Poverty Reduction and Effects of Pro-poor Policies in Rural China Shi Li* Abstract The present paper describes changes in poverty reduction in recent decades and the effects of income growth and inequality on poverty reduction in rural China. The paper also examines the main poverty alleviation policies implemented in rural areas over the past 10 years and assesses the effectiveness and efficiency of these policies from the perspective of targeting accuracy. It is found that China has achieved significant progress in rural poverty reduction in recent decades, although the speed of poverty reduction has varied from one period to another. The largest contribution to rural poverty reduction has been economic growth, which has been increasingly offset by the inequality effect on poverty reduction. In addition, poverty alleviation policies are effective, but not efficient. Key words: growth, inequality, poverty reduction, rural China
JEL codes: D31, H53, I32