Trapped in poverty? A study of the dibao programme in Shanghai

Abstract

As the secondary means of income redistribution in Chinese society (the primary means being taxation), the Minimum Living Standard Guarantee (MLSG) programme or dibao has been the object of both praise and criticism. The programme helps the government to channel its limited financial resources to the persons who need it most. While it covers the necessities of life, however, it does not enable its recipients to escape from poverty. It has also been criticized for its exorbitant administrative costs and heavy workload. This study uses a qualitative longitudinal design to identify changes across interview intervals and uncover the internal dynamics of the dibao programme. The research findings enrich the current literature on social assistance in China. Forty households receiving dibao in Shanghai were interviewed. Our findings show that most dibao recipients are laid-off workers – casualties of the massive economic reforms of the 1990s – and the younger members of their families. The assistance they receive helps with their daily expenses, but is insufficient to raise them out of poverty.