Affected Association technique Planting billboard, leaflet families, Field publicizes, organizes, demonstratio technique Communications women and manageme supervises the field n families demonstratio among affected the elderly nt management executed Technical n families peasants, between Technical in a unified manner, support unit Technical affected peasants and support unit and reflect problems Company support unit the association Company rep in time rep Affected peasants' field management 51  Technical unit and company decide spec, price of products to be recovered that year Association Association Association Village meeting Affected meeting communicates ideas Association cadres families, Association Company Product of the company and discuss with company women and Company rep recovery technical unit, calls rep and technical unit the elderly Technical Rep of peasants to strictly rep Company rep support unit technical stick to the contract Project Technical support unit Peasants hand in support unit products, company recoveries products and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 4. Heilongjiang Hailun City Soybean Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge Company all villagers, Holding introduction including Village village meeting Villager Introduction to women and meeting Broadcast & committee Project technical unit and the elderly Company billboard, Company publicity high-oil soybean Villager rep leaflet, Technical technique committee Technician publicity support unit Estimate of Company s manual project benefit and rep 52  risk Rep of technical support unit Explain the selection principle of affected all villagers, peasants including Persuade peasants women and Village within planned the elderly meeting Villager This project has Determine planting range to Company Company committee fixed the principle Holding affected take part in project rep rep Company to select affected village meeting peasants Explain the Villager Rep of Technical peasants by reason for not committee technical support unit connected land participation to Rep of support unit peasants outside technical the planed range support unit who have the intent Introduce the company's existing The SA Team cooperative plan Peasants Village suggests the Villagers raise Villagers Determine within planned meeting company advance suggestions and discuss the manner of planting range Company Villager the seedling money comments on the mode of cooperation Company rep committee for peasants and company's plan participation with project rep Rep of Company later deduct it from Company revises with company company Villager technical the purchase the cooperative rep committee support unit payment of plan until products recognized by both parties Association's duties: Discuss the need Convene and to set up the organize village association, role training and and possible Company rep Affected services on high-oil benefits of discusses with peasants, soybean planting association village cadres including Village techniques Discuss the mode Affected Villager women and meeting Reflect peasants' of operation of the peasants committee the elderly Association comments and association discuss with Company Found Villager meeting suggestions to the Determine the company rep Technical soybean committee Company company and rules and duties of Association support unit association Company rep experts on behalf of the association leaders Cadres of rep Rep of peasants Villager sign up discuss with soybean Technical technical Organize the for the association, company association support unit support unit purchase of elect association Determine qualified products cadres. the mode of Manage large Company enters cooperation farm machinery and into cooperative tools, irrigation agreement with the facilities and other association field infrastructure Assist in fulfilling 53  the "4 unifications", i.e., unified seed supply, unified recovery and unified technical scheme The SA Team suggests the villager committee and major planters take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Hold Association is the Train major planters regular/irregular propagandist and Train ordinary training courses, organizer of villagers Association involving all affected Association training. Technical Special training for Planting peasants Affected support unit must women and poor technique Association Field training and families, make clear the basic families demonstratio Technical guidance women and information of Training Prepare training n families support unit Open a technical the elderly affected peasants, materials Technical Company service hotline for Technical lay down varied Technical guidance support unit rep feedback by peasants support unit training programs and Q&A Company and question Company rep according to their Provide convenience rep answering by experts differences. The for those unable to Villager technical training of technical take part in the project mutual aid teams demonstration 54  Distribute training families and setup manuals of villager technical Members discuss, the mutual aid teams are association collect essential helpers of technical problems technical experts. Be sure to mobilize women to attend the training. Determine different training coverage and methods for different farming seasons. Technical experts explain the time, coverage and method Association Village meeting Association of field management Planting Association Village broadcast, Affected Association technique Planting billboard, leaflet families, Field publicizes, organizes, demonstratio technique Communications women and manageme supervises the field n families demonstratio among affected the elderly nt management executed Technical n families peasants, between Technical in a unified manner, support unit Technical affected peasants and support unit and reflect problems Company support unit the association Company rep in time rep Affected peasants' field management Technical unit and company decide spec, price of products to be recovered that year Association Association Association Village meeting Affected meeting communicates ideas Association cadres families, Association Company Product of the company and discuss with company women and Company rep recovery technical unit, calls rep and technical unit the elderly Technical Rep of peasants to strictly rep Company rep support unit technical stick to the contract Project Technical support unit Peasants hand in support unit products, company recoveries products and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Set up Issue "complaint Association Association Association The project villager form for project Affected meeting Company supervision and Villager feedback execution", to each families, Company Technical evaluation system monitoring system villager team, so women and rep support unit shall consist of 4 & feedback Establish that villagers can the elderly Rep of Provincial levels--the World system villager raise comments Company rep technical project office Bank, province, project timely Technical support unit county/city and 55  supervision Set up a complaint support unit Officials of villager, peasant system telephone at the Provincial provincial beneficiaries can provincial project project office project office directly participate office in the villager Association monitoring and collects affected feedback system. peasants' comments and suggestions anytime Set up a technical expert hotline 5. Heilongjiang Nahe City Potato Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Introduction to Village village meeting the elderly Villager technical unit and meeting Broadcast & Villager committee Project Potato Virus Company billboard, committee Company publicity elimination rep leaflet, Company Technical technique Technician publicity rep support unit Estimate of s manual Rep of project benefit and technical risk support unit Explain the selection principle of affected all villagers, peasants including Persuade peasants women and Village within planned the elderly meeting Villager This project has Determine planting range to Company Company committee fixed the principle Holding affected take part in project rep rep Company to select affected village meeting peasants Explain the Villager Rep of Technical peasants by reason for not committee technical support unit connected land participation to Rep of support unit peasants outside technical the planed range support unit who have the intent Introduce the The SA Team company's existing Peasants Village suggests the Villagers Determine cooperative plan within planned meeting company advance discuss the manner of Villagers raise planting range Company Villager the seedling money mode of cooperation suggestions and Company rep committee for peasants and participation with project comments on the rep Rep of Company later deduct it from with company company company's plan Villager technical the purchase rep Company revises committee support unit payment of the cooperative products 56  plan until recognized by both parties Association's duties: Convene and organize village training and services on high-oil soybean planting techniques Reflect peasants' comments and suggestions to the Discuss the need company and to set up the experts on behalf of association, role peasants and possible Company rep Affected Organize the benefits of discusses with peasants, purchase of association village cadres including Village qualified products Discuss the mode Affected Villager women and meeting Manage large of operation of the peasants committee the elderly Association farm machinery and association discuss with Company Found Villager meeting tools, irrigation Determine the company rep Technical soybean committee Company facilities and other rules and duties of Association support unit association Company rep field infrastructure the association leaders Cadres of rep Rep of Assist in fulfilling Villager sign up discuss with soybean Technical technical the "4 unifications", for the association, company association support unit support unit i.e., unified seed elect association Determine supply, unified cadres. the mode of recovery and Company enters cooperation unified technical into cooperative scheme agreement with the association The SA Team suggests the villager committee and major planters take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage 57  Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. Technical experts Association Village meeting Association explain the time, Planting Association Village broadcast, Affected coverage and method technique Planting billboard, leaflet families, Field of field management demonstratio technique Communications women and manageme Association n families demonstratio among affected the elderly nt publicizes, organizes, Technical n families peasants, between Technical supervises the field support unit Technical affected peasants and support unit management executed Company support unit the association Company rep in a unified manner, rep 58  and reflect problems in time Affected peasants' field management Technical unit and company decide spec, price of products to be recovered that year Association Association Association Village meeting Affected meeting communicates ideas Association cadres families, Association Company Product of the company and discuss with company women and Company rep recovery technical unit, calls rep and technical unit the elderly Technical Rep of peasants to strictly rep Company rep support unit technical stick to the contract Project Technical support unit Peasants hand in support unit products, company recoveries products and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 6. Heilongjiang Daqing City Establishmental Agriculture Project 1) Preparation stage: Participator Activity coverage Manner of Involved Manner of Organ in Remarks 59  y Activity activity parties inquiry charge all villagers, Company Holding including introduction village meeting women and Village Introduction to Broadcast & the elderly Villager meeting technical unit and billboard, Villager committee Project Company high-oil soybean leaflet, committee Company publicity rep technique publicity Company Technical Technician Estimate of manual rep support unit s project benefit and Visiting the Rep of risk company technical support unit all villagers, including women and Village Explain the the elderly meeting Villager Encourage peasants Holding Determine selection principle Company Company committee who are willing to village affected of affected peasants rep rep Company learn by obsorbing meeting peasants Base on peasants' Villager Rep of Technical them imto the free will committee technical support unit platation. Rep of support unit technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager cooperatio mode of comments on the Company rep committee n with participation company's plan rep Rep of Company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Villagers raise Affected In contracting, Company comments/suggestion Company rep families, Company villager committee enters into s on the draft villager discusses with the women and rep should act as an contract Company revises the committee association cadres the elderly Rep of coordinator between with draft until recognized Company Company rep technical company and peasants by both parties Technical support unit