——Ambassador Award winning work with the Theme of “Xi Jinping Thoughts through South African University Students’ Eyes”(Series Ⅲ)
Samantha Cox
Stellenbosch University
Introduction
In February 2021, President Xi Jinping announced that extreme poverty in China had been eradicated, in what he called a miracle. President Xi announced that “through the combined efforts of the whole Party and the entire nation, China has secured a complete victory in its fight against poverty in this important year”. Commitment to the miracle of poverty eradication has come to characterize Xi Jinping’s policy during his tenure as Chairperson of the Communist Party of China (CPC), but he is supported by decades of leadership dedicated to poverty alleviation. This essay will explore how China’s policies towards reducing policy have developed over the last few decades, before analyzing Xi Jinping’s contemporary poverty eradication policies on a national and international level. After much success on the national front, China has established itself as a leader in global development efforts. As such, there is much developing countries can learn from China with regards to dramatic economic development and poverty alleviation. This essay will conclude with a South African perspective on what South African poverty and economic development policy can learn from the Chinese miracle.
Tracing poverty policy through history: a chronology
Imperial China
Only once one has an understanding of the historical context of poverty and poverty alleviation policy in China, can one truly appreciate the 21st century miracle of ending extreme poverty. David Schak writes about the history of Chinese poverty, writing that “throughout most of Chinese history the majority of Chinese have lived in poverty” (2009:3). This is attributed to the structure of imperial economic and political institutions. Imperial China was an agricultural-based economy, in which the labour of the agricultural producers sustained a life of luxury for the elite. The nature of this type of economy meant that the only opportunity for peasant farmers to get ahead was by increasing their labour force by having more sons. This kept the population high, while resources remained low. This, coupled with famine – a study by Nanking University found an estimated 1828 famines between 108 BCE and 1911 CE – meant that the rate of poverty in rural areas was exceptionally high (Schak 2009:3). Schak goes on to argue that though there were no systemic poverty alleviations in dynastic China, there were some initiatives like the “ever-normal” granaries and poorhouses that worked to quell political instability as a result of poverty.
The People’s Republic of China: The Early Years
After 30 years of war, the People’s Republic of China was united under the CPC in 1949. During this interim period, competing warlords taxed the poor, people lost their lives fighting first against the Japanese, and then in a civil war. This period marked the first instance of systemic and institutional efforts are reform with the goal to reduce both inequality and poverty (Schak 2009:4). This attempt to reduce inequality came in the form of land reform – giving “the land to the tiller”, in which the CPC gave land to the farmer that had previously been owned by landlords (The State Council Information Office of the People’s Republic of China 2021:3). This land reform overthrew the imperial institutions that had endured for 2000 years and kept the majority of Chinese people in abject poverty, as well as the bureaucratic, feudal mechanisms that supported it. This eliminated the first major institutional obstacle to eliminating poverty This period also saw the development of preliminary social security infrastructures, and the “five guarantees” which had poverty relief at its core. There was also investment in improved farmland irrigation, rural education, and medical services (The State Council Information Office of the People’s Republic of China 2021:4). Thus, the miracle of the 21st century that is poverty eradication has its roots in the very foundation of the PRC and the CPC.
The People’s Republic of China: Three Decades of Rapid Growth and Poverty Alleviation 1978–2009
1978 saw the beginning of a new chapter in Chinese history, one that was characterised by massive economic growth and significant progress in poverty elimination. Yet again, the central collective leadership committed itself firmly to poverty elimination, with leader Deng Xiaoping declaring “Poverty is not socialism; socialism means eliminating poverty”. In the pursuit of this goal, Deng Xiaoping opened up China’s economy, to massive economic success. The economic policies implemented in this period saw rapid economic growth, improved agricultural productivity and the expansion of other non-agricultural sectors and labour was moved from low-productivity sectors to high-productivity sectors. This resulted in a massive average GDP growth of 8.2% per year on average between 1978 and 2020, and a consistent decline in rural poverty. On average, there were 18.7 million fewer poor people in China since 1978 (World Bank Group, 2022:4). Thus, poverty eradication efforts in the decades since 1978 have been made possible by massive economic growth, and growing China’s industry and economy was seen as the best way to end poverty. However, this approach would reveal the need for a different approach to poverty 3 alleviation in contemporary China, as poverty became an increasingly regional phenomenon. This massive urban development put pressure on the already deep rural-urban divide and squeezed resources out of the rural areas to fund this rapid development (Li, Su, & Liu, 2016:445). This would call for targeted poverty eradication strategies in the years to follow Deng Xiaoping’s tenure, and this would come to play an important role in Xi Jinping’s contemporary poverty eradication policy.
