China's (Uneven) Progress Against Poverty

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World Bank, Washington, D.C.

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While the incidence of extreme poverty in China fell dramatically over 1980-2001, progress was uneven over time and across provinces. Rural areas accounted for the bulk of the gains to the poor, though migration to urban areas helped. The pattern of growth mattered. Rural economic growth was far more important to national poverty reduction than urban economic growth. Agriculture played a far more important role than the secondary or tertiary sources of gross domestic product (GDP). Rising inequality within the rural sector greatly slowed poverty reduction. Provinces starting with relatively high inequality saw slower progress against poverty, due both to lower growth and a lower growth elasticity of poverty reduction. Taxation of farmers and inflation hurt the poor. External trade had little short-term impact.

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ABSOLUTE POVERTY, COST OF LIVING, COST OF LIVING ADJUSTMENT, COUNTERFACTUAL, CPI, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECONOMIC POLICIES, EDUCATION, ELASTICITIES, ELASTICITY OF POVERTY, ENTITLEMENTS, EXCHANGE RATE, EXTERNALITIES, FISCAL CONSTRAINTS, GDP, GINI INDEX, GROWTH RATE, HEADCOUNT INDEX, HEALTH, HOUSEHOLD INCOME, HOUSEHOLD SURVEYS, HOUSING, INCIDENCE OF POVERTY, INCOME, INCOME DISTRIBUTION, INCOME INEQUALITY, INEQUALITY, INFLATION, INFLATION RATE, LIVING STANDARDS, LOW INCOME, MACROECONOMIC STABILIZATION, MEAN INCOME, MIGRANTS, MIGRATION, MOTIVATION, NATIONAL ACCOUNTS, OIL, POOR, POSITIVE EXTERNALITIES, POVERTY GAP INDEX, POVERTY INCIDENCE, POVERTY LINE, POVERTY LINES, POVERTY MEASURES, POVERTY REDUCTION, PRICE CHANGES, QUOTAS, REMITTANCES, RURAL POVERTY, SANITATION, SQUARED POVERTY GAP, SQUARED POVERTY GAP INDEX, TAXATION, URBANIZATION

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