How Effective are Decentralized Anti-poverty Programs?

This study examines the effectiveness of China's National Poor Counties(NPC)program,a decentralized anti-poverty initiative,by analyzing five rounds of individual-level panel data from 1988 to 2008.The impact of two waves of the NPC program(1994 and 2001)is evaluated utilizing a panel fixed-effects regression model.The results indicate substantial positive effects,with residents in NPC counties experiencing a 47 percent income increase,3.1 percent higher employment rates,and a 5.7 percent rise in household expenditure from 1988 to 2008,in comparison with non-NPC counties.Notably,the program benefited vulnerable populations,dispelling concerns about"elite capture."The study also reveals that evolving policy focus has played a pivotal role in sustaining the effects of the program over time.The 1994 round prioritized low-skilled employment,and the 2001 wave emphasized productivity enhancement through skills development.These findings highlight the continued efficacy of decentralized anti-povertyefforts.