1. Project Summary and Relationship to China's Agenda 21 This project establishes a multifaceted natural, social, and ecological protection system in the Lugu Lake area in order to protect biodiversity in the plateau lake, wetland, basin, and mountainous ecosystems, and to preserve the indigenous matriarchal family and A-xia marriage system of the Mosuo-Nari people. In addition, this project will raise womenís socioeconomic status, coordinate the development of ecologically sound agriculture with local culture and eco-tourism, and strengthen indigenous rights, thus promoting sustainable development. This project is based on programme areas 15A, 20A, 2C of China's Agenda 21, and is related to programme areas 8A and 14A.

2. Background Lugu Lake is a plateau fault-structure and cut-off basin situated at an altitude of 2690.5meters in the hinterland of the Hengduan Ranges, straddling the border between Sichuan and Yunnan Provinces. It covers an area of 50.4 sq. kliometres, has an average depth of 45 meters, a maximum depth of 93.5 meters, and maximum water visibility of 12 meters. Downstream of the lake is a 5 sq. kliometres wetland where twenty thousand birds of 50 species migrate in the winter. Among these is the class I nationally protected black-necked crane. Lake species include theottelia acuminate var. crisp and schizothorax grahami. This biological community is characterised by primitive origins and distinctive species, natures of temperate zone, rich calcicole, and inversion between rare species and partial vertical zone. A-xia marriage is practised primarily by the Mosuo people although some Pumi people use it as well. Young men do not take women as wives to their homes and women do not marry off. Men and women stay together or separate voluntarily, based on mutual feeling. She or he lives with her/his own motherís family, respectively, and blood relationships are established through the motherís side. Community virtues such as unity, friendship, equality, selflessness, and mutual help are held by each of matriarchal family and community member. Accordingly, international sociologists, ethnologists and ecologists have paid much attention to this distinctive marriage-family structure. Lugu Lake is under the jurisdiction of both Ninglang county, Yunnan province (51.8%) and Yanyuan county, Sichuan province (48.2%). This separation of administration for the integrated social and ecological system of Lugu lake area has resulted in the disharmony between ecosystem conservation and local social development. The lakeís remoteness has been a key factor for the regionís underdevelopment. Serious deforestation has resulted in frequent landslides and other mountainous disasters. The ill-considered introduction of outside species disturbed the local ecological balance and even resulted in the extinction of rare species. A heavy housework burden and lack of education hinders the participation of women in social activities. The protection of the lake-wetland-basin-mountainous ecosystem is incomplete, and is not integrated with social and cultural preservation of the matriarchal family. The project falls under the goals of Chapter 24 of the Global Agenda 21: Global Action for Women toward Sustainable and Equitable Development, and Chapter 26, Recognising and Strengthening the Role of Indigenous People and Their Communities. In addition, both Ninglang and Yanyuan Counties are included in the National Eight-Seven Plan for Poverty Eradication. The Lugu Lake area is also an important part of the Yulong mountains of Lijiang, a national tourism region. Since the 1920ís, Chinese and foreign scholars such as Joseph Locker, Wang Chenquan and Yan Ruxian, as well as the Chinese Academy of Sciences and local scientific institutes have done a lot of research on the matriarchal family and Axia marriage, as well as on the local natural resources. A provincial-level Lugu Lake Nature Preserve has been established by Yunnan. A highway linking Lugu town to Xichang city in Sichuan province was finished in 1995. Luoshui administrative village of Ninglang county was named a "Model Community of the United Nations" (women and children category) in 1995. The United Nations Children's Fund has also provided some aid for Luoshui Primary School. In addition, the Zhudi School of the Hope Project and a library will be built by other international agencies and funds. The support of international agencies and active participation of multidisciplinary expertise will provide favourable conditions for the project implementation.

3. Objectives

3.1 Long-term Objective To establish a new nature-society-ecology system protection area, crossing Yunnan and Sichuan Provinces, with integration between nature conservation and indigenous culture preservation. To raise indigenous womenís status, promote their participation in local social activities, improve the quality of life for local people and achieve sustainable indigenous community development.

