Achieving a moderately prosperous society in all respects by 2020 is a solemn commitment of the Party and the state. The 19th National Congress of the Communist Party of China (CPC) report lists poverty alleviation as one of the three major battles. To further study General Secretary Xi Jinping's important expositions on poverty alleviation work and earnestly implement the major strategic deployments of the CPC Central Committee, the State Council, and the Hebei Provincial Committee and Provincial Government on poverty alleviation, under the guidance of the All-China Federation of Industry and Commerce (ACFIC) and inspired by the "10,000 Enterprises Helping 10,000 Villages" precise poverty alleviation campaign, the Hebei Provincial ACFIC has always placed poverty alleviation work in a prominent position and promoted various work with a high sense of responsibility and mission, launching the "1000 Enterprises Helping 1000 Villages" precise poverty alleviation campaign.
Uniting non-public economic personnel, bringing together the strength of private enterprises, and leveraging the role of the capital market are the strengths of the Hebei Provincial ACFIC. In order to better guide private enterprises to participate in the poverty alleviation battle and promote the improvement and efficiency of the provincial "1000 Enterprises Helping 1000 Villages" precise poverty alleviation campaign, the provincial ACFIC, based on the actual situation of poverty alleviation and development, mobilized 10 private enterprises to jointly establish the "Hebei Zhongji Poverty Alleviation Foundation" (hereinafter referred to as the "Foundation").
Relying on the Foundation platform, the Provincial ACFIC focuses on poverty alleviation work in five key areas: industrial poverty alleviation, employment poverty alleviation, education poverty alleviation, public welfare poverty alleviation, and consumption poverty alleviation. In the practice of precise poverty alleviation, it has explored a joint poverty alleviation model of "Foundation + leading enterprises + cooperatives + farmers", organically combining the value-added of the Foundation, the risk resistance ability of enterprises, and the steady poverty alleviation of farmers. This has achieved efficient professional operation, providing sustained strength for Hebei's precise poverty alleviation cause and greatly contributing to the achievement of the provincial poverty alleviation goal.
Innovative Model
Launching a Public Welfare Platform for Poverty Alleviation
How to mobilize more private enterprises to participate in the "1000 Enterprises Helping 1000 Villages" precise poverty alleviation campaign is a matter that the Provincial ACFIC has been constantly considering.
In 2018, the Provincial ACFIC focused on "how to better solve the problems and difficulties for private enterprises" and "how to guide private enterprises to actively participate in poverty alleviation", focusing on solving the "two guarantees and three safeguards" problems in deeply impoverished areas. It conducted multiple field visits and investigations to deeply impoverished villages and households in Zhangjiakou, Chengde, Baoding, and other areas.
During the investigation, the Provincial ACFIC found that there are indeed some difficulties and problems in the participation of private enterprises in poverty alleviation work. For example, the forms are relatively single; some simply donate money and materials, focusing on "blood transfusion" rather than "hematopoiesis"; some enterprises have encountered problems such as tight funds and rising costs, resulting in reduced poverty alleviation investment, especially reduced investment in projects with long cycles, large investments, and slow results; more significantly, there is a lack of effective communication mechanisms between private enterprises and government departments, and there is a lack of understanding of the preferential policies for enterprises and the needs of poverty-stricken areas, making it impossible to carry out targeted assistance.
After sufficient investigation, scientific demonstration, and extensive consultation and suggestions, with the active promotion of the Provincial ACFIC, in August 2018, 10 private enterprises, including China Zhongji Investment Co., Ltd., Rongsheng Real Estate Development Co., Ltd., Shijiazhuang Junlebao Dairy Co., Ltd., Hebei Qianxuhe Food Co., Ltd., Hebei Tianshan Industrial Group Co., Ltd., Shijiazhuang Yiling Pharmaceutical Co., Ltd., Hebei Yangyuan Zhizui Beverage Co., Ltd., Hebei Jingcai Unlimited Audio-visual Chain Group Co., Ltd., Hebei Lixin Investment Co., Ltd., and Yufeng Industrial Group Co., Ltd., jointly invested in the establishment of the "Hebei Zhongji Poverty Alleviation Foundation", with initial fundraising of nearly 100 million yuan.
In terms of poverty alleviation operation model, the Foundation is positioned as a grant-making foundation, focusing on work in deeply impoverished villages in Hebei Province. Relying on China Zhongji Investment Co., Ltd., it evaluates and demonstrates poverty alleviation projects recommended by the Provincial ACFIC or public welfare projects independently applied for by poverty alleviation enterprises, introducing new concepts such as commercial charity and charitable investment using VC (venture capital) or PE (private equity) rules, making public welfare charity sustainable and promoting the optimal allocation of charitable resources.
In terms of fund operation, the Foundation adopts the basic model of "reasonable investment—obtaining returns—part of the returns used for public welfare projects—remaining returns and principal continue to be invested", obtaining returns through financial management and equity investment, and continuing to invest in public welfare projects.
