Coherent Identifier About this item: 20.500.12592/x9pztm

Poverty, Vulnerability, and Fiscal Sustainability in the People’s Republic of China—Highlights

26 June 2021

Summary

Expenditure on education rose from 1.8% of GDP in 2000 to 3.9% in 2012 before declining to 3.5% in 2019; health spending rose from 0.5% in 2000 to 1.7% in 2019 with a peak of 1.8% in 2016; and social security and employment spending rose from 2.0% in 2007 to 3.0% in 2019. [...] The government needs to consider the level of social services and protection financed by the state against the amount shouldered by individuals and households. [...] This report focuses on the vulnerability and risks of four specific groups: (i) the elderly; (ii) young children of rural migrants; (iii) the rural population and rural-to-urban migrants; and (iv) those whose access to health care is jeopardized by urbanization and aging. [...] Both the central government and the local government must pay attention to the amount of existing debt in comparison to the interest rate sensitivity of demand for government bonds. [...] In addition, the response to the pandemic laid bare both the strengths and weaknesses of the PRC healthcare system.

Authors

Tags

china, people's republic of china, prc economy, poverty reduction, economic vuln

Pages
15
ADBI
Asian Development Bank Institute