Despite prolonged economic growth, poverty has become a more notable and
noted feature of Chinese society. The paper examines three phases of
development since the foundation of the People’s Republic: the central planning
era (1949 –1978); the pro-urban growth model (1978 – 1999); and more recent
changes (1999 – 2004). For each phase the nature of the economic and social
policies are described and the effects on poverty and inequality are examined.
The limitations of a social policy that is subservient to the economic strategy are
considered. The alternative of a model of social development based on the
livelihood approach is analysed and its potential to reduce poverty and
inequality are considered.