by Adnan Bourji
Many Arab countries are going through challenging economic and social crises, which have resulted in their poverty rates and inflation rates rising to an unprecedented level. Thus, it has become imperative for those governments to seek a way to reduce poverty, which has devastating effects on societies and nations, not only for the current generation, but also for future generations.
Those governments face two different approaches, methods, and, of course, results.
The first approach is advised by the World Bank and the International Monetary Fund (IMF) on the basis of the rules that can be summarized as follows:
1. Slashing the number of employees in the public sector, reducing their wages, and replacing permanent jobs with contractual ones based on the ruling parties' will, which lead to the sector's paralysis and increased corruption and bribery. In Lebanon, for instance, the salaries paid to employees in public jobs are not sufficient anymore for their daily transportation to work.
2. Imposing economic and political conditions in return for offering loans that are spent not to build a solid production base, but rather for immediate assistance to low-income families at best, after deducting the wages of employees and administrators, and accommodation for managers in luxury hotels, brokerages, and so on. In Lebanon, for example, an American institution provided a 150-million-U.S.-dollar loan to support public education, but more than two-thirds of the money went to salaries, wages, and study allowances, while the manager of the project changed five times within five years. It did not bring any tangible results for the development of formal education. Examples are too many to enumerate.
3. Doubling debts, burdening the poor with taxes, and imposing political wills that contradict people's aspirations, which generates disagreements and instability in the overall system of these countries.
This prescription has not brought any country in the world out of its economic misery, nor has it eradicated poverty or guaranteed sustainable development.
Another approach lies in the rich experience of China, who has achieved poverty alleviation within a few years.
In November 2015, in a speech delivered at a conference on poverty alleviation and development, Chinese President Xi Jinping said that "eliminating poverty, improving living standards, and achieving common prosperity are the basic requirements of socialism."
Notably, the number of poor people in China was not small then at all, as one out of every three counties, or 832 counties in total, were labeled "poverty-stricken" in 2013.
The strategies taken by China included the following ones:
1. Adopting a clear political decision from the highest power in the country and a commitment to implement it at all governmental and party levels.
2. Pursuing a strategy of teaching poor people to fish instead of providing them the fish.
3. Encouraging prosperous cities and regions to help poor provinces in a way similar to twinning programs.
4. Launching specific industries in underdeveloped areas. For example, 30 counties have been identified in six provinces to manufacture photovoltaic panels.
5. Promoting e-commerce in 428 poor counties in 2016.
6. Selling simple products and items through e-commerce platforms.
The strategy's execution is as follows:
1. Examining the causes of poverty in each region, building a file for each low-income family, including the family's actual situation and the qualification of its members, and exploring their abilities.
2. Giving low-income families a direct financial subsidy and providing adequate housing in a way that guarantees psychological stability, and cultivates confidence and hope among families. At the same time, the government provided the requirements for sustainable development in the region where poverty is addressed: securing free and compulsory education, health and hospital treatment, and moral support.
3. Pushing people toward earning money by providing loans for companies involved in creating job opportunities for the poor.
4. Resettling some population groups to areas where the necessities of a decent life can be guaranteed.
5. Encouraging rural tourism and making rural homes become small hotels during weekends and official holidays.
6. Supporting local projects in proportion to the capabilities of each region and providing project owners with the necessary expertise and assistance in managing production.
China did not monopolize its experience in eradicating poverty. Based on the conviction of its current leadership in the building of a community with a shared future for mankind, China has cooperated with the International Poverty Reduction Center in China, the United Nations Development Program, the World Bank, the ASEAN-China Social Development and Poverty Reduction Forum, and the Africa-China Poverty Reduction and Development Conference.
China has achieved a complete eradication of extreme poverty on schedule in 2020, raising more than 770 million people from poverty since its reform and opening up in late 1970s.
Based on the foregoing, we are naturally in favor of the Chinese experience. We see the possibility of its success in troubled Arab countries, because it is human-oriented, relies on one's capabilities, benefits from other experiences, and aims to build a society of sufficiency and justice.
Therefore, What should we do as Arab countries?
1. Study the Chinese experience in-depth with the help of Arab experts within China and in the provinces where poverty was eradicated.
2. Bring Chinese experts to Arab countries to explain the experience, provide expertise, and set up workshops in cities and rural areas instead of bringing in Western institutions at very high costs. For example, global management consultancy McKinsey & Company received more than 1 million dollars for offering Lebanon a strategy similar to the World Bank and the International Monetary Fund. In our estimation, China is willing to offer its expertise free of charge, because it stems from its philosophy that humanity shares a common future and that everyone must be successful.
3. Draw inspiration from the experience of sustainable development that China has followed and succeeded in achieving. Every Arab country has material and human resources that can bring about sustainable development if there is a determined will and sound management.
In conclusion, humanity is facing a pioneering experience in eradicating poverty. It may have its characteristics and conditions, but if there is will, honesty and sincerity, every society can eliminate poverty within itself, especially in troubled Arab countries, because poverty is not inherited.
Editor's note: Adnan Bourji is the director of the Lebanese National Center for Studies.
