WPS4463 POLICY RESEA R CH WO R KING PA P E R 4463 Public Disclosure Authorized Are There Lessons for Africa from China’s Success against Poverty? Public Disclosure Authorized Martin Ravallion Public Disclosure Authorized The World Bank Public Disclosure Authorized Development Research Group Office of the Director January 2008 POLICY RESEA R CH WO R KING PA P E R 4463 Abstract At the outset of China’s reform period, the country matters, two lessons stand out. The first is the importance had a far higher poverty rate than for Africa as a whole. of productivity growth in smallholder agriculture, Within five years that was no longer true. This paper which will require both market-based incentives and tries to explain how China escaped from a situation public support. The second is the role played by strong in which extreme poverty persisted due to failed and leadership and a capable public administration at all unpopular policies. While acknowledging that Africa levels of government. faces constraints that China did not, and that context This paper—a product of the Director's Office, Development Research Group—is part of a larger effort in the department to see what policy lessons for other countries can be drawn from the experiences of countries that have made substantial progress against poverty. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at
[email protected]. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues.