October 17 is celebrated as National Welfare Day in China and as Poverty Alleviation Day worldwide to draw attention to poverty. China’s share in reducing poverty around the world is quite large, especially considering its huge population. According to the evaluation made based on the poverty line determined by the World Bank as 1.9 US dollars per day in 2011, the poor population in the world decreased by 1 billion 100 million people between 1981 and 2012. In the same period, China lifted 790 million people out of poverty and increased its share in the world in this field to 71.82 percent.[1] By 2021, Chinese President Xi Jinping declared victory in this fight by reducing the extreme poverty rate to 0%.[2]
China has achieved great success by reaching the 2030 Sustainable Development Goal, adopted by the United Nations in 2015, 10 years ago. Development, with emphasis on social inclusion, in the light of policies led by the government, has been identified as the main way to eliminate poverty.
Fundamentals of Success
Although some steps were taken before the Deng period in the context of fighting against poverty, the wrong policies implemented in agriculture and their consequences caused Deng Xiaoping to focus first on agriculture and rural areas. In the policies implemented in this period, there was a socialist understanding and the awareness that it was a duty to fight against poverty in rural areas in line with this understanding.
With the opening-up policy within the scope of the economic reform program called “socialism with Chinese values” in 1978, China was opened to foreign investments and the country’s economic development was paved, resulting in an increase in per capita income.[3] With the decollectivization of agriculture, agricultural production increased by 25 percent between 1975 and 1985, and with its positive reflection on the economy, in the early 1990s, poverty became a problem that spread throughout China and became a problem that only covers some regions and groups.[4]
In 1994, the State Council committed to meet the basic needs of 80 million poor rural residents under China’s first Priority Poverty Alleviation Program (1994-2000), which had clear targets, measures and clear dates. In 1996, the authorities held the National Conference on Development-Oriented Poverty Alleviation, further clarifying the commitment to the goal of providing adequate food and clothing by the end of the 20th century and shifting from aid-based poverty alleviation to development-oriented poverty alleviation. By the end of 2000, the poor population in rural areas was reduced to 32.09 million and the poverty rate was reduced to 3.5% according to the poverty alleviation standard at that time.[5]
During the reigns of Jiang Zemin and Hu Jintao, various policies aimed at reducing poverty and developing the countryside continued to be implemented. China’s poverty alleviation effort has evolved from its primary mission of meeting the basic needs of the poor to a new phase of accelerating poverty alleviation and enhancing development capacity. As of the end of 2010, according to the poverty standard, the poor rural population decreased to 26.88 million and the poverty rate decreased to 2.8%. In 2011, per capita income increased to 2300 yuan and the poor population reached 122 million.[6]
In the New Era of Digitalization: “Targeted Poverty Alleviation”
Since the 18th CPC National Congress held in 2012, the Chinese government has identified poverty alleviation as the core task of building a moderately prosperous society. The “精准扶贫 jīngzhǔn fúpín” (targeted poverty alleviation) strategy put forward by President Xi Jinping in 2013 ensured that each individual living in poverty was specifically monitored and special solutions were developed according to their needs. It has increased income in poor regions through tools such as accurate policies, local economic projects and education support.
During this period, unlike other periods, China used information technologies extensively to end poverty. A “national poverty database” containing comprehensive information about individuals and households living in poverty was created, and the situations of poor families were examined and interventions appropriate to their needs were determined and implemented. In this way, resources were used effectively and the efficiency of the implemented policies increased. In addition, with the widespread use of digital applications such as AliBaba, it has become possible for producers living in rural areas to sell their products and earn income by reaching a larger buyer base.
By 2021, Chinese President Xi Jinping announced to the public that, as a result of continuous efforts, 98.99 million people living in rural areas and suffering from extreme poverty were rescued from poverty, and 832 districts and 128,000 villages were removed from the poor class by the end of 2020. Reforms in this context were carried out gradually, which helped businesses and the population adapt to the changes.[7]
Although continuous policies are the basis of this great success, it is clear that another factor behind the success of the policies is ideological. Although China’s win-win policy and the idea of building a community with a common future for humanity seem to have been put forward in the early 21st century, it can be observed that it is based on the teachings of Marxism and Confucius, such as the peaceful improvement of the world and the elimination of hunger and poverty. (Khan, Wang & Ali , 2021) Based on the same ideology, it is a detail that should not be overlooked that the Belt and Road Initiative plays an important role in the fight against poverty in both China and the KYG countries.
“He who wants himself to be successful must help others to be successful; He who wants to improve himself must help others improve as well.”
Confucius
China’s success in developing its own society and fighting poverty, and the correct policies it follows while doing this, set an example in terms of reducing poverty around the world. The idea of fighting poverty based on development rather than aid has laid the groundwork for the lasting prosperity of Chinese society. In addition, in parallel with the economy that developed with the opening up to the outside world in 1978, the steps taken for the development of rural areas were strengthened, and rural regions continued to develop despite the fluctuations over time. Producing more accurate solutions through smart use of databases and digital tools has enabled the goal of combating extreme poverty to be achieved much more easily. As the Chinese society, which constitutes a significant part of the world’s population, develops and the poverty level decreases, its reflection on the world has and will continue to be equally large. Considering its economic and political power, its development in digitalization and the dominant ideology in its society, China will continue to take steps to reduce poverty worldwide with many projects, especially the Belt and Road Initiative.
Spot
- According to the World Bank’s data, this success has contributed greatly to global poverty reduction efforts.
- Government targeted aid and rural development projects have helped improve living standards in these regions.
- Digitalization has a great share in the success of the targeted fight against poverty.
[1] “Çin´in Dünyada Yoksulluğun Azaltılmasındaki Payı Yüzde 70´i Geçti”, https://www.turkcindostlukvakfi.org.tr/TR,759/cinin-dunyada-yoksullugun-azaltilmasindaki-payi-yuzde-70i-gecti.html, (Date Accession: 20.10.2024).
[2] “Xi declares “complete victory” in eradicating absolute poverty in China”, http://www.xinhuanet.com/english/2021-02/26/c_139767705.htm, (Date Accession: 20.10.2024).
[3] Poverty Alleviation: China’s Experience and Contribution, http://sy.china-embassy.gov.cn/eng//xwfb/202104/t20210420_8922554.htm, (Date Accession: 20.10.2024).
[4] Ibid.
[5] Ibid.
[6] Ibid.
[7] Li, Xiaoyun and Chuanhong Zhang (2024), “Lessons from sustained poverty reduction in China”, in OECD, Development Co-operation Report 2024: Tackling Poverty and Inequalities through the Green Transition, OECD Publishing, Paris. https://doi.org/10.1787/3d97c256-en, (Date Accession: 20.10.2024).
Simay GÜZEL