China Makes Strides in Reducing Poverty

There hasn't been much positive financial news this year- from failing banks to inflation and global food shortages.  While China/st1 :country-region>'s stock market isn't looking much stronger than most of the rest of the world right now, its poverty reduction efforts have been much more rewarding./span>

At a recent press briefing, Huang Yanxin from Chinas Ministry of Agriculture said, "according to China/st1 :country-region>'s standards, the number of people living in absolute poverty in rural areas plunged from 30.7 percent in 1978 to 1.6 percent in 2007." /span>

Many hope that this momentum will continue, ultimately contributing to the eradication of total poverty, but the poverty line might rise alongside the economy in order to ensure more government benefits for those who deserve it.  Currently, the poverty line is only 1,067 RMB, which is approximately $152 USD each year.  Under a new proposal, this level would increase to 1300 RMB each year, or $186 per year. /span>

This proposal would provide more assistance to the poorest citizens, but it would also cause the number of those living in poverty to double, reaching about 80 million.  /span>

Even with expanding the definition of poverty, a salary of $186 annually still doesn't quite match up with the World Bank's definition of poverty referring to those who earn less than $1.25 per day.  Chinese leaders justify this difference by saying the cost of living in China/st1 :country-region> is comparatively lower than many other countries, which is particularly true in rural areas./span>

Regardless, even in terms of the World Bank's standards, the number of impoverished Chinese has dropped from about 835 million in 1981 to 207 million in 2005, for a total of more than 528 million people.  This drop accounts for more than half of the world's poverty reduction during the same period. /span>

Vice Foreign Minister He Yafei acknowledges the difficult economic climate worldwide, but he remains optimistic that countries will be able to meet the U.N.'s Millennium Development Goals of reducing extreme hunger and poverty by half by 2015.  An additional $18 billion of yearly donations until 2010 will be required to meet these goals, which could be more difficult in today's global economic climate./span>

Although the task remains daunting, it is inspiring to hear that hundreds of millions no longer have to live in absolute poverty.  New obstacles will continue to challenge policy-makers, but even in today's economic times there are many opportunities to improve lives./span>

We'll have to wait until 2015 to see if the U.N. Millennium Development Goals can become reality, but we will have a better-defined understanding after leaders from 140 countries meet for the U.N. development summit next week.