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Chronic poverty in rural China
The People's Republic of China is the third largest country in the world and home to more than 1.3 billion people. It is an immense expanse that includes vast seacoasts, fertile plains and valleys, rugged mountains and windswept deserts.
China's vastness and diversity encompass a broad range of the problems and challenges facing small farmers and pastoralists throughout the developing world. Population pressure strains the productive capacity of the 10 per cent of the land area that is suitable for sustained cultivation. An increasing number of livestock compete for fodder on fragile rangelands. Flood-prone areas and deteriorating irrigation systems result in waterlogging and salinization. Encroaching deserts threaten formerly productive land.
The efforts of China's government to stimulate economic growth have focused largely on boosting the productivity of the countrys enormous rural population by adopting a series of economic reforms that have guided Chinas transition from a planned to a market-oriented economy. In the late 1970s, the government introduced the household responsibility system (HRS), which was a major shift away from a collective system towards one in which individual households had greater control and decision-making powers over the land and other resources they used. As a result, productivity surged.
At the same time, the government gradually relaxed its control over markets and prices, setting off a boom in township and village enterprises in rural areas. Meanwhile, the government sustained the opening up of the trade and investment sectors to the global economy to boost exports and foreign investment. As a result of these policy shifts, China has been undergoing continuous economic growth since 1978. By 2008 per capita income had increased sixfold, and the number of people living in absolute poverty, according to national poverty line criteria, had decreased from about 260 million to about 14 million.
Despite China's strong and sustained economic growth, poverty is still persistent, especially in remote rural areas. Income inequalities between eastern and western China have broadened, and the income gap between rural and urban residents has widened considerably since the late 1970s. Urban incomes are now more than three times higher than rural incomes. Chinas government is taking strong measures to correct this trend by increasing investment in rural areas, especially in infrastructure, irrigation, education and health. The government is putting in place favourable policies in support of the rural population. They include agricultural tax exemptions that became effective in 2007, provision of subsidies for agricultural production and increased agricultural procurement prices, and expansion of social protection and security coverage.
Source: home
The People's Republic of China is the third largest country in the world and home to more than 1.3 billion people. It is an immense expanse that includes vast seacoasts, fertile plains and valleys, rugged mountains and windswept deserts.
China's vastness and diversity encompass a broad range of the problems and challenges facing small farmers and pastoralists throughout the developing world. Population pressure strains the productive capacity of the 10 per cent of the land area that is suitable for sustained cultivation. An increasing number of livestock compete for fodder on fragile rangelands. Flood-prone areas and deteriorating irrigation systems result in waterlogging and salinization. Encroaching deserts threaten formerly productive land.
The efforts of China's government to stimulate economic growth have focused largely on boosting the productivity of the countrys enormous rural population by adopting a series of economic reforms that have guided Chinas transition from a planned to a market-oriented economy. In the late 1970s, the government introduced the household responsibility system (HRS), which was a major shift away from a collective system towards one in which individual households had greater control and decision-making powers over the land and other resources they used. As a result, productivity surged.
At the same time, the government gradually relaxed its control over markets and prices, setting off a boom in township and village enterprises in rural areas. Meanwhile, the government sustained the opening up of the trade and investment sectors to the global economy to boost exports and foreign investment. As a result of these policy shifts, China has been undergoing continuous economic growth since 1978. By 2008 per capita income had increased sixfold, and the number of people living in absolute poverty, according to national poverty line criteria, had decreased from about 260 million to about 14 million.
Despite China's strong and sustained economic growth, poverty is still persistent, especially in remote rural areas. Income inequalities between eastern and western China have broadened, and the income gap between rural and urban residents has widened considerably since the late 1970s. Urban incomes are now more than three times higher than rural incomes. Chinas government is taking strong measures to correct this trend by increasing investment in rural areas, especially in infrastructure, irrigation, education and health. The government is putting in place favourable policies in support of the rural population. They include agricultural tax exemptions that became effective in 2007, provision of subsidies for agricultural production and increased agricultural procurement prices, and expansion of social protection and security coverage.
Source: home