peasants Company enters into support unit formal contract with peasants 60  Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. Technical experts Affected Planting Planting explain the time, families, technique Village meeting technique Field coverage and method women and demonstratio Village broadcast, demonstratio manageme of field management the elderly n families billboard, leaflet n families n Technical Technical Technical Affected peasants' support unit support unit support unit field management Company Company rep rep Technical unit and Affected company decide spec, families, Company price of products to be women and rep Company Product recovered that year Village meeting the elderly Rep of Technical recovery Peasants hand in Project Company rep technical support unit products, company Technical support unit recoveries products support unit and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge 61  Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 7. Heilongjiang Haerbin City Grape Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company the project billboard, committee Company publicity rep technique leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit all villagers, including women and Village Explain the the elderly meeting Villager Encourage peasants Holding Determine selection principle Company Company committee who are willing to village affected of affected peasants rep rep Company learn by obsorbing meeting peasants Base on peasants' Villager Rep of Technical them imto the free will committee technical support unit platation. Rep of support unit technical support unit Introduce the Peasants Village Determine company's existing Villagers within planned meeting manner of cooperative plan discuss the planting range Company Villager cooperatio Villagers raise mode of Company rep committee n with suggestions and participation rep Rep of Company project comments on the with company Villager technical company company's plan rep committee support unit Company revises 62  the cooperative plan until recognized by both parties 2) Project execution stage Participator Involved Manner of Organ in Activity coverage Manner of activity Remarks y Activity parties inquiry charge The company drafts the contract Villagers raise Affected In contracting, Company comments/suggestion Company rep families, Company villager committee enters into s on the draft villager discusses with the women and rep should act as an contract Company revises the committee association cadres the elderly Rep of coordinator between with draft until recognized Company Company rep technical company and peasants by both parties Technical support unit peasants Company enters into support unit formal contract with peasants Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. 63  Planting Technical experts Affected technique Planting explain the time, Village meeting families, Field demonstratio technique coverage and method Village broadcast, women and manageme n families demonstratio of field management billboard, leaflet the elderly nt Technical n families Affected peasants' Technical support unit Technical field management support unit Company support unit Company rep rep Technical unit and company decide spec, Affected Village meeting price of products to be families, Company cadres discuss with Product recovered that year women and rep Company company rep and recovery Peasants hand in the elderly Rep of Technical technical unit rep products, company Company rep technical support unit recoveries products Technical support unit and pay cash. support unit 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 8. Heilongjiang Haerbin City New Energy Sources and Green Products Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge Company Holding all villagers, Village Villager introduction village meeting including meeting committee Project Introduction to Broadcast & women and Company Company publicity technical unit and billboard, the elderly rep Technical project technique leaflet, Villager Technician support unit Estimate of publicity committee s 64  project benefit and manual Company risk rep Rep of technical support unit all villagers, including women and Village Explain the the elderly meeting Villager Encourage peasants Holding Determine selection principle Company Company committee who are willing to village affected of affected peasants rep rep Company learn by obsorbing meeting peasants Base on peasants' Villager Rep of Technical them imto the free will committee technical support unit platation. Rep of support unit technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager cooperatio mode of comments on the Company rep committee n with participation company's plan rep Rep of Company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Train major planters Hold Association Association is the Association Train ordinary regular/irregular Planting propagandist and Affected villagers training courses, technique Association organizer of families, Special training for involving all affected demonstratio Technical training. Technical women and Training women and poor peasants n families support unit support unit must the elderly families Field training and Technical Company make clear the basic Technical Prepare training guidance support unit rep information of support unit materials Open a technical Company affected peasants, Company rep Technical guidance service hotline for rep lay down varied 65  and Q&A feedback by peasants training programs Provide convenience and question according to their for those unable to answering by experts differences. The take part in the project Villager technical training of technical mutual aid teams demonstration Distribute training families and setup manuals of villager technical Members discuss, the mutual aid teams are association collect essential helpers of technical problems technical experts. Be sure to mobilize women to attend the training. Determine different training coverage and methods for different farming seasons. Planting Technical experts Affected technique Planting explain the time, Village meeting families, Field demonstratio technique coverage and method Village broadcast, women and manageme n families demonstratio of field management billboard, leaflet the elderly nt Technical n families Affected peasants' Technical support unit Technical field management support unit Company support unit Company rep rep Technical unit and company decide spec, Affected price of products to be Village meeting families, Company recovered that year Product cadres discuss with women and rep Company recovery company rep and the elderly Rep of Technical Peasants hand in technical unit rep Company rep technical support unit products, company Technical support unit recoveries products support unit and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Set up Issue "complaint Association Association The project villager form for project Affected meeting Association supervision and feedback execution", to each families, Company Company evaluation system Villager system villager team, so women and rep Technical shall consist of 4 monitoring Establish that villagers can the elderly Rep of support unit levels--the World & feedback villager raise comments Company rep technical Provincial Bank, province, system project timely Technical support unit project office county/city and supervision Set up a complaint support unit Officials of villager, peasant system telephone at the Provincial provincial beneficiaries can 66  provincial project project office project office directly participate office in the villager Association monitoring and collects affected feedback system. peasants' comments and suggestions anytime Set up a technical expert hotline 9. Heilongjiang Hailin City Vegetable and Seeding Propagation Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company the project billboard, committee Company publicity rep technique leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit all villagers, including women and Village Explain the the elderly meeting Villager Encourage peasants Holding Determine selection principle Company Company committee who are willing to village affected of affected peasants rep rep Company learn by obsorbing meeting peasants Base on peasants' Villager Rep of Technical them imto the free will committee technical support unit platation. Rep of support unit technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager cooperatio mode of comments on the Company rep committee n with participation company's plan rep Rep of Company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties 2) Project execution stage 67  Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Villagers raise Affected In contracting, Company comments/suggestion Company rep families, Company villager committee enters into s on the draft villager discusses with the women and rep should act as an contract Company revises the committee association cadres the elderly Rep of coordinator between with draft until recognized Company Company rep technical company and peasants by both parties Technical support unit peasants Company enters into support unit formal contract with peasants Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. Village meeting Planting Technical experts Village broadcast, Affected technique Planting explain the time, billboard, leaflet families, Field demonstratio technique coverage and method Communications women and manageme n families demonstratio of field management among affected the elderly nt Technical n families Affected peasants' peasants, between Technical support unit Technical field management affected peasants and support unit Company support unit the company Company rep rep 68  Technical unit and company decide spec, Affected price of products to be Village meeting families, Company recovered that year cadres discuss with Product women and rep Company company rep and recovery the elderly Rep of Technical Peasants hand in technical unit rep Company rep technical support unit products, company Technical support unit recoveries products support unit and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 10. Heilongjiang Daqing City Cow sex control Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company the project billboard, committee Company publicity rep technique leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit Determine Explain the Holding all villagers, Village Villager Encourage peasants 69  affected selection principle village including meeting committee who are willing to peasants of affected peasants meeting women and Company Company learn by obsorbing Base on peasants' the elderly rep Technical them imto the free will Company Rep of support unit platation. rep technical Villager support unit committee Rep of technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager cooperatio mode of comments on the Company rep committee n with participation company's plan rep Rep of Company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties Association's duties: Convene and Discuss the need organize village to set up the training and association, role services on the and possible Company rep Affected Project techniques benefits of discusses with peasants, Reflect peasants' association village cadres including Village comments and Discuss the mode Affected Villager women and meeting suggestions to the of operation of the peasants committee the elderly Association company and association discuss with Company Found cow Villager meeting experts on behalf of Determine the company rep Technical raising committee Company peasants rules and duties of Association support unit association Company rep The SA Team the association leaders Cadres of rep Rep of suggests the villager Villager sign up discuss with the Technical technical committee and for the association, company association support unit support unit major planters take elect association Determine the lead in founding cadres. the mode of the association, Company enters cooperation whose cadres must into cooperative include women. agreement with the Company should association pay a certain service charge as its activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge 70  The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. Technical experts explain the time, coverage and method of management in the Association Village meeting Association Village meeting breeding period Planting Association Village broadcast, Affected Village broadcast, Managem Association technique Planting billboard, leaflet families, billboard, leaflet ent in the publicizes, organizes, demonstratio technique Communications women and Communications breeding supervises the n families demonstratio among affected the elderly among affected period management Technical n families peasants, between Technical peasants, between executed in the support unit Technical affected peasants and support unit affected peasants breeding period Company support unit the association Company rep and the association in a unified manner, rep and reflect problems in time Affected peasants' 71  the the association association the communicates the Village meeting affected association the If any fell back job of taking germ Bring households, meeting association happens,the cells Association cadres back the women and company the association should the association discuss