Women walk to a blueberry planting base for work at Laoji Village of Butuo County in Liangshan Yi Autonomous Prefecture, southwest China's Sichuan Province, Aug. 13, 2020. (Xinhua/Liu Kun)
BEIJING, Feb. 28 -- Which lessons have China learned from its successful battle against poverty? New China Research, the think tank of Xinhua News Agency, released a research paper on Sunday to shed light on the rationale for China's anti-poverty drive, including the following four conclusions:
OPTIMAL DISTRIBUTION MAKES DEVELOPMENT BETTER FOR POVERTY REDUCTION
The practice of poverty alleviation around the world has proved that economic development alone does not necessarily equate to poverty eradication. Wealth has been snowballing, but poverty has become increasingly like a fortress. How should we solve this huge imbalance? The answer is optimal distribution.
"You make a cake to divide it, and dividing it properly will promote the baking of a bigger cake." This clear logic runs throughout the history of poverty alleviation in China.
China's basic economic system sees public ownership play a dominant role with diverse forms of ownership developing side by side. It allows China to continuously explore new paths of "optimal distribution."
China has also benefited greatly in this process. By seizing the most important relationship between distribution and production, China has achieved a medium-high rate of economic growth in tandem with the elimination of absolute poverty, and has laid a solid foundation for future high-quality development.
GOVERNMENT AND THE ENHANCEMENT OF PRO-POOR TRAITS
Under the market economy, the market plays a decisive role in the allocation of resources and is an important force in poverty alleviation. However, the market allocation of resources is based on the principle of efficiency. Poor areas and poor people are often unable to participate in the market effectively or even excluded from the market altogether due to their remote geographical location, backward infrastructure and insufficient development capacity, and thus are in a weak position in the overall distribution pattern.
"Capable governments" are needed to adjust the primary distribution and create a more efficient redistribution. In addition to the advantages of top-level design to mobilize, organize and guide poverty alleviation, the government can also influence the allocation of resources by improving their mobilization and availability.
The main means are to increase the supply of public services, improve the precise allocation of poverty alleviation resources, introduce pro-poor policies, stimulate social investment, and promote the transfer of asset returns in order to increase opportunities for impoverished communities and individuals to access the factor and product markets and reduce risks and vulnerability.
