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IndexIt’sprovedbypracticethattheflexibleandpracticablepovertytargetingpolicyadoptedbyChineseGovernmentshouldbeanimportantcomponentofChineseexperienceswithruralpovertyreduction.WhatthespeechgivesisabriefreviewoftargetingpolicyinChina,ananalysisofchallengesfacingit,andrecommendationsforinstitutionalinnovation.1.Povertytargetinganditsevolution1.2SelectandidentifypovertystandardforruralChina1981：Percapitaincome50RMBand40RMB1984：Percapitaincome120RMB,self-producedgrain200kg1986：Percapitaannualincome205RMBin1985,Poorruralpopulation125million.AdjusteduptochangesofCPIeachyear2000，Lowincomestandardappearedtobepercapitaincome625RMB-865RMBthatyear1.3FormulateandtimelyadjustpovertytargetingpoliciesinruralChina1.ChangesofpovertyinruralChina:fromregion-baseddistributiontodispersedandclustereddistribution2.Changesoftargeting（1）Fixthetargetingscopesubjecttoadjustmentsearly1980s：18poorareastargetedIn1986,keypoorcountiesfornationalsupportwerefirstselected:countieswithfarmers’percapitaannualincomelowerthan150RMBandethnicminorityareasandoldrevolutionarybasisareaswithpercapitaannualincomelowerthan200RMBin19851.3FormulateandtimelyadjustpovertytargetingpoliciesinruralChinaIn1994,criteriaforselectingkeypoorcountieswaschanged:countieswithpercapitaannualincomelowerthan400RMBwerecovered,andthosewiththeincomeover700RMBin1992graduatedfromthecoverage.Consequently,592keycountiescameuptocoverover72%ofruralpoorinChina（2）RegionaltargetingandcommunitytargetingcombinedSincethe1990s,ashiftoffocushasbeentakingplacefromregionalgrowthtovillage-targetedeffortstoreducepoverty.Informationiscollectedthroughoutvillageswithinthekeypoorcounties,toproducerecordsatalllevelsfromhouseholdstotownshipsandtocounties,sothatsupport,projects,serviceandbenefitscanbeassuredtoreachhouseholdlevel.1.3FormulateandtimelyadjustpovertytargetingpoliciesinruralChina（3）Regionaltargeting,communitytargetingandindividualtargetingarecombinedtorefinethetargetingIn2001,povertyreductioninChinaenteredanewstage,inwhichth
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