Chinese President Xi Jinping recently announced that since assuming power in 2012, he has driven 100 million people out of the darkness of poverty. He claimed that China has achieved a ‘complete victory’ in the fight against poverty by improving the economic standard of more than 77 crore people in the last four decades. Since then, discussions have started about how China did this?
What is the poverty line?
According to a BBC report, a person living in rural areas in China who earns less than $ 2.30 a day is considered poor. This standard was set in 2010 and it looks at income as well as living conditions, health, and education. The World Bank has drawn the poverty line at $ 1.90 and the Chinese line is above that. Last year, Jiangsu Province announced that only 1.7 crores of its 8 crore people were below the poverty line.
What does the World Bank data say?
In 1990, 75 million people in China lived below the international poverty line, which was two-thirds of its total population. In 2012, this number was reduced to 90 million and in 2016 to 72 lakh, ie 0.5% of the population. The same trend is seen in the World Bank’s data and the Chinese government’s announcement. According to the report, the continuing economic growth is behind the reduction of poverty in China. Much of the focus has been on poor rural areas.
What did the government do?
The government has shifted people from remote villages to apartments. Some of these have been settled near towns and other old villages. However, it is criticized that people were not given much freedom to choose. At the same time, it is also said that the policies of the party are responsible for poverty. However, 40 years have seen major changes.
People are also working hard
The report quoted economist David Rainey as saying that the people of China have also worked hard and come out of the influence of Chairman Mao’s terrible policies. The World Bank has placed China in the upper-middle-income economy. However, there is a huge difference in the income of the people. Last year, China’s Premier Li Keqiang said that the monthly income of 600 million people in China is still 1000 yuan or $ 154, which is not enough to rent a house in a city.