Targeted Poverty Alleviation and Pro-Poor Growth
Evidence from China’s Practice and Experience
DOI:
https://doi.org/10.25071/1874-6322.40546Keywords:
Pro-poor growth, targeted poverty alleviation, Kakwani index, rural, ChinaAbstract
This article assesses the pro-poor growth effect in China’s rural populations
over the period 2007–2018 using the strict pro-poor index proposed by
Nanak Kakwani. The results show that while China’s rural areas did not
experience strictly defined pro-poor growth between 2007–2013, a
contemporary pro-poor effect was observed during which Targeted Poverty
Alleviation (TPA) policies were implemented. The conclusion is robust in
the dimensions of income and expenditure and non-income well-being.
Through a heterogeneity analysis, this article finds differences in pro-poor
growth among various groups. In particular, poor women, seniors, children,
and geographic areas (such as western China) benefited more during the
targeted poverty-alleviation policy period than their counterparts. Finally,
we use Kakwani’s shared prosperity index to show that China is actively
making more positive efforts and preparations towards attaining commonly
shared prosperity.
References
Aronson, R., P. Johnson, and P.J. Lambert 1994 “Redistributive effect and unequal tax treatment”, The Economic Journal 104(423, March): 262–270.
Ahluwalia, Montek S., and Hollis Chenery 1974 “The Economic Framework” in H. Chenery, MS Ahlumalia, CLG Bell, JH Duloy, and R Jolly (eds) Redistribution with Growth; policies to improve income distribution in developing countries in the context of economic growth Oxford: Oxford University Press, pp 38–51.
Alkire, Sabina, and Yangyang Shen 2017 “Exploring Multidimensional Poverty in China: 2010 to 2014” in S. Bandyopadhyay (ed.) Research on Economic Inequality Bingley: Emerald Publishing Limited, pp. 161–228. DOI: 10.1108/S1049-258520170000025006
—– , and James Foster 2011 “Counting and Multidimensional Poverty Measurement”, Journal of Public Economics 95(7): 476–487.
Atkinson, Anthony B. 2019 Measuring Poverty around the World Princeton/Oxford: Princeton University Press.
Atkinson, Tony, Bea Cantillon, Eric Marlier, and Brian Nolan 2002 Social Indicators: The EU and Social Inclusion Oxford: Oxford University Press.
Bhagwati, Jagdish N. 1958 “Immiserizing Growth: A Geometrical Note”, Review of Economic Studies 25(3): 201–205.
—— 1998 “Poverty and public policy”, World Development 16(5): 539–555.
Bourguignon, François 2004 “The Poverty-Growth-Inequality Triangle” paper presented at Indian Council for Research on International Economic Relations, New Delhi 30 pp.
Brandt, Loren, and Carsten A Holz 2006 “Spatial Price Differences in China: Estimates and Implications”, Economic Development and Cultural Change 55(1): 43–86.
Chen, Shaohua, and Martin Ravallion 2010 “The Developing World Is Poorer than We Thought, but No Less Successful in the Fight Against Poverty”, The Quarterly Journal of Economics 125(4): 1577–1625.
—– 2021 “Reconciling the Conflicting Narratives on Poverty in China”, Journal of Development Economics 153(November): 102711.
Deaton, Angus 1997 The Analysis of Household Surveys: A Microeconometric Approach to Development Policy Washington, DC: World Bank Publications.
Deininger, Klaus, and Lyn Squire 1998 “New Ways of Looking at Old Issues: Inequality and Growth”, Journal of Development Economics 57(2): 259–287.
Diwakar, Vidya, and Andrew Shepherd 2022 “Sustaining Escapes from Poverty”, World Development, 151(March): 105611.
Drèze, Jean, and Amartya Sen 2013 An Uncertain Glory: India and Its Contradictions New Jersey: Princeton University Press.
Duclos, Jean-Yves 2009 “What Is ‘Pro-Poor’?”, Social Choice and Welfare 32(1): 37–58.
Foster, James, and Joel Greer, and Erik Thorbecke 1984 “A class of decomposable poverty measures”, Econometrica 3.52(3): 761–766.
