Mechanisms and Countermeasures of Precise Poverty Alleviation in Contiguous Destitute Areas -A Study based on Solow-Swan Economic Growth Model

Abstract

China has made achievements on world interest in anti-poverty work since the reform and opening-up, with a drastic decrease in rural poor population nationwide, but poverty presents new characteristics. Based on Solow-Swan Model, this paper suggests that contiguous destitute areas are in low equilibrium and precise poverty alleviation is an external mechanism of introduction of capital, technologies and labor. Whether contiguous destitute areas, as the target of China's poverty relief program, can jump at the chance of precise poverty alleviation to acquire the capability of self-development with the help of external forces and make great strides in development is the key to whether China can complete the building of a moderately prosperous society in all aspects by 2020. Finally, the paper brings forward four countermeasures based on international experience in poverty alleviation: efficient use and accurate management of invested capital, accelerated improvement of labor quality and strict control of fertility rates, precise technological support and establishment of central towns.