Poverty Policy: Xi Jinping and Contemporary China
A New Battle Against Poverty
In 2012, a new era of the battle against poverty began, with Xi Jinping at the fore. Though significant progress had been made in the previous decades, the CPC was still facing a daunting battle to raise the poorest population out of abject poverty. Though China and the CPC had managed to lift 700 million people out of poverty since 1978 – more than any other country in the world, the CPC and Xi Jinping are still aware that the toughest stage of the battle is still to come. In the 2015 Central Conference on Poverty alleviation, Xi Jinping stated that
“Eliminating poverty, improving living standards, and achieving common prosperity are basic requirements of socialism and an important mission of the CPC. Building a moderately prosperous society in all respects is our fundamental promise to the people. We have sounded a clarion call in the battle against poverty. To win this battle, we should have firm resolve and solid goals, and will work hard with a down-to-earth spirit, to bring reasonable prosperity to all poverty-stricken areas and individuals by 2020”
--President Xi, 2015
This “clarion call” signals the dedication of the CPC to raise the remaining 70 million rural poor out of poverty. Xi realises that this will be the most difficult stage of the battle so far, and one that will have to be fought with “firmer resolve, clearer thinking, more targeted measures, unique intensity and concerted action” as well as making advances in “effective mechanisms and targetedpolicymaking” (Xi, 2015:87). This focused and dedicated approach required President Xi to outline specific relief goals to be achieved by 2020. These goals are by 2020, the rural population will have guaranteed access to food, clothing, education, medical care, and safe housing, and the rate of rural disposable income should pass the national average (Xi, 2015:88). These goals and 4 dedications are reflective of the CPC’s dedication to the Chinese population and the effectiveness of Chinese socialism.
Targeted Poverty Alleviation
The modern fight against rural poverty in China required a new and focuses poverty eradication policy from the CPC. This came in the form of the policy of targeted poverty alleviation. The first step of this new policy was to identify those who needed uplifting. President Xi prioritised the identification of who is most in need of poverty relief – identifying the population group that area truly impoverished as well as the root causes of these problems – as well as who should be the one to implement these poverty relief policies – how the mechanisms would work, who in the central, municipal, prefectural and county levels would take charge and implement decisions (Xi, 2015:88- 89). President Xi details five measures to implement poverty relief. Firstly, China needs to continue its developmental-alleviation approach. That is, boosting the economy to provide more job opportunities. Secondly, there is the relocation plan. That is, relocating poverty-stricken people who cannot escape poverty in their areas should be relocated to areas in which they have the means to better themselves. Thirdly, there is the measure of creating eco-jobs. This simultaneously creates employment opportunities and restores and protects the local environments. Fourth, President Xi prioritises education. He notes that the best way to help the poor is to raise their educational level and adjusted the national education budget accordingly. Finally, the CPC will improve social security for poverty alleviation. This means that those who are unable to work will be guaranteed social security, there will be greater medical aid and a new serious illness insurance (Xi, 2015:89- 90). These five measures of the targeted poverty alleviation policy will work in pursuit of the great goal to end extreme poverty by 2020.
An Assessment of the Successes of the Targeted Poverty Alleviation Policy
The implementation of this policy would not be without its challenges. The nationwide survey conducted in 2015 attempted to gauge how the targeted poverty policy was implemented, and how effective it was. The survey identified three key challenges for the implementation of targeted poverty alleviation. The first being the difficulty of accurately identifying those who are truly impoverished. This is because there is little data tracking exactly how much rural peasants are earning in a year, so results are often based on village committee’s estimation or cadre’s judgement 5 (Su, Li & Liu, 2016:449). Su, Li, and Liu also argue that there is a 1 RMB difference between being classified as “poor” or “not poor” (2016:450). Thus, two households who live in the same living conditions but experience the difference of 1 RMB would receive different relief, which could cause feelings of unfairness. The second key problem is the case of the coexistence of poverty alleviation and poverty-returning. Other factors like, disease and disasters mean that villages who have been pulled out of poverty can easily fall back in. The final key problem identified is the problem of passive poverty alleviation. This means that previously alleviated households that are not actively managed may fall back into poverty on the short term, and need consistent monitoring (Su, Li & Liu, 2016:451). These problems in alleviation means that the Chinese government needs to keep innovating and maintaining their poverty policy, to ensure the massive success of the former few years can be sustained.
Despite the challenges posed by these three key problems, the CPC and the Chinese people persevered to achieve the goal of eradicating extreme poverty by 2020. The end of 2020 boasted the results of the dedicated efforts of the CPC. By the end of 2020, the 98.99 million people that were in rural areas living below the poverty line had been lifted out of poverty. Furthermore, the 128 000 impoverished villages and 832 poor counties managed to shake off poverty too (The State Council Information Office, 2021:13). In addition to these statistics, there has been substantial improvement in the incomes, welfare, and living standards of the poor in impoverished areas as well as ethnic minority areas – like inner Mongolia, Guangxi, Tibet, Ningxia, and Xinjiang. In terms of education, nine years of compulsory education has been made available and compulsory for all children, and in 2020, the completion rate was 94.8%. (The State Council Information Office, 2021: 16). These results show that China’s targeted poverty alleviation policies are an effective tool for poverty governance. Massive poverty is not a challenge unique to China alone. The problem of poverty eradication is one the whole global community is facing. However, China’s massive success with the targeted poverty alleviation poverty can provide developing countries with inspiration, new ideas, and new methods for fighting poverty in their countries.
