Poverty line in China rural areas: A critical reappraisal

Abstract

In 1980s, the rural poverty line was set up in rural China. Although official statistics apparently reveal substantial reduction in rural poverty, the insensitivity of the poverty line to food price changes has rendered it unable to reflect the consumption power of poor farmers in rural China. This article argues that the rural poverty rate is being underestimated, and there is increasing income disparity in China. It is suggested that a new relative poverty line should be introduced in rural areas in China to enable the population to share in the achievements of economic development. This is also relevant to other countries that are having stark rural-urban income disparity. © Taylor & Francis Group, LLC.