with company cows for the elder rep company be the coordinator guaranteesthe cows rep and rep of germ cells company rep technical technical and report it to should be clean- technical support unit technical support unit support unit related department. bred project support unit rep rep 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 11. Heilongjiang Daqing City Milk Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company the project billboard, committee Company publicity rep technique leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit Determine Explain the Holding all villagers, Village Villager Encourage peasants affected selection principle village including meeting committee who are willing to peasants of affected peasants meeting women and Company Company learn by obsorbing 72  Base on peasants' the elderly rep Technical them imto the free will Company Rep of support unit platation. rep technical Villager support unit committee Rep of technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager Determine manner cooperatio mode of comments on the Company rep committee of cooperation with n with participation company's plan rep Rep of Company project company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties Association's duties: organizae tequnique training or serveing Found cow meetings inside a raising Discuss the need village association to set up the Reflect peasants' association, role comments and and possible suggestions to the Company rep benefits of company and discusses with Affected association experts on behalf of village cadres peasants, Discuss the mode Village peasants Affected including Villager of operation of the meeting Organize feeding peasants women and committee association Association supply discuss with the elderly Company Determine the meeting Organize machine company rep Villager Technical rules and duties of Company milking Association committee support unit the association rep administer basic leaders Company Cadres of Villager sign up Rep of establishment discuss with rep the for the association, technical company Technical association elect association support unit Determine the support unit cadres. The SA Team mode of Company enters suggests the cooperation into cooperative villager committee agreement with the and major planters association take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 73  2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. Technical experts explain the time, Association Village meeting Association Village meeting coverage and method Planting Association Village broadcast, Affected Village broadcast, Managem of management in the technique Planting billboard, leaflet families, billboard, leaflet ent in the breeding period demonstratio technique Communications women and Communications breeding Association n families demonstratio among affected the elderly among affected period publicizes, organizes, Technical n families peasants, between Technical peasants, between supervises the support unit Technical affected peasants and support unit affected peasants management Company support unit the association Company rep and the association executed in the rep breeding period 74  in a unified manner, and reflect problems in time Affected peasants' the the association association the communicates the Village meeting affected association the If any fell back job of taking germ Bring households, meeting association happens,the cells Association cadres back the women and company the association should the association discuss with company cows for the elder rep company be the coordinator guarantees the cows rep and rep of germ cells company rep technical technical and report it to should be clean- technical support unit technical support unit support unit related department. bred project support unit rep rep 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 12. Heilongjiang Fuyu County Cow Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge Project Company Holding all villagers, Village Villager publicity introduction village meeting including meeting committee 75  Introduction to Broadcast & women and Company Company technical unit and billboard, the elderly rep Technical the project leaflet, Villager Technician support unit technique publicity committee s Estimate of manual Company project benefit and rep risk Rep of technical support unit all villagers, including women and Village Explain the the elderly meeting Villager Holding Determine selection principle Company Company committee village affected of affected peasants rep rep Company meeting peasants Base on peasants' Villager Rep of Technical free will committee technical support unit Rep of support unit technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager cooperatio mode of comments on the Company rep committee n with participation company's plan rep Rep of Company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties Discuss the need Convene and to set up the organize village association, role training and and possible Company rep Affected services on the benefits of discusses with peasants, Project techniques association village cadres including Village Discuss the mode Affected Villager women and meeting Reflect peasants' of operation of the peasants committee the elderly Association comments and association discuss with Company Found cow Villager meeting suggestions to the Determine the company rep Technical raising committee Company company and rules and duties of Association support unit association Company rep experts on behalf of the association leaders Cadres of rep Rep of peasants Villager sign up discuss with the Technical technical Organize feeding for the association, company association support unit support unit supply elect association Determine Organize machine cadres. the mode of milking Company enters cooperation administer basic into cooperative establishment agreement with the The SA Team association suggests the 76  villager committee and major planters take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Association is the propagandist and organizer of Hold training. Technical regular/irregular support unit must training courses, make clear the basic Train major planters involving all affected information of Train ordinary peasants affected peasants, villagers Field training and Association Association lay down varied Special training for guidance Planting Affected training programs women and poor Open a technical technique Association families, according to their families service hotline for demonstratio Technical women and differences. The Training Prepare training feedback by peasants n families support unit the elderly training of technical materials and question Technical Company Technical demonstration Technical guidance answering by experts support unit rep support unit families and setup and Q&A Villager technical Company Company rep of villager technical Provide convenience mutual aid teams rep mutual aid teams are for those unable to Distribute training essential helpers of take part in the project manuals technical experts. Members discuss, the Be sure to mobilize association collect women to attend the technical problems training. Determine different training coverage and 77  methods for different farming seasons. Technical experts explain the time, coverage and method of management in the Association Village meeting Association Village meeting breeding period Planting Association Village broadcast, Affected Village broadcast, Managem Association technique Planting billboard, leaflet families, billboard, leaflet ent in the publicizes, organizes, demonstratio technique Communications women and Communications breeding supervises the n families demonstratio among affected the elderly among affected period management Technical n families peasants, between Technical peasants, between executed in the support unit Technical affected peasants and support unit affected peasants breeding period Company support unit the association Company rep and the association in a unified manner, rep and reflect problems in time Affected peasants' the the association association the communicates the Village meeting affected association the If any fell job of taking germ Bring households, meeting association backhappens,the cells Association cadres back the women and company the association should the association discuss with company cows for the elder rep company be the coordinataor guarantees the cows rep and rep of germ cells company rep technical technical and report it to should be clean- technical support unit technical support unit support unit related department. bred project support unit rep rep 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project The project execution", to each Association supervision and villager team, so Association Set up meeting evaluation system that villagers can Affected villager Company Association shall consist of 4 raise comments families, feedback rep Company levels--the World Villager timely women and system Rep of Technical Bank, province, monitoring Set up a complaint the elderly Establish technical support unit county/city and & feedback telephone at the Company rep villager support unit Provincial villager, peasant system provincial project Technical project Officials of project office beneficiaries can office support unit supervision provincial directly participate Association Provincial system project office in the villager collects affected project office monitoring and peasants' comments feedback system. and suggestions anytime 78  Set up a technical expert hotline 13. Heilongjiang Hulan County Milk Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company the project billboard, committee Company Project publicity publicity rep technique leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit all villagers, including women and Village Explain the the elderly meeting Villager Holding Determine selection principle Company Company committee village affected of affected peasants rep rep Company meeting peasants Base on peasants' Villager Rep of Technical free will committee technical support unit Rep of support unit technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager cooperatio mode of comments on the Company rep committee n with participation company's plan rep Rep of Company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties 79  Association's duties: Convene and organize village training and services on the Discuss the need Project techniques to set up the Reflect peasants' association, role comments and and possible Company rep Affected suggestions to the benefits of discusses with peasants, company and association village cadres including Village experts on behalf of Discuss the mode Affected Villager women and meeting peasants of operation of the peasants committee the elderly Association Organize feeding association discuss with Company Found cow Villager meeting supply Determine the company rep Technical raising committee Company Organize machine rules and duties of Association support unit association Company rep milking the association leaders Cadres of rep Rep of administer basic Villager sign up discuss with the Technical technical establishment for the association, company association support unit support unit The SA Team elect association Determine suggests the villager cadres. the mode of committee and Company enters cooperation major planters take into cooperative the lead in founding agreement with the the association, association whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Train major planters Hold Association Association Association Association is the Train ordinary regular/irregular Affected Planting Technical propagandist and Training villagers training courses, families, technique support unit organizer of Special training for involving all affected women and demonstratio Company training. Technical women and poor peasants the elderly n families rep support unit must 80  families Field training and Technical Technical make clear the basic Prepare training guidance support unit support unit information of materials Open a technical Company rep Company affected peasants, Technical guidance service hotline for rep lay down varied and Q&A feedback by peasants training programs Provide convenience and question according to their for those unable to answering by experts differences. The take part in the project Villager technical training of technical mutual aid teams demonstration Distribute training families and setup manuals of villager technical Members discuss, the mutual aid teams are association collect essential helpers of technical problems technical experts. Be sure to mobilize women to attend the training. Determine different training coverage and methods for different farming seasons. Technical experts explain the time, coverage and method of management in the Association Village meeting Association Village meeting breeding period Planting Association Village broadcast, Affected Village broadcast, Managem Association technique Planting billboard, leaflet families, billboard, leaflet ent in the publicizes, organizes, demonstratio technique Communications women and Communications breeding supervises the n families demonstratio among affected the elderly among affected period management Technical n families peasants, between Technical peasants, between executed