Targeted Poverty Relief Chinas New AntiPoverty Strategy.docx
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Targeted Poverty Relief Chinas New AntiPoverty Strategy.docx
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TargetedPovertyReliefChinasNewAntiPovertyStrategy
TargetedPovertyReliefChina’sNewAnti-PovertyStrategy
Sincethelate1970s,Chinahasmadegreatprogressinlarge-scalepovertyreductionintheprocessofitsreformandopeningup,makingconsiderablecontributiontotherealizationoftheUNMillenniumDevelopmentGoals(MDGs).However,thenationisstillfacingproblemssuchasincomeinequality,comparativelylowerpovertyline,hugepoorpopulation,andlackoftargetedpovertyalleviationmeasures.Inthiscontext,thestrategyof“targetedpovertyrelief”needstobetakenfurtherforhasteninglarge-scalepovertyreduction.ProgressinPovertyAlleviation
Overnearlyfourdecadessinceitbeganthereformandopeninguppolicy,Chinahasgreatlyreducedpovertywhilemaintainingrapideconomicgrowth.AccordingtotheWorldBank’spovertylineofUS$1aday,thecountrycutthenumberofthepoorbymorethan700millioninthepast40years.In2000,theUNMillenniumSummitpassedtheMDGs,settingagoaltohalvethenumberofthepoorfromthe1990figure.Chinawasthefirstcountrytoreachthegoal.By2002,ithadreducedthepercentageofthepoorinruralareasto30percent,whichwas60percentin1990.Duringtheperiod,China’scontributionratetoglobalpovertyreductionexceeded70percent.Chinahasmadefurthereffortstoreducepovertysincethe18thNationalCongressoftheCommunistPartyofChinain2012.Bytheendof2017,thepopulationofthepoorinthecountry’sruralareashaddecreasedto30.26millionfrom98.99millionattheendof2012,andthepovertyheadcountratiohaddroppedfrom10.2percentto3.1percent.
Rapideconomicgrowthoverdecadeshassubstantiallyincreasedincomesandconsumption,beingdecisiveinlarge-scalepovertyreduction.Thislarge-scalepovertyreductionisattributedtoacombinationofmanyfactors.Firstly,growthinagricultureisparticularlyimportantforpovertyalleviation.AccordingtoaresearchreportreleasedbytheWorldBank,growthinChina’sagriculturalsectorisfourtimesaseffectiveinreducingpovertyasgrowthinthesecondaryandtertiaryindustries.Secondly,targetedpovertyalleviationefforthashelpednarrowthegapbetweendifferentregionsandaccelerateeconomicandsocialdevelopmentofpoverty-strickenareas.Thirdly,Chinabegantoestablishasocialsecuritysystemforruralareasin2007.Measuressuchasguaranteedminimumincome,thenew-typeruralcooperativemedicalcaresystemandtheruralpensioninsurancesystemhaveensuredprovisionofbasiclivingandpublicservices.Fourthly,inclusiveruralpolicieshavebenefitedvastsectionsoftheimpoverishedinruralareas.In2003,thecountrylaunchedthe“grainforgreen”campaigninpoverty-strickenareas,andfarmerswhoreturnedtheirfarmlandtoforestsandgrasslandswerepaidwithallowances.In2006,agriculturaltaxwasabolished,andapolicytoprovidegeneralsubsidiesforagriculturaldevelopmentwasimplemented.From2008,nine-yearfreecompulsoryeducationbegantobeavailablenationwideforallchildren.Andfinally,thebasiclandsystemandlandoperationpatternensurethatthepoorbenefitfromagriculturalgrowth.Thehouseholdcontractresponsibilitysystemwasadoptedasthebasiclandsysteminruralareas,accordingtowhichrurallandsarecollectivelyowned,butfarmersenjoylong-termuseandmanagementrightsofthelandcontracted.Intheearly1980s,farmlandsweredistributedtofarmersinabasicallyequalmanner,sothatimpoverishedhouseholdscouldalsobenefitfromtheirfarmlandandagriculturaldevelopment.
ChallengesinPovertyReduction
Despitegreatprogressineconomicdevelopmentandpovertyreduction,itisundeniablethattheincomegapbetweentherichandthepoorcontinuestoexpand.China’sGinicoefficientgrewfrom0.288in1981to0.4in2017.Asreliefmeasuresacceleratedeconomicgrowthofpoverty-strickenregions,incomeinequalityinthoseregionscontinuedtoincrease.DuringtheimplementationoftheOutlineforDevelopment-orientedPovertyReductionforChina’sRuralAreas(2001-2010),theratiooftheaverageincomeofthepooresthouseholdstothatoftherichesthouseholdsinkeycountiesforpovertyalleviationdroppedfrom21.59percentin2002to17.38percentin2010.Themoreincomearuralhouseholdearns,thefasteritsnetincomegrows.From2002to2010,theper-headnetincomeoffarmerswiththelowestincomesincreasedatanannualrateof11.1percent,whilethatoffarmerswiththehighestincomesincreasedatanannualrateof14.1percent,resultinginafurtherexpansionoftheincomegap.From2002to2009,theannualincomegrowthratesforpoorruralhouseholdsandaverageruralhouseholdsinkeycountiesforpovertyalleviationwere2.75percentand11.76percent,respectively―theformeris9percentlowerthanthelatter,whilethenationalaveragestayedat11.04percent.Theratiooftheincomeofpoorhouseholdstothatoftheaveragehouseholdsnationwidecontinuedtofall―fromonethirdin2002toonefifthin2009.