"This is the first poverty alleviation foundation in the country spearheaded by the ACFIC and jointly established by multiple private enterprises, and it is an innovative move in our poverty alleviation work." Liu Jingsong, chairman of the Provincial ACFIC, said that after practical testing, the poverty alleviation foundation model has become an effective way to help poverty alleviation and rural revitalization.
Since its establishment one year ago, the Foundation has remained true to its original aspiration and forged ahead, focusing on deep poverty and contributing to poverty alleviation. To date, it has invested nearly 20 million yuan in support of poverty alleviation, funded 20 poverty alleviation projects, and benefited approximately 40,000 impoverished people.
On April 28, 2019, Gao Yunlong, Vice Chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and Chairman of the ACFIC, praised the innovative move of the Hebei Provincial ACFIC and pointed out that the innovative establishment of the Hebei Zhongji Poverty Alleviation Foundation has played a typical exemplary role.
Precise Docking
Emergence of Collaborative Poverty Alleviation Models
Speaking of the initial intention of establishing the Foundation, Chairman Liu Jingsong said succinctly, "Let those with money contribute money, those with people contribute people, and those with technology contribute technology."
Zhang Jinghong, vice chairman of the Provincial ACFIC, deeply feels the platform role of the Foundation. Zhang Jinghong is in charge of poverty alleviation work and knows that most impoverished areas lack natural resources and industrial bases, making it difficult to achieve docking with enterprise poverty alleviation projects. "The most effective methods are planting and animal husbandry, but the reality is that large enterprises are not very willing to do planting and animal husbandry, and small enterprises cannot bear the risks."
The establishment of the Foundation has solved this problem. With the promotion of the Foundation, enterprises leverage their advantages in capital, technology, and talent, linking to the actual situation of impoverished villages and making precise efforts in industrial poverty alleviation, employment poverty alleviation, educational assistance, and infrastructure improvement, innovating poverty alleviation methods, and producing a number of typical cases of paired assistance.
Liu Jingsong further explained, "The Foundation, as the funder of poverty alleviation projects, on the one hand reduces the risk of investment for individual enterprises, and on the other hand, the Foundation entrusts professional enterprises to operate and manage, which can ensure the healthy operation of the projects."
A four-hour drive from Shijiazhuang along the expressway takes you to the village where the Provincial ACFIC has implemented targeted poverty alleviation—Dong Baimaying Village in Yangyuan County. This village is close to Datong, Shanxi, and many local people use Datong license plates for their vehicles.
Located in a remote area and lacking an industrial base, Dong Baimaying Village only has 300 mu of irrigated land. Villagers basically rely on the weather for their livelihood, and young laborers have gone out to work.
Now, in Dong Baimaying Village, the fine-wool sheep generate a considerable income for villagers.
"This year, we sheared about 2.5 tons of wool." said a staff member of the sheep farm happily.
Liu Jingsong, Chairman of the Hebei Provincial ACFIC (center, front row), inspecting the fine-wool sheep breeding base in Baimaying Village
Last year, after multiple investigations, the foundation decided to develop a cashmere goat breeding project in Dong Baimaying Village. Led by the foundation, Rongsheng Real Estate Development Co., Ltd. provided funding, and a professional breeding company was responsible for the operation. The foundation and impoverished households jointly established a breeding cooperative, which then invested in the professional breeding company. Annual income is distributed according to the share ratio, with a portion of the foundation's share being returned to the village collective. This poverty alleviation model combines the market risk resistance of professional companies, the value preservation and appreciation of the foundation, and the stable poverty alleviation of impoverished households. The cashmere goat project transferred the land of 14 villagers and built a sheep farm covering 77 mu, with an investment of approximately 10 million yuan.
After one year of development, the number of cashmere goats has increased from the initial 2,200 to more than 2,600. The sheep farm's income from cashmere alone has reached more than 600,000 yuan. The income obtained by the sheep farm will cover the village collective, the cooperative, the enterprise, and all villagers, forming a good mechanism of "increased income for the village collective, development of the cooperative, growth of the enterprise, and enrichment of farmers."
For villagers, they can obtain rent through land transfer, obtain investment funds by joining the cooperative, and obtain wages by working in the sheep farm, truly realizing "three sources of income from one piece of land."
Zhang Jinghong said: "The biggest benefit is that it gives impoverished households peace of mind, knowing how to live today and how to live tomorrow."
Benefiting impoverished people is the foundation's first starting point for investing in poverty alleviation projects. Therefore, the foundation is always cautious in project selection. "It must guarantee public welfare, have income, and achieve poverty alleviation goals. Finding a balance between these three aspects is indeed difficult," said Qi Jianwei, secretary-general of the foundation.
The foundation, through the establishment of a private enterprise poverty alleviation cooperation platform, guides poverty alleviation funds, experts, and technical resources to tilt towards deeply impoverished areas, concentrating superior forces and delivering a combination punch, becoming a new force in supporting the fight against poverty."
