Poverty Alleviation in China: A Lesson for the Developing World? Gerhard K. Heilig(1) / Zhang, Ming(2) / Long, Hualou(2) Li, Xiubin(3) / Wu, Xiuqin(4) December 27, 2005 Part of this paper was presented at the International Conference on the West Development and Sustainable Development August 2-4, 2005 Urumqi, China 1 The title photo depicts the “traditional muslim market” in Urumqi - complete with a huge Carrefour market, KFC fastfood restaurant, and open food court. In the background the recently renovated mosque. The photo was taken in August 2005 by Gerhard K. Heilig. (1) Senior Research Scholar, International Institute for Applied Systems Analysis (IIASA), Leader of the Research Activity on Sustainable Rural Development (SRD) and Professor for China Studies, Vienna University. (2) Research Scholar, IIASA, SRD-Research; (3) Deputy Head, Institute of Geographic Sciences and Natural Resources Research (IGSNRR), Chinese Academy of Sciences. (4) Associate Professor, College of Soil and Water Conservation, Beijing Forestry University. Correspondence to: Gerhard K. Heilig, Neulinggasse 16, A-1030 Vienna, Austria; e-mail:
[email protected] This document can be downloaded from: www.gerhard-k-heilig.com 2 Introduction - China’s Rural Development With Deng Xiaoping’s economic reforms in the late 1970s China started its spectacular transi- tion from a state-run economy, based on centralized command and control, to a modern eco- nomic system based on market principles and international cooperation. The first phase in these reforms was the introduction of the “household responsibility system” in the early 1980s, which essentially abandonded the system of communal farming and re-established the autonomy of the individual farm household.