Complete Victory in Fight Against Poverty and Sustained Improvement of Farmers' Lives in Poverty-Stricken Areas

Complete Victory in Fight Against Poverty and Sustained Improvement of Farmers' Lives in Poverty-Stricken Areas 

—Series Report XX on the Economic and Social Development Achievements since the 18th CPC National Congress 

Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has prioritized poverty eradication in national governance and viewed it as a bottom-line task for building a moderately prosperous society in all respect. Following the strategy of targeted poverty alleviation and eradication, China has launched a nationwide campaign against poverty. After eight years of continuous struggle, all poor population in rural areas were lifted out of poverty, absolute poverty was eliminated, regional poverty in general was solved, and a full victory was secured against poverty. After the victory in poverty alleviation, all regions and departments continued to thoroughly implement the decisions and plans of the CPC Central Committee and the State Council, consolidate and expand the achievements in poverty alleviation, and continue to promote rural revitalization in areas lifted out of poverty. Rural residents' income in counties out of poverty has grown faster and the quality of their life continues to improve. 

I. Complete Poverty Eradication in Rural Areas and a Scheduled Victory in the Battle Against Poverty 

Since the 18th CPC National Congress, the CPC Central Committee and the State Council have put unprecedented efforts into poverty alleviation, taking poverty-stricken areas as key areas, focusing on deep-poverty areas and special poverty groups, optimizing policy supply, and being meticulous like doing "embroidery". At the end of 2020, all rural poor under the current standard were lifted out of poverty, the issue of regional poverty was solved, and China has contributed to the global cause of poverty reduction. 

(I) Scheduled poverty eradication for all rural poor 

From 2013 to 2020, China saw a total of 98.99 million rural residents lift themselves out of poverty, reducing poverty by an average of 12.37 million people per year and reducing the incidence of poverty by an average of 1.3 percentage points per year. In 2020, in the face of the sudden outbreak of the COVID-19 pandemic, all regions and government departments, in accordance with the decisions and plans of the CPC Central Committee and the State Council, organized poverty-stricken workers to work outside their homes, launched programs to boost the consumption of goods produced in poor areas, and implemented measures to ensure that people’s basic living needs are met. At the beginning of the year, all the remaining 5.51 million rural poor people were lifted out of poverty, and the arduous task of eliminating absolute poverty was accomplished as scheduled. The income level of the poor population has increased significantly, and the "two assurances and three guarantees" have been fully achieved. According to the nationwide poverty reduction survey, all registered poor households in the 22 provinces (autonomous regions and municipalities directly under the central government) in central and western China have adequate food and clothing, and have access to compulsory education, basic medical insurance, safe housing and safe drinking water, marking China's full victory in the battle against poverty. 

(II) Elimination of overall regional poverty 

More than half of the rural poor lifted out of poverty were from the western region. By region [1], from 2013 to 2020, the rural poor population in the western region decreased by a total of 50.86 million, accounting for 51.4% of the national total with an average annual reduction of 6.36 million; the rural poor population in the central region decreased by a total of 34.46 million, accounting for 34.8% of the national total with an average annual reduction of 4.31 million; and in the eastern region, the rural poor population decreased by a total of 13.67 million, accounting for 13.8% of the national total with an average annual reduction of 1.71 million. 

Overall regional poverty has been effectively eliminated. Different poverty-stricken regions, including contiguous poor areas and key counties under the national development-driven poverty alleviation initiative, where the poor population is characterized by relatively concentrated distribution and deep poverty, have completed the task of poverty eradication together with the whole country on schedule. From 2013 to 2020, the population of rural poor in poverty-stricken areas [2] was reduced by a total of 60.39 million, with an average annual reduction of 7.55 million, accounting for 61.0% of the total scale of rural poverty reduction nationwide. Rural population in contiguous poor areas was reduced by a total of 50.67 million, with an average annual reduction of 6.33 million. Rural population in key counties under the national development-driven poverty alleviation initiative was reduced by a total of 51.05 million, with an average annual reduction of 6.38 million. 

(III) China's prominent contribution to global poverty reduction 

China has contributed to more than 70% of the global poverty reduction target. Since the reform and opening up, according to the World Bank’s poverty line of USD 1.9 per person per day, China has contributed to more than 70% of the global population lifted out of poverty during the same period; according to public data from the World Bank, China’s poverty incidence rate dropped from 88.3% at the end of 1981 to 0.5% at the end of 2016, down 87.8 percentage points accumulatively with an average annual decrease of 2.5 percentage points. Over the same period, the global poverty incidence rate fell from 42.7% to 9.7%, a cumulative decline of 33.0 percentage points with an average annual decline of 0.9 percentage points. China has achieved a significantly faster pace in reducing poverty than the global poverty reduction, and a much lower poverty incidence than the global average. 