in the support unit Technical affected peasants and support unit affected peasants breeding period Company support unit the association Company rep and the association in a unified manner, rep and reflect problems in time Affected peasants' the association the communicates the association the Village meeting job of reclaiming affected association the The association milk households, meeting association Reclaiming Association cadres supervises the mlik the association women and company the milk discuss with company quality and guarantees the milk the elder rep company rep and rep of coordinate the price should be clean- company rep technical technical technical support unit dissension. bred technical support unit support unit project support unit rep rep 3) Involvement of affected peasants in supervision and evaluation 81  Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 14. Heilongjiang Haerbin City Pig Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Introduction to Village village meeting the elderly Villager technical unit and meeting Broadcast & Villager committee Project the manpowere Company billboard, committee Company publicity fecundation rep leaflet, Company Technical technique Technician publicity rep support unit Estimate of s manual Rep of project benefit and technical risk support unit all villagers, including women and Village Explain the the elderly meeting Villager Holding Determine selection principle Company Company committee village affected of affected peasants rep rep Company meeting peasants Base on peasants' Villager Rep of Technical free will committee technical support unit Rep of support unit technical support unit Determine Introduce the Villagers Peasants Village manner of company's existing discuss the within planned meeting Villager cooperatio cooperative plan mode of planting range Company committee n with Villagers raise participation Company rep Company project suggestions and with company rep Rep of company comments on the rep Villager technical 82  company's plan committee support unit Company revises the cooperative plan until recognized by both parties Association's duties: Convene and organize village training and Found Pig services on the Raisig Discuss the need Project techniques association to set up the Reflect peasants' association, role comments and and possible Company rep suggestions to the Affected benefits of discusses with company and peasants, association village cadres experts on behalf of including Village Discuss the mode Affected Villager peasants women and meeting of operation of the peasants committee Organize feeding the elderly Association association discuss with Company supply Villager meeting Determine the company rep Technical Organize committee Company rules and duties of Association support unit manpower Company rep the association leaders Cadres of fecundation rep Rep of Villager sign up discuss with the administer basic Technical technical for the association, company association establishment support unit support unit elect association Determine The SA Team cadres. the mode of suggests the Company enters cooperation villager committee into cooperative and major planters agreement with the take the lead in association founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company In contracting, the comments/suggestion discusses with the families, Company enters into association should s on the draft association cadres women and rep Association contract act as an coordinator Company revises the Association takes the elderly Rep of Company with between company draft until recognized the lead in holding a Company rep technical peasants and peasants by both parties village meeting Technical support unit Company enters into support unit formal contract with 83  peasants Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. Technical experts explain the time, coverage and method of management in the Association Village meeting Association breeding period Planting Association Village broadcast, Affected Managem Association technique Planting billboard, leaflet families, ent in the publicizes, organizes, demonstratio technique Communications women and breeding supervises the n families demonstratio among affected the elderly period management Technical n families peasants, between Technical executed in the support unit Technical affected peasants and support unit breeding period Company support unit the association Company rep in a unified manner, rep and reflect problems in time Affected peasants' 84  the the association association the Village meeting communicates the job affected association the of manpower households, meeting association Pig Association cadres fecundation women and company the Ricovery discuss with company the association the elder rep company rep and rep of guarantees the quality company rep technical technical technical support unit of Pigs technical support unit support unit project support unit rep rep 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 15. Heilongjiang Shuangcheng City Milk Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company the project billboard, committee Company publicity rep technique leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit Determine Explain the Holding all villagers, Village Villager Determine affected 85  affected selection principle village including meeting committee peasants peasants of affected peasants meeting women and Company Company Base on peasants' the elderly rep Technical free will Company Rep of support unit rep technical Villager support unit committee Rep of technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager cooperatio mode of comments on the Company rep committee n with participation company's plan rep Rep of Company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties Association's duties: Convene and organize village training and services on cow Found cow Discuss the need raising and raising to set up the epidemic association association, role prevention and possible Company rep Reflect peasants' Affected benefits of discusses with comments and peasants, association village cadres suggestions to the including Village Discuss the mode Affected Villager company and women and meeting of operation of the peasants committee experts on behalf of the elderly Association association discuss with Company peasants Villager meeting Determine the company rep Technical Organize feeding committee Company rules and duties of Association support unit supply Company rep the association leaders Cadres of Organize machine rep Rep of Villager sign up discuss with the milking Technical technical for the association, company association administer basic support unit support unit elect association Determine the establishment cadres. mode of The SA Team Company enters cooperation suggests the into cooperative villager committee agreement with the and major planters association take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its 86  activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Association is the propagandist and organizer of training. Technical Hold support unit must regular/irregular make clear the basic training courses, information of Train major planters involving all affected affected peasants, Train ordinary peasants lay down varied villagers Field training and Association training programs Association Special training for guidance Planting according to their Affected women and poor Open a technical technique Association differences. The families, families service hotline for demonstratio Technical training of technical women and Training Prepare training feedback by peasants n families support unit demonstration the elderly materials and question Technical Company families and setup Technical Technical guidance answering by experts support unit rep of villager technical support unit and Q&A Villager technical Company mutual aid teams are Company rep Provide convenience mutual aid teams rep essential helpers of for those unable to Distribute training technical experts. take part in the project manuals Be sure to mobilize Members discuss, the women to attend the association collect training. Determine technical problems different training coverage and methods for different farming seasons. 87  Technical experts explain the time, coverage and method of management in the Association Village meeting Association breeding period Planting Association Village broadcast, Affected Managem Association technique Planting billboard, leaflet families, ent in the publicizes, organizes, demonstratio technique Communications women and breeding supervises the n families demonstratio among affected the elderly period management Technical n families peasants, between Technical executed in the support unit Technical affected peasants and support unit breeding period Company support unit the association Company rep in a unified manner, rep and reflect problems in time Affected peasants' the association the the association Village meeting affected association the communicates the households, meeting association job of milk recovery Association cadres The association Milk women and company the the association discuss with company should guarantee recovery the elder rep company guarantees the mlik rep and rep of the mlik quality company rep technical technical quality technical support unit technical support unit support unit project support unit rep rep 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Association supervision and that villagers can Association Set up meeting evaluation system raise comments Affected villager Company Association shall consist of 4 timely families, feedback rep Company levels--the World Villager Set up a complaint women and system Rep of Technical Bank, province, monitoring telephone at the the elderly Establish technical support unit county/city and & feedback provincial project Company rep villager support unit Provincial villager, peasant system office Technical project Officials of project office beneficiaries can Association support unit supervision provincial directly participate collects affected Provincial system project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 88  16. Heilongjiang Zhaodong City Cow Project 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company the project billboard, committee Company publicity rep technique leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit all villagers, including women and Village Explain the the elderly meeting Villager Holding Determine selection principle Company Company committee village affected of affected peasants rep rep Company meeting peasants Base on peasants' Villager Rep of Technical free will committee technical support unit Rep of support unit technical support unit Introduce the company's existing cooperative plan Peasants Village Determine Villagers Villagers raise within planned meeting manner of discuss the suggestions and planting range Company Villager cooperatio mode of comments on the Company rep committee n with participation company's plan rep Rep of Company project with company Company revises Villager technical company rep the cooperative plan committee support unit until recognized by both parties Found cow Discuss the need Association's Company rep raising to set up the duties: discusses with Affected association association, role Convene and village cadres peasants, and possible Village organize village Affected including Villager benefits of meeting training and peasants women and committee association Association services on cow discuss with the elderly Company Discuss the mode meeting raising and company rep Villager Technical of operation of the Company epidemic Association committee support unit association rep prevention leaders Company Cadres of Determine the Rep of Reflect peasants' discuss with rep the rules and duties of technical comments and company Technical association the association support unit suggestions to the Determine the support unit Villager sign up company and mode of for the association, experts on behalf of cooperation elect association peasants 89  cadres. Organize feeding Company enters supply into cooperative Organize machine agreement with the milking association administer basic establishment The SA Team suggests the villager committee and major planters take the lead in founding the association, whose cadres must include women. Company should pay a certain service charge as its activity fund. 2) Project execution stage Participato Involved Manner of Organ in Activity coverage Manner of activity Remarks ry Activity parties inquiry charge The company drafts the contract Association Villagers raise Company rep Affected Association Company comments/suggestion In contracting, the discusses with the families, Company enters into s on the draft association should association cadres women and rep Association contract Company revises the act as an coordinator Association takes the elderly Rep of Company with draft until recognized between company the lead in holding a Company rep technical peasants by both parties and peasants village meeting Technical support unit Company enters into support unit formal contract with peasants Hold Association is the regular/irregular propagandist and training courses, organizer of Train major planters involving all affected training. Technical Train ordinary peasants support unit must