China’s victory in the battle against poverty: Its successful experience and global significance

Eradicating poverty is a shared aspiration and a pressing need that resonates widely across the Global South. After sustained efforts, China solemnly declared to the world at the centenary of the Communist Party of China in 2021 that it had historically resolved the issue of absolute poverty. 

Nearly 100 million rural residents were lifted out of poverty, creating a miracle in the history of poverty alleviation. This achievement has not only driven development gains that benefit all people more substantially and equitably, but has also contributed Chinese wisdom and solutions to the global cause of poverty reduction.

People first: The core principle

China's success in poverty alleviation stems from its 'people-centered' development philosophy. As China's ruling party, the Communist Party of China has always taken 'seeking happiness for the people' as its fundamental tenet. 

Since the founding of the People's Republic of China, the Chinese government has led the people in an unswerving advancement of poverty reduction. Particularly since the 18th National Congress of the CPC, China has fought and won the battle against poverty with unprecedented determination and extraordinary measures.

By the end of 2020, all 98.99 million poverty-stricken people in the rural areas and all 832 impoverished counties were lifted out of poverty. To date, China has provided financial assistance to students from poor families 800 million person-times, helped over 200,000 dropouts in the compulsory education stage return to school, thus cutting off the root cause of intergenerational poverty transmission. 

More than 99% of the low-income rural population and residents who were lifted out of poverty are covered by medical insurance. All townships in China are now connected with paved roads and full 4G network coverage. 90% of them have 5G network access, and 96% have access to tap water. These measures have tangibly changed the lives of the impoverished population.

The Xihaigu region in Ningxia was once identified by the United Nations as "one of the least suitable areas for human habitation" due to drought. 

The government implemented a trans-basin water diversion project, channeling water from the Yellow River to the arid plateau that had been dry for millennia, managing to raise tap water coverage in rural areas to 99%. This stands as a prime example of how China's poverty reduction practices have benefited millions of people.

Empowerment through development

China's experience shows that driving poverty reduction through economic growth and leveraging anti-poverty efforts to boost growth and modernisation is the crucial step to helping people shake off poverty and move towards shared prosperity.

China advanced poverty reduction by moving from the traditional aid approach of 'blood transfusion' to a sustainable 'blood formation' model. It developed industries based on local resources and strengths, turning the unique assets of underdeveloped areas into growth advantages. This approach helped communities move beyond just escaping poverty to achieving real prosperity.

After the victory against poverty, China creatively established a five-year transition period, avoiding large-scale relapse into poverty. China's poverty-reduction mode is now becoming a long-term effort, proving that poverty is not only conquerable but can also be prevented from recurring.

Advancing together

President Xi Jinping once noted that "The developing countries can eliminate poverty, and that a weaker bird can start early and fly high. If China can make it, other developing countries can make it too." China is now sharing its experience and assisting other developing nations in poverty reduction.

According to World Bank reports, the Belt and Road Initiative will help lift 7.6 million people out of extreme poverty and 32 million out of moderate poverty. China has established a Global Development and South-South Cooperation Fund with a total of $4 billion, and through the Global Development Initiative, funds of nearly $20 billion have been mobilised for global development, implementing 1,800 projects that benefit people in many countries around the world. 

China will establish a China-UN Global South-South Development Facility along with the United Nations and set up the Shanghai Global Center for Sustainable Development (SGCSD) with the UNDP to accelerate the implementation of the UN 2030 Agenda for Sustainable Development.

Both China and Bangladesh are important members of the Global South, and Bangladesh also faces poverty challenges. The Grameen Bank, founded by Honorable Chief Adviser Dr Muhammad Yunus, has explored pathways out of poverty through microcredit and community projects, providing valuable experience for Bangladesh and global poverty reduction. It is well-aligned with China's people-centered development philosophy.

Currently, both China and Bangladesh are at critical stages of their modernisation endeavors, facing unprecedented opportunities for cooperation. China has remained Bangladesh's largest trading partner for 15 consecutive years and is also the largest source of foreign investment since the formation of the interim government, with total investments nearing $800 million. The successful export of Bangladeshi mangoes to China in May this year set a fine example for synergising trade and poverty reduction between the two countries. 

Last month, China and Bangladesh celebrated the 50th anniversary of the establishment of diplomatic relations. Leaders of the two countries exchanged congratulatory messages and both agreed to accelerate high-quality Belt and Road cooperation and further optimise the comprehensive strategic cooperative partnership. 

China is ready to further its long-term cooperation with Bangladesh in fields such as healthcare, agricultural technology, infrastructure, vocational training, and clean energy. Through experience exchange, technology sharing, and policy coordination, China will help Bangladesh explore a sustainable development path suited to its national conditions and assist in its poverty alleviation efforts.

China's experience in poverty alleviation tells the world: Shaking off poverty is not the privilege of only a few nations, development is the fundamental solution to poverty, and cooperation is the essential path to shared prosperity. 

China will continue to deepen cooperation with Bangladesh, promoting the revitalisation of the Global South through development, and making greater contributions to building a better world together.

Sketch: TBS

Yao Wen is the Chinese Ambassador to Bangladesh.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.