This research is to evaluate the positive effect of industrialization process on poverty reduction in China from 1978 to 2000, assuming that China has achieved great results in the area of poverty and has made huge contribution to the world, by adjusting national poverty line and identifying three types of poverty, the effective anti- poverty strategy is also worked out to make comprehensive anti- poverty policies including macro-economic strategy and regional development strategy …so that poverty alleviation is really an effective and meaningful tool to enhance life quality of citizens.
1. Background.
In China, industrialization is generally considered as a process in which the proportion of output in the gross national product increase. Industrialization not only include economic change, but it also imply revolution of society. It combines several sectors such as economic developments and social revolution with technological innovation, poverty reduction, higher education…so industrialization means change and development and innovation, which plays a vital important role in development process of a nation.
Being different from Western countries in industrialization process, China owns the largest population in the world and starting from an agricultural country, China is one of the fastest moving countries with astonishing growth rate. Since reforming and open up in 1978, China’s GDP increased from 362.41 billion RMB to 30,067 billion RMD in 2008. The industrialization catches worldwide attention and it is worthy lessons for other countries to learn.
The industrialization has laid a lot of positive results on society, one of which is function in reducing poverty. It is reason for me to carry out research on the topic : Effect of industrialization on poverty alleviation in China.
2. The research’s aim and objective.
The aim of this research is to discuss the industrialization process of China and answer one question: To what extent and how industrialization process effect poverty reduction in China.
China started from an agricultural nation closed economy, but after 60 years of industrialization, they developed at speedy rate and overtook many other Western strong nations in the world. So their innovation and industrialization must be creative and accurate for the state and characteristics of the country. And the positive effects on society that industrialization has brought back in recent years are highly appreciated. This research concentrates on discuss the relation between industrialization and poverty, change in poverty incidence, indicators of human poverty in China, and strategy used in reducing poverty and evaluation of impacts of industrialization on poverty reduction.
3. Suggested approaches
There are several meaningful approach that can be used to carry out the research brief. The mixed approach of qualitative approach and quantitative one seems to be inductive and deductive which means a series of theory or pattern of the meaning on the basis of the data is developed. The topic and problem in the research will be cleared by framework of theory and factual data. The approach for data collection and analysis is also flexible. The data is collected throughout the period of industrialization and divided by provincial level and regional level. Data can be collected from official governmental researches and reports of World Bank and IMF.
4. Problem discussion
In this research, I will discuss Chinese industrialization in poverty reduction in some important aspects : first is 2 stages of industrialization : from 1978 to 1984 and from 1984 up to 2000s, showing the praised result of industrialization, analyzing the relationship between economic growth and the poor then imply the effect of economic development and industrialization on the poor and achievement in cutting down on poverty of Chinese government in the time of industrialization. Based on analyzing and investigating indicators of human poverty in China such as nutrition and calorie intake…any problem related to health, we can illustrate the level of poverty and which kind of poverty China face at a certain point of time. Then the research makes some recommendations and suggestions for poverty reduction strategies in China.
5. Limitation
There are so many ways to analyze about industrialization because it can be reflected in various aspects, and base on different level and circumstance of industrialization, it is impossible to include all of those aspects. I just choose some of the key components in reflecting industrialization such as: GDP growth rate, change in industrial structure, growth in agriculture and productivity, poverty reduction. Moreover, the effect of industrialization on society are both negative and positive but the research only put consideration on positive sides, which is on poverty alleviation aspect.
6. Time constraint
In order to make clear comparison on how Chinese industrialization affected social issue in reducing poverty, the time constraint is divided into two phases as two phase of industrialization process of China: from 1978 to 1984 and from 1985 to 2000s.
7. Structure of the research
The research will include some main ideas in the body: In the first part, I will discuss the industrialization process of China and the the relationship between industrialization and poverty reduction, including empirical frame work on industrialization, poverty, important stage of Industrialization in China and how industrialization process change and develop economy, society and other sectors. In the second part, I will show the extent to which industrialization helps to reduce poverty by : analyze the relation between economic growth and the poor, change in poverty incidence and by analyzing indicator of human poverty, I will illustrate the level of change in poverty and life standard of Chinese citizen. In order to achieve that goals in helping the poor, Chinese government must carry out a lot of strategic policies, a looking deep at those policies will help us have a clearer look on the process of Chinese poverty reduction.
8. Output and reporting
At the end of the report, it is necessary to evaluate and clarify some aspects of the research topic. First one is the trend and evaluation of China’s poverty reduction( 1978- 2000), by analyzing great achievement that China has got in poverty reduction and explain the reasons for China’s cutting down on poverty due to consequence and comprehensive policies in industrialization period such as :
– The high economic growth is the basic for poverty alleviation.
– A great deal of labor force moved to non- agriculture industry.
– High speed of urbanization.
– Policy based on exported- orientation.
– Some other actions by the government.
The research also need to point out some characteristics of poverty in 1990s because in fact, in this period, poverty bore some difference from other periods. It is distribution of poverty in regions, and the multi- dimensional characteristic of poverty, and it is compulsory to point out what is the reason.
After clarifying the positive effect of industrialization on poverty reduction, it is the time to consider other new strategy to continuously reduce poverty in all reasons of the country, which is a hard question for the Chinese government and the research is to produce and offer some suitable recommendations for the purpose of poverty reduction in the future more effective.
9. Reference
The data source and reference for the research are mainly intended from China Statistical Abstract( 2002), National Statistic Bureau, the data quoted by World Bank in 1999 and Global Economic Prospect and the development countries, The World Bank, 2003, the data quoted by China’s Social Statistic and China Statistic Yearbook…
• Hussain, Athar (2003), Urban Poverty in China, Measurement, Patterns and Policies. International Labour Organization, Geneva.
• Park, Albert, Sangui Wang, (2001), China’s poverty statistic. China’s economic review.
• The communiqué of China’s National Economy and Social Development, Economy Daily, March 2013.
• Wang, pingping, Ren Tiamin, (2004), Development oriented poverty alleviation and monitoring in China, Asian Development bank, Manila.
• Jayati Ghosh, (2010), Poverty reduction in China and India: Policy implications of recent trends.
• Hu Angang, Hu Linlin and Chang Zhixiao, China’ economic growth and poverty rduction( 1987- 2002).
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