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WINNER OF THE 2017 PETER KATZENSTEIN BOOK PRIZE "BEST OF BOOKS IN 2017" BY FOREIGN AFFAIRS WINNER OF THE 2018 VIVIAN ZELIZER PRIZE BEST BOOK AWARD IN ECONOMIC SOCIOLOGY "How China Escaped the Poverty Trap truly offers game-changing ideas for the analysis and implementation of socio-economic development and should have a major impact across many social sciences." ― Zelizer Best Book in Economic Sociology Prize Committee Acclaimed as "game changing" and "field shifting," How China Escaped the Poverty Trap advances a new paradigm in the political economy of development and sheds new light on China's rise. How can poor and weak societies escape poverty traps? Political economists have traditionally offered three answers: "stimulate growth first," "build good institutions first," or "some fortunate nations inherited good institutions that led to growth." Yuen Yuen Ang rejects all three schools of thought and their underlying assumptions: linear causation, a mechanistic worldview, and historical determinism. Instead, she launches a new paradigm grounded in complex adaptive systems, which embraces the reality of interdependence and humanity's capacity to innovate. Combining this original lens with more than 400 interviews with Chinese bureaucrats and entrepreneurs, Ang systematically reenacts the complex process that turned China from a communist backwater into a global juggernaut in just 35 years. Contrary to popular misconceptions, she shows that what drove China's great transformation was not centralized authoritarian control, but "directed improvisation"—top-down directions from Beijing paired with bottom-up improvisation among local officials. Her analysis reveals two broad lessons on development. First, transformative change requires an adaptive governing system that empowers ground-level actors to create new solutions for evolving problems. Second, the first step out of the poverty trap is to "use what you have"—harnessing existing resources to kick-start new markets, even if that means defying first-world norms. Bold and meticulously researched, How China Escaped the Poverty Trap opens up a whole new avenue of thinking for scholars, practitioners, and anyone seeking to build adaptive systems.
This open access book explores the historical, cultural and philosophical contexts that have made anti-poverty the core of Chinese society since Liberation in 1949, and why poverty alleviation measures evolved from the simplistic aid of the 1950s to Xi Jinping’s precision poverty alleviation and its goal of eliminating absolute poverty by 2020. The book also addresses the implications of China’s experience for other developing nations tackling not only poverty but such issues as pandemics, rampant urbanization and desertification exacerbated by global warming. The first of three parts draws upon interviews of rural and urban Chinese from diverse backgrounds and local and national leaders. These interviews, conducted in even the remotest areas of the country, offer candid insights into the challenges that have forced China to continually evolve its programs to resolve even the most intractable cases of poverty. The second part explores the historic, cultural and philosophical roots of old China’s meritocratic government and how its ancient Chinese ethics have led to modern Chinese socialism’s stance that “poverty amidst plenty is immoral”. Dr. Huang Chengwei, one of China’s foremost anti-poverty experts, explains the challenges faced at each stage as China’s anti-poverty measures evolved over 70 years to emphasize “enablement” over “aid” and to foster bottom-up initiative and entrepreneurialism, culminating in Xi Jinping’s precision poverty alleviation. The book also addresses why national economic development alone cannot reduce poverty; poverty alleviation programs must be people-centered, with measurable and accountable practices that reach even to household level, which China has done with its “First Secretary” program. The third part explores the potential for adopting China’s practices in other nations, including the potential for replicating China’s successes in developing countries through such measures as the Belt and Road Initiative. This book also addresses prevalent misperceptions about China’s growing global presence and why other developing nations must address historic, systemic causes of poverty and inequity before they can undertake sustainable poverty alleviation measures of their own.
Can China and India continue to rank among the fastest expanding economies? This book highlights what has worked and what more needs to be done to ensure sustained rapid economic growth and poverty reduction. Addressing the two countries' recent experiences with growth and reform, this book provides important insight for other developing economies.
The Association of Southeast Asian Nations (ASEAN) has been one of the world's most dynamic and fastest-growing regions over the years. Its average combined GDP growth rate is more than 6% and the total combined GDP was valued at US$3.0 trillion in 2018. ASEAN countries have managed to significantly reduce their national poverty over the last few decades. Although a correlation exists between economic growth and poverty reduction, millions of people in ASEAN countries still do not have sufficient incomes to fulfill their basic needs including food, shelter, clothes and sanitation. This book is a collection of working group papers contributed by members of Network of ASEAN-China Think-tanks (NACT) and covers best practices on poverty alleviation in ASEAN member states as well as in China, and ASEAN-China cooperation. It discusses experiences of ASEAN member states and China such as with regard to national policies, principles, definitions, approaches, progress, and challenges in poverty reduction. It reviews and evaluates the way forward including existing joint projects, opportunities, and challenges in the future cooperation and offers policy recommendations from both national and regional perspectives to help policymakers better cope with the daunting poverty challenges.
