The rapid development of the Chinese economy is still confronted with constraints from deteriorating environment and rural poverty issues. It has become a significant policy option in maintaining the high growth, efficiency and sound development of the Chinese economy to rehabilitate forest resources, improve ecological conditions, increase farmers' incomes in a coordinated development of population, resources and environment. The Grain for Green Programme, as a CDM activity of Chinese style, launched on trial in 1999 and implemented in 2002 across the country, is the biggest land-use transition, watershed management and poverty alleviation programme involving the largest population in Chinese history and across the globe. It covers 25 provinces/ regions/cities over 1600 counties, involving 15 million households and 60 million farmers. Hence the Grain for Tree policy has a significant bearing on the ecological protection and poverty alleviation of the farmers in the soil erosion- and water erosion-prone regions. A review and assessment of the backgrounds, essentials, effects, problems and trends in the Grain for Tree policy are of great significance for both China and the other developing countries in the world in their efforts to combat the deteriorating environment and alleviate poverty.
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