villagers Association Field training and Association make clear the basic Special training for Planting guidance Affected information of women and poor technique Association Open a technical families, affected peasants, families demonstratio Technical service hotline for women and lay down varied Training Prepare training n families support unit feedback by peasants the elderly training programs materials Technical Company and question Technical according to their Technical guidance support unit rep answering by experts support unit differences. The and Q&A Company Villager technical Company rep training of technical Provide convenience rep mutual aid teams demonstration for those unable to Distribute training families and setup take part in the project manuals of villager technical Members discuss, the mutual aid teams are association collect essential helpers of 90  technical problems technical experts. Be sure to mobilize women to attend the training. Determine different training coverage and methods for different farming seasons. Technical experts explain the time, coverage and method of management in the Association Village meeting Association breeding period Planting Association Village broadcast, Affected Management Association technique Planting billboard, leaflet families, in the publicizes, organizes, demonstratio technique Communications women and breeding supervises the n families demonstratio among affected the elderly period management Technical n families peasants, between Technical executed in the support unit Technical affected peasants and support unit breeding period Company support unit the association Company rep in a unified manner, rep and reflect problems in time Affected peasants' the association the the association Village meeting affected association the communicates the households, meeting association job of milk recovery Association cadres The association Milk women and company the the association discuss with company should guarantee recovery the elder rep company guarantees the mlik rep and rep of the mlik quality company rep technical technical quality technical support unit technical support unit support unit project support unit rep rep 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint The project form for project Association supervision and Association Set up execution", to each meeting evaluation system Affected villager villager team, so Company Association shall consist of 4 families, feedback that villagers can rep Company levels--the World Villager women and system raise comments Rep of Technical Bank, province, monitoring the elderly Establish timely technical support unit county/city and & feedback Company rep villager Set up a complaint support unit Provincial villager, peasant system Technical project telephone at the Officials of project office beneficiaries can support unit supervision provincial project provincial directly participate Provincial system office project office in the villager project office Association monitoring and collects affected feedback system. 91  peasants' comments and suggestions anytime Set up a technical expert hotline 92  B. Farmer Beneficiaries Participation Framework of Shanxi Projects Components I. Advice on Guaranteeing Beneficiaries' Full Participation in Project Activities In the project design and execution, in order that all kinds of project benefits can be informed of the project timely and share equal opportunities to raise their comments and suggestions, also that the project executive units and supervisory organs can master the project execution dynamics and make decisions scientifically, the Social Assessment Team suggests: 1. Release project information to affected farmers regularly or irregularly by posting a notice at administrative villages, so that all beneficiaries can obtain relevant information and give feedbacks timely. 2. The project management body can set up a suggestion box, complaint hotline or reception center to collect beneficiaries' comments and voices, in order to keep through the communication channel between managers and beneficiaries, timely master the project execution dynamics, so that they can make practical revision plans to keep the project sustainable. 3. The information circulated by the project management body to beneficiaries include all project plans, implementing rules drawn up by the World Bank, Shanxi Project Management Body and project executive units, as well as project progress, product market information, etc. In addition, the activity regulations and dynamics of all planting/breeding associations established under this project should also be released to farmers concerned openly. 4. Considering that women are dominant in quite a few products, the existing woman organization--women's association--should be fully utilized to guarantee women's equal right of participation and improve their ability of participation. All associations should mobilize women to join in. 5. Considering poor farmers have certain difficulties in participating in some projects, such as cow zone, Qingchuan cattle zone, extremely poor farmers often have no money to buy cattle. For such projects, the companies are suggested to provide calves and extremely poor farmers participate in the form of consigned breeding. Some project companies already having their bases should absorb extremely poor farmers to work. 6. Farmers may participate in the project design, execution and monitoring through the association or the 2 village-level committees. All planting and breeding associations should collect problems arising in the project execution and farmers' opinions and feed them back to the executive unit, project monitoring department and the World Bank. II. FBPF for Each Established Project 93  (I) FBPF for Planting: The 19 planting projects that can be directly assessed by the SA Team and are directly related to farmers are divided into 3 classes by tightness of contractual connection between the company and farmers: 1) quasi-market contract type. The company and farmers contractually stipulate their rights and obligations in respect of production, marketing, service, benefit distribution and risk sharing, establish a relatively stable cooperative relationship featuring "shared interests and risks". Since both parties have kept their independent principal status, this form is just a partial substitution of their pure market contract, so it is known as the quasi-market (quasi-business) type; 2) integrated contract type. The company and farmers internalize farmers' production activities into the company's operating workshop through the connection of elements (labor, capital, land, etc). At present, the form of "land lease--operations with hired laborers" is used mainly; and 3) mixed type of quasi-market contract type and integrated contract type. The SA Team will make FBPFs on planting projects for these 3 types. A. Quasi-market contract type. The projects covered include theYangling quality fruit variety planting demonstration base, grape and wine production, Yangling organic vegetable industrialization construction, Yangling mulberry industrialization, traditional Chinese medicinal materials GAP production and processing, new nuisance-free pesticide production, resveratrol industrialization , Yangling garden sapling popularization base, Yangling Pingheng functional health food processing and raw materials base, yellow ginger deep processing, Fengxiang County yellow ginger planting base and expansion of saponin production line, 10,000mu medicinal plant planting and fine variety cultivation base, Yintai District modern sapling cultivation base in Tongchuan, nuisance-free apple production and marketing technological demonstration zone in Baishui County, nuisance-free winter date planting base in Pucheng County, nuisance-free strawberry planting and deep processing, Shanxi organic Chinese goosebeery industrialization demonstration base. 1. Project preparation stage Participatory Manner of Organ in Activity coverage Involved parties Manner of inquiry Remarks Activity activity charge Hold All villagers, Village Company introduction villager including women and Villager r Introduction to technical meeting the elderly committ meeting Project unit and relevant planting Broadcast Villager committee Company ee publicity techniques and billboard, Company Compa representative Forecast of project leaflet, representative Technician ny benefits and risk publicity Technical support Techni manual unit representative cal 94  support unit Explain the selection principle of affected farmers For projects requiring centralized planning at a Village suitable area, persuade the All villagers, Villager r farmers in the planned including women and meeting committ The SATeam thinks selecting major Determinat planting area to attend the planters as affected farmers is good to Hold the elderly Company ee the successful startup and healthy ion of project, explain the reason Company representative Compa villager operation of the whole project, their affected for not participating in the representative Technical ny meeting role is embodied in technological farmers project to those outside with Villager committee support unit Techni demonstration, benefit demonstration the intent Technical support representative cal and promotion. Cooperate with local unit representative support major planters unit If the company's strength allows, give priority to poor families with the intent of participation All companies have proposed a plan of cooperation with farmers Introduce the company's Determinat Villager based on their practical situation existing cooperative plan Discussion Affected farmers, Village ion of meeting and project's objective Villagers propose of mode of involving women and r mode of Company requirements, embodying comments and suggestions participation the elderly committ cooperatio representative diversified modes of cooperation: for the company's plan by villagers Company ee n with The company revises the Technical 1) incorporate with an enterprise and company representative Compa project support unit at the affected area into joint- cooperative plan until it is representative Villager committee ny company representative stock company, the local agreed by both parties enterprise shall complete the product purchase, primary 95  processing jobs; 2) cooperate with the township government; 3) cooperate with the professional association; 4) cooperate with major planters. The SA Team suggests the company should minimize farmers' cash expenditure at the project's initial stage by advancing this fund for farmers and deducting this fund from farmers' income after harvest. For poor affected farmers, the company may exempt, reduce or fully advance the initial cost according to its strength. Forum Village Most projects have a plan to set Discuss the necessity to between r up a professional association or set up the association, its company committ have already set up one. role and possible benefits Affected farmers, representative Villager ee However, professional Discuss the association's involving women and and village meeting Compa associations are playing varying mode of operation the elderly cadres Association ny roles in these projects, for Set up Determine the Villager committee Forum meeting Techni example, as a service professiona association's rules and Company between Company cal organization for project operation l responsibilities representative affected representative support or interest entity. Their association Villagers sign for the Technical support farmers and Technical unit responsibilities are: association and elect unit company support unit Cadre Publicize and organize the association cadres The company enters into representative representative of training and service on planting Forum professio techniques cooperative agreement with between nal Reflect, negotiate farmers' the association association associati comments and suggestions on 96  leadership and on behalf of farmers to the company company and experts, communicate ideas Determine of the company and experts to the mode of farmers cooperation Organize the purchase of qualified products Manage large farm machinery, irrigation facilities and other farmland infrastructure In some projects, the company mainly contracts with the association, which becomes the intermediary of the company in face of numerous families The SA Team suggests that at villages where the cadre-public relation is good, a professional association can be set up under the villager committee's leadership, association cadres should include major planters and women. The company should pay certain service charges to the association for the work undertaken as its operating funds. Establish The cooperation with the county, cooperativ township government and the e relations introduction of the government's with local power has been considered as a governmen forceful measure to reduce the t and agro- company's risks by many 97  tech companies with the experience of popularizin "company + farmer". Farmer g beneficiaries have not department participated in this item. 2. Project execution stage Participatory Activity coverage Manner of activity Involved parties Manner of inquiry Organ in charge Remarks Activity The company drafts a contract Association Villagers propose Forum between Affected Association In the contracting comments and farmers, women