Countries and Regions

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p. 3 of 7 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program A. Progress in Poverty Reduction B. Progress in the Country Strategy and Program Focus Areas C. Implications for Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2007-2008: People's Republic of China : II. Implementation of the Country Strategy and Program

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A. Progress in Poverty Reduction

7. The PRC has made remarkable progress in reducing poverty, with the number of rural poor falling from about 250 million in 1978, to 85 million in 1990, and 23.7 million in 2005.³ The population below the international standard of $1 per day (using purchasing power parity) fell from 374.8 million (33% of the population) in 1990 to 135 million (10% of the population) in 2005. Several non-income aspects of poverty have also improved, with the PRC poised to achieve Millennium Development Goal (MDG) targets for maternal health and primary education (Appendix 1, Table A1.1). More targeted and innovative approaches are needed to work on (i) persistent absolute poverty, increasingly concentrated in hard-to-reach groups (e.g. remote communities and the elderly and disabled); (ii) the vulnerability of a large population living on the brink of poverty; ⁴ and (iii) new manifestations of urban poverty. ⁵ Unless there are dramatic improvements, the PRC might not achieve the MDG targets for gender equity, environmental sustainability, and child mortality, HIV/AIDS, and access to safe drinking water and sanitation.

8. In 2004,⁶ the Government announced three new tools for reducing rural poverty in the next few years: (i) integrated village-level poverty reduction and development planning; (ii) training for potential migrants from rural areas; and (iii) development of local enterprises, typically in agro-industry. While farmers’ income will remain the focus of the Government’s “developmentbased poverty alleviation” strategy, the Government is exploring new social protection approaches to assist poor people who lack productive capacity. This in part reflects ADB’s policy dialogue and study on establishing a rural minimum living standard protection system (MLSPS). More support for compulsory education, vocational training for migrants, and rural health care, will provide new exits from poverty.

9. Most of ADB’s program targets the central and western provinces to support inclusive economic growth. ADB will continue to work with the Government to (i) sharpen its fight against poverty; and (ii) achieve the MDGs, including policy work in such areas as social protection, strengthening the role of nongovernment organizations (NGOs) in reducing poverty, and cooperating with the World Bank and other development partners to advance policy dialogue on the changing nature of poverty in PRC. ADB’s recent study and projects covered implementing the primary health care strategy in rural areas, rural finance, health and HIV/AIDS, public nutrition, basic education, land degradation, energy, transportation, and access to water and sanitation. Another ADB TA is pioneering new mechanisms for engaging NGOs in state-funded rural poverty efforts, assessing solutions to urban poverty, and supporting applied research on the rural MLSPS.⁷ ADB is actively engaging the Government on possibilities for pro-poor lending in new areas such as technical education and vocational training.

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