Question

China is one of the countries where the poverty ratio is declined. What is the main reason behind declining of poverty? *
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Answer 1

Answer:

It is clear that the marked reduction of poverty in rural China is because the bottom households increased their income at a high annual rate over a quite long time.

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Answer 2

Answer:

Since the start of far-reaching economic reforms in the late 1970s, growth has fueled a remarkable increase in per-capita income, helping to lift more people out of poverty than anywhere else in the world: China's per capita income has increased fivefold between 1990 and 2000, from $200 to $1,000. Between 2000 and 2010, per capita income also rose by the same rate, from $1,000 to $5,000, moving China into the ranks of middle-income countries. Between 1990 and 2005, China's progress accounted for more than three-quarters of global poverty reduction and a big factor in why the world reached the UN millennium development of dividing extreme poverty by two. This incredible success was delivered by a combination of a rapidly expanding labour market, driven by a protracted period of economic growth, and a series of government transfers such as an urban subsidy, and the introduction of a rural pension.[6] World Bank suggest that the percentage of the population living below the international poverty line of $1.9 (2011 PPP) fall to 0.7 percent in 2015, and poverty line of $3.2 (2011 PPP) to 7% in 2015.[4] As at the end of 2018, the number of people living below China's national poverty line of 2,300 yuan per year (in 2010 constant prices) is 16.6 million which translates to 1.7% of the population.[7] with hopes of totally eradicating poverty by 2020.

At the same time, however, income disparities have increased. The growing income inequality is illustrated most clearly by the differences in living standards between the urban, coastal areas and the rural, inland regions.[8][9] There have also been increases in the inequality of health and education outcomes.[10] To alleviate the situation, the Chinese government shifted its policy in recent years to encourage urban migration, fund education, health, and transportation infrastructure for poor areas and poor households. In addition the government is attempting to rebalance the economy away from investment and exports toward domestic consumption and public services, to help reduce social disparities. Relocation of the poor from poverty stricken regions to more developed urban areas is also being implemented as part of the holistic plan to tackle rural poverty

Explanation:

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