Facts on Poverty Reduction and Economic Growth
China
- China's per capita gross domestic product jumped from US $1,071 in 1978 to US $4,726 in 2003, a growth rate almost double that of India. (IFPRI, Lessons Learned from the Dragon (China) and the Elephant (India), 2005).
- Rural poverty in China fell by more than 200 million between 1978 and 2004. This decline has been largely uneven across the country, particularly in rural western China which accounts for 13 million poor. By comparison, the eastern costal region, endowed with favorable geographical and natural conditions, accounts for 4 million poor. (Chinese National Bureau of Statistics, 2004)
- IFPRI research has found that targeted public investments in rural areas led to a substantial decrease in poverty. In China, for every 10,000 yuan invested in education, 9 people were lifted out of poverty. The same level of investment in agricultural research and roads resulted in improved livelihoods for 7 and 3 people, respectively. (IFPRI, Sound Choices for Development: The Impact of Public Investments in Rural India and China, 2002)
India
- India's per capita gross domestic product has increased steadily over the past twenty-five years, from US $1,255 in 1978-lower than the average for Sub-Saharan Africa, which stood at US $1,757-to $2,732 in 2003. (IFPRI, Lessons Learned from the Dragon (China) and the Elephant (India), 2005).
- Over the past two decades, India has achieved significant poverty reduction, although it has not been as far-reaching as China. Between 1980 and 2000, rural poverty in India declined by nearly 25 percent. (IFPRI, Agricultural and Economic Development Strategies and the Transformation of China and India, 2005)
- Public investments in roads, agricultural research, and education in India reduced poverty more than any other type of investment. For every million rupees invested in these three areas, 124, 85 and 41 people, respectively, were lifted out of poverty. (IFPRI, Sound Choices for Development: The Impact of Public Investments in Rural India and China, 2002)