Inclusive Finance and E-commerce Enable Xuchang to Transform into Traditional Folk Instrument Production Village

Paulownia trees blossom in Lankao county, Central China's Henan province.

Lankao County, Kaifeng City, Henan Province, had long been plagued by sandstorms, floods, and unproductive saline soil, which devastated its residents’ livelihoods and resulted in many of them becoming displaced. Jiao Yulu, the secretary of the Lankao Party Committee at the time, eventually spearheaded efforts to address the situation by leading a campaign to plant numerous paulownia trees – a genus of hardwood commonly known as the snapdragon whose species are some of the fastest growing trees in the world – in the 1960s. Later diagnosed with liver cancer, the tenacious official continued with his quest to improve conditions in the area until his untimely death on May 14, 1964, at the age of 42. Locals began affectionately referring to the paulownia trees that he planted as “Jiaotong” (“Jiaolownia”) trees, sustained the efforts, and even used the trees to produce traditional Chinese musical instruments.

In the 1990s, the former Light Industrial Ministry of China designated Lankao a traditional Chinese musical instrument production county after determining that its paulownia wood was the best material for making guzhengs (Chinese plucked zithers), pipas (a pear-shaped plucked instrument that generally features four strings and 12 to 31 frets that is sometimes known as the “Chinese lute”), and other traditional instruments.

“Quality wasn’t enough to guarantee good sales at that time, however, because the market was largely dominated by [companies in] big cities in southern China,” recalled Zuo Changchun, owner of an instrument business based in Xuchang Village, Juyang Town, a small hamlet located in Lankao.

A worker makes a musical instrument at Xuchang village of Lankao, Central China's Henan province.

In 2010, the enterprising manufacturer and salesman travelled through nearly half of China selling guzhengs made of paulownia wood. Zuo injured his legs three years later while working, however, which left him with disabilities. He became very depressed due to the state of his business and his lack of stable income and was registered as impoverished in 2014. An official working in Xuchang eventually suggested that that he pursue e-commerce, which led to the villager becoming more prosperous once again. Zuo bought a computer, learned more about modern technology, launched a store on the Taobao online shopping platform, and eventually became quite successful in this area. By the end of 2015, he had emerged from poverty and was even able to build a small home.

Several inclusive finance programs were launched in Xuchang and eventually in other parts of Lankao in order to help facilitate the development of various industries, which made it possible for Zuo to obtain small poverty alleviation-oriented loans that enabled him to attract talent, produce better accessories, and offer training programs that lead to jobs for villagers from the local area and beyond. He produces qins, or fretless Chinese board zithers, and other instruments at his factory and has been able to provide employment opportunities for more than 20 left-behind women from the region.

Workers polish musical instruments at Xuchang village of Lankao, Central China's Henan province.

Xuchang created a unique poverty alleviation path for itself by pursuing and developing industries with distinctive local characteristics, issuing dividends, promoting employment, starting new enterprises, strengthening finance and supporting e-commerce development.

Declared a special tourism village by Henan in 2014, Xuchang emerged from poverty later that year after receiving various financial support and strove to transform itself into a full-fledged “traditional Chinese musical instrument village” in order to continue to become more prosperous. Eighty-five of the village’s 105 households are engaged in musical instrument production and sales at present, and a complete industry chain with links that have been standardized through training, branding, and other efforts has taken shape, which has also stimulated the development of related industries.

Lankao invested 1.6 million yuan in Lankao Huayun Musical Instrument Co. Ltd., which made it possible for its village cooperatives to issue 100,000 yuan’s worth of dividends to impoverished households every year in order to help them improve their living conditions. The tourism and culture sectors have been developing rapidly in the area as well, with Xuchang currently receiving 100,000 music lovers, government employees, and other visitors every year.

Now, more than half a century after Jiao’s death, the hamlet’s instrument companies are booming. More than 60,000 of the folk instruments that have been produced in Xuchang have been exported to more than 10 countries and regions, and its residents are earning 35,000 yuan of annual net income per capita.

For more information, please contact WFP China COE (wfpcn.coe@wfp.org)