Download Poverty Alleviation performance in China

Poverty Alleviation
performance in China
Experiences and lessons
XU Lin
National Development and Reform commission
PRC
Phase one: The period before 1978
 Policy orientation:
 Catch up strategy under the central planning
system
 Industrialization oriented to heavy and capital
intensified industry
 State control of resource allocation
 State control on wholesaling and pricing of
agricultural products
 Rural collective ownership of land
 Setting institutional barrier between rural and
urban migration
Phase one: The period before 1978
 Results:
 Relatively high growth rate of GDP averaged at
6.1% each year
 Improved living conditions of Chinese people and
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public welfare provision
Shortage for almost all goods
Low efficiency of the whole economy
The gap between urban and rural
High unemployment
Huge rural poverty population amount to 250
million
Phase two: 1978-1984
 Policy orientation:
 Institutional reform to create incentives for rural
farmers to increase agricultural production (land
reform and liberalization of price control)
 Liberalization to allow rural labors to move to nonagriculture sector
 Encourage development of rural township and
village enterprises
 Development strategy changes based on
comparative advantages
Phase two: 1978-1985
 Results:
 High growth rate averaged at 8.5%;
 Per capita income of the rural residents
increased 12.6% each year
 Per capita grain production increased by
14%
 Rural poverty population decreased from
250 million to 125 million
Phase two(1986-1993)
 Initiated large scale development oriented poverty
alleviation programs
 Set up specific poverty alleviation agencies at all
levels of government
 Allocate specific budget for poverty reduction
through development programs
 Specific preferential policies for poverty reduction
 Results: rural poverty population decreased from
125 million to 80 million
Phase three(1994-2000)
 A specific national poverty reduction plan was
issued by the State Council
 Goal: through 7 years to fundamentally resolve the
basic living problems of 80 million rural poverty
populations
 Allocate more resources from whole society to
alleviate poverty(119 billion RMB from the central
government)
 Results: poverty population decreased from 80
million to 3000 million
Phase four(2001-2010)
 A new poverty reduction plan was issued by the
State Council
 In 10th five-year period, 158 billion RMB were
allocated by central government to poverty
reduction
 The priorities were given to rural infrastructure,
rural labor training, agricultural production facilities,
living conditions
 Results: rural poverty population decreased from
320 million to 230 million
Financial input for poverty reduction
financial input(unit: billion RMB)
financial input
40
30
20
10
0
1
3
5
7
9
11
13
year
15 17
19
21
23
25
Next agenda
 Further enhance poverty reduction by all
means
 Goal :reduce poverty population to 10million
by the end of 2010
 Adjust poverty line
Experiences be shared
 Maintain high and stable economic growth
 Market oriented reforming
 Right economic policies and strategies
 Must be priorities of government
 Social participation must be encouraged
 Public services must be expanded to rural
population
 The contribution from International communities
both in financial resources and knowledge