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updated: 7 March, 2007
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Rural poverty in China

The People’s Republic of China is the third-largest country in the world and home to more than 1.3 billion people. It is a vast expanse of sea-coast, fertile plains and valleys, rugged mountains and wind-swept deserts.

China’s vastness and diversity encompass a broad range of the problems and challenges facing small farmers and pastoralists throughout the developing world. Population pressure strains the productive capacity of the 10 per cent of the land areathat is suitable for sustained cultivation. Increasing numbers of livestock compete for fodder on fragile rangelands. Flood-prone areas and deteriorating irrigation systems cause waterlogging and salinization. Encroaching deserts threaten formerly productive land.

The efforts of China's Government to stimulate economic growth have focused largely on boosting the productivity of its enormous rural population. In the late 1970s, the government introduced the household responsibility system (HRS), which was a major shift away from a collective system to one in which individual households had greater control and decision-making powers over the land and other resources they used. At the same time, the government gradually relaxed its control over markets and prices.

As a result of these policy shifts, China has been undergoing continuous economic growth since 1978. By 2001 per capita incomes had tripled, and the number of extremely poor people had decreased from about 260 million to less than 25 million people.

Despite China's strong and sustained economic growth, poverty is still widespread, especially in remote rural areas. Income inequalities between eastern and western China have risen, and the income gap between rural and urban residents has widened considerably since the late 1970s. Urban incomes are now more than three times higher than rural incomes. The government is taking serious measures to correct this trend by increasing investments in rural areas, especially in infrastructure, irrigation, education and health. These investments aim to create a balanced well-off society through economic and social development.

Source: IFAD

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China
capital: Beijing
GNI per capita: US$430 - 1,110
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Geography, agriculture and the economy

Progress on the Millennium Development Goals:

Statistics
Total population (million), 2003: 1,288.4
Population density (peole per km2), 2002:
553.3
Number of rural poor (million):
0.4
Poor as % of total rural population, 1997:
4.6
GNI per capita (US$),2003:
1,100
Population living below US$1 a day (%), 2001:
16.6
Population living below US$2 a day (%), 2001:
46.7
Population living below the national poverty line (%), 1998:
4.6
Share of poorest 20% in national income or consumption (%), 2001:
4.7
Source: World Bank