3.2 Immediate Objectives * To set up the integrated Lugu Lake nature-society-ecology system protected area, including a plateau wetland protection area for migratory birds, mitigate mountainous disasters and protect environment, and rehabilitate the ecosystems; * To alleviate poverty through the development of environmentally sound agriculture on the high plateau, household industries, and eco-tourism; * To preserve indigenous culture, establish a center for women's education and health, especially, raise women's socioeconomic status and promote their participation in local social and economic sustainable development.

4. Outputs and Activities

4.1 Comprehensive plans and integrated management for the Lugu Lake nature-society-ecology protected area * To work out a framework for the Lugu Lake nature-society-ecology system protected area, and set up the basic protected area, core area, and priority protection area; * To establish goals for protection and integrated development, monitor major factors influencing the nature-society-ecology system and forecast medium and long term changes; * To hold a Mosuo-Nari community workshop to discuss and identify priority needs of the indigenous people; * To establish an indigenous administrative committee, which includes the Mosuo-Nari people from both Yunnan and Sichuan sides; women will comprise at least 50 percent of the members. The responsibilities of the committee will be coordination, management and supervision. Monitoring Indicators: establishment of the basic protection area 1107.4 sq. kliometres (Yongning Town, Ninglang county, Yunnan province constituting about 675.4 sq. kliometres, Luguhu Town, Yanyuan county, Sichuan province constituting about 432 sq. kliometres), core protection area (runoff area of Lugu Lake, under the jurisdiction of Sichuan province and Yunnan province), priority protection area (Luoshui village, Mosuo model community of the United Nations); Comprehensive plans and maps for protection and development of indigenous community; establishment of a nature-society-ecology system observing station; an indigenous administrative committee including more than 50% women. Implementing Agencies: Yunnan and Sichuan Provincial Governments, Ninglang and Yanyuan county Governments.

Time Schedule: January 1997 - December 2000

4.2 Environmental protection and rehabilitation of Lugu Lake area ecosystem * To protect system the lake-wetland ecosystems for migratory birds, and try to integrate this protection into the international protection network; * To investigate patterns of mountainous disasters, implement disaster mitigation measures through afforestation and planting green cover; and coastal protection in vulnerable areas; * To develop hygienic toilets and animal stables, improve environmental quality; * To establish priority protected areas around Lugu Lake for water pollution control and to limit the distribution of polluting TVEs (township and village enterprises). Monitoring Indicators: A 5 sq. kliometres lake-wetland protected area, identification of areas affected by soil erosion, 100 sq. kliometres afforestation/green cover area, zoning of landslide and mud-rock flow-prone mountainous areas; comprehensive treatment for Dayuba, Xiaoyuba, Wumahe, Shankuahe, and Sanjiacun landslides and mud-rock flow; Lugu Lake water quality meeting national Class I standards. Implementing Agencies: Yunnan and Sichuan Provincial Governments, Ninglang and Yanyuan county Governments. Time Schedule: January 1997 - December 2000 4.3 Indigenous culture preservation, health and education for women and children. * To investigate the history, customs, and structure of the Mosuo-Nari matriarchal family and Axia marriage pattern and seek international co-operation; * To construct a community service center in local architectural style, which will integrate local culture, information, arts and handicrafts, tourism and community management; * To use the center as a site to provide education and training in agricultural techniques for young women, to strengthen women's role in community management, and build capacity for participation in indigenous peopleís sustainable development; * To provide maternal and child health care (MCH); summarise and develop indigenous health care knowledge; * To expand the primary and middle school; alleviate childrenís housework burden by altering patterns of woodfuel consumption, achieve a school enrolment of over 95%, and implement the nine-year compulsory education system. Monitoring Indicators: A research report on the preservation of the indigenous culture matriarchal family and Axia marriage system; establishment of a community service center for the Mosuo-Nari people; 300 core young women trained; improved facilities for primary and middle schools in the core protection area, station for mother and child health care established. Implementing Agencies: Yunnan and Sichuan Provincial Governments, Ninglang and Yanyuan county Governments. Time Schedule: January 1997 - December 2000 4.4 Poverty alleviation in the Lugu Lake area * To increase the productivity of 600 hectares of medium- and low-yielding farmland and establish a plateau rice production base by using appropriate rice varieties, improving the irrigation system and developing organic agriculture; * To develop intensive aquaculture of the indigenous fish in Lugu Lake and improve the local animal husbandry by using the compound feed and livestock rear in pens; * To develop tertiary industry, including ecologically sound and culturally sensitive tourism. Monitoring Indicators: 1,000 model families of household industry; 300 model families demonstrating animal husbandry of cows, pigs, chicken, duck, and geese; a 35 hectare fish-raising base; 100 family hotels with a total of 1,000 beds. Implementing Agencies: Yunnan and Sichuan Provincial Governments, Ninglang and Yanyuan county Governments.

