Poverty, Inequality, and Social Disparities During China's Economic Reform

China has been the most rapidly growing economy in the world over the past 25 years. This growth has fueled a remarkable increase in per capita income and a decline in the poverty rate from 64 percent at the beginning of reform to 10 percent in 200...

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Main Author: Dollar, David
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2007/06/7716207/poverty-inequality-social-disparities-during-chinas-economic-reform
http://hdl.handle.net/10986/7404
id okr-10986-7404
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCESS TO EDUCATION
ADULT POPULATION
AGRICULTURAL GROWTH
AGRICULTURAL LAND
AGRICULTURAL OUTPUT
AGRICULTURAL PRODUCTION
AVERAGE LEVEL
BASIC EDUCATION
BASIC SOCIAL SERVICES
CAPITAL ACCOUNT
CAPITAL CONTROLS
COMPARATIVE ADVANTAGE
COMPETITIVE EXCHANGE
COMPETITIVE EXCHANGE RATE
CULTURAL CHANGE
DECENT HEALTH CARE
DEMAND SIDE
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC POLICY
ECONOMIC REFORM
ECONOMIC REFORMS
ECONOMIC REVIEW
ECONOMIC THEORY
EDUCATED PEOPLE
EDUCATIONAL ATTAINMENT
ENVIRONMENTAL DEGRADATION
EXCHANGE RATE
EXTREME POVERTY
FARMERS
FOREIGN TRADE
GLOBAL ECONOMY
GOVERNMENT POLICIES
GROWING ECONOMY
HEADCOUNT RATIO
HEALTH INSURANCE
HEALTH OUTCOMES
HIGH GROWTH
HIGH GROWTH RATE
HIGHER INEQUALITY
HOSPITAL
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD SURVEYS
HUMAN CAPITAL
INCOME DISTRIBUTION
INCOME GAP
INCOME INEQUALITY
INCOME STUDY
INCREASED INEQUALITY
INCREASING INEQUALITY
INDUSTRIAL SECTOR
INDUSTRIALIZATION
INDUSTRIALIZED COUNTRIES
INFANT
INFANT MORTALITY
INFANT MORTALITY RATE
INTERNATIONAL POLICY
INTERNATIONAL TRADE
INVESTMENT CLIMATE
JOB CREATION
LABOR MARKET
LABOR PRODUCTIVITY
LABOR SHORTAGES
LARGE POPULATION
LAWS
LEGAL RIGHTS
LIFE EXPECTANCY
LIVING STANDARDS
LOCAL GOVERNMENTS
LONG RUN
LOW-INCOME COUNTRIES
MIGRANT
MIGRANTS
MIGRATION
MINORITY
MULTINATIONAL COMPANIES
NATURAL RESOURCE
NUTRITION
OPEN DOOR
PATIENT
PER CAPITA GROWTH
PER CAPITA INCOME
PERSONAL INCOME
POLICY MEASURES
POLICY OPTIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR
POOR AREAS
POOR COUNTRY
POOR FAMILIES
POOR HOUSEHOLDS
POPULOUS COUNTRY
POSITIVE IMPACT
POVERTY HEADCOUNT
POVERTY LEVEL
POVERTY LINE
POVERTY RATE
POVERTY REDUCTION
PRICE STABILITY
PRIMARY EDUCATION
PRIMARY HEALTH CARE
PRIMARY SCHOOL
PRIVATE CONSUMPTION
PRIVATE SECTOR
PRODUCTIVITY GROWTH
PROGRESS
PROPERTY RIGHTS
PUBLIC EXPENDITURE
PUBLIC GOODS
PUBLIC HEALTH
PUBLIC HEALTH SERVICES
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC SUPPORT
PURCHASING POWER
PURCHASING POWER PARITY
QUALITY OF EDUCATION
RAPID GROWTH
REAL INCOMES
REFORM PROGRAM
RICH COUNTRIES
RISING INEQUALITY
RURAL
RURAL AREA
RURAL AREAS
RURAL BASIC EDUCATION
RURAL DEVELOPMENT
RURAL HEALTH
RURAL INCOME
RURAL LIVING STANDARDS
RURAL POPULATION
RURAL PUBLIC
RURAL RESIDENTS
SAFETY NET
SAFETY NETS
SAVINGS
SERVICE DELIVERY
SKILLED PROFESSIONALS
SKILLED WORKERS
SOCIAL EXPENDITURES
SOCIAL OUTCOMES
SOCIAL PROTECTION
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL SPENDING
STATE INTERVENTION
STRUCTURAL POLICIES
SURVIVAL RATE
TRADE LIBERALIZATION
UNIVERSITY EDUCATION
URBAN AREAS
URBAN MIGRATION
URBAN POPULATION
URBAN WORKERS
URBANIZATION
WORKING CLASS
spellingShingle ACCESS TO EDUCATION
ADULT POPULATION
AGRICULTURAL GROWTH
AGRICULTURAL LAND
AGRICULTURAL OUTPUT
