China Reduced its Poverty
China reduced its poverty from 97 percent in 1978 to 1.7 percent in late 2018. In the late 1970s, China began focusing on poverty reduction and economic development. Through various economic efforts, China became market-oriented to decrease poverty, which subsequently grew the private sector, created modern banks, reformed the agricultural industry, developed the stock market and spurred foreign trade and investment. China aims to reduce poverty rates to 0 percent in 2020, which is in line with the U.N. Sustainable Development Goal of eliminating global poverty.

China’s Alleviation Method

The International Poverty Reduction Center in China reported lifting more than 850 million of its people out of poverty from 1981 to 2013. During that time period, extreme poverty decreased from 88 percent to 1.85 percent. To achieve a 0 percent poverty rate, China is using extensive expertise in helping Chinese nationals who reside in poorer regions. The current poverty rate of 1.7 percent primarily encompasses those in poor rural regions. 

Similar to the approach that China took in the 1970s and 1980s, it aims to increase efforts to open the economy for trade, diversify the marketplace, improve agricultural practices and implement education reform.

Poverty is still an issue throughout the agricultural industry, but the government is aiming to completely eliminate the Chinese poor. China created a poverty registration system that enables tracking of information relevant to those in poverty. It gathered data from more than 128,000 villages and 290,000 households that indicated that many of the poor reside in Guizhou, Yunan, Henan, Hunan, Guangxi and Sichuan. China aims to accomplish additional poverty reduction techniques through policies based on industrial development, relocation, eco-compensation, education and social security improvement. The Chinese government has managed to reduce poverty through direct involvement in hard-to-reach rural areas that have innately higher levels of poverty.

To support economic growth, the Chinese government is pushing for new industries in these poor regions, such as e-commerce and tourism. Furthermore, the relocation of poor families residing in areas prone to earthquakes or landslides has supported Chinese poverty reduction measures. The country is also emphasizing education and occupational training. Public health services will be available to the poor, especially in the remote mountainous regions. These actions indicate that China has reduced poverty not only through broad approaches but also through direct impacts.

Direct Progress

Progress is already underway in the government’s push for new industries. China has reduced poverty through these industries that benefit hundreds of thousands of Chinese citizens. China E-commerce centers, known as Taobao villages, enable the Chinese to sell their produce and specialties online. In 2015, 780 Taobao villages employed more than one million people and included more than 200,000 active online storeowners. Comparatively, in 2019, the number of Taobao villages grew to 4,310 and active online shops totaled to more than 660,000.

China’s Investments in Africa 

China also helps other countries with economic development and poverty reduction. As an economy grows, poverty trends to gradually lower; on the other hand, job growth, economic diversification and agricultural productivity improve. One can see a specific example of China’s method for poverty reduction through its investments in African countries to build foreign economies. China has provided more than $57 billion in financial aid to more than 170 countries. In 2018, China accounted for almost 20 percent of all infrastructure and capital project investment in Africa.

A Chinese Poverty-Reduction Model for Global Use

China reduced its poverty through economic development and direct impact. In 2016, China sent 775,000 officials to poor regions to alleviate poverty. The country sent these officials out to work in one to three-year posts. This direct impact demonstrates how a country can eliminate poverty through strong economic growth in remote regions. 

Brett Rierson, China representative for the World Food Program said, “China invested in agriculture to reduce poverty and successful agricultural projects were built up from the grassroots.” Rierson believes China is a good model for how to reduce poverty in developing countries.

Although China has been a positive influence on developing economies, one country alone cannot eliminate global poverty. Other developed countries could use China as a model for reducing poverty and improving living standards.

– Lucas Schmidt
Photo: Flickr

Poverty Reduction Strategy of Tanzania
Recently, the World Bank released its list of nations that most successfully reduced domestic poverty from 2000-2015. The top five countries reduced poverty between 3.2 percent and 2.6 percent between 2000 and 2015, with Tanzania reducing the highest percentage. The top fifteen countries lifted 802.1 million individuals out of poverty. This article outlines the successful poverty reduction strategy of Tanzania and international support that caused the most drastic reductions in poverty around the world.

History of Tanzanian Poverty

Historically, Tanzania has been one of the most impoverished countries in the world. In 2000, 86 percent of Tanzanians were impoverished, but this number dropped to 28 percent in 2018.

Tanzania reduced poverty by 3.2 percent in 11 years, making it the country that reduced poverty the most in the last 15 years. The poverty reduction strategy of Tanzania is due to three elements: reducing income poverty, increasing access to basic necessities and improving government infrastructure.

Economic Growth

The first strategy focuses on sustainable economic growth, which includes decreasing inflation and focusing on growing parts of the economy that have the largest poor population. The employment and empowerment programs utilized in these strategies focus on agriculture, manufacturing, mining and tourism in addition to macroeconomic growth in exports and imports. Between 2000 and 2015, Tanzania’s export volume grew from 120 to 272, making it the world’s 130th largest exporter. This successfully increased Tanzania’s GDP from $13.3 billion to $47.3 billion.

Tanzania’s unemployment rate dropped from 12.9 percent in 2001 to 10.3 percent in 2014, because of the liquid capital that injected into Tanzania’s economy, a focus on job creation and an industrial transition that opened new jobs. The economic focus of the Tanzanian government lifted thousands of individuals out of poverty and made it the seventh-largest economy in Africa.

The Impoverished Individual

The second strategy focuses on the personal needs of those in poverty. Poverty reduction efforts seek to increase the quality of life and ensure that those in poverty have access to social welfare. Efforts concentrated on education, clean water, sanitation and health services. Because of these efforts, Tanzania increased the number of individuals who had access to clean water by 9 percent between 1990 and 2009. In the same period of time, Tanzania’s health care became more accessible. As a result, child mortality rates dropped from 162 to 108, infant mortality rates dropped from 99 to 68 and the rate of malaria contraction dropped from 40.9 percent to 40.1 percent.

Another poverty reduction strategy focused on education. Tanzania made education more accessible by increasing funding for education, bettering its transportation mechanisms (including roads) and emphasizing vocational education and education for girls. This focus on education increased school enrollment from 68.8 percent in 2000 to 84.6 percent in 2015.

Tanzania’s Commitment to its People

The third strategy is one of the governmental commitments to the impoverished Tanzanian people. This included ensuring the enforcement of the law, the accountability of the government for its people and the prioritizing of stability in order to avoid poverty. The IMF reported that Tanzania has become more accountable to its people, less corrupt and has increased citizen participation in governance, thus ensuring an effective political framework.

International Participation in Tanzania’s Poverty Reduction Strategies

The international community was critical to Tanzania’s successful poverty reduction. The United States, Tanzania’s largest source of aid, began giving Tanzania foreign aid in 2006. In that year, the U.S. gave $151.29 million. This number increased every year, with the U.S. giving Tanzania $633.5 million in aid in 2015. This aid has consistently gone towards the very areas in which Tanzania has seen the most improvement: humanitarian aid, governance, education, economic development and health.

While Tanzania still has a long way to go until it completely eliminates poverty, it has made significant progress since the beginning of the millennium. The poverty reduction strategies of Tanzania, including economic growth, investment in individuals and infrastructure and governance development, have been successful to a great extent. International aid has consistently been a contributing factor to Tanzania’s ability to reduce poverty and has successfully targeted the areas in which Tanzania required the most improvement.

–  Denise Sprimont
Photo: Flickr