Company process, the association The company representative suggestions for the draft and the elderly representative Association should serve as an company The company revises and association cadres Company Technical Company organizer and contracts Association takes the the draft until agreed by representative support unit Village cadre communicator between with farmers lead in holding affected both parties Technical representative the company and The company enters villagers' meeting support unit Village cadre farmers. into formal contract with Village cadre farmers Determine subjects of Affected villagers' meeting Affected Screening of special support Broadcast, billboard farmers special Determine the specific Association Project company Company Association support support scheme Company representative, cadres of representative Company families Release the determined representative villager committee, Village cadre Village cadre (poor) under special support families Village cadre association Association the project and support plan with a representative, expert representative notice forum 98  The association is the publicist and organizer Holding regular, of training. The technical support unit irregular training courses should make clear the Train major planters compulsory for all background of affected Train ordinary villagers affected farmers farmers, formulate Give special training to Field training and Association Association different training women and poor families guidance Planting Affected programs according to Prepare the training Open a technical service technique Association farmers, women farmers' differences. materials hotline, where experts demonstration Technical and the elderly Technical Training Technical guidance and answer farmers' Technical families support unit demonstration families Q&A questions Technical Company support unit and villager technical Provide convenience of Villager technical Company support unit representative mutual-aid team are technique learning to mutual-aid team Company representative necessary helpers to farmers with the intent Distribution of training representative technical experts. Be but unable to participate manual sure to involve women in the project whatsoever Members discuss, in the training. association collects Training contents and technical problems modes should be tailored to farming seasons. Technical experts Association Affected villagers' Association explain the time, Planting Association meeting Affected coverage and method of Village broadcast, technique Planting farmers, women field management demonstration technique Field billboard, leaflet and the elderly The association families demonstration management Communication among Technical publicizes, organizes, Technical families affected farmers, between support unit supervises the unified support unit Technical affected farmers and Company field management, and Company support unit association at any time representative reflects problems timely representative 99  Field management of affected farmers Design of infrastructure Association The SA Team suggests construction plan Affected villagers' Affected Association Association when the project Infrastructur Infrastructure meeting farmers, women Technical Technical finishes, such e construction Forum of association and the elderly support unit support unit infrastructure should construction, Acceptance after cadres, local government Technical Company Company be freely available to management completion of representative, affected support unit representative representative farmers. The village and infrastructure farmers and project Company Local Local collective shall take utilization Formulate regulations company representative representative government government charge of management on infrastructure use and Local government Local and maintenance management government The technical unit and company determine the price and specification of product recovery of the year Association The association Affected villagers' Association Affected meeting meeting communicates ideas of Forum of association farmers, women Company Association Product the company and and the elderly Company cadres, project company representative recovery technical unit, calls on Company Technical representative and Technical farmers to strictly representative support unit technical unit support unit perform the contract for Technical representative representative product recovery support unit Farmers turn over products, the company recovers products and pays cash 3. Project monitoring and evaluation stage 100  Participatory Activity coverage Manner of activity Involved parties Manner of inquiry Organ in charge Remarks Activity Print the "Project Execution Complaint Form" and issue to every Association Association The project's monitoring villager team to collect Affected meeting and evaluation system Establish the opinions timely farmers, women Company Association will consists of 4 levels Villager villager comments Set up a complaint and the elderly representative Company at the World Bank, monitoring feedback system telephone at the Company Technical Technical province, county/city and feedback Establish the provincial project office representative support unit support unit and villager. The What system villager project Association collects Technical representative Provincial farmer beneficiaries can supervision system affected farmers' support unit Officials of project office directly participate in is comments and Provincial provincial the villager monitoring suggestions anytime project office project office and feedback system. Set up a technical expert hotline B. Integrated contract type: quality fruit tree detoxified seedling quick cultivation and production demonstration base project. The whole FBPF is roughly similar to A. The differences are: Participator Organ in Activity coverage Manner of activity Involved parties Manner of inquiry Remarks y Activity charge Explain the selection All Villager principle of affected villagers, meeting Villager Determin farmers including Company committee ation of For projects requiring Hold villager meeting women and representative Company affected centralized planning at a the elderly Technical Technical farmers suitable area, persuade the Company support unit support unit farmers in the planned representativ representative planting area to attend the e 101  project, explain the reason Villager for not participating in the committee project to those outside Technical with the intent support unit representativ e Introduce the company's existing cooperative plan Villagers propose comments and suggestions Affected for the company's plan farmers, Determin The company revises the Villager involving ation of meeting cooperative plan until it is Discussion of mode of women and mode of Company Villager agreed by both parties participation by the elderly cooperati representative committee Explain the amount, villagers and company Company on with Technical Company difference, date and mode representative representativ project support unit of reimbursement of land e company representative rent in particular details; Villager operating mode, profit committee sharing of pooling of land, land ownership and use land right Print the "Project Association Association Associatio The joint project supervision Execution Complaint Affected meeting n team of all affected villages Villager Form" and issue to farmers, Company Company has the main duty to supervise Establish the villager monitorin every villager team to women and representative Technical the pooling and profit sharing comments feedback system g and collect opinions timely the elderly Technical support unit of land. It should be advisably Establish the villager feedback Set up a complaint Company support unit Provincial composed of shareholder project supervision system system telephone at the representativ representative project representatives elected by provincial project office e Officials of office villagers and the company's Association collects Technical provincial Villager project directors. It shall 102  affected farmers' support unit project office committee release the company's comments and Provincial Villager operations to villagers at each suggestions anytime project office committee year end and hold general Set up a technical Villager meetings of shareholders, to expert hotline committee discuss and formulate specific Found a united project measures for reasonable supervision team of the dividend allocation. affected village C. Mixed type: quality forest and grass cultivation base project. The FBPF is basically similar to A. The differences are: Participatory Manner of Manner of Organ in Activity coverage Involved parties Remarks Activity activity inquiry charge Participate in Persuade farmers in the All farmers Villager meeting Villager Project It's necessary to set up a selection of leased land of the company to Company Forum of village committee preparation planting association affected participate in the project representative cadres and company Project stage under the leadership of farmers Farmers outside the leased Village representative company the villager committee, land will sign for the project cadre the association shall be and be subject to the approval established after the of the company and villager determination of affected committee farmers Set up Make clear the hierarchy of Affected Discussion of Technical Project The technological technological affected farmers, provide a farmers technical expert execution popularization team popularization basis for the technical unit to Technical popularization team Association stage should be led by the team formulate a practical technical expert Discussion of Affected planting association and training program Technical technical farmers must involve technical Feed back farmers' demonstration demonstration Technical demonstration families difficulties in technical study family families and experts demonstration timely Association family Affected farmers exchange 103  each other Product Pay the land rent on Affected Meeting of affected Technical Project The company suggests to purchase schedule farmers farmers expert execution make sure it can recover Hand in product and pay Technical Discussion of Association stage products on schedule up purchase payment on schedule expert association Affected to the quality and Deduct the seedling cost Association representative and farmers quantity standards by advanced by the company Company company Company means of: 1) burden Publicize the strict representative Spot operation of representative farmers with 20% of the performance of the contract to product purchase and cost; 2) in principle, the peasants, formulate granting of relevant minimum protective price punishment measures to avoid funds shall apply, but if the breach market price is higher Fix the product purchase than this price, the price and standard of the year company and farmers shall negotiate the sharing of this part of extra income; 3) apply certain punishments on farmers breaching the contract. (II) FBPF for Stockbreeding: There are 16 established stockbreeding projects, divided into individual breeding type and breeding zone type by mode of operation of company's base. The SA Team has made FBPFs for these 2 types. A. Breeding zone type. This type covers 9 projects: beef cattle fine breed breeding and fattening project, Yangling dairy industry demonstration base construction project, Baoji high-output cow embryo transplantation center construction project, Shenguo 10,000 cows breeding base construction project, stockbreeding industrialization Qingchuan beef cattle breeding zone construction and beef cattle deep processing project, Xianyang high-output cow breeding base construction project, Boer goat hi-tech breeding demonstration park construction project, Fupinhg County milk goat breeding and product processing project, Qingchuan cattle improvement and breeding popularization project. The SA Team thinks the base construction mode of breeding zone needs a high 104  investment, a company's solid strength is the precondition for the successful operation of this mode. It is suggested that the companies select this mode based on a fully evaluation of their own strength. 