China and the Global Community
China at the forefront of Global Poverty Alleviation
In 2015 the UN set out a list of Sustainable Development Goals, with “to end poverty in all forms everywhere” being its number one priority. Since then, China has remained dedicated to this SDG, 6 among others – like access to quality education, zero hunger, good health and well-being, clean water and more. China’s firm dedication to the uplifting of its people and the global community resulted in the United Nations Secretary-General António Guterres calling China a “major pillar of international cooperation” and thanking China for its role in “shaping and implementing the Sustainable Development Goals… by its strong commitment and significant progress to eradicate poverty in all forms and dimensions” (United Nations, 2021) China’s poverty alleviation policy has seen the raising of 800 million people from poverty has made China the greatest contributor to poverty alleviation in the global context, contributing to approximately three quarters of the global reduction in poverty, according to the World Bank (2022). This is indicative of China’s staunch dedication to the upliftment of the global community.
China has played an active role in poverty alleviation in the global community. Over the past 70 years, China has provided assistance to over 160 countries in Asia, Africa, Latin America, Oceania and Europe, and through global development initiatives like the Belt and Road Initiative. This initiative is estimated by the World Bank to be able to lift 7.6 million people out of extreme poverty, and 32 million out of moderate poverty (The State Council Information Office, 2021:60-61). The Belt and Road Initiative provides development assistance to those developing countries in Asia. In 2014, President Xi Jinping announced that China would be allocating US$40 billion to the establishment of a Silk Road Fund. This fund would provide investment and financing support to countries along the Belt and Road to further their economic and social development (Xi, 2014:544). It is initiatives like the Belt and Road Initiative that allow China to play an active role in poverty alleviation in the global community.
China-Africa Cooperation
China has been a dedicated growth and development partner of Africa for many years now, providing funding and assistance to developing countries in Africa, so that its population may be lifted out of poverty. In 2015, Xi Jinping attended the Johannesburg Summit on the Forum on China-Africa Cooperation. There, it was announced that China would implement 10 cooperation plans on industrialization, poverty alleviation, and agricultural modernization, among others. At the same conference, China also pledged US$60 billion in financial support. Furthermore, in 2018, at the Beijing Summit of the Forum on China-Africa Cooperation, President Xi announced some new initiatives on the African continent. These initiatives would promote industrial development, 7 infrastructure connectivity, green development, healthcare, and more. President Xi further pledged US$ 60 billion to development (The State Council Information Office, 2021:62). These summits are indicative of China’s dedication to her African partner, and helping Africa achieve economic development, so that its people may be lifted out of poverty.
A South African Perspective: What South Africa and other Developing Countries Can Learn from China’s Poverty Alleviation Policy
China’s poverty alleviation success story should serve as inspiration for developing countries in the global south, and South Africa in particular. South Africa also has a very large population that is living in extreme poverty. In 2020, approximately 16.31 million South Africans were living in extreme poverty, and that number is forecast to increase to 16.72 million in 2025 (statista, 2021). This is in a country with a total population of around 60.6 million. That means nearly 30% of South Africa’s population is living in extreme poverty. South Africa’s poverty is also similar to China’s in terms of the distribution by settlement type. South Africa also has a massive rural-urban divide when it comes to poverty. According to StatsSA, in 2015, 81.3% of people living in rural areas were below the poverty line, whereas only 40.6 % of those in urban areas were below the poverty line. Thus, South Africa is also in need of focused, specific, and targeted approach to poverty alleviation in the country, through broad economic development as well as more targeted measures. There are certainly lessons to be learned from the Chinese experience of poverty alleviation, and the model of poverty alleviation with Chinese characteristics.
Going forward, China-Africa relationships will continue to prosper, with the Chinese Ambassador to South Africa stating:
“As good friends, good partners and good brothers, China and Africa are marching forward hand in hand on the road of poverty reduction and governance. Neither side shall be left behind. China’s complete victory in poverty alleviation will help promote Africa’s poverty reduction cause.”
-- Chen Xiaodong, 2021
It is with this cooperation in mind, that South Africa, Africa, China, and the global community at large will continue to work together to create a world without poverty or suffering.
Conclusion
China’s massive victory over poverty in 2020 marked a victory for both Xi Jinping and the CPC, as well as the global community. This essay traced back the People’s Republic of China’s long history of policy directed at alleviating poverty. What emerged was a success story of poverty alleviation policy, with the economic development of the 1980s setting the ball rolling for larger targeted poverty alleviation efforts under Xi Jinping in the 21st century. What emerged was an analysis of Xi Jinping’s targeted poverty alleviation policy, and how its successes impacted both China and the global community. This essay also paid homage to China’s efforts towards ending poverty on a global scale. China’s involvement in the Belt and Road initiative, and other forums and initiatives on the African continent, reflected a nation that is firmly dedicated to its role as a pillar of the international community. Finally, as South Africans, there is much to learn from China and the Chinese model of poverty alleviation when tackling the issue of widespread poverty in the country.
References
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