OPINION> Commentary
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OPINION> Commentary
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Battle against poverty
(China Daily)
Updated: 2008-12-29 07:36 Raising the poverty line always puts a larger number of people below it. But it is absolutely right that China's poverty-alleviation program should cover a larger number of low-income villagers. The policy adjustment announced at the weekend has done precisely that. It cancels the standard of 786 yuan ($115) per annum for destitute villagers and adopts that of 1,067 yuan ($156) for low-income rural residents as the unified poverty line. That means the number of people involved in the battle against poverty will increase from the current 14.79 million to 43.20 million. Still lower than the World Bank's poverty line of $1.25 a day, the adjustment will certainly benefit both groups. The 14.79 million destitute residents with an annual income far below the new poverty line will get more help while the 28.41 million low-income rural residents will get the same aid as their destitute counterparts from the government. So the input from the central government toward this will certainly increase starting from the coming year when the new standard takes effect.
This conforms to the policy for the economic stimulus package, which involves increased input in rural infrastructure, housing and environment. From this perspective, this adjustment is timely and necessary. Poor rural residents have the high needs to spend to improve their living standards. The strengthened efforts to raise their income and facilitate their capability to help themselves will contribute to consumer spending in a positive manner. The need to expand domestic demand to offset the impact of the financial crisis on China's economy has also provided an opportunity for the country to upgrade its poverty alleviation. China's poverty line has been raised several times since it was first set in 1986, when those with an annual income below 200 yuan received poverty alleviation aid. The income of poverty-stricken villagers was 50 percent of the average income of rural residents in 1986 and it was 20 percent in 2006. The widened gap is because the natural conditions are so poor for the destitute population in remote areas. And it is also because sections of villagers who shook off poverty with the help of poverty alleviation program would relapse into it because of natural disasters. The incidence of natural calamities is five times higher in poverty-stricken areas than elsewhere. The smaller the size of the poverty-stricken population becomes, the more difficult the task will be to improve its conditions. As a result, more efforts from the government will have to be made. The poverty alleviation authorities expressed at the weekend that the poverty line will continue to be raised in the coming years to further strengthen the capability of poverty-stricken residents to develop on their own. And the target is set for the income of average rural residents to double by the year 2020. It also aims to help the destitute population to permanently rise above poverty. With such realistic targets, it is possible to hope that breakthroughs will be made in the hardest battles against poverty over the next few years. (China Daily 12/29/2008 page4) |
