Poverty in China: Analysis, Solutions and Challenges

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POVERTY IN CHINA 1
Contents
Introduction...........................................................................................................................................2
Analysis of problem..............................................................................................................................3
Increased inequality...........................................................................................................................3
Rural-Urban Divide...........................................................................................................................4
The scarcity of Natural resources and environmental degradation........................................................4
Solution to the problems........................................................................................................................5
Conclusion.............................................................................................................................................6
References.............................................................................................................................................8

POVERTY IN CHINA 2
Introduction
The topic that is been selected for this assignment is Capabilities and Poverty: Case study of
urban poverty in China. In China the poverty, mainly remain in the rural areas, in urban
areas the poverty has been eliminated with the help of economic growth. The dramatic
progress in the reduction of poverty has been seen in China over the past three decades.
According to the World Bank, around 500 million people in China were lifted out of the
extreme conditions of poverty, In 1981 the poverty rate in China was 88 per cent that is been
reduced to 6.5 per cent in 2012 (The World Bank, 2018). The poverty level in China was
measured by the percentage of people living on the equivalent of the US $1.90 or less per
day. Since the Deng Xiaoping started the instituting market reforms in the late 1970s, the
country has become a fastest grown economy in the world. The country has recorded a 10%
continuous growth in the gross domestic product (Xuequan, 2018). This growth had led
China toward a substantial increase in the living stands of the population and marked a
decline in the poverty. In between 1981 to 2008, the population of China who is earning
$1.25 per day or less has estimated to fall from 85 per cent to 13.1 per cent, approx. 600
million people have been removed from the poverty (Das, 2018). With the rapid
development in the country, the country has faced the various kinds of problems.
China has faced the problems of environmental degradation and natural resources scarcity.
The rapid development in the standard of living has raised the condition of disparities among
different parts of the country. The country also faces the problem of income inequality, the
inequality is not only seen at income level but is also seen at educational and health level.
The economy of China is decentralised were the responsibility of health and education is lies
on the government, the government of China is responsible for providing the fund related to
the health and education of the people (Weiping, 2018). The poor localities and rural areas