Speech in the UNDP Regional Training Workshop on Pro-Poor Macroeconomic Policies in Asia and the Pacific

by Mr. Wang Guoliang, Deputy Director General of the Chinese State Council Leading Group Office of Poverty lleviation and Devleopment

Ladies and gentlemen,
　　Good morning. First, on behalf of the State Council Leading Group Office of Poverty Alleviation and Development, I would like to express my warmest welcome to all the delegates, experts and scholars attending the workshop.
　　China is long being a sponsor, supporter, practitioner and beneficiary of the Pro-poor macroeconomic policies. Since the 1980s of last century, the Chinese government launched a large-scaled and sustained poverty reduction program with so remarkable achievements that more than 200 million poor has been lift out of poverty. China’s progress is a valuable case for other countries to learn from. At the same time, the Chinese government is fully aware of the fact that China is a country with the largest population in the world with the severe inequality. Therefore we are still facing a daunting task ahead.
　　First, there still remain a large number of absolute poor in rural areas and a relatively low poverty standard. By the end of 2004, the absolute poor in rural areas numbered 26.1 million and those just out of poverty but risking returning to poverty numbered 49.77 million. The Chinese government pegged the absolute poverty standard at 668 RMB in terms of the annual per capita net income and the standard for low income at 924 RMB, both of which are the lowest standards in the world.
　　Second, the pace of poverty reduction is slowing down. In the 1980s, the poor population in rural areas was reduced by 13.7 million annually. The rate was slowed to 6.2 million annually during the 1990s and even slower between 2001 and 2004 as 1.5 million annually.
　　Third, the poor groups are becoming increasingly vulnerable. The income gap between the poor and other communities are enlarging. Between 1992 and 2004, the ratio of income ceiling between the poor and the average farmers are expanding from 1 to 2.45 to 1 to 4.39.
　　Fourth, the living and production condition in poor areas and for the poor people are significantly improving. However, China is still lagging behind regarding education, health, quality of the population and other public index. I can give you 2 examples. First, the 9 year compulsory education is still not attained in many counties of western China. Second, the maternity death rate in the west is 200 per 100 thousand, much higher than that in the east as 40 per 100 thousand.

Ladies and gentlemen,
　　The key to the alleviation and eradication of poverty is to formulate pro-poor macroeconomic policies. The Chinese government has incorporate poverty reduction into the historical task of constructing socialism with Chinese characteristics and a society of harmony. In this process, we have adopted an approach named one targeting and three priorities. One targeting means to closely target the poor community, to reach the individual households, to file and record the information of the poor, to identify the measures of assistance and responsibility. Three priorities are specifically: improving the living and production conditions in poor areas by poverty reduction programs with the village as the smallest unit; enhancing the quality of the poor by training and labor transfer; restructuring agriculture by supporting the major local enterprises.
　　Despite the economic, scientific and social progress made by the world, poverty remains the most severe challenge facing the humanbeing. While trying its utmost to address poverty problems at home, the Chinese government is also caring for the career in other countries. We will come into close partnership with countries and organizations in the Asian and Pacific Region and countries in the rest of the world. Through research, review, dissemination and exchanges of successful experiences with other countries, international interaction and collaboration, I hope we can enhance the ability of countries in poverty reduction so as to facilitate the career in the world.
　　The workshop is the third one in carrying out the Program of Pro-Poor Macroeconomic Policies initiated by the UNDP Regional Center in Asia and Pacific Region. I am in the belief that with the experiences of the last two workshops and with the joint efforts of all the participants, the program will be better acknowledged, understood and practices, the best practice of poverty reduction will be expanded and applied in a larger areas.
　　In closing, I wish the workshop a complete success.
　　Thank you!