Fortifying poverty alleviation triumphs: A triennial review

Editor's note: Xin Ge, a special commentator on current affairs for CGTN, is a research fellow at the Institute of Public Policy and Governance and associate professor at the School of Public Economics and Administration, Shanghai University of Finance and Economics. The article reflects the author's opinions and not necessarily the views of CGTN.

February 25, 2024, marks the third anniversary of the triumph in China's battle against poverty. Back on February 25, 2021, Chinese President Xi Jinping declared a resounding victory in the fight against absolute poverty. Throughout years of poverty alleviation, the party and the state, attuned to national realities, have implemented a series of extraordinary policies and measures, forging a highly effective system for poverty alleviation. This concerted effort has paved a unique path of poverty reduction imbued with Chinese characteristics, contributing to the evolution of a unique theoretical framework and enriching the tapestry of human civilization.

Following the comprehensive victory in the battle against extreme poverty in 2021, 22 provinces in the central and western regions of China, tasked with consolidating poverty alleviation achievements, have established monitoring and assistance mechanisms. Over the past three years, more than 60 percent of the monitored subjects have eliminated the risk of falling back into poverty, with the remaining individuals receiving assistance measures, thus safeguarding against the bottom line of preventing a resurgence of widespread poverty.

In terms of employment promotion and industrial development, according to the Ministry of Agriculture and Rural Affairs, the scale of poverty alleviation through migrant labor has remained steadfast at over 30 million annually for the past three years, reaching 34 million in 2023. Migrant labor income accounted for over 60 percent of the impoverished population's earnings.

Particularly noteworthy is that the average annual growth rate of disposable income per capita for rural residents in impoverished areas over the past three years has outpaced the national average. The proportion of central fiscal funds allocated to support rural revitalization for industrial development has ascended from 53 percent in 2021 to over 60 percent in 2024. Moreover, three-quarters of impoverished households have established robust interest linkage mechanisms with emerging agricultural management entities. The participation rate in basic medical insurance for the impoverished populace has surpassed 99 percent.

The linchpin for consolidating the strides in poverty alleviation unequivocally lies in effectively catalyzing industrial development and fostering employment opportunities. Government and societal support are crucial in galvanizing the impoverished masses, empowering them to attain prosperity through diligence and perseverance. With three years elapsed since the five-year transition period, in my view, we should continue to fortify the achievements in poverty alleviation through industrial stimulation, employment promotion, and optimizing poverty alleviation assets.

Firstly, there should be comprehensive overhaul of industrial infrastructure. Presently, the industrial development foundation in impoverished areas is relatively weak, with significant homogeneity and insufficient development of the industrial chain. Despite abundant agricultural resources in impoverished areas, their advantageous resources have yet to be fully transformed into economic strengths.

Therefore, while relying on a sound ecological environment and unique resources, it is essential to promote industrial upgrading through brand-building and the development of high-quality products. Correspondingly, addressing shortcomings in technology, facilities, and funds, strengthening the construction of industrial infrastructure, and developing the entire industrial chain are crucial. While maintaining comprehensive industrial coverage, greater emphasis should be placed on the quality of industrial promotion.

Secondly, efforts should be directed towards enhancing employment prospects. For farmers nationwide, wage income has exceeded operational revenue for several consecutive years. For the impoverished population, wage income accounts for over 60 percent of total earnings. Since the transition period in 2021, the scale of employment for poverty alleviation labor has steadily increased.

The specific wage level is closely related to the macroeconomic situation and individual occupational qualifications. Given the overall favorable employment situation, attention should be paid to addressing the mismatch between some rural migrant workers and ideal positions, alongside the shortage of skilled labor. Hence, elevating the skill set and competitiveness of the impoverished populace and nurturing rural artisans become indispensable imperatives.

Lastly, optimization of poverty alleviation assets management is imperative. Poverty alleviation assets refer to funds dedicated to poverty alleviation at all levels of government, including funds related to agriculture, local government bonds, funds offered by particular departments and paired assistance, etc. While these assets have been instrumental in bolstering the income of the impoverished populace and catalyzing industrial development, issues such as unclear ownership, deficient management systems, and suboptimal profit distribution mechanisms have surfaced, hampering their efficacy.

It is essential not only to efficiently tackle questions regarding asset ownership, management, and administration, as well as profit ownership, distribution, and allocation, but also to emphasize the market-driven management of poverty alleviation resources in operation. In tandem with ensuring safety, maximizing the dividends of agricultural collaboration should be a paramount pursuit.

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