Lives of Poverty, Untouched by China's Boom

By Howard W. French | The New York Times
January 13, 2008

YANGMIAO, China -- When she gets sick, Li Enlan, 78, picks herbs from the woods that grow nearby instead of buying modern medicines. That is not a result of some philosophical choice, though. She has never seen a doctor and, like many residents of this area, lives in a meager barter economy, seldom coming into contact with cash.

"We eat somehow, but it's never enough," Ms. Li said. "At least we're not starving."

In this region of southern Henan Province, in village after village, people are too poor to heat their homes in the winter and many lack basic comforts like running water. Mobile phones, a near ubiquitous symbol of upward mobility throughout much of this country, are seen as an impossible luxury. People here often begin conversations with a phrase that is still not uncommon in today's China: "We are poor."

China has moved more people out of poverty than any other country in recent decades, but the persistence of destitution in places like southern Henan Province fits with the findings of a recent World Bank study that suggests that there are still 300 million poor in China -- three times as many as the bank previously estimated.

Poverty is most severe in China's geographic and social margins, whether the mountainous areas or deserts that ring the country, or areas dominated by ethnic minorities, who for cultural and historic reasons have benefited far less than others from the country's long economic rise.

But it also persists in places like Henan, where population densities are among the greatest in China, and the new wealth of the booming coast beckons, almost mockingly, a mere province away.

"Henan has the largest population of any province, approaching 100 million people, and the land there just cannot support those kinds of numbers," said Albert Keidel, a senior associate at the Carnegie Endowment for International Peace and an expert on Chinese poverty. "It is supposed to be a breadbasket, but there has always been major discrimination against grain-based areas in China. The profit you can get from a hectare of land from vegetables, or a fish farm or oils, is so much more."

Other experts say Henan and other heavily populated parts of the Chinese heartland are often excluded from the financial support that goes to the coastal areas, and what antipoverty measures there are have little effect. Typically, residents of those areas say, money intended for them is appropriated by corrupt local officials, who pocket it or divert it to business investments.

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