Inclusive Growth and the New Phase of Poverty Reduction in the People’s Republic of China

Despite remarkable achievements in fighting poverty in the past three decades, numerous challenges remain for the People’s Republic of China. The country’s antipoverty efforts are in a key phase of strategic reorientation. This paper analyzes lessons learned from poverty reduction programs in the country and identifies key areas to be addressed in the next decade. The paper proposes seven policy measures: (i) modifying the poverty threshold to redefine poverty targeting; (ii) enhancing financial institutions’ participation in poverty reduction programs; (iii) providing more equitable access to education; (iv) improving health care for the rural poor; (v) improving the minimum living standard support system in both rural and urban areas; (vi) putting in place a sound public finance mechanism and improving governance in antipoverty efforts; and (vii) enhancing the role of nongovernment organizations in poverty reduction programs.