—– 2010 “The Foster-Greer-Thorbecke (FGT) poverty measures: 25 year later”, The Journal of Economic Inequality 8(May): 491–524.
Foster, James E, and Miguel Székely 2008 “Is Economic Growth Good for the Poor? Tracking Low Incomes Using General Means”, International Economic Review, 49(4): 1143–1172.
Georgina, Davie, and Mark Wang, Sarah Rogers, and Jie Li 2021 “Targeted Poverty Alleviation in China: A Typology of Official-Household Relations”, Progress in Development Studies 21(3): 244–263.
Jäntti, Markus, and Sheldon Danziger 2000 “Income Poverty in Advanced Countries”, in A.B. Atkinson and F. Bourguignon (eds) Handbook of Income Distribution Volume 1 Amsterdam: North Holland. pp. 309–378
Jenkins, Stephen 1991 “Poverty Measurement and the Within-Household Distribution: Agenda for Action”, Journal of Social Policy 20(4): 457–483.
Jinping, Xi 2019 “The Governance of China III. Deliver the Two Assurances and Three Guarantees”, Qiushi Journal April 16 http://en.qstheory.cn/2022-02/23/c_705865.htm
Kakwani, Nanak 1980 Income Inequality and Poverty Washington, DC: World Bank Research Publication.
—– 1993 “Poverty and Economic Growth with Application to Côte d’Ivoire”, Review of Income and Wealth 39(2): 121–139.
Kakwani, Nanak, and Ernesto M Pernia 2000 “What Is Pro-Poor Growth?”, Asian Development Review 18(1): 1–16.
—–, and Hyun Hwa Son. 2008a “Pro-Poor Growth: The Asian Experience”, in Machiko Nissanke and Erik Thorbecke (eds) Globalization and the Poor in Asia. Can Shared Growth be Sustained? Studies in Development Economics and Policy series London: Palgrave Macmillan pp. 24–46.
—– 2016 Social Welfare Functions and Development: Measurement and Policy Applications: London: Palgrave Macmillan.
—–, and Hyun. H. Son 2008b “Poverty Equivalent Growth Rate”, Review of Income and Wealth, 54(4): 643–655.
—– 2003 “Pro-poor Growth: Concepts and Measurement with Country Case Studies”, The Pakistan Development Review 42(4): 417-444.
Kakwani, Nanak, and Kalinidhi Subbarao 1994 “Global Development: Is the Gap Widening or Closing?” in T. DeGregori and H. Rodgers (eds), Poverty Policy in Developing Countries. London: JAI Press pp. 65-118.
Li, Linxian, and Bian Shu 2021 “Economic Growth, Income Distribution and Poverty Identification and Decomposition of Inclusive Growth”, Economic Research Journal 56(02): 54–70.
Li, Xiaoyun 2021 The End of Poverty Beijing: CITIC Press Group.
Luo, Chuliang, Li Shi, and Yue Ximing 2021 “An Analysis of Changes in the Extent of Income Disparity in China (2013-2018)”, Social Sciences in China 1: 33-54, 204–205. [in Chinese]
Marlier, Eric, Tony Atkinson, Anthony Barnes Atkinson, Bea Cantillon, and Brian Nolan (eds.) 2007 The EU and Social Inclusion: Facing the Challenges Briston: Policy Press.
Ravallion, Martin 1997 “Can High-Inequality Developing Countries Escape Absolute Poverty?” Economics Letters 56(1): 51–57.
—– 2004 “Pro-Poor Growth: A Primer”, World Bank Policy Research Working Paper No. 3242.
—–, and Chen Shaohua 2003 “Measuring Pro-Poor Growth”, Economics Letters 78(1): 93–99.
Ruan Jing 2007 “Measurement and Decomposition of Chinese Rural Pro-poor Growth”, Statistical Research 24(11): 54-58. [in Chinese]
Sen, Amartya 1984 “The Living Standard”, Oxford Economic Papers 36: 74–90.
—– 1985 “Well-Being, Agency and Freedom: The Dewey Lectures 1984”, The Journal of Philosophy 82(4): 169–221.
