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ADB urges support for farmers to start businesses

(Xinhua)
Updated: 2009-03-11 23:25

BEIJING -- Helping farmers and laid-off migrant workers open small businesses in west China will help absorb the large surplus in the country's labor force, according to an Asian Development Bank (ADB) study released on Wednesday.

An estimated 20 million migrant workers have lost their jobs in the world's most populous country due to the impact of the global financial crisis. After returning to their home provinces, they found few jobs there.

The study, Western Region Rural Entrepreneurship Promotion in China, explored the current conditions of rural entrepreneurship in China's western region and found that potential small business operators lacked motivation to open stores without funding support and training.

"Migrant workers are the most vulnerable and they need help," said ADB Senior Programs Officer Yang Junmei, who served as project task manager for the study.

To assist farmers and migrant workers in that region, the study proposed the development of financial channels to establish entrepreneurship; strengthening vocational training for self-employment; promoting business models based on local conditions and implementing effective land reform to support farmers' business initiatives.

Robert Wihtol, Country Director for ADB's PRC Resident Mission, believed the study provides valuable recommendations on creating employment through entrepreneurship, an issue of particular relevance considering the current economic downturn.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and the Pacific region through inclusive economic growth and regional integration. In 2008, ADB approved $1.5 billion of sovereign loans and $224 million of non-sovereign loans for the country.