How to use the poverty-alleviation fund most effectively not only makes a difference in reducing the level of poverty among villagers in destitution, but also tests the wisdom of officials managing the fund and their dedication to their work.

A circular jointly issued by five central government departments has set guidelines for the task. It requires local governments to conduct coordinated auditing and investigations in the coming months to find out irregularities in the use of the fund and also to check whether such a fund is used in an effective manner.

Consecutive auditing of the fund by the National Audit Office in the past five years has considerably reduced the number of cases of the poverty-alleviation fund being diverted or embezzled. And as a result, the focus of supervision needs to be shifted to how efficiently the fund earmarked from the central coffer is used.

This is as important as the prevention of this special fund from being misused for other purposes or embezzled by corrupt officials. Only when the money is used exactly where it should be and in the right way can the poverty-stricken villagers benefit the most from the aid the central government has extended to them.

So we need not only clean and honest officials who have the conscience never to snatch money meant for food and clothes for destitute villagers, but also capable and responsible ones who can use their wisdom to spend the money as effectively and efficiently as possible to provide the maximum benefit for villagers.

Auditing in 2006 found that the fund in some areas in Shaanxi province had been used for building infrastructure facilities in the hope that local villagers will be able to take advantage of the facilities to improve their lives. But they forgot that most young people in these villages had gone to work in urban areas. To local officials' disappointment, the remaining villagers seldom used the facilities.

Money that would have otherwise helped impoverished villagers was wasted only because local officials had failed to conduct investigations or feasibility studies before they spent it.

It is no small matter whether the fund is effectively used. It decides whether poor villagers will really benefit from the central government's concern and help for them. Effective uses of the fund also decide whether they will be able to share the benefits of economic development and whether subsequent funds will be able to further improve their living standards.

(China Daily June 20, 2008)