AGRICULTURAL PRODUCTION
AVERAGE LEVEL
BASIC EDUCATION
BASIC SOCIAL SERVICES
CAPITAL ACCOUNT
CAPITAL CONTROLS
COMPARATIVE ADVANTAGE
COMPETITIVE EXCHANGE
COMPETITIVE EXCHANGE RATE
CULTURAL CHANGE
DECENT HEALTH CARE
DEMAND SIDE
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC POLICY
ECONOMIC REFORM
ECONOMIC REFORMS
ECONOMIC REVIEW
ECONOMIC THEORY
EDUCATED PEOPLE
EDUCATIONAL ATTAINMENT
ENVIRONMENTAL DEGRADATION
EXCHANGE RATE
EXTREME POVERTY
FARMERS
FOREIGN TRADE
GLOBAL ECONOMY
GOVERNMENT POLICIES
GROWING ECONOMY
HEADCOUNT RATIO
HEALTH INSURANCE
HEALTH OUTCOMES
HIGH GROWTH
HIGH GROWTH RATE
HIGHER INEQUALITY
HOSPITAL
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD SURVEYS
HUMAN CAPITAL
INCOME DISTRIBUTION
INCOME GAP
INCOME INEQUALITY
INCOME STUDY
INCREASED INEQUALITY
INCREASING INEQUALITY
INDUSTRIAL SECTOR
INDUSTRIALIZATION
INDUSTRIALIZED COUNTRIES
INFANT
INFANT MORTALITY
INFANT MORTALITY RATE
INTERNATIONAL POLICY
INTERNATIONAL TRADE
INVESTMENT CLIMATE
JOB CREATION
LABOR MARKET
LABOR PRODUCTIVITY
LABOR SHORTAGES
LARGE POPULATION
LAWS
LEGAL RIGHTS
LIFE EXPECTANCY
LIVING STANDARDS
LOCAL GOVERNMENTS
LONG RUN
LOW-INCOME COUNTRIES
MIGRANT
MIGRANTS
MIGRATION
MINORITY
MULTINATIONAL COMPANIES
NATURAL RESOURCE
NUTRITION
OPEN DOOR
PATIENT
PER CAPITA GROWTH
PER CAPITA INCOME
PERSONAL INCOME
POLICY MEASURES
POLICY OPTIONS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR
POOR AREAS
POOR COUNTRY
POOR FAMILIES
POOR HOUSEHOLDS
POPULOUS COUNTRY
POSITIVE IMPACT
POVERTY HEADCOUNT
POVERTY LEVEL
POVERTY LINE
POVERTY RATE
POVERTY REDUCTION
PRICE STABILITY
PRIMARY EDUCATION
PRIMARY HEALTH CARE
PRIMARY SCHOOL
PRIVATE CONSUMPTION
PRIVATE SECTOR
PRODUCTIVITY GROWTH
PROGRESS
PROPERTY RIGHTS
PUBLIC EXPENDITURE
PUBLIC GOODS
PUBLIC HEALTH
PUBLIC HEALTH SERVICES
PUBLIC SERVICES
PUBLIC SPENDING
PUBLIC SUPPORT
PURCHASING POWER
PURCHASING POWER PARITY
QUALITY OF EDUCATION
RAPID GROWTH
REAL INCOMES
REFORM PROGRAM
RICH COUNTRIES
RISING INEQUALITY
RURAL
RURAL AREA
RURAL AREAS
RURAL BASIC EDUCATION
RURAL DEVELOPMENT
RURAL HEALTH
RURAL INCOME
RURAL LIVING STANDARDS
RURAL POPULATION
RURAL PUBLIC
RURAL RESIDENTS
SAFETY NET
SAFETY NETS
SAVINGS
SERVICE DELIVERY
SKILLED PROFESSIONALS
SKILLED WORKERS
SOCIAL EXPENDITURES
SOCIAL OUTCOMES
SOCIAL PROTECTION
SOCIAL SECURITY
SOCIAL SERVICES
SOCIAL SPENDING
STATE INTERVENTION
STRUCTURAL POLICIES
SURVIVAL RATE
TRADE LIBERALIZATION
UNIVERSITY EDUCATION
URBAN AREAS
URBAN MIGRATION
URBAN POPULATION
URBAN WORKERS
URBANIZATION
WORKING CLASS
Dollar, David
Poverty, Inequality, and Social Disparities During China's Economic Reform
geographic_facet East Asia and Pacific
China
relation Policy Research Working Paper; No. 4253
description China has been the most rapidly growing economy in the world over the past 25 years. This growth has fueled a remarkable increase in per capita income and a decline in the poverty rate from 64 percent at the beginning of reform to 10 percent in 2004. At the same time, however, different kinds of disparities have increased. Income inequality has risen, propelled by the rural-urban income gap and by the growing disparity between highly educated urban professionals and the urban working class. There have also been increases in inequality of health and education outcomes. Some rise in inequality was inevitable as China introduced a market system, but inequality may have been