A Statistical Measurement of Poverty Reduction Effectiveness: Using China as an Example

Abstract

Poverty is no longer a problem of income alone. Healthy poverty and capacity poverty have become key factors affecting the poverty reduction effectiveness. Based on “double cut-offs” multidimensional poverty identification method of Alkire and Foster (J Public Econ 95(7–8): 476–487, 2011), this paper proposes a “triple cut-offs” identification method of multidimensional poverty reduction effectiveness, and construct the chronic multidimensional poverty reduction index combined with chronic thinking of Foster (in: Addison T, Hulme D, Kanbur R (eds) Poverty dynamics: interdisciplinary perspectives. Oxford University Press, Oxford, pp 59–76, 2009). And this index can comprehensively and systematically measure the China’s multidimensional poverty reduction effectiveness in terms of both poverty alleviation and poverty returning. In this paper, we find that China's chronic multidimensional poverty alleviation index is greater than the country’s chronic poverty returning index, and the chronic multidimensional poverty alleviation/returning index in rural and western regions is greater than that in its cities and other regions in China. The chronic poverty alleviation of per capita net income and medical insurance have contributed a lot to the overall chronic multidimensional poverty alleviation of China’s rural residents, while poverty returning caused by health and housing difficulties has contributed a lot (48.14%) to the chronic multidimensional poverty alleviation of the country’s urban residents. These findings can provide more targeted guidance for poverty governance.