China’s Experience in Rural Poverty Reduction: Jobs from Industrialization and Urbanization to Increase Rural Household Income

Xu Qing 1, Wu Jingjing 2 and Zhang Yuan
1 Institute of Finance and Economics, Shanghai University of Finance and Economics, Shanghai, China
2 School of Economics, Fudan University, Shanghai, China
3 China Center for Economics Studies, Fudan University, Shanghai, China

 
Abstract: This paper makes an appraisal of the successful experience of China, a country with the largest agricultural population in the world, in the reduction of rural poverty. We conclude that it is an indispensible strategy to give priority to the development of urban sectors to promote economic growth and reduce rural poverty, and that the development of  low value-added agriculture yields few, if any, benefits in decreasing rural poverty. By first adopting urban-biased policies and promoting industrialization, China has created new sources of economic growth and urban employment opportunities to absorb the surplus rural workforce. Entering labor-intensive industrial sectors for higher incomes has thus become a critical avenue for the rural poor to benefit from economic growth and escape poverty.
Keywords: China miracle, rural poverty, industrialization, China’s experience

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