1.2.1 Measures and policies
From 1986 to 1993，measures to alleviate poverty in rural China included：First，setting up special departments，namely the Leading Group Office for Economic Development in Poor Areas （which was renamed the Leading Group of Poverty Alleviation and Development in 1994 during the Seven-Year Priority Poverty Alleviation Program），at various levels from central government to county-level government to fight poverty.This Office was mainly responsible for formulating policies，selecting targets，making mid-term and yearly plans，allotting funds and projects，coordinating related departments and supervising project progress.
Second，establishing the principle of alleviating poverty in a development-oriented rather than relief-oriented way.
Third，deciding the target of poverty alleviation.In 1986，18 contiguous impoverished areas and 331 state-level poverty-stricken counties were listed by the central government；368 additional poverty counties at provincial levels were identified by local governments （see Box 2）.The national poverty line was defined as the annual per capita income of 200 yuan for rural residents in 1984.
Box 2：Changes in the name and connotation of state-designated poverty-stricken counties
In the course of China’s effort to combat poverty，county governments are always the main constituencies responsible for the implementation of specific works and policies.However，the name and connotation of “poverty-stricken county” have changed many times.Before 1986，some counties were described as “economically disadvantaged”，but no clear standard for a unified national poverty line was raised.In 1986，State Council Leading Group for Economic Development of Poverty-Stricken Areas defined “poverty-stricken county” as the one where people’s annual net income per capita was less than 150 yuan.The number was raised to 200 yuan for those counties located in former key revolutionary areas and ethnic minority areas，or even 250 yuan for some more special regions.At that time，provincial authorities were entitled to designate poverty-stricken counties at provincial level.By the end of 1992，the number of most seriously poverty-stricken counties designated by the state and provincial governments were 331 and 368 respectively.
At the start of the State Seven-Year Priority Poverty Alleviation Program （a program designated to lift 80 million people out of absolute poverty in a period of seven years from 1994 to 2000） in 1994，the central government decided that the poverty alleviation work of state-designated poverty-stricken counties in the six provinces of Guangdong，Fujian，Zhejiang，Jiangsu，Shandong，and Liaoning was handed over to corresponding provinces.Also，China readjusted the standard that the county where people’s annual net income per capita was more than 700 yuan would be removed from the list of state-designated poverty-stricken counties and a county with an annual net income per capita of less than 400 yuan would be added to the list，by which 592 counties were decided as the state poverty-stricken counties.
In 2001 when the Outline for Poverty Alleviation and Development of China’s Rural Areas （2001-2010） was issued，the central government changed the name of “national key counties” to “key counties included in the national plan for poverty alleviation through development？the state’s key poverty alleviation counties？” （hereinafter referred to as “key counties”） and readjusted the list.The total number of key counties was still 592.
In 2011 when the Outline for Poverty Alleviation and Development of China’s Rural Areas （2011-2020） came out，China readjusted the list and the number of “key poverty counties” was still 592.The central government also listed 680 counties that are located in 14 contiguous impoverished areas （hereinafter referred to as “poverty blocks”） based on geographic contiguity，similar causes of poverty and shared local resources.The 14 blocks include 11 blocks，along with the Tibet Autonomous Region，ethnically Tibetan regions in four provinces，and southern parts of Xinjiang Uygur Autonomous Region.There is an overlap of 440 counties between the list of “key poverty counties” and the updated “poverty blocks”.Therefore，since 2011，both “counties located in the poverty blocks” and “key poverty counties” have been categorized as “poverty-stricken counties”，becoming “key poverty alleviation”battlefields.There are 832 poverty-stricken counties nationwide.
Fourth，appropriating 3 special funds，namely the development fund for underdeveloped areas，the Poverty relief through employment fund and special interest-deducted loans，to push forward poverty alleviation work （see Box 3）.In altogether 8 years，the special funds of total 41.6 billion were allotted by the central government，among which 17 billion were grant aid （in the form of both the development fund and the Poverty relief through employment fund） and 24.6 billion were subsidized loans.
Box 3：Poverty alleviation fund provided by the central government
Funds provided by the central government are always the primary financial support for poverty alleviation work，which takes up over 70 percent of mid-and-west China’s fiscal funds for poverty alleviation.From 1980 to 2019，the central government accumulatively allocated 792 billion yuan to help combat poverty.
·Development fund for underdeveloped areas.It was originally set up by the central government with the pool of 800 million yuan every year.In 2018，that number increased to 93.755 billion yuan，which was the largest poverty alleviation fund allocated by the central government.
·Agricultural construction fund for the Three Western Areas.It was established in 1982 to support agricultural development and poverty alleviation work in Dingxi city and the Hexi district of Gansu province，and the Xihaigu district of Ningxia Hui Autonomous Region.The initial investment was 200 million yuan per year，which further increased to 300 million yuan since 2009 and 600 million yuan since 2016.
·Food for work program.It was set up by the central government in 1984 to improve the infrastructure and production conditions and increase job opportunities in impoverished areas with an initial fund of 900 million yuan per year.During the carrying-out of the State Seven-Year Priority Poverty Alleviation Program，the amount was increased to 4 billion yuan annually and has further risen to and stabilized at 4.1 billion yuan since 2013.
·Ethnic minority development fund.Set up in 1992 by the central government，this fund is mainly used to enrich people in ethnic minority areas，support the development of minorities with less population，and ameliorate working and living conditions.The amount of the fund was only 60 million yuan in the first year.In 1996，that number rose to 300 million yuan per year and after a spike since 2009，the figure reached 6.55 billion yuan in 2018.
·Poverty alleviation fund for impoverished state farms and poverty alleviation fund for poor state forestry centers.These two were originally established in 1998 and later allocated as special funds from the central government to subsidize local governments in 2004.They were set to improve the living and working conditions of impoverished farms and forestry centers.In 2015，the central government allocated 420 million yuan and 260 million yuan to impoverished state farms and forestry centers，respectively.
·Special subsidized loans for poverty alleviation.In 1984，large state-owned banks began to issue loans to help alleviate poverty，and the central government has started to provideinterest subsidies for these loans since 1986.The loans，whose initial pool was 2.30 billion yuan in 1986，peaked to 18.50 billion yuan a year during 2001 to 2003，and then stabilized at 14 billion yuan per year for several years after 2008.The corresponding interest subsidies vary with the level of the loans.Since 2001，the fiscal spending on interest subsidies of loans for poverty alleviation was 500 million to 600 million yuan annually.In 2018，that number reached about 13.16 billion yuan.
Additionally，the central government also issued interest-deducted loans of rehabilitation and poverty-relief to support impoverished disabled people since 1992.From 1999 to 2010，the loansworth 800 million yuan per year were issued；since 2011 the number further increased to about 1.03 billion yuan.
Fifth，introducing a series of other preferential policies including reducing order quantity of agricultural products，reducing or exempting agricultural tax，exempting corporate income tax of newly-established developmental enterprises in poverty-stricken areas，allotting special，fixed，or livelihood grants，and giving stronger support to targeted poor areas[15].
Generally speaking，development-oriented poverty alleviation efforts in this period were carried based on regional strategies，and all the attempts were performed on exploratory approaches.Trials including indirect approach by granting loans to economic entities and direct granting-to-rural households’ approach both failed to solve the problems of low repayment rate and low rate of successful lending to rural households.Additionally，improving infrastructures and constructing water conservancy works were also once on the done list.