Why the poor need not always be with us

Updated: 2015-10-23 08:06

By Wu Guobao(China Daily Europe)

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The country has set itself the goal of ridding itself of poverty by 2020, which is a monumental task

Since China opened up to the world in the late 1970s it has made great strides in eradicating poverty. However, the task of accomplishing - and doing so by 2020, the ambitious goal the government has set for itself - remains monumental.

Much more effort is needed to support the kinds of reform and innovation that will help the country achieve this goal.

Going by the World Bank's purchasing power parity standard of $1.9 a day, China had more than 114 million people living in poverty in 2012, nearly 642 million fewer than in 1990. This accounted for nearly 61 percent of the reduction in the number of people living in poverty worldwide.

In China at the end of last year a little more than 70 million rural dwellers were living below the government's official poverty line, with net annual income of less than 2,300 yuan ($360; 320 euros).

Nevertheless, over time the living standards of the poor and conditions in impoverished regions have greatly improved. In the past 30 years or so, for example, great strides have been made in providing rural citizens with drinking water, housing, power, transport, education, medical care and old-aged security. The economies and public services of impoverished regions have also improved, as has their capacity to develop.

These successes have been achieved thanks to a systematic, joint effort by government, social organizations and private enterprise. This campaign includes: efforts to cultivate market organizations; industrialization and urbanization to promote sustainable and rapid economic growth; increasing the ability of the less well-off to partake in the benefits of growth through programs that have clearly defined aims; helping vulnerable groups avoid being further marginalized, using social development and the social security system; and applying measures to ease poverty in ecologically fragile and inhospitable regions.

Although it is the central government that spearheads these efforts, the importance of the contribution of companies and social organizations should not be underestimated. The task of alleviating poverty has become an integral part of the national social and economic development plan, which guarantees that the government support needed in this important area will always be there.

In carrying out this task, the government also summons the resources needed to ensure success and makes sure they are distributed properly. It adjusts or makes policies and rules to provide necessary system guarantees.

The private sector makes its contribution to poverty alleviation by providing job opportunities and demand for products, paying taxes and directly providing aid. Social organizations mobilize social resources and promote innovation in efforts to alleviate poverty.

Be that as it may, the difficulty for China in meeting its self-imposed deadline for ridding itself of poverty is fraught with difficulties. For a start, the sheer numbers testify to this: 10 million people need to be lifted out of poverty each year over the next six years starting this year.

Second, over the years the characteristics of those living in poverty and the reason they do so have changed. At present the ranks of the poor are made up mainly of people in their later years and of those who live in socially and economically undeveloped regions. These factors make the task of dealing with poverty all the more complex.

Third, China's economic downturn has reduced new employment and thus financial resources, which will put pressure on poverty alleviation efforts in the years to come.

The government and all social sectors should redouble their efforts and focus on reform and innovation as they look to tackle the problem. This includes fine-tuning the measures they use to deal with poverty, streamlining management and implementing measures that are more specifically targeted. Doing all of these things would clearly pay dividends in greater efficiency.

The government should support small and micro enterprises that create job opportunities for people in low-income groups and further improve the social support and social security system, including aid to the seriously ill, old-age insurance and a new type of cooperative medical care.

If these kinds of measures are taken, there is no reason why in a few years from now we cannot all be celebrating the achievement of having rid the country of a centuries-old scourge.

The author is a researcher with the Rural Development Institute at the China Academy of Social Sciences. The views do not necessarily reflect those of China Daily.

(China Daily European Weekly 10/23/2015 page13)