A Comparative Study On Influence Factors Of Poverty And Poverty Reduction Policies Between China And Pakistan

Poverty is a central problem in developing world,and is an issue arises by the influence factors like income,consumption,health,food and education.Though all developing countries in the world including China and Pakistan want to reduce poverty and there is no consensus on a holistic approach to tackling this problem.A fast developing country China and the developing country Pakistan taking an effective steps to reduce poverty,since economic reforms from 1978,China has started suggestive and has achieved outstanding poverty reduction.While poverty in Pakistan,have fluctuated since over time.The present thesis aims to understand the influencing factors of poverty between China and Pakistan and poverty reduction policies to compare the left behind progress of Pakistan poverty reduction through learning lesson by the progress of China's Poverty alleviation.In this thesis we uses primary data of household survey in Sindh province in Pakistan and Anhui province in China,based on household survey the primary data was collected by the survey method.A final questionnaire was developed based on a pre-tested survey,supplemented by face-to-face interviews to collect the data.After information concerning the villages and their populations,a comprehensive sampling method was developed whereby households were enlisted for survey.The respondents were from 30 villages in the Kambar Shahdadkot(16 villages)and Badin(14 villages)regions of Sindh Province,Pakistan and from 30 villages of the BoZhou(18 villages)and ShuCheng(12 villages)counties in Anhui Province,China.A total of 800 fully completed questionnaires,included 400 from Pakistan and 400 from China,were used for the present thesis.A statistical method as binary logit model and ordinary least squares regression were conducted to identify the key factors that increase or decrease the rural poverty,the correlation test was conducted to understand the positive and negative relationships between influencing factors of household per capita income between both countries.Descriptive statistics were used to analyze the households'demographic,economic,and social characteristics as well as the government subsidy policies implemented for poverty reduction.To understand the women economic status and poverty situation between both countries,a probity regression model was applied,and the Gini coefficient based on Lorenz curve was used to analyze the inequality in Income distribution of household income between Pakistan and China.The study demonstrated that the influencing factors such as larger household size,higher female/male ratio,dependency ratio and the presence of a greater number of infants in a household all increase the incidence of rural poverty and lowers the per capita income in Pakistan,while in China,the presence of a greater number of infants and sick people in a household has been recognized as a principal factor influencing the likelihood of rural poverty.In Pakistan,the majority of rural households depend on income from agriculture and livestock.Findings indicate that land ownership(acre)and operational landholding(acre)reduce the risk of poverty.The livestock sector also supports rural households in alleviating poverty,as an essential sector of rural livelihood,particularly for the smaller subsistence farmers.It has the highest potential for economic growth and poverty reduction in Pakistan.In both China and Pakistan,the number of earners in a household has a significant role to play in reducing rural poverty.However,in China,we have observed that income from external employment increases a household's per capita income and thus decreases the risk of poverty.Education is crucial for both countries:our findings verified that education plays a significant role in reducing a household's likelihood of suffering poverty,and that,as education increases,the probability of being poor decreases.Therefore,education should be carefully considered in implementing the poverty reduction programs.Only the education subsidy was found to significantly reduce rural poverty in Pakistan.However,in China,government subsidy policies(including income subsidy,medical subsidy and education subsidy)were identified as major factors in the alleviation of rural poverty.In Pakistan,these policies have not been effectively implemented in the absence of strong government funding for poverty alleviation and the management of the monetary system.As a result,those in extreme poverty are largely unable to access the necessary facilities provided by the government because they lack education,necessary education and high social attention,and cannot share the fruits of economic development.It leads to more poverty and to unprecedented levels.Women poverty is also a key factor to neglect the economic development,unequal gender rights to education,nutrition's,assets ownership,health issues,and politics are the main problems of poverty.The study represents the value of Gini Coefficient in China was 0.43 which indicated there is unequal distribution if income on household income,while the results of Pakistan's Gini Coefficient was 0.48,which demonstrates that there is income disparity among sample households in the study area.The comparative results of Gini Coefficient shows there is high income inequality in distribution of income of Pakistan's household than the income distribution in China's household.The study also compares the women economic status and poverty between two in Pakistan and China.The status of rural women in both countries improved by time,but comparatively,Chinese women are less poor and getting more benefits of women power.The women in Pakistan are less educated,less employed,facing cultural restriction to work out of the city,and mostly they are not generating income or having very less income.While,Chinese women are getting equal rights in terms of education,employment,and business activities.The Pakistani women were poorer,and having less power comparing with Chinese rural women.Overall,our study illustrates that China has seen greater progress in the alleviation of rural poverty than has Pakistan,owing to China's more efficient policies and gender equality.The study concluded that this comparative analysis yields valuable lessons for Pakistan with regard to efficient poverty reduction policies that will support rural livelihood and welfare and accelerate economic growth.The study suggested that the China's effective policies of employment,income subsidy,health subsidy,compulsory education,and gender equality are the major policies supported to reduce poverty in China,and provides a lesson to Pakistan to alleviate poverty.