China has helped improve the effectiveness of global governance on poverty reduction. Since the 18th CPC National Congress, China has achieved remarkable results in poverty eradication through the strategy of targeted poverty reduction and eradication, providing Chinese solutions and experience for global poverty reduction. The World Bank's Systematic Country Diagnostic for China in 2018 suggests that China has made unprecedented achievements in poverty reduction. In a letter congratulating China on its great and historic achievement in poverty reduction in 2021, Guterres, the UN Secretary-General, said that "the extraordinary result is a reason for hope and inspiration to the entire community of nations. It shows the importance of political commitment at all levels of government and policy stability to improve the conditions of the poorest and most vulnerable." China not only contributes directly to the global cause of poverty reduction through its own achievements, but also takes an active role in supporting the poverty alleviation endeavor of the developing countries, carrying out international poverty reduction cooperation projects that benefit people's livelihoods, and sharing and exchanging its experience in poverty reduction in various forms, so as to provide positive assistance to other countries in accelerating the pace of poverty reduction. 

II. Sustained and Rapid Increase in Income and Living Standards of Rural Residents in Poverty-stricken Areas 

Since the 18th CPC National Congress, the CPC Central Committee and the State Council have attached great importance to the development of poverty-stricken areas and have continuously increased their supportive efforts. The rural residents in poverty-stricken areas have achieved faster growth in income, and their living and consumption levels have improved significantly, narrowing the gap with the national rural average. 

(I) Continued faster growth in the income of rural residents in poverty-stricken areas than in the country's rural areas 

In 2020, the per capita disposable income of rural residents in poverty-stricken areas was RMB 12,588, with an average annual growth of 11.6% from 2013 to 2020 [3], 2.3 percentage points faster than the rural average; after deducting the price factor, the average annual real growth reached 9.2%, 2.2 percentage points faster than the rural average. Particularly in 2020, in the face of the impact of the COVID-19 pandemic, all regions took swift and effective measures to prioritize the stabilization of employment for the poor labour force, effectively solve the difficulties in the sale of agricultural products in poverty-stricken areas, and take multiple measures to ensure that poor households have stable channels to increase their incomes, achieving steady growth in the income of rural residents in poverty-stricken areas throughout the year, with per capita disposable income reaching 73.5% of the national rural average, 11.4 percentage points higher than in 2012, and significantly narrowing the gap with the national rural average. By region, in 2020, the per capita disposable income of rural residents in contiguous poor areas was RMB 12,420, with an average annual growth of 11.6% from 2013 to 2020, 2.3 percentage points faster than the national rural areas. The per capita disposable income of rural residents in key counties under the national development-driven poverty alleviation initiative reached RMB 12,499, with an average annual growth of 11.9% from 2013 to 2020, 2.6 percentage points faster than the national rural areas. 

(II) Continuous optimization of the income structure of rural residents in poverty-stricken areas 

The strategy of poverty alleviation through employment has yielded remarkable achievement, with wages becoming the main source of income. The per capita wage income of rural residents in poverty-stricken areas reached RMB 4,444 in 2020, with an average annual growth of 12.7% from 2014 to 2020, accounting for 35.3% of their disposable income, up 3.7 percentage points from 2013. Net income from operations is growing steadily, and the proportion of non-farming income is increasing. In 2020, the per capita net income from operations of rural residents in poverty-stricken areas was RMB 4,391, with an average annual growth of 6.7% from 2014 to 2020, accounting for 34.9% of their disposable income. Among them, the per capita net income from operations in the secondary and tertiary industries was RMB 1,192, with an average annual growth of 12.8%, 1.0 percentage points higher than that of 2013 in the proportion of disposable income. The net income from property and transfer is growing rapidly, and the sources of income are more diversified. In 2020, the per capita net income from property and transfer of rural residents in poverty-stricken areas reached RMB 185 and RMB 3,567 respectively, with an average annual growth of 16.8% and 15.4% respectively from 2014 to 2020, with a combined share of 29.8% of disposable income, 7.3 percentage points higher than in 2013. 

