China's Urban Poverty Line Measure

Along with the economic growth and the government pro-poor policy's implementation, our country has achieved the achievement which attracts worldwide attention, contrast with the rapid increasing in global poverty population from 800 million to 1.3 billion, our country's stricken people 250,000,000 drops absolutely from 250 million in 1978 dropped to 2365 million at the end of 2005. In 2006 the national poverty relief got through 12,000 poor village constructions, the shift training poor area labor force 1,000,000 people, the poverty relief Leading enterprise has led more than 800 ten thousand poor area peasant households to increase the income, according to the most latest news from the national poverty relief, the target of 2007 is reducing 3,000,000 absolutely stricken peoples.However, in the process of the economic system transformation, poverty has emerged on new series of problems; urban poverty has become increasingly prominent in China's cities, it became obstacles and challenges to the coordinated development. In recent years the cities impoverished question has not reduced because of the economical fast growth, on the contrary displays the aggravation tendency. It is estimated that cities impoverished formation rate rose 10% in 1999, urban population impoverished formation rate is 6%-8% in 2005, which is higher than same time the countryside 2.6% levels.With the acceleration of the process of globalization and domestic economic and social reform continued to deepen, the poverty-stricken population in China's cities may also have increased, as some old industrial base and resource depletion-type urban poor population's basic living conditions are worsening. In addition, the existing poverty standards, the long-standing poverty-stricken population, are hard to overcome the abyss of poverty; also has a large number of low-income people out of poverty and large quantities carried in large quantities, and always struggling on the verge of the poverty line. One of the most important of reasons for this phenomenon is that China's current low standard of poverty, and also has some unreasonable situations. Therefore, how to adjust the current urban poor standards, how to develop the poverty line to fit the new environment and define our country's poverty groups accurately has the important meaning to our country new time poverty relief strategy's formulation as well as the aiming impoverished object.From the poverty line measure theory and start with the development of specific methods, this article recalled the theories and methods in the computation of the poverty line. After quantitative analysis about the poverty situation in China's cities, I found that the poverty line based on the traditional measure ways cannot well reflect the status of the urban poor. Absorbing and learning from the merits of the different methods, the paper found some new statistical modeling approach can solve the problems existed in some methods when compute the poverty line, and give the advantages and disadvantages of different methods also list the output of the new method in the text.