Bangkok Post

CHINA’S COSTLY DRIVE TO ERASE EXTREME POVERTY

It has spent heavily to help its poorest citizens but may find that hard to sustain. By Keith Bradsher

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When the Chinese government offered free cows to farmers in Jieyuan, villagers in the remote mountain community were sceptical. They worried officials would ask them to return the cattle later, along with any calves they managed to raise. But the farmers kept the cows, and the money they brought. Others received small flocks of sheep. Government workers also paved a road into the town, built new houses for the village’s poorest residents and repurposed an old school as a community centre.

Jia Huanwen, a 58-year-old farmer in the village in Gansu province, was given a large cow three years ago that produced two healthy calves. He sold the cow in April for US$2,900 (86,780 baht), as much as he earns in two years growing potatoes, wheat and corn on the terraced, yellow clay hillsides nearby. Now he buys vegetables regularly for his family’s table and medicine for an arthritic knee.

“It was the best cow I’ve ever had,” Mr Jia said. The village of Jieyuan is one of many successes of President Xi Jinping’s ambitious pledge to eradicate abject rural poverty by the end of 2020. In just five years, China says it lifted from extreme poverty more than 50 million farmers left behind by breakneck economic growth in cities.

But the village, one of six in Gansu visited by The New York Times without government oversight, is also a testament to the considerab­le cost of the ruling Communist Party’s approach to poverty alleviatio­n. That approach has relied on massive, possibly unsustaina­ble, subsidies to create jobs and build better housing.

Local cadres fanned out to identify impoverish­ed households — defined as living on less than $1.70 a day. They handed out loans, grants and even farm animals to poor villagers. Officials visited residents weekly to check on their progress.

“We’re pretty sure China’s eradicatio­n of absolute poverty in rural areas has been successful — given the resources mobilised. We are less sure it is sustainabl­e or cost effective,” said Martin Raiser, the World Bank’s country director for China.

Beijing poured almost $700 billion in loans and grants into poverty alleviatio­n over the past five years — about 1% of each year’s economic output. That excludes large donations by state-owned enterprise­s like State Grid, a power transmissi­on giant, which put $120 billion into rural electricit­y upgrades and assigned more than 7,000 employees to work on poverty alleviatio­n projects.

The campaign took on new urgency this year as the country faced devastatio­n from the coronaviru­s pandemic and severe flooding. One by one, provinces announced they had met their goals. In early December, Mr Xi declared that China had “achieved a significan­t victory that impresses the world”.

But Mr Xi acknowledg­ed further efforts were needed to share wealth more widely. A migrant worker in a coastal factory city can earn as much in a month as a Gansu farmer earns in a year.

Mr Xi also called on officials to make sure that newly created jobs and aid for the poor did not fade away in the coming years.

Gansu, China’s poorest province, declared in late November that it had lifted its last counties out of poverty. Just a decade ago, poverty in the province was widespread.

Hu Jintao, China’s leader before Xi, visited people living in simple homes with few furnishing­s. Villagers ate so many potatoes that local officials were embarrasse­d when a young girl initially refused to eat yet another one with Mr Hu in front of television cameras because she was tired of them, according to a cable disclosed by WikiLeaks.

Although many villages are still reachable only by single-lane roads, they are lined with streetligh­ts powered by solar panels. New industrial-scale pig farms, plant nurseries and small factories have sprung up, creating jobs. Workers are building new houses for farmers.

The government helps private factories buy equipment and pay salaries if they hire workers deemed impoverish­ed but the viability of these factories without ongoing aid is far from clear. Until the subsidies arrived, they frequently had trouble paying wages on time.

While the poverty alleviatio­n programme has helped millions of poor people, critics point to the its rigid definition­s. It assists people classified as extremely poor at some point from 2014 to 2016, without adding others who may have fallen on hard times since then. It also does very little to help poor people in big cities where wages are higher but workers must pay far more for food and rent.

The government’s complicate­d criteria for determinin­g eligibilit­y for aid stipulates that anyone who owns a car, has more than $4,600 in assets or has a new or recently rebuilt house is excluded.

The party’s campaign-style approach also fails to tackle deep-seated problems that disproport­ionately hurt the poor, including the cost of healthcare and other gaping holes in China’s emerging social safety net. Villages provide limited health insurance and hefty medical bills can ruin families.

Despite the challenges, the political benefit of the poverty relief programme may guarantee its survival. Gratitude for the programme seems to be reinforcin­g the political power of the party in rural areas.

 ??  ?? A HELPING HAND: Yan Xiaoling operates a machine that chops up plastic mulch for greenhouse­s at a government-subsidised factory in Tongwei, Gansu province.
A HELPING HAND: Yan Xiaoling operates a machine that chops up plastic mulch for greenhouse­s at a government-subsidised factory in Tongwei, Gansu province.

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