Town-based Factory District – Reduces Poverty, Enhances Skills, and Leads to Better Infrastructure in County with Scarce Arable Land

ABSTRACT

Jinjie town, Tiandeng county is located in a mountainous region with scarce arable land in southwestern China. Many people from the area tended to leave in search of better opportunities, and those who stayed often faced poverty. The county government eventually established a new factory district in order to address the situation. Infrastructure improved, Jinjie natives received training, more than 500 people became employed, and poverty decreased in the area as a result of the project.

BACKGROUND

Tiandeng county, Chongzuo prefecture-level city, Guangxi Zhuang autonomous region is located in a mountainous region as is often the case with China's impoverished counties. Its residents have tended to rely on a single-industry structure involving traditional forms of agriculture on the scarce arable land in the region. Many people have chosen to move to other areas for work as a result of these difficulties, which has led to many children and seniors being left behind in Tiandeng's towns and villages. The phenomenon created a cycle in which there is not enough labor for development, and people become even more reluctant to stay in the areas they are from. Women often lacked childcare resources and experienced a lot of burdens as well, which limited their ability to work. Tiandeng's Jinjie town was especially in need of assistance. It suffered from poverty, weak infrastructure, insufficient opportunities, homogenous economic activity, and other problems.

INTERVENTIONS

The Tiandeng government decided to establish a special district in Jinjie town for new factories in order to increase incomes and diversify economic activity and appealed to young people from the area to work there. The structure improves productivity by making it possible for the government to offer various services in a centralized area and by making it easier for the companies that come to the area to cooperate and exchange materials. The Tiandeng government implemented favorable policies for companies that established factories in Jinjie and the people who work at them. It:

Waives water, electric, and rent bills at the plants in the district

- Helps furnish workshops and provides assistance with advertising and hiring

- Has built affiliated facilities such as kindergartens, dining halls and dormitories

- Established a 2,000-yuan (US$281) per month minimum wage, offers beneficial social insurance packages, and provides training

- Helps factory owners get loans

Many opportunities were created for Jinjie's residents, especially women and young entrepreneurs. Women gained the ability to work near their homes, which is particularly useful for those with children. Young entrepreneurs were able to start new businesses and create new factories in order to expand existing endeavors.

The plants operate under standardized regulations issued by Tiandeng that include safety and other aspects of operations in order to guarantee that good practices occur. They must participate in the creation of a factory management and poverty alleviation database that ensures that various information is transparent and available to employees. Factories are also required to cover their staff members' social insurance.

This solution is intended for areas that are experiencing similar difficulties as those that Jinjie faced, i.e., overreliance on agriculture despite possessing small amounts of arable land, populations that tend to relocate for work, weak infrastructure, and related problems, and want to attract new forms of business to create jobs and reduce poverty.

RESULTS

The following results have been achieved as of the end of 2018:

- Poverty has been reduced in Jinjie. More than 500 jobs that pay an average of 2,000 yuan (US$282) to 3,000 yuan (US$422) per month were created.

- The factory district has led to improvements to lighting, parking, sports facilities, and other forms of infrastructure and public services.

- Social services in the area have been enhanced. Childcare centers were created so that the children of factory employees have somewhere to go during work hours, which has decreased a lot of the burdens that women used to experience in Jinjie and made it possible for them to engage in greater amounts of work.

- Jinjie's residents have improved their abilities. They have learned new skills while working at the plants, and regular training is making it possible for them to become professionals in certain fields.

LESSONS LEARNED

Coming up with new ideas can be useful. Tiandeng's main poverty alleviation concept entailed creating a special district where factories would be constructed for poverty reduction purposes, which took Jinjie in a new direction and helped to diversify its economy. The zone utilizes space in an efficient manner, which is important in mountainous areas, and improves production efficiency.

Taking initiative is important. The Tiandeng government actively sought out good companies, invited them to build factories in the area, and provided services for them and their employees instead of merely forming policies that would benefit them and waiting for them to come. These kinds of efforts alleviated business leaders' concerns and made the project more effective.

Always communicate. Impoverished citizens, factory owners, government officials, and other stakeholders have different interests and points of view, and pursuing the type of project that Tiandeng executed requires collective effort. Timely communication plays an important role in the process.

The model has been a success. It has already been replicated in other towns in Tiandeng and could be implemented elsewhere as well.