Xinhua on Four Major Problems of Poverty
Tue, 08/07/2007 - 21:01 — LD
On July 30, 2007 Xinhua republished an article from China Economic Times on poverty in China. The article discusses four major problems pertaining to poverty in China: widening of income disparity, inadequate medical care for poor regions, rural poverty and poor people deprived of socio-economic welfare benefits.
The following is a translation of excerpts of the article.[1]
"At present, there are four types of poverty in China."
"Economic Poverty. ... According to data published by the World Bank, in 2005 China＇s Gini coefficient of 0.47 exceeds the internationally recognized red line. Among all the labor forces in China, 80% are low income and are below the tax threshold. There are about 26,100,000 population with income below 668 yuan that cannot feed themselves. According to statistics, the income disparity between urban and rural population is 20 years when measured vertically. Horizontally the same income disparity with welfare benefits is 6 times. The top 10% income group makes 9.5 times the income of the lowest 10% income group. Top 20% urban high-income families own 55.4% of the urban financial assets. From 1990 to 1999, the Per capita income of the poorest 1% increased by 3% while the per capita income of the riches 1% increased by 12%."
"Capability Poverty. ... Statistics show that the rural per capita income was only 2,936 yuan in 2005, 32.6% of which went to education expenses. For medical care, rural regions are the weakest link in China. There is a significant gap between the medial care available for farmers and for urban population. On health, in China＇s poor areas, nutrition and health are important factors limiting the increase in the income of the farmers. The current rural medical care system is gradually disintegrate. The new medical service system has not been established. Under this circumstances, poor health is the root cause that people in the poor regions cannot rise out of poverty. "
"Regional Poverty. ... Geographically, people in poverty are mostly concentrated in the counties of the mid-west China and the northeast old industrial base. ... Currently there are about 7 million poverty-stricken people residing in areas of harsh living conditions. Since the opening-up reform and before the great western development and the strategy to revitalize the northeast, investment and preferential financial policies favored the developed coastal areas at the cost of sacrificing inland provinces. The policies/measures of the tilt and its impact still exist and play a role."
"Rights Poverty. This mostly refers to vulnerable groups are excluded from the socio-economic welfare benefits...."
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