Poverty and Income Inequality in China

Topics: Poverty, Economics, Poverty threshold Pages: 4 (1347 words) Published: November 12, 2008
Another Inquiry on the Economic Welfare and Poverty in China The trade-off between economic growth and redistribution has become one of the major notes concerning the emerging economies of post-Cold War world. Adding to this struggle the urge to integrate into the international system while keeping the balances right at home has been another macro-level concern. In conjunction such liabilities not only necessitates the examination of fiscal and structural reforms but also the international trends as well within an historical framing. For that matter the case of China is fascinating in terms of blending these elements of economic and political changes in the last 30 years. However this attempt is not without a cost. This paper aims to present a brief analysis of China’s struggle to achieve a balanced line of path given the necessities of our century. Following an historical account of the country’s last thirty years, the fiscal and structural flaws of the Chinese system will be analyzed in order to provide answers for rural and urban poverty that still haunt the Chinese people. The socialist China was in fact one of the late bloomers of the post-Cold War era. While the world was adopting the new values of the emerging internationalism of 1980s, China couldn’t let go of her western paranoia for about a decade. As economic self-reliance began to prove wrong Chinese leadership cautiously stepped out with the initiation of Deng Xiaoping’s “Open Door” speech of 1992 . Thus began the 25 years of market-oriented reform in the country . The objective was rapid economic growth which unfortunately came at the expense of social inequality. The former socialist system was alien to social stratification apart from the one determined by the party membership. In that regard up until very recently the social inequality was not recognized as a problem that could even impede the attempts at growth.

The Annual Growth rate of GDP in China

The Inward FDI to China
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