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ID: 163498

Evaluating the effectiveness of the rural minimum living standard guarantee (Dibao) program in China / Kakwani, Nanak

Kakwani, Nanak	Journal Article
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ID: 163503

Evaluating the effectiveness of the rural minimum living standard guarantee (Dibao) program in China / Kakwani, Nanak

Kakwani, Nanak	Journal Article
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Summary/Abstract

China's Rural Minimum Living Standard Guarantee program (Dibao) is the largest social safety-net program in the world. Given the scale and the popularity of Rural Dibao, it is necessary to rigorously evaluate it so that policymakers know the extent to which the program meets its intended objective of reducing poverty. This paper develops some new methods and uses data from the 2013 Chinese Household Income Project (CHIP2013) to examine the targeting performance of the rural Dibao program. The paper has found that the Rural Dibao program suffers from very low targeting accuracy, high exclusion error, and inclusion error, and yields a significant negative social rate of return. It discusses possible causes and argues that the fundamental mechanism has to be redesigned to increase the effectiveness of the program. The paper makes some recommendations to reform Dibao that will significantly improve targeting and reduce the cost of running the program. That will help China to achieve its goal of eradicating extreme poverty by 2020.

Key Words

China ; Poverty Reduction ; Effectiveness ; Dibao Policy ; Social Rate of Return

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ID: 185083

Growth and Common Prosperity in China / Kakwani, Nanak

Kakwani, Nanak	Journal Article
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This paper introduces a decomposition method that quantifies the contributions to common prosperity of labor market performance and social policies and extends the idea of shared prosperity to a new measure of inequity in opportunities. The resulting common prosperity indices and opportunity equality indices are then applied to five waves of the Chinese Household Income Project data from 1988 to 2018. This paper shows that the labor market performance and social policies have been improving over the last 30 years and have helped China move towards common prosperity for everyone. The indices developed in this paper allow us to quantify the extent of shared prosperity that a country has achieved and to carry out empirical studies on which policy is working and which is not. It can also help us identify the fundamental causes of inequality and aid us in achieving equality in opportunity among all members of society.

Key Words

Social Policies ; Common Prosperity ; Income Growth ; Inequity In Opportunity ; Labor Market

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