(III) Marked improvement in the consumption level of rural residents in poverty-stricken areas 

In 2020, the per capita consumption expenditure of rural residents in poverty-stricken areas reached RMB 10,758, with an average annual growth of 10.9% from 2013 to 2020, and an average annual real growth of 8.6% after deducting price factors. In 2020, the per capita consumption expenditure of rural residents in poverty-stricken areas was 78.5% of the national rural average, an increase of 8.0 percentage points over 2012. In terms of the consumption structure, the proportion of basic living expenses such as food and clothing has shrunk and the Engel's coefficient has further dropped. In 2020, the per capita consumption expenditure on food, tobacco and alcohol of rural residents in poverty-stricken areas was RMB 3,632, with an average annual growth of 8.4% from 2014 to 2020, accounting for 33.8% of consumption expenditure (Engel's coefficient), down 4.4 percentage points from 2013; The per capita consumption expenditure on clothing was RMB 588, with an average annual growth of 8.4% from 2014 to 2020, accounting for 5.5% of the consumption expenditure, a decrease of 0.7 percentage points from 2013. Development-oriented consumption expenditure on transport and communications, education, culture and entertainment, and health care grew faster, respectively reaching RMB 1,261, RMB 1,128 and RMB 1,061 per capita in 2020, with annual average growth of 13.7%, 12.3% and 13.8% from 2014 to 2020; accounting for 11.7%, 10.5% and 9.9% of the consumption expenditure, up 2.2, 1.2 and 1.9 percentage points respectively from 2013. 

III. Significant Improvement in Production and Living Conditions in Poverty-Stricken Areas, with a New Look Overall 

Since the 18th CPC National Congress, the infrastructure in rural poor areas has been significantly improved, with the enlarged area having access to roads, electricity, telephone service, and radio and TV programs, great progress being made in social undertakings, and progressive accumulation of cultural, educational and health resources, so that people are not worried about food and clothing, and the problems that have historically made it hard for people in these areas to attend school, receive medical attention, seek housing, get around, access safe drinking water and electricity, and communicate with the world have finally been resolved. 

(I) Continuous improvement of infrastructure in poverty-stricken areas 

According to the nationwide poverty reduction survey [4], the proportion of administrative villages [5] equipped with hardened roads in poverty-stricken areas reached 99.6%, among which all administrative villages with necessary conditions are reachable by hardened roads; 99.3% of administrative villages have access to dynamic electricity, of which all administrative villages on major grids are connected to dynamic electricity; 99.9% of administrative villages are covered by communication signals; 99.6% of administrative villages are connected to broadband internet services; 99.9% of administrative villages are covered by radio and television signals; 99.0% of administrative villages are equipped with village-level integrated service facilities; and 62.7% of administrative villages have e-commerce distribution sites. 

(II) Improvement of education and cultural facilities and services in poverty-stricken areas 

The nationwide poverty reduction survey shows that in poverty-stricken areas, all counties have junior high schools, and among the townships, 98.5% have elementary school, 70.3% have junior high schools and 94.1% have boarding schools. In terms of non-compulsory education, among the counties in poverty-stricken areas, 82.4% have secondary vocational education schools, 18.7% have technical colleges, and 84.5% have vocational skills training institutions. Cultural service facilities have been further improved, with 98.1% of counties having public libraries, 99.4% of townships being equipped with comprehensive cultural stations, and 98.9% of administrative villages including libraries or cultural stations. 

(III) Continuous improvement of medical and health service systems in poverty-stricken areas 

Medical and health service capacity in counties has been comprehensively improved, ensuring medical services and medical insurance and resolving the problem of difficult and expensive access to medical treatment for poverty-stricken residents. The nationwide poverty reduction survey shows that the medical and health service systems at the county, township and village levels are well established in poverty-stricken areas where the registered poor people live. For poverty-stricken areas, there are 99.8% of counties with at least one county-level public hospital (including traditional Chinese medicine hospitals), and the rest of the counties are covered by guaranteed basic medical. 99.8% of administrative villages have health centers in all their townships, and 0.2% of the administrative villages with guaranteed basic medical care are exempt from building health centers. There are 98.9% of administrative villages where the township has a health centre with standard service capacity, and 1.1% of administrative villages with guaranteed basic medical care are not required. 96.3% of the administrative villages have a clinic or a joint clinic, and 3.7% of the administrative villages with guaranteed basic medical care are not required to have a clinic. There are 95.3% of administrative villages where the service capacity of the clinics meets the standards, and 4.7% of administrative villages with guaranteed basic medical care are not required. 

