ABSTRACT

In most developing countries, anti-poverty policies and programmes are designed to alleviate poverty by targeting assistance through credit or jobs to the poor who may not otherwise benefit from normal programmes. There are three main views concerning anti-poverty policies and programmes. First, rapid economic growth is the best means of poverty reduction, although some public intervention may be necessary to make sure that the fruits of growth are widely shared. Second, measures may need to be designed to alleviate poverty directly. Third, even if direct measures are introduced, the damaging effects of poverty in terms of poor health, nutrition and education may not be addressed. Therefore, special action may be necessary to overcome the adverse indirect effects of poverty (Lipton, 1998). During China’s reform period (1978-to date) economic growth rates were very impressive and, at least until 1995, poverty was considerably reduced. However, despite a decline in the proportion of the population below the poverty line, a substantial number of people, especially in rural areas, have remained absolutely poor.