1. Project preparation stage Participatory Manner of Organ in Activity coverage Involved parties Manner of inquiry Remarks Activity activity charge Hold Villager All villagers, Company introduction committe villager including women and Villager e Introduction to technical meeting the elderly meeting Compa Project unit and relevant breeding Broadcast Villager committee Company ny publicity techniques and billboard, Company representative Technic Forecast of project benefits leaflet, representative Technician al and risk publicity Technical support support manual unit representative unit Determine and release the selection criteria of affected farmers Farmers shall sign up Villager All villagers, Villager according to the criteria, the committe including women and meeting The SATeam thinks the cooperation company and villager e Determinat the elderly Company with major breeders is good to the committee jointly select Hold Compa successful startup and healthy ion of Company representative affected farmers and release villager ny operation of the whole project, their affected representative Technical the result meeting Technic role is embodied in technological farmers Villager committee support unit Cooperate with local major demonstration, benefit demonstration Technical support al representative and promotion. breeders support unit representative If the company's strength unit allows, give priority to poor families with the intent of participation Set up a Discuss the necessity to set Forum of Affected farmers, Villager Villager All breeding projects have a plan breeding up the association, its role and company involving women and meeting committe to set up a professional 105  association possible benefits representative the elderly Association e association or have already set up Discuss the association's and village Villager committee meeting Compa one. In the breeding zone mode, mode of operation cadres Company Company ny its main responsibilities are: Determine the association's Forum of representative representative Technic Publicize and organize the rules and responsibilities affected Technical support Technical al training and service on breeding Villagers sign for the farmers and unit support unit support techniques association and elect company representative unit Reflect, negotiate farmers' association cadres representative Cadre comments and suggestions on The company enters into Forum of of behalf of farmers to the company cooperative agreement with association professio and experts, communicate ideas the association leaders and nal of the company and experts to company associati farmers General on Organize the purchase of assembly of qualified products association Manage cowshed, milk station and other infrastructure, Company contracts with the association, which becomes the intermediary of the company in face of numerous families Monitor the epidemic situation for unified disease prevention and timely disease treatment Grant livestock. The SA Team suggests that at villages where the cadre-public relation is good, a professional association can be set up under the villager committee's leadership, association cadres should include major breeders 106  and women. The company should pay certain service charges to the association for the work undertaken as its operating funds. Considering the construction cost of a breeding zone is high, the SA Team suggests that the infrastructure (silo bin, cowshed) construction be undertaken by the Forum of company. If the company thinks affected this unaffordable, the SA Team farmers, suggests that it should abandon association this mode. representative Villager For farmers with the intent to Introduce the company's Affected farmers, Affected , village committe enter the zone but without money Determine existing cooperative plan involving women and villagers' cadres and e to buy livestock, the company the Villagers propose comments the elderly meeting company Compa may offer fine breed livestock breeding and suggestions for the Company Company representative ny and advance at least half of the zone's company's plan representative representative Inform Breedin cost, which is to be deducted mode of The company revises the Association Technical farmers of g from the purchase price. Or the operation cooperative plan until it is representative support unit detailed associati company acts as the loan agreed by both parties Village cadre representative operating on guarantor to farmers rules via For extremely poor farmers, the billboard and company may elect to advance all publicity funds. Poor farmers without the manual learning ability may be absorbed to the zone to do paid door keeping, cleaning jobs. The breeding association should undertake the daily management and coordination of the breeding 107  zone. There must be corresponding technical service personnel, disease prevention and treatment agencies at the breeding zone Cover insurance for livestock entering the zone 2. Project execution stage Participatory Activity coverage Manner of activity Involved parties Manner of inquiry Organ in charge Remarks Activity The contract between the company and association is focused The company drafts a on both parties' duties and obligations in contract cooperation. The association gives The Company Association In this base comments and company representative Company construction mode, the suggestions on the draft Forum between contracts The company revises Association representative Association association should be a company representative with the representative Technical Company subject of interest to the draft until agreed by and association cadres breeding Technical support unit share a part of both parties association The company enters support unit representative proceeds from the project into formal contract with The company is the association suggested to retain some association cadres in a fixed manner. 108  The company drafts a contract Association Villagers propose Forum between Affected Association In the contracting comments and farmers, women Company process, the association The company representative suggestions for the draft and the elderly representative Association should serve as an company The company revises and association cadres Company Technical Company organizer and contracts Association takes the the draft until agreed by representative support unit Village cadre communicator between with farmers lead in holding affected both parties Technical representative the company and The company enters villagers' meeting support unit Village cadre farmers. into formal contract with Village cadre farmers Determine subjects of Affected villagers' meeting Affected Screening of special support Broadcast, billboard farmers special Determine the specific Association Project company Company Association support support scheme Company representative, cadres of representative Company families Release the determined representative villager committee, Village cadre Village cadre (poor) under special support families Village cadre association Association the project and support plan with a representative, expert representative notice forum Train major breeders Holding regular, The association is the Train ordinary villagers irregular training courses Association Association publicist and organizer Give special training to compulsory for all of training. The Affected Technical women and poor families affected farmers Association technical support unit farmers, women demonstration Prepare the training Spot training and Technical should make clear the Technical and the elderly family materials guidance support unit background of affected training Technical Technical Technical guidance and Open a technical service Company farmers, formulate support unit support unit Q&A hotline, where experts Company Company representative different training Provide convenience of answer farmers' programs according to representative representative technique learning to questions farmers' differences. farmers with the intent Villager technical Technical 109  but unable to participate mutual-aid team demonstration families in the project whatsoever Distribution of training and villager technical manual mutual-aid team are Members discuss, necessary helpers to association collects technical experts. technical problems Be sure to involve women in the training. Training contents and modes should be tailored to farming seasons. Technical experts teach disease prevention and Affected villagers' Association Association treatment techniques meeting Affected Technical Association Disease Association publicizes, Village broadcast, farmers, women demonstration Technical prevention organizes, supervises the billboard, leaflet and the elderly family demonstration and disease prevention and Communication among Technical Technical family treatment treatment, reflects affected farmers, between support unit support unit Technical problems timely Affected farmers' own affected farmers and Company Company support unit association at any time representative representative disease prevention and treatment Design of the Association The SA Team suggests Construction infrastructure Affected villagers' Affected Association Association when the project , construction plan meeting farmers, women Technical Technical finishes, such management Infrastructure Forum of association and the elderly support unit support unit infrastructure should and use of construction cadres, village cadres, Technical Company Company be freely available to infrastructur Acceptance after affected farmers and support unit representative representative farmers. The village e in small completion of project company Company Local Local collective shall take zone infrastructure representative representative government government charge of management Formulate the Village cadre and maintenance 110  regulations on use and management of infrastructure The technical unit and company determine the price, mode and location of product recovery The association communicates ideas of Affected villagers' Association Association the company and meeting Affected meeting technical unit, calls on Forum of association farmers, women Company Association Product farmers to strictly cadres, project company and the elderly Company representative recovery perform the contract for representative and Company Technical Technical product recovery technical unit representative support unit support unit Farmers turn over representative Technical representative products, the company support unit recovers products and pays cash The company deducts farmers' payment on credit 3. Project monitoring and evaluation stage Participatory Activity coverage Manner of activity Involved parties Manner of inquiry Organ in charge Remarks Activity Establish the Print the "Project Association Association Association The project's monitoring Villager villager comments Execution Complaint Affected meeting Company and evaluation system monitoring feedback system Form" and issue to every farmers, women Company Technical will consists of 4 levels and feedback Establish the villager team to collect and the elderly representative support unit at the World Bank, system villager project opinions timely Company Technical Provincial province, county/city 111  supervision Set up a complaint representative support unit project office and villager. The What system telephone at the Technical representative farmer beneficiaries can provincial project office support unit Officials of directly participate in is Association collects Provincial provincial the villager monitoring affected farmers' project office project office and feedback system. comments and suggestions anytime Set up a technical expert hotline B. Individual breeding type. This type covers 7 projects: organic safe pork industrialization demonstration project, fine breed cow embryo transplantation center construction project, Baoji County cow breeding and liquid cow processing project, ecological sheep raising demonstration base construction project in Yaozhou District in Tongchuan, Chengcheng County commodity beef cattle production base construction project, multivalent specific immune milk project for prevention and auxiliary treatment of hepatitis B/C, Yangling circulating seawater breeding demonstration park project. 1. Project preparation stage Participatory Manner of Activity coverage Involved parties Manner of inquiry Organ in charge Remarks Activity activity Hold All villagers, Company introduction including women villager and the elderly Villager Villager Introduction to technical meeting Villager meeting committee Project unit and relevant breeding Broadcast committee Company Company publicity techniques and billboard, Company representative Technical Project benefit and risk leaflet, representative Technician support unit forecast publicity Technical support manual unit representative Determinat Determine and release the Hold All villagers, Villager Villager The SA Team thinks the cooperation ion of selection criteria of affected including women meeting committee with major breeders is good to the villager affected farmers and the elderly Company Company successful startup and healthy meeting farmers Farmers shall sign up Company representative Technical operation of the whole project, their l i b di d i h l i l 112  according to the criteria, the representative Technical support unit role is embodied in technological company and villager Villager support unit demonstration, benefit demonstration committee jointly select committee representative and promotion. affected farmers and release Technical support the result unit representative Cooperate with local major breeders If the company's strength allows, give priority to poor families with the intent of participation All breeding projects have a plan Forum of to set up a professional association or have already set up company one. In the individual breeding representative mode, its main responsibilities and village Discuss the necessity to set are: cadres Affected farmers, Villager up the association, its role Villager Publicize and organize the Forum of involving women meeting and possible benefits committee training and service on breeding affected and the elderly Association Discuss the association's Company techniques Set up farmers and Villager meeting mode of operation Technical Reflect, negotiate farmers' breeding Determine the association's company committee Company support