Poverty Alleviation performance in China Experiences and lessons XU Lin National Development and Reform commission PRC

Phase one: The period before 1978  Policy orientation:  Catch up strategy under the central planning system  Industrialization oriented to heavy and capital intensified industry  State control of resource allocation  State control on wholesaling and pricing of agricultural products  Rural collective ownership of land  Setting institutional barrier between rural and urban migration

Phase one: The period before 1978  Results:  Relatively high growth rate of GDP averaged at 6.1% each year  Improved living conditions of Chinese people and public welfare provision  Shortage for almost all goods  Low efficiency of the whole economy  The gap between urban and rural  High unemployment  Huge rural poverty population amount to 250 million

Phase two:  Policy orientation:  Institutional reform to create incentives for rural farmers to increase agricultural production (land reform and liberalization of price control)  Liberalization to allow rural labors to move to non- agriculture sector  Encourage development of rural township and village enterprises  Development strategy changes based on comparative advantages

Phase two:  Results:  High growth rate averaged at 8.5%;  Per capita income of the rural residents increased 12.6% each year  Per capita grain production increased by 14%  Rural poverty population decreased from 250 million to 125 million

Phase two( )  Initiated large scale development oriented poverty alleviation programs  Set up specific poverty alleviation agencies at all levels of government  Allocate specific budget for poverty reduction through development programs  Specific preferential policies for poverty reduction  Results: rural poverty population decreased from 125 million to 80 million

Phase three( )  A specific national poverty reduction plan was issued by the State Council  Goal: through 7 years to fundamentally resolve the basic living problems of 80 million rural poverty populations  Allocate more resources from whole society to alleviate poverty(119 billion RMB from the central government)  Results: poverty population decreased from 80 million to 3000 million

Phase four( )  A new poverty reduction plan was issued by the State Council  In 10th five-year period, 158 billion RMB were allocated by central government to poverty reduction  The priorities were given to rural infrastructure, rural labor training, agricultural production facilities, living conditions  Results: rural poverty population decreased from 320 million to 230 million

Financial input for poverty reduction

Next agenda  Further enhance poverty reduction by all means  Goal :reduce poverty population to 10million by the end of 2010  Adjust poverty line

Experiences be shared  Maintain high and stable economic growth  Market oriented reforming  Right economic policies and strategies  Must be priorities of government  Social participation must be encouraged  Public services must be expanded to rural population  The contribution from International communities both in financial resources and knowledge