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China’s Current Poverty Standards can Meet the Demands of Eliminating Absolute Poverty (No.139, 2019)

Oct 15,2019

By Yin Haodong & Ye Xingqing, Research Team on “The Promotion of Poverty Alleviation through Rural Revitalization”, Research Department of Rural Economy, DRC

Research Report, No.139, 2019 (Total 5639) 2019-8-20

Abstract: Viewing from the vertical and horizontal comparisons of poverty standards, it could be found that China’s current poverty standards can meet the goal of eliminating absolute poverty. When China’s impoverished population are all lifted out of poverty according to the current poverty benchmark by 2020, it can be said that absolute poverty that had been in place for over one thousand years will be totally eliminated. The people’s income above poverty line can ensure their basic living standard. According to the purchasing power parity index, China’s current poverty line is higher than the extreme poverty standard of the World Bank which stands at $1.9 dollars per person per day. In addition, the basic living needs of the poor population are met and such people have access to compulsory education, basic medical care and housing. Apart from basic income for the poor, the government also makes efforts to improve the life of the poor from multiple channels. But it should be noted that eliminating absolute poverty by 2020 only marks some initial achievements. China’s current rural poverty line stands now at lower-middle level, far below that of the developed countries and also lower than that of some middle-income countries. Meanwhile, some problems remain to be addressed such as inappropriate and non-constant efforts made for the work of poverty alleviation. Therefore, China’s poverty alleviation still has a long way to go.

Key words: absolute poverty, poverty standards, World Bank, China