How to precisely understand the poverty standard? One article takes you through the key points

At present, China uses a per capita annual net income of farmers of 2300 yuan (at constant 2010 prices) as the national poverty alleviation standard. On comprehensive consideration, this standard is reasonable. However, some misunderstandings also exist in society. For example, some people do not take into account factors such as price changes after the base year, and directly convert 2300 yuan using the exchange rate, mistakenly believing that China's poverty alleviation standard means a living expense of only about 1 US dollar per person per day; some people directly compare 2300 yuan with the poverty lines of developed countries of tens of thousands of US dollars, and believe that China's 2015 poverty rate of 5.7% is lower than the poverty rate of about 15% in developed countries, and is therefore not real; some people believe that after "the rural poor population is lifted out of poverty," there will no longer be any poverty problem. Therefore, targeted poverty alleviation requires a precise understanding of the poverty standard.

Comparing poverty standards around the world, it can be seen that the formulation of each country's poverty standard comprehensively considers factors such as financial capacity, income level, and subsistence needs, and standards vary because national conditions differ. Among them, there are both absolute poverty and relative poverty, and the standards are dynamically adjusted. The former refers to difficulty in maintaining basic living, while the latter refers to being unable to live the life of the majority. Absolute poverty can be eliminated, while relative poverty exists for a long time. For example, the United States, Japan, and major developed countries in Europe have eliminated absolute poverty, but their relative poverty rates remain as high as about 15%. National poverty standards constantly change with economic and social development, and more and more factors are considered. Most countries conduct regular surveys and adjust poverty standards in a timely manner. Poverty measurement has shifted from one-dimensional to multi-dimensional. At the beginning, it was mainly based on food needs, later adding needs such as housing, education, and transportation, and now some non-income and consumption expenditures have also been included.

A comprehensive comparison of international and domestic poverty standards shows the following: First, the current standard conforms to national conditions and affordability. The poverty standard formulated by China fully takes into account financial capacity and the target group for poverty alleviation. China has basically eliminated the poor population under the 1978 standard and the 2008 standard. The current standard can basically ensure that the poor population has "two no worries and three guarantees," and is generally compatible with the requirements of building a moderately prosperous society in all respects. Second, China's poverty standard is gradually aligning with international standards. In 2015, China's actual poverty standard had already reached about 2.12 US dollars per person per day in living expenses, already higher than the international absolute poverty standard of 1.9 US dollars. Third, whether international poverty standards or China's poverty standard, they are all constantly adjusted. The World Bank's absolute poverty line has been announced 4 times, from 1.01 US dollars per person per day in 1990 to 1.9 US dollars in 2015. China's poverty standard has been adjusted 3 times, from a per capita annual net income of 206 yuan in 1986 to 865 yuan in 2001 and 2300 yuan in 2010. Fourth, adjusting the standard in a timely manner benefits both the people and the country. Changing the standard is for the benefit of the people. For example, in 2011 it covered an additional 140 million people.

Since China's per capita GDP has reached 7800 US dollars and it is an upper-middle-income country, the World Bank recommends that China use the general poverty standard for developing countries of 3.1 US dollars. The author believes that next, after the task of building a moderately prosperous society in all respects and poverty alleviation is completed, China can gradually align with this international general poverty line. However, if China's poverty standard is to approach the target of the 3.1 US dollar international poverty line in 2020, it will need to grow by about 7% annually over the next 5 years. Taking into account factors such as price changes, the average annual growth rate of China's poverty standard over the past 4 years was only 3%. Therefore, it is necessary to gradually include part of the necessary development needs of poor families in the calculation scope. It is suggested that the state encourage areas with the capacity to gradually publish more appropriate standards based on rising prices and the development needs of poor families.