China : Overcoming Rural Poverty

Although China has long been recognized for its achievements in reducing absolute poverty since 1978, international standards now estimate increased poverty incidences, particularly among the rural poor, mostly concentrated in the western provinces, within remote and mountainous townships, where the absence of educational, health, and nutritional aspects prevail. The study reviews the macroeconomic context, analyzing trends in employment, inflation, as well as fiscal challenges in poverty reduction, presenting an overview on the poverty reduction programs, rather focusing on the implementation of new programs to meet the needs of the poor. It offers measures to increase mountain areas productivity, through strategic economic development, improved agriculture programs, and market analysis. Options for poverty reduction through labor mobility, or voluntary resettlement are weighed, emphasizing education, health, and nutrition. While recommendations include efficient use, and strengthened financial monitoring of funds for poverty reduction, through increased upland agricultural production, provision of social sectors, and, rural enterprise development, forging links with government, academic, and civil organizations, the report fails to address the significant emergence of urban absolute poverty, which may well prod future macroeconomic downturn.