Time Schedule: January 1997 - December 2000

4.5 Basic infrastructure for the Lugu Lake area * To construct a 110-kliometres-long bituminous road to link the Lugu Lake area to the outside; * To improve basic posts & telecommunications infrastructure; * To change the energy-supply structure for the indigenous residents and develop clean energy, including small hydropower, bio-gas, and solar energy; * To construct water supply and waste sewage treatment system for the Yongling and Lugu Towns, especially for Luoshui village. Monitoring Indicators: reconstruction of a 110 kliometres bituminous road; reconstruction of 13 kliometres macadam soil-road; establishment of a satellite communication station with 2,000 telephones; construction of a 300 kw; small hydropower station; 500 model families using solar energy and biogas; construction of water supply and sewage treatment for pilot villages and towns. Implementing Agencies: Yunnan and Sichuan Provincial Governments, Ninglang and Yanyuan county Governments. Time Schedule: January 1997 - December 2000

5. Inputs

5.1 Chinese Inputs The Chinese side will provide working space, facilities, local transport and communications during project implementation. In addition, the Chinese side will also provide qualified personnel and expertise on environment and natural resource protection, biodiversity, ethnology, project management, mitigation and prevention of mountainous disasters, medicine and health, and teacher training.

5.2 International Inputs International inputs are expected to include foreign expertise, on such areas as nature protection, biodiversity, environmental engineering, ethnology, social development and public service design, etc. In addition, they will provide some foreign technologies and equipment, monitoring instrument for nature conservation, medicine, education with audio-visual aids, agricultural techniques, clean energy (solar energy, techniques of energy efficiency), and environmental protection equipment.

5.3 Budget The total inputs of this project are estimated to be US$ 8.80 million. The Chinese side will input US$ 2.35 million, and the international inputs will be US$ 6.45 million.

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Table 1. Budget by Item (in million US dollars)

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Table 2. Budget by Output (in million US dollars)

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6. Benefits The direct beneficiaries of the project will be the indigenous residents of the area, including people of the Mosuo-Nari, Mongolian, Yi, Zhuang, Pumi, Nari, and Tibetan ethicities. The project will optimise local industrial structure by developing tourism and rationally using reasonable natural resources, create more job opportunities, and alleviate poverty. In addition, the project will improve the basic infrastructures of Yongling and Lugu Towns. Itís more important that integrated matriarchal family and Axia marriage conservation and nature protection will provide a good example for world-wide indigenous communities development. Moreover, this project will raise the status of indigenous women as well as their capacity to participate in local sustainable development.

7. Risks Institutional barriers, such as separate administrations and lack of coordination between the Yunnan and Sichuan sides; the remote location and difficulty of transport; and shortage of funds and qualified personnel are the main risks to successful project implementation. The project must promote the participation and management of the indigenous peoples in order to fulfil its purpose.

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