According to New China TV, the entirety of the people of Sichuan province is officially out of absolute poverty.
The last portion of population belonged to the autonomous prefecture of Liangshan Yi, inhabited by Yi minorities.
CGTN reported on Xinjiang and Yunnan people casting off poverty a week ago.
China’s fight against poverty
This is an historical moment and an extremely important step forward to eradicate poverty in all China. We discussed the work that Chinese government is doing one month ago in another article. You can also find the detailed requirements according to Chinese government in this post.
The plan is to abolish absolute poverty before the end of 2021, the centenary of the Communist Party of China.
Economic and social consequences of the eradication of absolute poverty
Millions of previously deeply impoverished people are being lifted out of poverty. The economic results are going to be huge, but the social results are even more interesting.
From an economic perspective, the lower class will grow in average income and struggle less with life needs. On the social side, children and adults study so that they can shape a better future for themselves without any aid. Many adults are, for example, starting small businesses and promoting their rural and cultural heritage. Many middle class citizens of China are happy to help them by purchasing their products and visiting their villages.
This is undoubtedly a good news for humanity that shapes also the economic future of China. A country where every person is able to support himself or herself is ideal for long term investments and SME.
On the other hand, of course, it is just one more confirmation against a short term cash-it-out approach. The simple fact that the Chinese government is doing so much to resolve the problem of poverty means that resources are being moved from the rich to the poor, and not viceversa.