In the years leading to project preparation in 2005, the People’s Republic of China (PRC) experienced a sharp rise in demand for agricultural products, especially higher-value horticultural and livestock products.
In 2006, Sanmenxia municipality in the Henan province of the People’s Republic of China (PRC) witnessed its highest economic growth rate since 1997. Gross domestic product (GDP) rose by 16.5% over 2005. Per capita GDP exceeded both the provincial and national averages. A key factor was the high domestic and export demand for fruits and fruit products.
Shanxi province is situated in the middle reaches of the Yellow River and the eastern part of the Loess Plateau in northern People’s Republic of China (PRC). At project appraisal, it had only about 3.8 million hectares of dependable arable land, of modest quality and productivity, for its 23 million rural population.
In August 2008, a massive flood on the Koshi River in Nepal breached its east embankment, damaging a vast area of farmlands and standing crops in the Sunsari district in the eastern region. Less than a month later, incessant heavy rains caused severe landslides and flooding, ravaging the Kailali and Kanchanpur districts in the far western region.
Many of the poor households in the provinces surrounding the Tonle Sap Lake would migrate seasonally to the lake and upland forests to meet their food shortfalls and supplement their livelihood in the villages.
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