China, the world’s largest developing country with a population of more than 1.4 billion, has increasingly positioned itself as a key actor in global poverty reduction. By exporting its poverty reduction strategies to some of the world’s most impoverished countries, it has reduced the struggles that many face. While these initiatives have delivered tangible economic and social improvements, they have also allowed China to expand its political presence abroad, strengthening its strategic influence in recipient states.

Background

Over the past 40 years, China has lifted 800 million people out of extreme poverty, classified by the World Bank as living on less than $1.90 per day. This achievement was driven by a model which blends rapid economic growth with tangible improvements to well-being, targeted to each local community. As a result, China announced at the end of 2020 that it had already met the poverty targets of the U.N. 2030 Agenda for Sustainable Development ahead of schedule.

Learning from its own experience, China has trained more than 400,000 professionals from more than 180 countries and regions in poverty alleviation methods. It has launched village-by-village pilot projects designed to promote its experience in poverty reduction strategy overseas.

One such initiative is the Cambodia-China Friendship Village for Poverty Alleviation project in Tanorn, in the southern province of Takeo, Cambodia. Implemented by Cambodia’s Civil Society Alliance Forum (CSAF), with funding from the China Foundation for Peace and Development, the project began in 2021 and developed programs in infrastructure, education and health care sectors.

The Impact: Poverty in Cambodia

Before its implementation, the remote village had poor quality roads that made it difficult for farmers, who comprise 70% of the population, to sell their products. This isolation created extreme economic insecurity.  Following road improvements, brokers are now able to drive trucks to purchase crops directly from farms, increasing market access and income stability.

For residents such as Sokhim, mother of four children who lives in the village and used to depend on rice farming, these changes have been transformative. With improved infrastructure and economic conditions, she now runs a grocery store and says that the project has improved livelihoods across the village.

Tanorn’s experience reflects a broader national trend: poverty in Cambodia has declined significantly in recent years, with the number of people living in poverty falling from 5.6 million to 2.8 million over approximately seven and a half years.

Strategy

However, despite development assistance from China having positive impacts on villages like Tanorn, its intervention in Cambodia has been closely intertwined with foreign policy goals and investment strategy.

In recent years, financial support from China has been used to establish a strategic and comprehensive production network in Cambodia. The Cambodian People’s Party (CPP), which has been in power continuously since 1979, has welcomed and protected Chinese investment. This relationship has allowed the creation of an autonomous and profitable ecosystem for Chinese companies operating in the country, deepening economic interdependence.

China’s influence extends beyond infrastructure and commerce. Through the opening of cultural centres promoting Chinese language and culture, university partnerships and funding of research centres and think-tanks, China has strengthened its soft power footprint. These tactics contribute to regime legitimacy in Cambodia, reinforcing political stability that is conducive to China’s long-term strategic interests.

Moreover, Chinese financial and material aid has had notable political implications. The CPP has welcomed China’s support as Beijing has overtly backed the party’s continued rule and opposed the actions of opposition parties. This reciprocal relationship has led to the adoption of governance practices resembling aspects of China’s authoritarian model, such as internet regulation, media control and censorship, and opacity in trade and business.

The Future

At a time when the World Bank’s 2024 Poverty, Prosperity and Planet report notes that global poverty reduction has slowed to a near standstill, China’s development interventions are creating positive change. However, the Cambodian case suggests that while poverty alleviation is delivering tangible improvements, it is also playing a role in reinforcing China’s political and strategic control abroad.

– Jenna O’Flynn

Jenna is based in London, UK and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr