Transforming China poverty crisis： Challenges and issues

This paper describes the economic conditions of urban and rural poverty in China. The examination of this problem deconstructs into three components and this explains why this problem is China＇s premier economic problem, despite its recent economic progress into a world ranked industrial economic power. Here, this paper examines the period of 1985 to 2008, a period of almost exponential growth. Even though during this period millions escaped from poverty levels of income, this was only part of the positive results. There were social negatives as well, and the main one was that economic inequality became worse, as the impoverished, as well as being affected by the current financial situation that has overcome the Chinese labor market, has put them into competition with the better off who are in the same economic predicament. As China merges into forms of economic globalization, any external blow will cause sharp fluctuations within the Chinese economy, as reflected within the labor market. Unemployment imposes direct impacts on incomes, and may give rise to social instability. As a result, job growth should be at the top of the macro-control agenda.