This edition of the biennial Poverty and Shared Prosperity report brings sobering news. The COVID-19 (coronavirus) pandemic and its associated economic crisis, compounded by the effects of armed conflict and climate change, are reversing hard-won gains in poverty reduction and shared prosperity. The fight to end poverty has suffered its worst setback in decades after more than 20 years of progress. The goal of ending extreme poverty by 2030, already at risk before the pandemic, is now beyond reach in the absence of swift, significant, and sustained action, and the objective of advancing shared prosperity—raising the incomes of the poorest 40 percent in each country—will be much more difficult. Poverty and Shared Prosperity 2020: Reversals of Fortune presents new estimates of COVID-19's impacts on global poverty and shared prosperity. Harnessing fresh data from frontline surveys and economic simulations, it shows that pandemic-related job losses and deprivation worldwide are hitting already poor and vulnerable people hard, while also shifting the profile of global poverty to include millions of 'new poor.' Original analysis included in the report shows that the new poor are more urban, better educated, and less likely to work in agriculture than those living in extreme poverty before COVID-19. It also gives new estimates of the impact of conflict and climate change, and how they overlap. These results are important for targeting policies to safeguard lives and livelihoods. It shows how some countries are acting to reverse the crisis, protect those most vulnerable, and promote a resilient recovery. These findings call for urgent action. If the global response fails the world's poorest and most vulnerable people now, the losses they have experienced to date will be minimal compared with what lies ahead. Success over the long term will require much more than stopping COVID-19. As efforts to curb the disease and its economic fallout intensify, the interrupted development agenda in low- and middle-income countries must be put back on track. Recovering from today's reversals of fortune requires tackling the economic crisis unleashed by COVID-19 with a commitment proportional to the crisis itself. In doing so, countries can also plant the seeds for dealing with the long-term development challenges of promoting inclusive growth, capital accumulation, and risk prevention—particularly the risks of conflict and climate change.
Yao reviews the economic development history of contemporary China from 1949 up to today, paying special attention to the interface among growth, inequality and poverty reduction.
"While the incidence of extreme poverty in China fell dramatically over 1980-2001, progress was uneven over time and across provinces. Rural areas accounted for the bulk of the gains to the poor, though migration to urban areas helped. The pattern of growth mattered. Rural economic growth was far more important to national poverty reduction than urban economic growth. Agriculture played a far more important role than the secondary or tertiary sources of GDP. Rising inequality within the rural sector greatly slowed poverty reduction. Provinces starting with relatively high inequality saw slower progress against poverty, due both to lower growth and a lower growth elasticity of poverty reduction. Taxation of farmers and inflation hurt the poor. External trade had little short-term impact. This paper a product of the Poverty Team, Development Research Group is part of a larger effort in the group to understand the causes of country success in poverty reduction"--World Bank web site.
This book assesses the global significance of China’s decade-long campaign to reduce poverty. After showing how the country’s unique approach to poverty alleviation brought about unparalleled progress toward achieving both the Millennium Development Goals (MDGs) and the Sustainable Development Goals (SDGs), the authors shed light on how China’s experience can help other countries around the globe as they try to permanently rid humanity of the scourge of poverty under ever more challenging social, economic and environmental conditions.
How can policymakers effectively reduce poverty? Most mainstream economists advocate promoting economic growth, on the grounds that it generally reduces poverty while bringing other economic benefits. However, this dominant hypothesis offers few alternatives for economies that are unable to grow, or in places where economic growth fails to reduce or actually exacerbates poverty. In Small Works, John A. Donaldson draws on his extensive fieldwork in two Chinese provinces—Yunnan and Guizhou—that are exceptions to the purported relationship between economic growth and poverty reduction. In Yunnan, an outward-oriented developmental state, one that focuses on large-scale, urban development, has largely failed to reduce poverty, even though it succeeded in stimulating economic growth. Provincial policy shaped roads, tourism, and mining in ways that often precluded participation by poor people. By contrast, Guizhou is a micro-oriented state, one that promotes small-scale, low-skill economic opportunities—and so reduces poverty despite slow economic growth. It is no coincidence that this Guizhou approach parallels the ideas encapsulated in the "scientific development view" of China's current president Hu Jintao. After all, Hu, when Guizhou's leader, helped establish the micro-oriented state in the province. Donaldson’s conclusions have implications for our understanding of development and poverty reduction, economic change in China, and the thinking behind China's policy decisions.
This open access book explores new research directions in social inequality and urban segregation. With the goal of fostering an ongoing dialogue between scholars in Europe and China, it brings together an impressive team of international researchers to shed light on the entwined processes of inequality and segregation, and the implications for urban development. Through a rich collection of empirical studies at the city, regional and national levels, the book explores the impact of migration on cities, the related problems of social and spatial segregation, and the ramifications for policy reform. While the literature on both segregation and inequality has traditionally been dominated by European and North American studies, there is growing interest in these issues in the Chinese context. Economic liberalization, rapid industrial restructuring, the enormous growth of cities, and internal migration, have all reshaped the country profoundly. What have we learned from the European and North American experience of segregation and inequality, and what insights can be gleaned to inform the bourgeoning interest in these issues in the Chinese context? How is China different, both in terms of the nature and the consequences of segregation inequality, and what are the implications for future research and policy? Given the continued rise of China’s significance in the world, and its recent declaration of war on poverty, this book offers a timely contribution to scholarship, identifying the core insights to be learned from existing research, and providing important guidance on future directions for policy makers and researchers.