Many predicted that its enormous population and style of government could hinder progress for years but China; the current fastest rising superpower in the world was able to reduce poverty at an amazing rate.

From 53% in 1981, poverty in China was successfully diminished to just 8% in 2001. Because of this accomplishment, economists have often acknowledged the third largest country in the world as a great example to other nations in the worldwide quest for progress and development.

Change for progress

According to the research paper Poverty Alleviation in China: A Lesson for the Developing World?, China reduced poverty by simply abandoning economic utopia and accepting the basic rules of entrepreneurship and market mechanism.

China became open to numerous economic options. Agrarian reforms were carried out giving more freedom to farmers in handing business decisions. Not only did this improve the status of farmers but also strengthened the ability of the country to feed its humongous population.

Due to its large demographics, advancement was difficult at first to trickle down to the remote areas of the country. Thus, the government organized projects like subsidized loans, tax reforms, reforestation and infrastructure development to further improve Chinas economic status.

Other projects

Family planning also contributed to the speedy recovery of China. According to a report by the Xinhua News Agency in 2005, the government was able to save a lot of funds due to the countrys population control programs.

"According to 2004 national and provincial expenditure plans, the government must spend 5,000 yuan (US$616) to help one needy person get rid of poverty. In contrast, carrying out the family planning program in poverty-stricken areas only costs 370 yuan (US$45) per capita," said Li Ying, vice governor of Chinas Gansu Province in the report. "As a result, controlling birthrates in these areas is an effective way of fighting poverty and promoting economic and social development.
In more recent news, Chinas premier Wen Jiabao said that the country will concentrate its funds for welfare and rural areas in his annual policy speech. Being the largest exporter in the world, China is likely to overtake Japan as the second highest economy soon.

Due to the improvement in the countrys economy and poverty alleviation, a bright future is expected for investments made in China. Investors who are interested in doing business in China could get in touch with Shareholder Marketing Group, LLC for information and recommendations on how close make a rewarding deal in one of the worlds mightiest economies. Visit their website at http://chinagrowthstocks.net/.