unit comments and suggestions on association representative Company representative rules and responsibilities Cadre of behalf of farmers to the company Forum of representative Technical Villagers apply for professional and experts, communicate ideas association Technical support support unit affiliation to the association, association of the company and experts to leaders and unit representative elect association cadres. farmers company General Organize the purchase of qualified products assembly of Company contracts with the association association, which becomes the intermediary of the company in 113  face of numerous families Monitor the epidemic situation for unified disease prevention and timely disease treatment Grant livestock. The SA Team suggests that at villages where the cadre-public relation is good, a professional association can be set up under the villager committee's leadership, association cadres should include major breeders and women. The company should pay certain service charges to the association for the work undertaken as its operating funds. Forum of For peasants without the initial affected cost, the company shall advance farmers, at least half of the cost and deduct Determine association it from the future product the mode Introduce the company's Affected farmers, Affected representative purchase price. Or the company of existing cooperative plan involving women villagers' , village Villager acts as a loan guarantor to cooperatio Villagers propose comments and the elderly meeting cadres and committee farmers. n between and suggestions for the Company Company company Company For extremely poor farmers, the the company's plan representative representative representative Breeding company may elect to advance all company The company revises the Association Technical Inform association funds. Poor farmers without the and cooperative plan until it is representative support unit farmers of learning ability may be absorbed farmers by agreed by both parties Village cadre representative detailed to the zone to do paid door discussion operating keeping, cleaning jobs. rules via Be sure to consider the billboard and provision of convenient technical 114  publicity services, disease prevention and manual treatment agencies Cover insurance for affected farmers' livestock 2. Project execution stage Participatory Activity coverage Manner of activity Involved parties Manner of inquiry Organ in charge Remarks Activity The company drafts a contract Association Villagers propose Forum between Affected Association In the contracting comments and farmers, women Company process, the association The company representative suggestions for the draft and the elderly representative Association should serve as an company The company revises and association cadres Company Technical Company organizer and contracts Association takes the the draft until agreed by representative support unit Village cadre communicator between with farmers lead in holding affected both parties Technical representative the company and The company enters villagers' meeting support unit Village cadre farmers. into formal contract with Village cadre farmers Determine subjects of Affected villagers' meeting Affected Screening of special support Broadcast, billboard farmers special Determine the specific Association Project company Company Association support support scheme Company representative, cadres of representative Company families Release the determined representative villager committee, Village cadre Village cadre (poor) under special support families Village cadre association Association the project and support plan with a representative, expert representative notice forum 115  The association is the publicist and organizer of training. The Holding regular, technical support unit irregular training courses should make clear the Train major breeders compulsory for all background of affected Train ordinary villagers affected farmers farmers, formulate Give special training to Spot training and Association Association different training women and poor families guidance Affected Technical programs according to Prepare the training Open a technical service farmers, women Association demonstration farmers' differences. materials Technical Technical hotline, where experts and the elderly family Technical Technical guidance and support unit training answer farmers' questions Technical Technical demonstration families Q&A Villager technical Company support unit support unit and villager technical Provide convenience of representative mutual-aid team Company Company mutual-aid team are technique learning to Distribution of training representative representative necessary helpers to farmers with the intent manual technical experts. but unable to participate Members discuss, Be sure to involve in the project whatsoever association collects women in the training. technical problems Training contents and modes should be tailored to farming seasons. Technical experts teach Affected villagers' Association Association disease prevention and meeting Affected Technical Association Disease treatment techniques Village broadcast, farmers, women demonstration Technical prevention Association publicizes, billboard, leaflet and the elderly family demonstration and organizes, supervises the Communication among Technical Technical family treatment disease prevention and affected farmers, between support unit support unit Technical treatment, reflects affected farmers and Company Company support unit problems timely Affected farmers' own association at any time representative representative 116  disease prevention and treatment The technical unit and company determine the price, mode and location of product recovery The association communicates ideas of Association Affected villagers' Association the company and Affected meeting meeting technical unit, calls on Forum of association farmers, women Company Association Product farmers to strictly and the elderly Company cadres, project company representative recovery perform the contract for Company Technical representative and Technical product recovery representative support unit technical unit support unit Farmers turn over Technical representative representative products, the company support unit recovers products and pays cash The company deducts farmers' payment on credit 3. Project monitoring and evaluation stage Participatory Activity coverage Manner of activity Involved parties Manner of inquiry Organ in charge Remarks Activity Villager Establish the Print the "Project Association Association Association The project's monitoring monitoring villager comments Execution Complaint Affected meeting Company and evaluation system and feedback feedback system Form" and issue to every farmers, women Company Technical will consists of 4 levels system Establish the villager team to collect and the elderly representative support unit at the World Bank, 117  villager project opinions timely Company Technical Provincial province, county/city supervision Set up a complaint representative support unit project office and villager. The What system telephone at the Technical representative farmer beneficiaries can provincial project office support unit Officials of directly participate in is Association collects Provincial provincial the villager monitoring affected farmers' project office project office and feedback system. comments and suggestions anytime Set up a technical expert hotline 118  C. Farmer Beneficiaries Participation Framework of Anhui project components 1. High-quality Broiler Chicken Raising Demonstration in Guangde 1) Preparation stage: Participator Manner of Involved Manner of Organ in Activity coverage Remarks y Activity activity parties inquiry charge all villagers, Company including introduction Holding women and Village Introduction to village meeting the elderly Villager meeting technical unit and Broadcast & Villager committee Project Company the detailed plan of billboard, committee Company publicity rep the project leaflet, Company Technical Technician Estimate of publicity rep support unit s project benefit and manual Rep of risk technical support unit all villagers, including Explain the women and Village selection principle the elderly meeting Villager of affected Determine Company Company committee peasants Holding affected rep rep Company Persuade peasants village meeting peasants Villager Rep of Technical without planned committee technical support unit planting range to Rep of support unit take part in project technical support unit Introduce the company's existing cooperative plan Village Villagers raise Villagers Affected The SA Team Determine meeting suggestions and discuss the peasants suggests the manner of Company Villager comments on the mode of Company company make out cooperation rep committee company's plan participation rep detailed plan on the with project Rep of Company Company revises with company Villager allowance for company technical the cooperative rep committee peasants' henhouse support unit plan until recognized by both parties 2) Project execution stage Participator Involved Manner of Organ in Activity coverage Manner of activity Remarks y Activity parties inquiry charge 119  The company drafts the contract Villager Villagers raise Company rep committee Villager comments/suggestion discusses with the Company Affected committee In contracting, the s on the draft villagers and the enters into families, Company Villager villager should act Company revises villager committee contract women and rep committee as an coordinator the draft until Villager committee with the elderly Rep of Company between company recognized by both takes the lead in peasants Company rep technical and peasants parties holding a village Technical support unit Company enters meeting support unit into formal contract with peasants Technical support unit must make clear the basic information of Hold affected peasants, Train major regular/irregular lay down varied planters training courses, training programs Train ordinary Villager involving all affected according to their villagers Villager committee peasants differences. The Special training for committee Breed Villager Spot training and training of technical women and poor Affected aquatics committee guidance demonstration families families, technique Open a technical families and setup Training Prepare training women and demonstratio Technical service hotline for of villager technical materials the elderly n families support unit feedback by peasants mutual aid teams are Technical guidance Technical Technical Company and question essential helpers of and Q&A support unit support unit rep answering by experts technical experts. Provide Company rep Company Villager technical Be sure to mobilize convenience for rep mutual aid teams women to attend the those unable to take Distribute training training. Determine part in the project manuals different training coverage and methods for different farming seasons. Technical experts explain the time, Villager Villager course of the breed committee Villager Village meeting committee of the particular committee Village broadcast, chicken Planting billboard, leaflet Affected Breeding Villager publicizes, technique Planting Communications families, managemen organizes, supervises demonstratio technique among affected women and t the field management n families demonstratio peasants, between the elderly executed in a unified Technical n families affected peasants and Technical manner, and reflect support unit Technical the technician support unit problems in time Company support unit Company rep Affected peasants' rep management 120  Peasants know the market price and discuss with company about the spec and the Villager purchase price of committee Village Village meeting Villager their product Affected meeting Villager committee committee Villager committee families, Company Product and the rep of peasants communicates ideas women and rep recovery discuss with company Company of the company and the elderly Rep of rep and technical unit Technical technical unit, calls Company rep technical rep support unit peasants to strictly Technical support unit stick to the contract support unit Peasants hand in products, company recoveries products and pay cash. 3) Involvement of affected peasants in supervision and evaluation Participator Activity Involved Manner of Organ in Manner of activity Remarks y Activity coverage parties inquiry charge Issue "complaint form for project execution", to each The project villager team, so Villager Village supervision and that villagers can Set up committee meeting evaluation system raise comments Villager villager Affected Company shall consist of 4 timely committee feedback families, rep levels--the World Villager Set up a complaint Company system women and Rep of Bank, province, monitoring telephone at the Technical Establish the elderly technical county/city and & feedback provincial project support unit villager Company rep support unit villager, peasant system office Provincial project Technical Officials of beneficiaries can Association project office supervision support unit provincial directly participate collects affected system Provincial project office in the villager peasants' comments project office monitoring and and suggestions feedback system. anytime Set up a technical expert hotline 2.Sci