exacerbated rather than mitigated by a number of policy features. Restrictions on rural-urban migration have limited opportunities for the relatively poor rural population. The inability to sell or mortgage rural land has further reduced opportunities. China has a uniquely decentralized fiscal system that has relied on local government to fund basic health and education. The result has been that poor villages could not afford to provide good services, and poor households could not afford the high private costs of basic public services. Ironically, the large trade surplus that China has built up in recent years is a further problem, in that it stimulates an urban industrial sector that no longer creates many jobs while restricting the government's ability to increase spending to improve services and address disparities. The government's recent policy shift to encourage migration, fund education and health for poor areas and poor households, and rebalance the economy away from investment and exports toward domestic consumption and public services should help reduce social disparities.
format Publications & Research :: Policy Research Working Paper
author Dollar, David
author_facet Dollar, David
author_sort Dollar, David
title Poverty, Inequality, and Social Disparities During China's Economic Reform
title_short Poverty, Inequality, and Social Disparities During China's Economic Reform
title_full Poverty, Inequality, and Social Disparities During China's Economic Reform
title_fullStr Poverty, Inequality, and Social Disparities During China's Economic Reform
title_full_unstemmed Poverty, Inequality, and Social Disparities During China's Economic Reform
title_sort poverty, inequality, and social disparities during china's economic reform
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2007/06/7716207/poverty-inequality-social-disparities-during-chinas-economic-reform
http://hdl.handle.net/10986/7404
_version_ 1764401981843046400
spelling okr-10986-74042021-04-23T14:02:33Z Poverty, Inequality, and Social Disparities During China's Economic Reform Dollar, David ACCESS TO EDUCATION ADULT POPULATION AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AVERAGE LEVEL BASIC EDUCATION BASIC SOCIAL SERVICES CAPITAL ACCOUNT CAPITAL CONTROLS COMPARATIVE ADVANTAGE COMPETITIVE EXCHANGE COMPETITIVE EXCHANGE RATE CULTURAL CHANGE DECENT HEALTH CARE DEMAND SIDE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC REFORM ECONOMIC REFORMS ECONOMIC REVIEW ECONOMIC THEORY EDUCATED PEOPLE EDUCATIONAL ATTAINMENT ENVIRONMENTAL DEGRADATION EXCHANGE RATE EXTREME POVERTY FARMERS FOREIGN TRADE GLOBAL ECONOMY GOVERNMENT POLICIES GROWING ECONOMY HEADCOUNT RATIO HEALTH INSURANCE HEALTH OUTCOMES HIGH GROWTH HIGH GROWTH RATE HIGHER INEQUALITY HOSPITAL HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME DISTRIBUTION INCOME GAP INCOME INEQUALITY INCOME STUDY INCREASED INEQUALITY INCREASING INEQUALITY INDUSTRIAL SECTOR INDUSTRIALIZATION INDUSTRIALIZED COUNTRIES INFANT INFANT MORTALITY INFANT MORTALITY RATE INTERNATIONAL POLICY INTERNATIONAL TRADE INVESTMENT CLIMATE JOB CREATION LABOR MARKET LABOR PRODUCTIVITY LABOR SHORTAGES LARGE POPULATION LAWS LEGAL RIGHTS LIFE EXPECTANCY LIVING STANDARDS LOCAL GOVERNMENTS LONG RUN LOW-INCOME COUNTRIES MIGRANT MIGRANTS MIGRATION MINORITY MULTINATIONAL COMPANIES NATURAL RESOURCE NUTRITION OPEN DOOR