The loss of biodiversity and the severe ecological degradation are considered to have become a major obstacle to the socioeconomic development of China (UNDP 2005). [...] What was done to solve it? In addition to the continuously on-going ecological degradation in Xinjiang, the seven-month drought in 1997 of the Yellow River and the season of big floods of 1998 in three major river basins (Yangtze River, Huaihe River and Songhuajiang River) brought about several changes in China’s environmental and forest policies. [...] The NFPP banned, for instance, the Version 1.1 Last update: February/2012; Further information at: www.teebweb.org 1 logging of natural forest in millions of hectares in the upper reaches of the Yangtze and Huanghe River (Xiaoyun L. [...] The FEBCF has its underpinning in the concepts of the Specialized Forest Management and the legislative frameworks which provide the possibility for compensating stakeholders for the provision of public goods in the form of providing ecosystem services. [...] In 2001 the Ministry of Finance allocated US$ 120 million for the implementation of the programme over a total area of 200 million mu1 (i.e.
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