Following a 2009 earthquake in Qingchuan County, Sichuan Province, Alibaba introduced the “Internet + Poverty Reduction” model, with the core concept to boost economic development in the affected areas with a business model that empowers people to move out of poverty using the Internet.
Alibaba announced its rural e-commerce strategy in October 2014, with a plan to invest RMB100 million (about $14.8 million) over the next three to five years in the development of local e-commerce service systems for 1,000 counties with 100,000 villages.
The program provides valuable services in three areas:
- Easy and affordable access to goods and services in poor areas including: delivery of consumer goods to rural areas and farm produce to cities, mobile phone recharge, utility bills payment, booking airline and train tickets, making hotel reservations, as well as microfinance, online medical consultation, and online learning;
- Provision of ecosystem support for sustainable rural development, including raising awareness about the Internet among local officials, building the capacity of local firms to use the Internet for business, Internet skills training for young people and farmers; and
- Infrastructure development for the new economy, including logistics infrastructure, payment systems, financial services, cloud computing and data collection.
Alibaba’s “Internet + Poverty Reduction” features a number of innovations including e-commerce, job creation, access to finance, tourism development, education and healthcare.
China has 128,000 poor villages with 55.75 million registered poor people. There is no one-size-fits-all solution to lift them out of poverty. Typically, people fall into four categories of poverty, requiring different approaches. Unlike some development players, NGOs are more agile and are innovative in solutions, allowing them to provide support sooner.
The first category comprises those who are temporarily incapable of work due to illness or having school-aged children to support. For these people, rehabilitation or bringing back their capability to work to will help reduce their vulnerabilities.
The second category consists of those who have some resources but lack business skills or efficiency. Working with them to develop new business models and use resources more efficiently will help them get out of poverty.
The third category is made up of those who are capable of work but external conditions or resources like jobs are poor. Relocation or employment skills training may be effective solutions.
The fourth category comprises those who are permanently incapacitated, such as the severely disabled. They should be supported by the social protection system.
China has made remarkable progress in poverty reduction by lifting over 700 million people out of poverty in the past three decades. Under sustainable development goal 1, the international community has committed to end poverty in all its forms and everywhere by 2030. An objective that China expects to achieve 10 years earlier of the deadline by lifting the remaining 55 million of extreme poor out of poverty by 2020.
On September 19, China released its national plan for the implementation of the 2030 Agenda for Sustainable Development at the United Nations Headquarters in New York. During his intervention at the event, Premier Li Keqiang confirmed his country’s willingness to participate in international cooperation to contribute to the achievement of the sustainable development goals, to increase investment in South-South cooperation and to share development experiences and opportunities.
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