Poverty is a persistent global issue affecting billions of people around the globe. China, with its vast population and rapid economic growth, is making significant strides in reducing poverty. 

In 2020, President Xi Jinping declared that China has successfully eradicated absolute poverty. According to the World Bank, poverty alleviation policies in China lifted almost 800 million people out of poverty since 1980. Though 0.6% of its population remains below the global poverty line, China’s efforts in expanding employment opportunities to rural areas and increasing access to education and health care have brought the country closer to common prosperity.

Historical Context

Before the initiation of economic reforms and trade liberalization, China was a predominantly agrarian society with a large rural population. The state was stagnant, centrally controlled and relatively isolated from global economic policies. It also strictly controlled and limited individual economic activities. All of this contributed to widespread poverty in the country.

The turning point in China’s fight against poverty came in 1978, when Deng Xiaoping — China’s paramount leader — initiated pro-market reforms, opening up China to foreign trade and investments. This led to rapid industrialization and urbanization, resulting in significant poverty reduction. Millions of people moved from rural areas to cities in search of better opportunities, finding increased employment and access to resources.

The 2015 Poverty Alleviation Policy

In 2015, the Chinese government implemented a four-part poverty alleviation policy aimed at eliminating absolute poverty by identifying and assisting the poorest individuals and regions. Under this program, resources were channeled to specific areas, such as health care, education and access to basic infrastructure, to address the root causes of poverty. 

Rural Development

A significant amount of China’s population still resides in rural areas. To combat rural poverty, the Chinese government initiated the Rural Revitalization Strategy, which encourages small-scale farmers to adopt modern farming and agriculture technology, improves the property rights of farmers and modernizes rural infrastructure. These approaches increased productivity, income and living standards for many rural households. 

In 2021, 31.45 million rural residents lifted out of poverty found jobs. To further increase employment opportunities in 2022, China focused on boosting labor service cooperation between provinces, providing public welfare jobs in rural areas, and supporting entrepreneurship and flexible employment.

Education and Health Care

In China, disparities in education and health care for those living in poverty have been persistent challenges. Many rural areas offer limited access to quality education due to the lack of public education funding and a shortage of qualified teachers. Similarly, health care services in impoverished regions often lack adequate infrastructure and resources, leaving vulnerable populations without essential medical care. 

In the past seven years, China has made substantial progress in improving access to education and health care. Between 2016 and 2020, China allocated around $114.6 billion worth of subsidies to support compulsory education, with 90% of the funds going to rural areas to support students by providing them a living allowance while they are enrolled. Free compulsory education and the expansion of health care coverage have reduced the economic burden on families and improved overall well-being.

Challenges

Although China has made remarkable strides in reducing poverty, the challenges remain. Income inequality is a concern, with urban areas enjoying higher living standards than rural areas. The Gini coefficient, which measures income disparity, ranks China at 38.2 as of 2019. 

In response to the widening wealth disparity in the country, the Chinese government banned thousands of accounts showing off their wealth on social media and erased video content depicting the lives of individuals grappling with poverty. China has set 2035 as the target date to achieve common prosperity, establishing new policies that focus on lowering income inequality.

Conclusion

China’s journey in eradicating poverty is a remarkable success story. The combination of economic reforms, government initiatives and targeted poverty alleviation programs has significantly improved the living standards of millions of Chinese citizens. As the nation continues to develop, addressing the remaining challenges, such as income inequality, will be crucial to ensuring a better future for its population. China’s experience provides valuable insights into the complexity of poverty reduction and the need for a multi-faceted approach that combines economic growth, government support and social welfare. 

– Genevieve Tan
Photo: Unsplash