Do you Know the 3 Chinese rural Poverty Alleviation Strategies?


Do you Know the 3 Chinese rural Poverty Alleviation Strategies? China is among huge countries of the world with the highest population. Definitely the huge population has the challenge of poverty too. China has been strategical enough to address the issue of poverty. The policies applied have been able to produce desired results. Read on to find the success story.


China’s government stated earlier this year that it has abolished absolute poverty in rural regions, using a criterion of $2.30 per person per day as a benchmark. According to China’s National Bureau of Statistics’ most recent Household Survey on Income, Expenditure, and Living Conditions statistics, the poverty rate has dropped to below 0.5 percent, compared to an international poverty level of $1.90 per day. As a result, China’s disadvantaged population has shrunk by about 800 million people since 1980. China’s poverty reduction is a great achievement, regardless of the particular figures. However, China’s efforts must not come to a stop here. What can the authorities learn from the last 40 years as the country looks to the 2020s?


Since 1980, China’s progress in reducing poverty has mostly been based on continuous economic development. Agriculture witnessed strong revenue improvements throughout the first decade of reform, as China addressed some of the Mao era’s most egregious distortions. As reforms broadened and deepened in the second decade, industry took the lead in both urban and rural regions.


As migration to urban centers accelerated, infrastructure investments (such as the “Western Development Strategy”) multiplied, and a growing portion of China’s territory became economically integrated into global value chains, the dynamism of China’s export-oriented coastal areas spread further inland during the third decade. China’s social policies were also expanded during this decade, with place-based interventions in the most backward counties and the establishment of a social security system.


There are three lessons that stick out:

High Saving rates

The starting point influences the speed and extent of China’s poverty alleviation since 1980. According to Martin Ravallion, China was one of the poorest countries in the world in 1980, but its populace was reasonably healthy and well-educated compared to other East Asian countries with far higher GDP levels. China had high savings rates and an even distribution of land, which helped other East Asian countries to expand fast in the 1960s and 1970s. In the 1980s and 1990s, China was therefore catching up with its rivals to some extent.


Economic Opportunities

Economic opportunities grew as a result of market-oriented reforms. China’s economic transformation from a predominantly rural and agrarian country to a predominantly urban, industrial powerhouse was guided by the country’s comparative advantage, with market signals creating appropriate incentives and competition among regional governments and companies catalyzing productivity gains. China steadily incorporated market incentives. However, its change and expansion are in line with traditional economic ideas of development.

Markets and businesses

While markets and business had a major influence, government policy also played a significant effect. The Chinese government has a large administrative capability, which it has employed to offer public goods and overcome collective action failures. This is most visible in the growth of public infrastructure that assisted in the integration of rural and urban economies, as well as in the cooperation of stakeholders in targeted poverty reduction.


High-powered incentives in China’s public service administration developed a strong performance emphasis, but decentralization allowed policy to respond to local situations.



The current state of affairs in China offers mixed chances for growth and income improvements among the poor. China’s technological skills and the competitiveness of its leading corporations are comparable to those of high-income nations, and its top schools and students are among the finest in the world. These powers, however, are not widely shared.


The productivity levels of Chinese businesses are quite disparate. In compared to high-income nations, the labor force’s average educational attainment is low, and access to decent education remains uneven. China must pay greater attention to these disparities.

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