Abstract:

The Yellow River Basin is critical for solving poverty, specifically the upstream region in the inland northwest of China, where the climate and ecological environment are harsh, economic, and social development lags. Since the implementation of the targeted poverty alleviation policy, the life patterns of farmers and herders in these areas have changed markedly and rural livelihoods have been improved. However, it is unclear whether these investments have generated sustainable increases in the economic status of poor farmers. This is significant for both researchers and the Chinese government. This study surveyed 501 farmer families in the upper reaches of the Yellow River and used the difference in difference model to analyze the influence of the targeted poverty alleviation policy on farmer incomes. By comparing changes before and after implementing the policy for households covered and those not covered by the policy, the influence of the targeted poverty alleviation policy on the livelihoods of low-income families was analyzed. We conclude that the policy has led to an increase in the total income of low-income families and positive effects on poor families relying on agriculture and government subsidies. However, the policy showed an insignificant influence on low-income families relying on non-farming income. The program has also encouraged farming families to increase their sources of capital stock. Hence, we propose that the Chinese government institute policies that provide more balanced growth and support a more sustainable development path for the rural economy and society focus on equalizing public services, increasing human capital, increasing employment of rural labor forces, and promoting efficient allocation of rural resources. They should also accelerate rural land system reform by advancing market allocation of agricultural production factors, clarify land ownership, and break the dependence between farmers and their land, guaranteeing circulating production elements in the countryside and between countries and cities. By joining the sparsely-distributed pieces of land, the natural capital of peasants engaging in planting will be increased. The farmers’ enthusiasm, creativity, and internal growth momentum of the economy will be stimulated by encouraging peasants to participate in public services. An effective measure is to diversify farmers’ cultural activities, improve their cohesion and excite their development power.

Key words: targeted poverty alleviation, livelihood, farmers and herdsmen, the upper reaches of the Yellow River