Theincreaseinincomeinequalityisattributedtovariousreasons.First,themainstayofChina’seconomicstructurehasshiftedfromagriculturethatislabor-intensivetomanufacturingandserviceindustries,resultinginfurtherexpansionoftheincomegap.Duetothefactthatthecountryadoptsalandsystemfeaturingequaldistribution,theincomedistributioninitsagriculturalsectoriscomparativelyequal.However,incomeinequalitygrowsinthesecondaryandtertiaryindustriesthatarecapital-andtechnologyintensive.Second,thepopulationandlabormigrationbetweenruralareasandurbanareasalsocausesincomeinequality.Duetotheircomparativelylowereducationallevelandcomprehensivecapacityandtheshortageofcapitalandinformation,migrantworkersfrompovertystrickenruralareasarelesslikelytofindjobsincitiesthanthosefromcomparativelyricherruralareas.Thisfurtherwidenstheincomegap.Third,althoughdevelopment-orientedreliefefforthasgreatlyimprovedinfrastructure,production,andlivingconditionsinpoverty-strickenareas,itremainshardforpoorhouseholdstosubstantiallyincreasetheirincomesbyutilizingimprovedinfrastructureasrichhouseholdsdid.Finally,itisdifficultforthepoortoenjoyeffectivefinancialservices,whichimpedesariseintheirincomes. Againstthebackdropofgrowingincomeinequality,ithasbecomehardertoreducethenumberofthepoorthrougheconomicdevelopmentandregionalpovertyalleviation.Therefore,itisincreasinglyimportanttodirectlyhelpthepoorthroughmoretargetedreliefpolicies.
TargetedPovertyAlleviationStrategy
InNovember2013,ChinesePresidentXiJinpingfirstputforwardthestrategyof“targetedpovertyalleviation”duringhisvisittoXiangxiTujiaandMiaoAutonomousPrefectureinHunanProvince.Sofar,thestrategyhasremainedasignificantpartofChina’sfightagainstpoverty.
Thestrategyaimstoenhancetherelevanceandefficacyofreliefeffort,soastooffsetthedropintheeffectofeconomicgrowthonpovertyreduction.Thekeycontentoftargetedpovertyalleviationiseliminationofallthefactorsandobstaclesthatcausepovertythroughtargetedassistanceforthepoorandenablingtheirselfdevelopmenttowardsthegoalofsustainablepovertyreduction.Targetedpovertyalleviationincludespreciseidentification,assistance,management,andassessment.
AccordingtoasurveyconductedbytheNationalBureauofStatisticsofChina,thecountryhad70.17millionbelowthepovertylineattheendof2014.(Itwasestimatedthatthefigurewouldbereducedto60millioninearly2016).Thegovernmenthastakenaseriesofmeasurestofurtherinnovateitspovertyreliefmechanism,soastofacilitatetheimplementationofitstargetedpovertyalleviationstrategyandensureeradicationofpovertyby2020.Intermsofpreciseidentification,Chinahasidentified29.48millionpoorhouseholdswithatotalpopulationof89.62millionsince2013.(Currently,thesecondroundofpooridentificationisunderway,andalthoughthefindingsareyettoberevealed,itisbelievedthattheidentifiedpoorwouldbelessinnumbers).Moreover,thecountryhasregisteredallpoorhouseholdsandpopulationanddetailsaboutthefamilies,aswellastheiravailableresources,incomesources,andreasonsofpoverty,inthenationalpovertyalleviationinformationsystem.
Thegovernmenthastakenaseriesofmeasurestopushforwardtargetedpovertyalleviation.First,supportingabatchofpoorhouseholdsthroughindustrialdevelopmentandemploymentandsolvingtheirdifficultiesinrelationtotechnology,capital,andmarketing.Second,relocating10millionofthepoorinremoteareaswithharshnaturalconditionstocomparativelymorehospitablevillagesorsmalltownswithaviewtoimprovingtheenvironmentandconditionsfortheirdevelopment.Third,helpingabatchofpoorhouseholdsreducepovertythroughecologicalcompensationpoliciessuchassubsidiesforthosewhoreturnedtheirfarmlandtoforests.Fourth,helpingabatchofpoorhouseholdsreducepovertythroughstrengtheningeducation.Themeasuresincludedevelopingpreschooleducationinpovertystrickenareas,providingfreehighschooloroccupationalschooleducationandlivingallowancesforstudentsfromimpoverishedfamilies.Thiswillnotonlyreducetheeducationexpenditureofpoorhouseholds,butalsohelpendinter-generationalpoverty.Finally,helpingabatchofpoorhouseholdsthroughsocialsecuritymeasuressuchasexpandingthecoverageofminimumlivingallowances,launchingruralcooperativemedicalcaresystem,andprovidingsevere-diseasemedicalinsuranceandassistance,andpensi
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