Four Decades and 800M People Out of Poverty: Lessons From China’s Poverty Alleviation Approach
George Musiime
At the dawn of African independence, Kwame Nkrumah is quoted to have said “Seek ye first the political Kingdom and all else shall be added unto you.” However, as reality has proved to us, whereas political freedom might have been a necessary condition for Africa’s economic freedom, some analysts contend that this was not necessarily a sufficient condition for economic freedom. Economic freedom takes rigorous and meticulous efforts and something has been lacking in the post independence-African effort. Evidence of this is the persistence of poverty as a major challenge faced by all African like many other states in the global south to date.
On the contrary, one nation that has been able to make massive progress in as far as stamping out poverty is concerned is China. The People’s Republic of China stands tall above all as a nation that has managed to lift out of extreme poverty nearly 800 Million Chinese over the past 40 years. To put this into context, this is the equivalent of 54% of Africa’s total population today or 20 Million people out of poverty each year over the past 40years. Even, the World Bank has credited China with a contribution of almost three quarters to total global poverty reduction, but how was China able to do this? A simple answer to this Question according to president Xi Jinping is; Based on China’s unique national conditions and following the law of poverty reduction, China adopted a series of extraordinary policies and measures, and constructed a whole set of systems covering policy, work and institutions, which blazed a poverty reduction path forming an anti-poverty theory with Chinese characteristics.
Otherwise, what would the idea of shared prosperity mean on the global stage if it did not hold true at home? This is why China first sought shared prosperity for its own people. Particularly, in the fight against poverty, the country is a beacon of hope for ending global poverty; one the rest of the world needs to emulate. According to President Xi, a key mission of the Communist Party of China is to eradicate poverty, improve people’s living standards, and gradually achieve common prosperity for all. In fact, if Africa and the rest of the world seek inspiration, there is no better or more credible source of inspiration than China when it comes to poverty eradication.
The Chinese poverty alleviation campaign employed a two-pronged approach focusing on stimulating economic growth through deliberately driving economic transformation and the creation of new opportunities especially for the poor members of society. Additionally, the government undertook direct initiatives with a bias towards disadvantaged areas with an underlying lack of access to opportunities but also focusing on poor and vulnerable households all across the board. This is a different approach to rolling out blanket-universal poverty alleviation programs without necessarily identifying the nature and context of people that need to be helped out of poverty. This coupled with well-developed infrastructure and developed human capital catapulted China to the attainment of the goal of eradicating poverty by the year 2020.
A key fundamental of this approach is realizing that national level poverty manifestation is always going to be the cumulative outcome of poverty at the individual level, household level, and community level all the way up to the national level. This is why president Xi, while speaking in the northern province of Hebei in 2012 declared the need for well-focused measures to help country-men facing difficulties out of poverty. This would follow from understanding the situation of every poor citizen, and every household in China, through a series of steps starting from Awareness campaigns, application reviews, door-to-door investigations, deliberate disclosures at the village level, examination of disclosures at the township level and eventual approval at the national level. This meticulous trickle-down procedure intended to weed out “fake beneficiaries” allowing all efforts to be directed at the most deserving members of society.
To accomplish this, the government assembled and deployed Poverty alleviation cadres all across the nation. Moreover, critical to the poverty alleviation effort was maintaining a database of all impoverished households keeping data such as; identification and evaluation data, causes of poverty, assistance plans, incomes and expenditures of impoverished households, policies and guarantees received, relevant agreements, et cetera . This data not only helped with targeting interventions based on the unique situation of the poor households but also with both evaluation of effectiveness of the approaches as well as ensuring people do not slip back into poverty once they have been liberated through monitoring and hence sustaining the gains of the nation’s poverty alleviation efforts.
As countries looking to help our people out of poverty, we like China at the onset might have made significant gains on the fronts of investment in infrastructure and human capital, however, we are lacking when it comes to deeper understanding of our people, the causes of their poverty et cetera. The Makerere University, college of humanities and social sciences for example identifies, health challenges, unemployment, lack of access to productive resources such as land, credit and market information as the leading causes of persistent poverty. These causes are not universally crosscutting thus there is no one size-fits-all measure of poverty alleviation. To use the words of president Xi, the design of poverty alleviation programs should be based on the unique conditions of the intended beneficiaries. For example, the development of labor-intensive industries to absorb skilled unemployed labor force, skilling campaigns for those poor due to a lack of the necessary skills for the available job market, providing market incentives to spur production hence creating competitive labor markets et cetera: an approach where we addressed each unique instance of poverty through its own unique intervention. Unless we develop a deeper understanding of the nature and context of the problem we seek to address, we may still struggle to attain economic freedom for our people.
George Musiime is a research fellow at the Sino-Uganda Research Centre.
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