To a Deeper Level
Achieving "Full Coverage" of Poverty Alleviation
In promoting the "Thousand Enterprises Helping Thousand Villages" precision poverty alleviation campaign, mobilizing private enterprises to form partnerships with 206 deeply impoverished villages across the province to achieve "full coverage" is a new requirement put forward by the Provincial Party Committee and Provincial Government to the Provincial Federation of Industry and Commerce. This task must be completed by the end of September.
With limited time and heavy tasks, the Provincial Federation of Industry and Commerce has made some innovative attempts relying on the foundation. As soon as the task was received, the Provincial Federation of Industry and Commerce, together with the Provincial Poverty Alleviation Office and the Provincial CPPCC Office, formed a research team. Qianxihe Group, one of the founding enterprises of the foundation, sent 50 full-time personnel to join the research team in going deep into 206 deeply impoverished villages to thoroughly understand various situations, including industrial development, laying a solid foundation for the next step of organizing private enterprises to support deeply impoverished villages in a targeted manner.
The 206 deeply impoverished villages are located in 10 deeply impoverished counties, including Longhua, Fengning, Zhangbei, and Yangyuan. After multi-party discussions, the foundation, taking education poverty alleviation as a starting point, plans to achieve "full coverage" by assisting impoverished students in cooperation with vocational centers in deeply impoverished counties.
"The Zhongji Ice and Snow Class" is a typical example of the foundation's cooperation with local vocational centers.
On the occasion of the 2020 Beijing Winter Olympics, the foundation, in cooperation with the Yangyuan and Weixian vocational centers, Jingbei Sports Development Co., Ltd., and the European Hebei Chamber of Commerce, established the "Zhongji Ice and Snow Class," enrolling 150 impoverished students from deeply impoverished villages with a funding of 1.35 million yuan. The purpose is to cultivate ice and snow professionals and cultivate top professional service personnel for international winter ice and snow sports projects. Judging from the enrollment situation, this educational poverty alleviation project is deeply welcomed by the local people.
Liu Jinsong said that this project mainly targets impoverished students because ice and snow projects are expensive, requiring substantial financial support from equipment to training. "We are doing this in conjunction with the general environment of the Winter Olympics, allowing impoverished students to serve the Winter Olympics through three years of ice and snow training. It can be said that this is a unique project in Hebei."
"The Zhongji Ice and Snow Class" is an order-based skills training program. The foundation's "order-based training" model, through cooperation with professional companies, research institutes, and vocational centers, carries out targeted employment training and recruitment, highlighting the "blood-building" ability of employment poverty alleviation, ultimately achieving the goal of "one person employed, the whole family out of poverty."
In order to promote the "going out" of agricultural and sideline products in deeply impoverished areas, the foundation has also tried a consumption poverty alleviation model.
Liu Jinsong, Chairman of the Hebei Provincial Federation of Industry and Commerce (second from left), at the consumption poverty alleviation event
In June this year, the foundation, together with Hebei Sanliuwu Network Technology Co., Ltd. and other units, jointly established a consumption poverty alleviation alliance, relying on the "365CBD Direct Purchase Platform" to build an online sales platform for poverty alleviation products in impoverished areas. Currently, the platform is operating well, and the order volume of consumption poverty alleviation products continues to rise.
In September, the foundation held a consumption poverty alleviation conference in Cangzhou City, carrying out "Thousand Enterprises Helping Thousand Villages" consumption poverty alleviation product exhibitions and special sales activities, showcasing the unique resources, characteristic products, and poverty alleviation achievements of impoverished areas in poverty alleviation development.
The consumption poverty alleviation model has both benefited enterprises and enriched farmers.
"Blood transfusion" and "blood building" go hand in hand, intellectual and spiritual support are given equal importance, and addressing shortcomings and promoting development are combined. This is the working approach of the Provincial Federation of Industry and Commerce and the foundation. Since its establishment, the foundation has not only expanded the "capital pool" and "project library" of the poverty alleviation cause but also broadened the channels and fields of poverty alleviation fund investment, providing strong support for the economic and social development of impoverished areas.
Taking poverty alleviation as its development direction, the uniqueness of the Hebei Zhongji Foundation is unparalleled nationwide.
Liu Jinsong said, "Initiating and establishing the foundation and using it as a lever for poverty alleviation work is something we have continuously explored and summarized in carrying out the "Thousand Enterprises Helping Thousand Villages" precision poverty alleviation campaign." The foundation fully plays its role as a platform and lever, incubating and supporting poverty alleviation and rural revitalization-oriented assistance projects, further stimulating and mobilizing the enthusiasm of social forces to participate in the fight against poverty, and promoting the improvement and efficiency of the "Thousand Enterprises Helping Thousand Villages" precision poverty alleviation campaign.
The Provincial Federation of Industry and Commerce and the foundation have also been thinking about how to further consolidate and expand the achievements of poverty alleviation. Liu Jinsong used the cashmere goat breeding project as an example: "If the industrial chain is extended, from selling cashmere to processing finished cashmere sweaters, the profit margin will increase geometrically."
Allowing profits to return to the foundation, which then invests in poverty alleviation projects, the "blood-building" mechanism is truly established.