Shen, Yangyang 2022 Rural Poverty, Growth, and Inequality in China Singapore: Springer Nature Singapore Pte Ltd.
—– 2012 “The Impact of Economic Growth and Inequality on Rural Poverty in China”, The Journal of Quantitative & Technical Economics 29(08): 19–34. [in Chinese]
—–, and Sabina Alkire 2022 “Exploring China’s Potential Child Poverty”, China & World Economy 30(1): 82–10.
—–, Sabina Alkire, and Zhan Peng 2019 “Measurement and Decomposition of Multidimensional Poverty in China”, China Economist, 14(3): 12–28.
—–, and Shi Li 2022 “Eliminating Poverty through Development: The Dynamic Evolution of Multidimensional Poverty in Rural China”, Economic and Political Studies 10(1): 85–104.
—–, Shi Li, and Xiaobing Wang 2021 “Impacts of Two Tax Reforms on Inequality and Welfare in China”, China & World Economy 29(3): 104-134.
Shorrocks, Anthony, and Guanghua Wan 2008 “Ungrouping Income Distributions: Synthesising Samples for Inequality and Poverty”, UNU-WIDER Working Paper.
Son, Hyun H. 2004 “A Note on Pro-poor Growth”, Economics Letters 82(3): 307–314.
Terry Scular, Shi Li, Ximing Yue, and Hiroshi Sato 2020 Changing Trends in China’s Inequality: Evidence, Analysis, and Prospects New York: Oxford University Press.
The State Council Information Office of the People’s Republic of China 2021a “Moderate Prosperity in All Respects: Another Milestone Achieved in China’s Human Rights” http://english.www.gov.cn/archive/whitepaper/202108/12/content_WS611492b4c6d0df57f98de5ac.html
—– 2021b Poverty Alleviation: China’s Experience and Contribution Beijing: Foreign Languages Press.
UNDP 2010 Human Development Report 2010, The Real Wealth of Nations: Pathways to Human Development. New York: United Nations Development Programme.
UNDP and OPHI 2021 Global Multidimensional Poverty Index 2021 Unmasking disparities by ethnicity, caste and gender United Nations Development Programme and Oxford Poverty and Human Development Initiative.
Wan, Guanghua, Chen Wang, and Xun Zhang 2021 “The Poverty-Growth-Inequality Triangle: Asia 1960s to 2010s” Social Indicators Research 153(3): 795–822.
—–, Chen Wang, Hua Yin, and Yan Zhang 2018 “From Equality of Deprivation to Disparity of Prosperity: The Poverty-Growth-Inequality Triangle in Postreform China”, China & World Economy 26(2): 50-67.
—–, Xiaoshan Hu, and Weiqun Liu 2021 “China’s Poverty Reduction Miracle and Relative Poverty: Focusing on the Roles of Growth and Inequality”, China Economic Review: 68(August): 101643.
Wang, Sangui 2020 The Fight Against Extreme Poverty and Targeted Poverty Alleviation: Theory and Practices Beijing: Economic Science Press. [in Chinese]
Wang, Xiaolin, and Sabina Alkire 2009 “China’s Multidimensional Poverty: Evaluation and Policy Implications”, Chinese Rural Economy 2: 4–10. [in Chinese]
Wen, Tao, Zhu Jiong, and Wang Xiaohua 2016 “Elite Capture of Rural Credit Market in China: Stratified Comparison between Poor and Non-poor Counties”, Economic Research Journal 51(2): 111–125. [in Chinese]
World Bank 2015 A Measured Approach to Ending Poverty and Boosting Shared Prosperity: Concepts, Data, and the Twin Goals Washington DC: World Bank Publications.
Xian, Zude, Wang Pingping, and Wu Wei 2016 “Rural Poverty Lines and Poverty Monitoring in China”, Statistical Research 33(09): 312. [in Chinese]
Zhu, Ling, and He Wei 2018 “Forty Years’ Rural Poverty Reduction in the Chinese Industrialization and Urbanization”, Studies in Labor Economics 6(04): 3–31. [in Chinese]