Since the country has been very dedicated to eliminating poverty, China has helped around 800 million people out of impoverished conditions. This number accounts for about 70% of poverty eradication worldwide. To what can China attribute this success?

A Brief History of China’s War Against Poverty

In 1949, China was labeled as one of the most impoverished countries in the world; only 10 countries had a lower gross domestic product (GDP) than China. Between 1840 and 1949, roughly 100 million people died in wars due to foreign conflicts in China. Famine was also a result of these conflicts during this period.

During times of war, the economy was demolished and literacy rates and life expectancy dropped. By 1978, China was reformed and reconstructed. From 1978 to 2020, China’s GDP increased by 9.2%. The literacy rate increased and the economy was rebuilt. China went from a needy country to a high-income country in this timeframe.

Agriculture and Urbanization

One key reform China implemented to alleviate poverty was in the agricultural sector. Overall, the productivity of China’s agriculture increased and farmers’ wages increased. This can be attributed to a shift from labor to high-productivity manufacturing.

Another sector that played a significant role in China’s success in reducing poverty was urban development. Between 1980 and 2023, the population in metropolitan areas increased from 200 million to 933 million and the urbanization rate also increased from 19.4% to 66.2%. This led to more jobs and higher wages for migrant workers. This influx of urbanization also decreased poverty in rural areas by providing better-paying jobs and a better produce market for farmers.

How China Reduced Poverty

An increase in labor income was the most significant driver of reducing poverty in China between 1988 and 2007. Improvements in agricultural productivity also contributed notably to this progress. By 2013, rural poverty had fallen to below 10% and was primarily concentrated in less central regions of the country.

Between 2013 and 2018, public transfers played an increasingly important role in raising household incomes and lifting a substantial portion of the population out of poverty. Additionally, declining dependency rates, driven by the one-child policy, improved health care and a reduced birth rate further supported poverty alleviation efforts.

Strategies for Reducing Poverty in China

China’s approach to poverty alleviation encompassed multiple strategies. It prioritized targeted support for impoverished populations in underdeveloped areas while maintaining consistent economic growth. Poverty reduction was integrated into the broader national development agenda, with special attention given to vulnerable groups such as women, children, ethnic minorities and individuals with disabilities.

Efforts were also made to empower those in poverty by fostering self-reliance, raising awareness and providing education on sustainable ways to escape poverty. A key aspect of the strategy involved balancing economic and social development across urban and rural regions, ensuring mutual support between industry and agriculture.

Furthermore, the country invested significantly in infrastructure development, including roads, water sanitation, electricity, gas and housing. Budgetary reforms redirected public and private funding toward poverty alleviation and policy frameworks were adapted to ensure coherence and effectiveness in implementation.

Looking Forward

China’s success in downsizing poverty has eliminated extreme poverty. Yet, the focus remains on moderate poverty in the country. China now aims to guarantee that the majority benefit from the country’s economy and its social life.

– Ella Burke

Ella is based in Lawrence, KS, USA and focuses on Good News and Celebs for The Borgen Project

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