Professional Documents
Culture Documents
Prepared for the Regional Workshop on Social Inclusiveness in Asias Emerging Middle Income Countries 13 September 2011, Jakarta, Indonesia
Outline
1. Poverty Reduction in PRC 2. Drivers of Poverty Reduction in PRC 3. Challenges for Inclusive Growth and Poverty Reduction in PRC 4. What can other countries learn from PRC 5. Recommendations
Urban poverty
- Emerged during the middle of the 1990s due to an increasing number of laid off workers under the structural adjustment - Underemployed, laid off, retired and elderly - Urban Minimum Living Standard
Urban Minimum Living Standard and Urban Poverty Population in PRC
2011 271
Oriented and regional development based rural poverty reduction program : the poor to take part in development opportunities
Eight-Seven Poverty Reduction Program 592 poor counties
The Poor Village Poverty Alleviation Program : more equal access for the poor to development opportunities
14,8200 poor villages
Up to 2009, 833 million rural populations has jointed the program, over 94 % of rural population now covered by the program. In 2004, two exempt and one subsidy (exempt the tuition fee, charges for books and materials and subsidy for boarding fee for the poor households) In 2006, free fee compulsory education program
Rural Minimum Living Standard Program and Rural Five Guaranteed Program
Total beneficiaries reached to 42.843 million rural poor in 2008
Middle income trap Stagnating global market after financial crisis Competiveness due to increasing labor costs; employment of labor-intensive industry Inflation over recent years Limited domestic consumption esp. rural population Government expenditure on increased need for social protection programs Aging population More income inequality
Gini coefficient in PRC 0.6 0.5 0.4 0.3 0.2 0.1 0 1978 1995 2000 2001 Rural 2002 Urban 2003 2004 2005 2006
National
Farmers Income Increase 5000 4000 3000 2000 1000 0 2000 2001 2002 2003 2004 2005 2006 2007
3.2 Poverty leakage in urban and rural areas due to an inadequate poverty line
Rural poverty line based on Martin method and adjusted with CPT every year Real purchasing power declined Serious underestimation of the rural population creates difficulty to legitimate increasing resources both politically and publicly
In 2004, the urban minimum living standard line was only 68% of the poverty line calculated based on Martins method
Share of Rural Poverty to the Net Rural per Capita Income 7000 6000 5000 4000 3000 2000 1000 0 1985 1990 1995 2000 2005 2009 Net rural income (CNY/year/capita) Poverty line (CNY/year)
Urban Poverty Line and Urban Minimum Living Standard Line in 2004 4000 3500 3000 2500 2000 1500 1000 500 0 East Region Central region Poverty line West Region Minimum line National
2000
2001
2002
2003
2004
2005
2006
2007
2008
Rural average
Education Expenditure to Total Family Expenditure for the Poor (%) 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2002 2003 2004 2005 2006 2007 2008 The poor village The poor counties Rural Average
Whether it could accompany the transfer of PRCs technology as well as its poverty reduction experiences and lessons to receipt countries? Whether it affects the collective efforts to improve the aid effectiveness to receipt countries?
implementation capacity, and consistent development and poverty reduction strategies and policies
5. Recommendations
To establish an urban-rural integrated development model to benefit the entire poor population To adjust its urban and rural poverty line and also to enhance participation of the poor to reduce the leakage of the poor To develop new rural poverty reduction strategy to cope with the middle income challenges
To integrate inclusive growth and poverty reduction into its development assistance program