PATIENT PER CAPITA GROWTH PER CAPITA INCOME PERSONAL INCOME POLICY MEASURES POLICY OPTIONS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR POOR AREAS POOR COUNTRY POOR FAMILIES POOR HOUSEHOLDS POPULOUS COUNTRY POSITIVE IMPACT POVERTY HEADCOUNT POVERTY LEVEL POVERTY LINE POVERTY RATE POVERTY REDUCTION PRICE STABILITY PRIMARY EDUCATION PRIMARY HEALTH CARE PRIMARY SCHOOL PRIVATE CONSUMPTION PRIVATE SECTOR PRODUCTIVITY GROWTH PROGRESS PROPERTY RIGHTS PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC HEALTH PUBLIC HEALTH SERVICES PUBLIC SERVICES PUBLIC SPENDING PUBLIC SUPPORT PURCHASING POWER PURCHASING POWER PARITY QUALITY OF EDUCATION RAPID GROWTH REAL INCOMES REFORM PROGRAM RICH COUNTRIES RISING INEQUALITY RURAL RURAL AREA RURAL AREAS RURAL BASIC EDUCATION RURAL DEVELOPMENT RURAL HEALTH RURAL INCOME RURAL LIVING STANDARDS RURAL POPULATION RURAL PUBLIC RURAL RESIDENTS SAFETY NET SAFETY NETS SAVINGS SERVICE DELIVERY SKILLED PROFESSIONALS SKILLED WORKERS SOCIAL EXPENDITURES SOCIAL OUTCOMES SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SERVICES SOCIAL SPENDING STATE INTERVENTION STRUCTURAL POLICIES SURVIVAL RATE TRADE LIBERALIZATION UNIVERSITY EDUCATION URBAN AREAS URBAN MIGRATION URBAN POPULATION URBAN WORKERS URBANIZATION WORKING CLASS China has been the most rapidly growing economy in the world over the past 25 years. This growth has fueled a remarkable increase in per capita income and a decline in the poverty rate from 64 percent at the beginning of reform to 10 percent in 2004. At the same time, however, different kinds of disparities have increased. Income inequality has risen, propelled by the rural-urban income gap and by the growing disparity between highly educated urban professionals and the urban working class. There have also been increases in inequality of health and education outcomes. Some rise in inequality was inevitable as China introduced a market system, but inequality may have been exacerbated rather than mitigated by a number of policy features. Restrictions on rural-urban migration have limited opportunities for the relatively poor rural population. The inability to sell or mortgage rural land has further reduced opportunities. China has a uniquely decentralized fiscal system that has relied on local government to fund basic health and education. The result has been that poor villages could not afford to provide good services, and poor households could not afford the high private costs of basic public services. Ironically, the large trade surplus that China has built up in recent years is a further problem, in that it stimulates an urban industrial sector that no longer creates many jobs while restricting the government's ability to increase spending to improve services and address disparities. The government's recent policy shift to encourage migration, fund education and health for poor areas and poor households, and rebalance the economy away from investment and exports toward domestic consumption and public services should help reduce social disparities. 2012-06-07T15:47:32Z 2012-06-07T15:47:32Z 2007-06 http://documents.worldbank.org/curated/en/2007/06/7716207/poverty-inequality-social-disparities-during-chinas-economic-reform http://hdl.handle.net/10986/7404 English Policy Research Working Paper; No. 4253 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China