Ending China’s poverty in 2020 would be Xi Jinping’s greatest achievement. The coronavirus could have ruined it


Then the new coronavirus pandemic wiped out the global economy.

China closed factories in January and February to prevent a major outbreak and contain the virus, but at the same time seriously damaged employment and production in the country.

In front of journalists in his Chinese Prime Minister Li Keqiang, who strictly controlled the annual press conference at the end of the NPC, admitted that some Chinese citizens had been impoverished by the pandemic.

“Before Covid-19 attacked, there were some five million people living below the poverty line. But due to the disease, some may have fallen back into poverty,” said Li. “Therefore, we now face a bigger task to meet our goal.”

Experts say Xi’s chances of achieving his grand goal largely depend on whether Beijing can get the country back to work quickly.

“As long as employment continues to recover or for the most part recovers by the end of the year, they will be very close to reaching their poverty targets,” said Scott Rozelle, co-director of the Stanford University Rural Education Action Program.

“[But] there are many things that say this will be a persistent problem. “

A gigantic company

For much of the 20th century, China was one of the most impoverished countries in the world.

Beijing defines absolute poverty as surviving on less than $ 324 a year (2,300 yuan), less than half of the poverty line most commonly used by the World Bank of just under $ 700 a year.
In 1990, nearly 658 million people lived below the poverty line, by Chinese government standards.

Since then, that number has declined rapidly. In 2012, the Chinese government announced that there were 115 million people living in absolute poverty. With less than 10 million left in poverty at the end of last year, it seemed that China was on track to achieve its goal.

Shenjing He, a professor at the University of Hong Kong studying urban poverty, said that although only a relatively small number of people remained in absolute poverty, they were among the most affected.

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“They are those people who really suffer from the problem of poverty,” he said. “They live in very poor conditions and are generally found in mountainous areas and very remote places.”

The Chinese government has promised to spend $ 20.6 billion (146 billion yuan) on poverty alleviation in 2020, a figure that does not include additional funds from local governments and private companies, such as Alibaba (SLIME) and Tencent (TCEHY), it is highly recommended that you contribute.
This government money is distributed locally, and how each province, city, and town ends poverty depends primarily on officials, a tactic Xi ​​said was designed to tailor policies to specific areas.
More than 750,000 Communist Party officials have been sent to villages across the country to assess local poverty, and many conducted door-to-door interviews, according to experts and state media.
The solutions that local officials have taken to the poverty crisis have varied. In some places, villagers have been given small loans to help start businesses, or given visibility on e-commerce sites like Taobao to better sell their products.
Other poverty alleviation measures have been controversial, such as the plan to move millions of poor residents from their rural communities to more urban settings. Some residents refused to move or found themselves stranded in new cities with no job or marketable skills.

He, the Hong Kong professor, said the Chinese government has tasked national scientific bodies to closely monitor its progress in poverty alleviation in 2020, to ensure that the goal is met in a “very important year.”

But according to my colleagues in China, they don’t think there is a big problem for the government to honor this commitment, “he said.

This photo taken in September 2017 shows a billboard with a photo of Chinese President Xi Jinping visiting residents in the village of Zhangzhuang in Lankao, in the central Chinese province of Henan.

Millions of unemployed

Independent experts say getting an accurate picture of rural poverty on the ground is difficult, in part because of the size of China and in part because of its government secrecy, especially under Xi’s increasingly authoritarian and opaque administration.

But there are already signs that China’s poor may have been hit hard by the coronavirus economic downturn.

Unemployment in China has risen as a result of the virus, officially increasing to 6.2% of the population in February. The Chinese government does not officially release a total number of unemployed, but according to CNN calculations, it would have been around 29 million.

However, that official number does not include people in rural communities or a large number of the 290 million migrant workers who work in construction, manufacturing and other vital, low-wage activities.

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If those migrants are included, up to 80 million people could be out of work by the end of March, according to an article written in April by Zhang Bin, an economist at the Chinese Academy of Social Sciences, a group of experts. run by the government.

‘A perfect storm’

A survey of Chinese rural families conducted by Stanford University’s Rural Education Action Program (REAP) in the first four months of the year, when the country was most affected by the virus, found that 92% of Village respondents had seen their income levels decrease due to a pandemic. protection measures

“Rural worker employment was essentially zero for a full month after the quarantine began,” the report said.

Half of the villages surveyed by the Stanford University team reported average losses of about $ 281 to $ 704 (2,000 to 5,000 yuan) in March.

To deal with that income bump, “half of them have reduced their nutrition and food diversity, have gone to the diet of grains and vegetables instead of meat and fruit,” said Rozelle of REAP, study author. Have It also reduced a little bit the expenses in education of his children and the expenses in health problems not related to Covid “.

REAP is not the only survey to find large reductions in rural wages during the coronavirus. Research by the Chinese Academy of Agricultural Sciences (CAAS), quoted in the China Daily state media, found that 80% of farmworkers who were interviewed said their earnings could fall by more than 20%.

Some CAAS estimates found that farmers’ wages could drop by as much as 40%.

To make matters worse in some rural communities, parts of China have seen their worst floods in decades in June, just as they began to recover from the coronavirus.

According to state media, tens of thousands of homes have been destroyed along the Yangtze River and at least 12 million people affected, costing the economy around $ 3.6 billion.

John Donaldson, poverty expert and associate professor at Singapore Management University, said that in many ways the coronavirus had been a “perfect storm” for people living in poverty in China, affecting many different sectors at the same time .

“The factories are not yet operating at full strength, partly due to fear of the coronavirus, you have construction [being put on hold]Even hotels that buy a lot of country food have few businesses, “he said.

In addition, Donaldson said that local officials whose responsibility it had been to monitor poverty alleviation measures had been distracted by their fight against the coronavirus.

The message

Despite setbacks, the ruling Communist Party and the state media have been waging a concerted campaign to assure their national audience that they will meet their goal.

In early June, Xi toured the northern Ningxia province visiting families and observing a workshop, built with poverty alleviation funds, where villagers produced cardboard boxes.

“(Xi) has emphasized efforts to secure a decisive victory in building a moderately prosperous society in all respects and eradicating poverty,” the state news agency Xinhua said in its editorial staff of the tour.

Experts generally agree that the Chinese government is highly unlikely to announce that it has breached its poverty alleviation goals in late 2020. Donaldson said the goals are likely to be met or are false enough to say that they have been fulfilled has been fulfilled

But there is concern that even if Beijing meets its goal of eliminating absolute poverty by the end of the year, there is still a long way to go to improve the lives of hundreds of millions of its citizens.

For years Xi has claimed that China is becoming a “moderately prosperous society”.

However, speaking at his press conference in May, Li said there were still 600 million people, about 40% of the population, who lived on a monthly income of about $ 140 (1,000 yuan).

“It is not even enough to rent a room in a medium-sized Chinese city,” Li said.

Donaldson said his biggest concern is that once the Chinese government announces that it has eradicated absolute poverty, local authorities may stop considering all poverty as an important issue, despite the fact that millions of people who still need urgent assistance.

“I mean it’s the bottom line: yes poverty is eliminated, how many people are poor after this campaign? No one will know, “he said.

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