Inclusive Growth and Poverty Reduction in China

Drafted by Li Xiaoyun, Wang Xiaolin & Li LinyiChina Agricultural University

Outline• An overview of poverty reduction in China• Economic growth and poverty reduction• Challenges facing China for inclusive

growth• China as a reference for other countries• Policy recommendations for further

inclusive growth in China

An Overview of Poverty Reduction in China

An Overview of Poverty Reduction in China

Economic Growth and Poverty Reduction

1. Agricultural development (1970-mid 1980s)

2. Institutional development, strategies and policies• Institutions• Rural poverty reduction program

(mid-1980s to 2000)• Poor village poverty alleviation

program (2001-2011)

Economic Growth and Poverty Reduction in China

3. Rural social protection program• Fiscal transfer to agriculture• New rural cooperative health program• Rural compulsory education program• Rural minimum living standard

program• New rural old pension program

Challenges Facing China for Inclusive Growth

1. Macro-level economic constraints and income inequality

2. Omission of the poor in urban and rural areas due to an inadequate poverty line

3. Non-income poverty Health Education4. Transitional poverty

An Overview of Poverty Reduction in China (Urban Poverty)

China as a Reference for Other Countries

1. Population dynamics2. Agricultural development3. An effective developmental state4. Necessity of breaking the vicious cycle of

inequality and poverty5. Rights-based approach needed during transitional period

Policy Recommendations for Further Inclusive Growth in China

1. Establish an urban-rural integrated development model

2. Adjust urban and rural poverty line and enhance participation of the poor

3. Develop a new rural poverty reduction strategy

Thank You!