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China to raise poverty line to $1 a day

29 November 2011 13:45 (UTC +04:00)

Baku - APA-Economics. China will lift its official poverty line to an annual per capita income of Â¥2 300 ($360) in rural areas, or about $1 dollar per day per person, the official Xinhua News Agency reported on Tuesday.

The near doubling of the existing poverty gauge of Â¥1 274 annually could increase the official number of poor people in China to 100 million or more, according to domestic researchers and analysts, and trigger new central government aid to families and local governments.

Li Shi, a professor with Beijing Normal University, told local media earlier that the number of poor people could reach 130 million if the poverty line was increased to Â¥2 000.

Some local academics have suggested China keeps its poverty line artificially low to magnify its achievements in poverty reduction. But the increasingly wealthy government, which is set to reap Â¥10 trillion fiscal revenue in 2011, appears ready to include more into its poverty aid system, which provides subsidies and tax breaks.

The new poverty line, 92% higher than the existing benchmark, is still short of the $1.25-per-day measure used by the World Bank and is far below the United Statesâ€™ line of $17 347 per year for a three-member family.