Chinese Experiences in Addressing Rural Extreme Poverty and Marginalization

ZHU Ling 1

Senior Research Fellow, Institute of Economics, China Academy of Social Sciences, Beijing
Abstract: Seeking to alleviate and eradicate extreme poverty, the Chinese government has extended Di Bao (the minimum livelihood guarantee system) to the entire rural sector. It has also enhanced agricultural

policies and strengthened its promotion of rural socioeconomic development. In more-developed regions of the country, the Di Bao program -in combination with integrated urban and rural social insurance and public services-has significantly reduced rates of poverty and financial vulnerability, and additional employment-promotion policies have created opportunities for Di Bao recipients to achieve incomes above the poverty-line. However, because of the high number of extremely poor households in disproportionately poor areas and the paucity of locally-available financial resources there, the intensity of intervention is still insufficient. Inadequate coordination of policies and shortcomings in the targeting of subsidies have resulted in both under-coverage and welfare-leakage as well. Consequently, in China’s efforts to eradicate extreme poverty, increasing the effectiveness of poverty-reduction strategies in poor areas remains a key priority.

Key words: rural social protection, extreme poverty