China should establish a systematic mechanism to fulfil the poverty-re lief task at the beginning of the 21st century, urged a recent article in Beijing-based Outlook weekly.

Since the People's Republic of China was founded in 1949, fast economic growth has also fuelled the relief-based national anti-poverty campaign.

This played a positive role at that time in the country where low average income, narrow income gap and poverty prevailed.

But it did not work after the country began its rural economic reform, which widened the income gap among farmers.

China's destitute population is concentrated in the poor inland area, and it is difficult for most of the rural surplus labourers to move to cities and other rural regions with prosperous economies.

Poverty-stricken regions have to rely on themselves to solve the problem.

In view of the situation, the government has given more autonomy to county governments to implement development-oriented strategies.

The government's burden will be eased as the funds will target key destitute counties and be used to finance many poverty-alleviation projects.

Thanks to these efforts, the impoverished population in China has decreased from 250 million in 1978 to 42 million last year. This major change indicates that China's policies have borne some fruit in eliminating poverty.

But policies carried out by county units cannot benefit the entire poor population, said the article.

In 1986, 70 per cent of the destitute population lived in government-designated poor counties. In 1998, the percentage fell to 50 per cent.

The distribution system of poverty-alleviation funds has led to the fact that some living in poverty in better-off counties are not receiving aid. Under the current distribution system, funds are distributed to the regions deemed poor, thus those living in other places are often not entitled to poverty relief funds, explained the article.

Local officials tend to stick to a development oriented principle and pursue large, more profitable projects to fuel their local economic growth. Those in need in rural areas are put into a disadvantageous position.

Credit has become considered an efficient method in recent years. But since China's financial system is still incomplete, it is difficult for farmers to get loans.

A certain amount of money would bring relief temporarily. But the amounts are too small and irregular for poor farmers to undertake any long-term plans to become wealthy.

To overcome these difficulties, two things must be done.

First, the quality of the poverty-relief project must be promoted. When adequate food and clothing are not a problem, government should concentrate efforts on education, medical care, drinkable water and housing. Intermediary organizations should also be set up on a legal basis to offer farmers career training and employment information.

Second, when poverty alleviation funds are targeted at individual poor households, the most important task for local officials should be not only finding the real poor households, but also helping them make better use of the money.