(IV) Significant improvement in the living conditions of rural poor areas 

Living environment of the poor continues to improve, and villages have taken on a new look with clean and tidy environment. In 2020, the proportion of rural households living in bamboo-grass adobe and cooking with firewood in poverty-stricken areas was reduced to 0.8% and 29.3% respectively, down 7.0 and 31.8 percentage points from 2012. The proportion of rural households with piped water supply and independent toilets reached 91.0% and 97.2%, respectively, 34.6 and 6.2 percentage points higher than in 2012. According to the nationwide poverty reduction survey, the proportion of administrative villages with fully centralized water supply reached 65.5%, and 31.9% administrative villages in poverty-stricken areas achieved partially centralized water supply; the proportion of administrative villages with fully centralized garbage disposal or removal hit 89.9%, and 9.0% of administrative villages achieved partially centralized garbage disposal or removal. 

IV. Consolidated and Expanded Results of Poverty Eradication with Better Living Quality for Rural Residents in Areas out of Poverty 

Upon the success against poverty, all regions and departments have continued to sincerely implement the decisions and plans of the CPC Central Committee and the State Council, coordinate the pandemic containment and socio-economic growth, improve the implementation of the dynamic monitoring and assistance mechanism to prevent people from falling back into poverty, strengthen the on-going support for relocation of impoverished residents, and enhance the employment support for people lifted out of poverty, so that the rural residents in the counties lifted out of poverty have achieved faster growth in income and their consumption level has continued to improve. 

(I) Continued faster growth in the income of rural residents in counties out of poverty than in the country's rural areas

In 2021, per capita disposable income of rural residents in counties out of poverty reached RMB 14,051, a nominal growth of 11.6% over the previous year, with a real growth of 10.8% after deducting price factors, and both the nominal and real growth were 1.1 percentage points higher than that of the country's rural areas. Among them, the growth rates of rural residents' income from wages, operations and transfers in the counties out of poverty were all faster than those of the country's rural areas. Per capita income from wages was RMB 5,129, an increase of 15.4%, 1.3 percentage points higher than that of the country's rural areas; per capita net income from operations was RMB 4,791, an increase of 9.1%, 1.1 percentage points higher than that of the country's rural areas; and per capita net income from transfers was RMB 3,929, an increase of 10.1%, 2.6 percentage points higher than that of the country's rural areas. In terms of income structure, wage income is still the major source of income for rural residents in counties lifted out of poverty, and its proportion continues to rise. 36.5% of the disposable income of rural residents in counties lifted out of poverty in 2021 was wage income, up 1.2 percentage points from the previous year. 

(II) Steady improvement in the living standards of rural residents in counties out of poverty 

In 2021, per capita consumption expenditure of rural residents in counties out of poverty reached RMB 12,311, a nominal growth of 14.4% over the previous year and a real growth of 13.6% after deducting the price factor. Among them, consumption expenditure on food and clothing grew faster, with per capita consumption expenditure on food, tobacco and alcohol reaching RMB 4,206, an increase of 15.8%; and per capita consumption expenditure on clothing reaching RMB 696, an increase of 18.5%. In addition, expenditure on housing and household goods also witnessed steady growth, with a steady improvement in the living quality. Per capita consumption expenditure on housing and was RMB 2,453, an increase of 7.1%; per capita consumption expenditure on household goods and services was RMB 697, an increase of 11.1%. With the steady recovery of development-oriented consumption expenditure, per capita consumption expenditure on transportation and communications, culture, education and entertainment, and health care was RMB 1,436, RMB 1,409 and RMB 1,208, up 13.9%, 24.9% and 13.8%, respectively. 

Since the 18th CPC National Congress, China has started an all-out battle to eradicate poverty, making significant historical achievements and creating a miracle in the history of human development. Shaking off poverty is not the finish line, but the starting point of a new life and new endeavor. We should rally even more closely around the CPC Central Committee with Comrade Xi Jinping at its core, hold high the great banner of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, consolidate the fruits of poverty eradication, and continue to promote the development of areas lifted out of poverty and the improvement of people' lives, so as to move forward towards the goal of gradually achieving common prosperity for all people. 

Note: 

[1] The eastern region: including Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong and Hainan. The central region: including Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan. The western region: including Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang. 

[2] Poverty-stricken areas, including the former 832 key counties under the national development-driven poverty alleviation initiatives and counties in concentrated contiguous poor areas, and the seven cities and counties in Aksu, Xinjiang Uygur Autonomous Region, which enjoy the regional policy, have been included in the monitoring scope since 2017. 

[3] The following are nominal growth rates if not specifically stated. 

[4] Data on the proportion of all counties, the "proportion of townships with elementary schools", the "proportion of townships with junior high schools" and the "proportion of townships with comprehensive cultural stations" in the nationwide poverty reduction survey are collected at the end of 2019. Other data are collected at the time point of the nationwide survey. 

[5] In addition to all administrative villages in poor counties in China, the survey includes neighborhood committees and communities with poor households registered.