Chinese economic - Admission/Application Essay Example

Chinese Economic Living Standards: Incomes, Inequality and Poverty This chapter presents insights about the economic performance of the Chinese population by analyzing their living standards in terms of incomes, inequalities and poverty. The chapter explicitly provides evidence on the income growth on the Chinese people. China is portrayed as a growing economy with rapid growth in household incomes. The chapter provides a chronological progress of the level of income through literature and tabulation.

The growth of incomes is influential in dramatic reduction of poverty and risks while it has also increased consumption and leisure, thereby improving the living standards of the Chinese population. However, the literature shows that the income distribution in china is characterized by inequalities as the gap between the poor and the rich has widened significantly. The rural Chinese population has low incomes compared to urban areas and therefore experience low living standards. This chapter provides illumination on the reasons for the rise in the level of poor population despite the growth in economy and increase in income.

It is imperative to note that overall, the growth in the Chinese economy has immensely reduced the poverty level. However, the economic growth pattern indicate that there is low rural poverty alleviation with more rural population living below the poverty line. We can therefore conclude that there is a very high rate of inequality in income distribution among the Chinese population which has led to some people being very rich while others languishing in poverty. When looking at the progress of poverty elevation in china, some questions that linger include; why does the Chinese data on poverty alleviation differ from those of the World Bank?

With the persistent economic growth in china, why has poverty alleviation been slow since 1996? In my opinion, the gap between the rich and poor was trigger by reforms since before reforms, nobody was able to own any income-generating capital and therefore, the equality level was very high. Work CitedNaughton. Barry. The Chinese Economy. The MIT Press. October 27, 2006. Print.